E-15B (Rev. 12/03) in a Criminal Case UNI TED 734 TE8 couitsf EASTERN DISTRICT OF NEW YORK fir MR 1 . CENTRAL ISLIP DIVISION UNITED STATES OF AMERICA JUDGMENT IN A CRIMINAL CASE CASE NUMBER: 2003CR-476-01 VS. MATTHEW CAHILL Defendant's Attorney: Marc Gann THE DEFENDANT: pleaded guilty to count(s) ONE through ELEVEN of an ELEVEN COUNT INFORMATION pleaded nolo contendere to {count} which was accepted by the court. was found guilty on count(s) [eount| after a plea of not guilty. EIZI IE3 IE The defendant is adjudicated guilty of these offenses: DATE OFFENSE COUNT TITLE SECTION NATURE OF OFFENSE CONCLUDED 18 USC 371 CONSPIRACY TO COMMIT MAIL ONE (1) FRAUD, a Class Felony 21 USC 331 and INTRODUCTION OF A MISBRANDED TWO - 333(a)( 2) DRUG INTO INTERSTATE COMMERCE, ELEVEN A Class Felony The defendant is sentenced as provided in pages 2 through 5 of this judgment. The sentence is imposed pursuant to the Sentencing Reform Act of 198-4. - QThe defendant has been found not guilty on count(s) QAfter all appeals are exhausted count(s) dismissed on the motion of the United States It is ordered that the defevndantwmust notify the United States attorney for this district within 30 days of any Change of name, residence, or mailing address until all lines, restitution, costs, and special assessments imposed by' this judgment are fuI1y paid. If ordered to pay restitution, the defendant must notity the court and United States attorney oi' material changes in economic circumstances. Date of Imposition of March 11 2005 - i -A . THOMAJS C. PLATT 1 March .3 .2005 A cow ATTEST DA D: ROBERT C. iv A0 24513 Judgment in :1 Criminal Case Sheet 2 imprisonment Defendant: MATTHEW CAHILL Judgment - Page 2 of; Case No.: ZOOBCR476 -01 IMPRISONMENT The defendant is hereb committed to the custody of the United States Bureau of Prisons to be imprisoned for a term of TWENTY-FOUR (24) MONTHS on each count to run concurrent. The court makes the following recommendations to the Bureau of Prisons: The defendant be designated to or another appropriate facility near his family residence. The defendant is remanded to the custody of the United States Marshal. The defendant shall surrender to the United States Marshal for this district. at a.m.!p.rn. on "as notified by the United States Marshal. The defendant shall surrender for service of sentence at the institution designated by the Bureau of Prisons. before 2 p.m. on Ma 6 2995 . If the defendant is not designated within the given time frame he/she should surrender to the Mars als office in If the defendant has not already done so at the time of sentence hefshe should communicate with the Mars als office to obtain information regarding the procedures for voluntary surrender. as notified by the United States Marshal. 11:1 as notified by the Probation or Pretrial Services Office. RETURN I have executed this judgment as follows: Defendant delivered on to at . with a certified copy of this judgment. United States Marshal By: Deputy Marshal A0 2458 (Rev. 12f{}3) Judgment in a Criminal Supervised Release Judgment - Page of _5 SUPERVISED RELEASE Upon release from imprisonment, the defendant shall be on supervised release for a term of THREE (3) YEARS on each count to run concurrent. The defendant shall report to the robation office in the district to which the defendant is released within 72 hours of release from the custody of the Bureau of risons. While on supervised release, the defendant shall not commit another federal, state, or local crime, and shall not possess a firearm, ammunition, or destructive device as defined in 18 U.S.C 921. The defendant shall refrain from any unlawful use and possession of a controlled substance. 'The defendant shall submit to one drug test within l5 days of release from imprisonment and at least two periodic drug tests thereafter, as directed by the probation officer. The above drug testing condition is suspended based on the court's determination that the defendant poses a low risk of future substance abuse. (Check if applicable.) The defendant shall not possess a firearm, destructive device, or any other dangerous weapon. (Check, if applicable.) The defendant shall cooperate in the collection of DNA as directed by the probation officer. (Check, if applicable.) The defendant shall register with the state sex offender registration agency in the state where the defendant resides, works, or is a student, as directed by the probation officer. {Check if applicable.) The defendant shall participate in an approved program for domestic violence. (Check, if applicable.) The defendant shall comply with the following standard conditions that have been adopted by this court. STANDARD CONDITIONS OF SUPERVISION l) the defendant shall not leave the judicial district without the permission of the court or probation officer; 2) the defendant shall report to the probation officer as directed by the court or probation officer and shall submit a truthful and complete written report within the first five days of each month; 3) tlifp?lefendant shall answer truthfully. all inquiries by the probation officer and follow the instruction of the probation 1 er; 4) the defendant shall support his or her dependents and meet other family responsibilities; 5) the defendant shall work regularly at a lawful occupation unless excused by the probation officer for schooling, training, or other acceptable reasons; 6) the defendant shall notify the probation officer ten days prior to any change in 'residence or employment; 7) the defendant shall refrain from excessive use of alcohol and shall not purchase, possess, use, distribute, or administer any narcotic or other controlled substance, or 'any paraphernalia related to such substances', except as prescribed by a physician, and shall submit to periodic urinalysis tests as directed by the probation officer to determine the use of any controlled substance; 8) the defendant shall not frequent places where controlled substances are illegally sold, used, distributed, or administered; 9) the defendant shall not associate with any persons engaged in and shall not associate with any person convicted of a felony unless granted permission to do so by the probation officer; 10) the defendant shall permit a probation officer to visit him or her at any time at home or elsewhere and shall permit confiscation oi' any contraband observed in plain view by the probation officer; 1 I) the defendant shall notify the probation officer within seventy-two hours of being arrested or questioned by a law officer; 12} the defendant shall not enter into any agreeineiit to act as an informei' or a special agent of a law enforcement agency without the permission of the court; 13) as directed by 'the probation officer. the d_efendant shall parties of that may be occasioned the tlei'_e1__1clai_1t's criminal record or personal history or chai'acteristics. and shall permit the probation officer to make such iiotiliczitions and to the delei1daiit's t:oinphaiice witli such notification requiremeiit. 143 if this jtidgmciit imposes a fine or Et iestitution obligation, it shall he a condition of stipcrvisctl release that the tlcfeiiclaiit pay such line or restitution in accordance the Strlie-dt.ile of set forth in the slice: of this A0 2458 (Rev. 12:03} in 21 Criminal Case- Crinimat Moneiar Penalties Defendant: MATTHEW CAHILL Judgment - Pageiofi Case No; 2003CR 476-01 CRIMINAL MONETARY PENALTIES The defendant shai} pay the foiiowing total criminal monetary penalties in accordance with the schedule of payments set forth on Sheet 5, Part B. The defendant shall pay interest on any fine or restitution of more than $2,500, unless the fine or restitution is paid in full before the fifteenth day after the date of jud ment, pursuant to 18 U.S.C. ?3612(t). All of the payment options on Sheet 5, Part may be subject to penalties for default an delinquency pursuant to 18 U.S.C. ?3612(g). Assessment Fine Total Restitution Totals: $1,100.00 ($100.00 on each ct.) FINE The above fine inciudes costs of incarceration andfor supervision in the amount of RESTITUTION The determination of restitution is deferred until An Amended Judgment in a Criminai Case will be entered after such a determination. The US. Attorneys Office is directed to provide the necessary information to the court. 9 The defendant shall make restitution to the following victims in the amounts listed below: Restitution is ordered jointly and severally with: riorit Ord_ _r or Name of Payee of Loss Egryiigildngige 0 Totals: If the defendant makes a partial payment, each payee shail receive an approximately proportional payment unless specified otherwise in the priority -order or percentage payment coiumn above. The amount _of loss and the aniou_nt_of restitution ordered will be the same unless, pursuant to 18 U.S.C. the court orders nominal payments and this is reflected on Sheet 6, Statement of Reasons. Restitution amount ordered pursuant to plea The defendant must pay interest on restitution and a fine of more than $2,500, unless the restitution or fine is paid in full before fifteenth day after the date of the judgment, pursuant to 18 U.S.C. All of the payment options on Sheet 6 may be to penaities for delinquency and defauit, pursuant to 18 U.S.C. The court determined that the defendant does not have the to pay interest and it is ordered that: the interest requirement is waived for fine restitution. the interest requirement for fine restitution is modified as follows: I 24513 (Rev. 12503) Judgment in a Case- Criminal Monetary Penalties ,::ater as i SCHEDULE OF PAYMENTS Payments shall be applied in the following order: assessment; (2) non-federal restitution; (3) federal restitution; (4) fine principal; (5) costs; (6) interest; penalties. Payment of the total criminal monetary penalties shall be due as follows: I. in full A due immediately B. on or before 11. In installments A. monthl in installments of 5 over a period of months, to commence days after date of this ju gment. an in installments of over a period of to commence days after the date of this judgment. Any payment ordered under Part 11, must comply with 18 U.S.C. ?3572, 18 ?3664(n), and include a provision under 18 U.S.C. ?3664(k) in which defendant must notif the court of any material changes in defendant's.econ0mic circumstances. Upon such notice, the court may adjust installment payment schedule. Special instructions regarding the payment of criminal monetary penalties pursuant to 18 U.S.C. 'In the event the entire arriount of criminal monetary penalties imposed is not paid rior to the coinrnencement of the US. probation olfrcer shall pursue collection of the amount due. The de endant will receive credit for all payments previously made toward any criminal monetary penalties imposed. The defendant shali forfeit the defendant's interest in the following property to the United States: As indicated in the March 1 l, 2005 Final Order of Forfeiture attached and ordered part of this judgment. if this judgment imposes a eriod of imprisonment, payment of criminal monetary penalties shall be due during the period of All criniina monetary penalty payments, except those payments made through the Bureau oi Prisons' Inmate Fniancial Responsibility Program, are to be made to the Clerk, US. District Court, unless otherwise directed by the court. F. UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK 03 047 in UNITED STATES OF AMERICA I A 0 FILE -- against -- No. A . MATTHEW J. CAHILL, 331(a) and 333(a) also known as 3% APR 25 [103 Title, 371, "Brandon Walsh. and @981, 2 and 3551 JASON S. SACKS, T. 28, U.S.C., 2461(c)) also known as LONG Preston" and "Jay," Defendants." . . THE UNITED STATES ATTORNEY CHARGES: INTRODUCTION At all times relevant to this Information: 1. Congress enacted the Federal Food, Drug and Cosmetic Act, which is set forth in Sections 301 to 397 of Title 21 of the United States Code, to protect the public from, among other things, drugs that were misbranded or not proven to be safe and effective for their intended uses. 2. Sections 331(a) and 333(a)(2) of Title 21, United States Code, prohibited.the introduction.or causing the introduction into interstate commerce of any drug that was misbranded with the intent to defraud or mislead. 3. Pursuant to Title 21, United States Code, Section 352(f), a drug was deemed to be misbranded unless its labeling bore, among other things, adequate directions for its use and adequate warnings against its use where such use could be dangerous to the user's health. 4. Pursuant to Title 21, United States Code, Section 352(0), a drug was also deemed to be misbranded unless it was manufactured, prepared, propagated, compounded or processed in an establishment that was duly registered with the Secretary of the United States Department of Health and Human Services ("the Secretary"). 5. 2,4--Dinitrophenol was used commercially in the manufacture of dyes and wood preservatives and as a pesticide. DNP was not approved for human consumption and was highly toxic to "humans. Oral exposure to DNP could cause nausea, vomiting, sweating, dizziness, headache and.*weight loss. A. lethal dose following oral exposure was approximately 14 to 43 milligrams per kilogram of body weight. 6. DNP has been sold as a weight loss "drug" because, when ingested.by humans, DNP increases the body's metabolic rate and causes weight loss. Title 21, -United States Code, Section 32l(g)(l)(C) defined a "drug" to include "articles . . . intended to affect the structure or any function of the body of man." Because DNP was not approved by the United States Food and Drug Administration as a drug, however, there could be no appropriate labeling bearing adequate directions for its use or adequate warnings against its use. 7. The defendant MATTHEW J. CAHILL resided at 864 Merrick Avenue, East Meadow, New York. The defendant MATTHEW J. CAHILL used the e~mail addresses designerlabs@yahoo.com, designerlabs@ziplip.com and orders@designerlab.com to identify himself over the Internet. 8. The defendant JASON S. SACKS resided at 359 Blacksmith Road, Levittown, New York. The defendant JASON S. SACKS used the e--mail addresses designerlabs@yahoo.com, designerlabs@ziplip.com and orders@designerlab.com to identify himself over the Internet. 9. J. CAHILL and JASON S. SACKS together operated a tmsiness called designerlabs.com, a which distributed, among other things, DNP, steroids, vicodin and Valium (hereinafter the "contraband") over the Internet. 10. The defendant MATTHEW J. CAHILL was responsible for obtaining the contraband from suppliers and for receiving payment from the purchasers of the contraband. 11. The defendant JASON S. SACKS was responsible for sending to the purchasers, through Priority and Express Mail, the packages containing the contraband. COUNT ONE (Conspiracy to Commit Mail Fraud) 12. Paragraphs one through.eleven.of this Information.are realleged and incorporated as if fully set forth in this paragraph. 13. On. or about April 11, 2002, within the Eastern District of New York and elsewhere, the defendants MATTHEW J. CAHILL, also known as "Brandon Walsh," and JASON S. SACKS, also known as Preston" and "Jay," knowingly and intentionally conspired. to <