2012 Ron Kightlinger Sentencing Transcript 2013

Case: 1:12-cr-00422-DCN Doc #: 64 Filed: 11/25/13 1 of 21.
PageID #: 554
UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF OHIO

EASTERN DIVISION
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UNITED STATES OF AMERICA,
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Plaintiff,
vs.
RONALD L. KIGHTLINGER, JR.,
Defendant.
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Case No.
1:12CR00028
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TRANSCRIPT OF PROCEEDINGS HAD BEFORE THE HONORABLE

JUDGE DONALD C. NUGENT, JUDGE OF SAID COURT,
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ON FRIDAY, SEPTEMBER 27TH, 2013,
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COMMENCING AT 10:00 O'CLOCK A.M.
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Court Reporter:
GEORGE J. STAIDUHAR
801 W. SUPERIOR AVE.,
SUITE 7-184
CLEVELAND, OHIO 44113
(216) 357-7128
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Case: 1:12-cr-00422-DCN Doc #: 64 Filed: 11/25/13 2 of 21. PageID #: 555
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APPEARANCES:
On behalf of the Government:
OFFICE OF THE U.S. ATTORNEY
BY: VASILE KATSAROS, AUSA
801 W. Superior Avenue, Suite 400
Cleveland, OH 44113
On behalf of the Defendant:
FRANK GORCZYCA, ESQ.

2000 Standard Building
1370 Ontario Street
Cleveland, OH 44113
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PROCEEDINGS
THE COURT: We are here in Case 12-422. It
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is entitled United States versus Ronald Kightlinger. I
am saying your name correctly, aren't I, Ronald?
THE DEFENDANT: Yes, you did, sir.
THE COURT: All right. Do you want to stand
behind the podium for me?

Okay. Now, Mr. Kightlinger, as you know,
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you were previously here and entered guilty pleas, and I
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did refer this matter to the Probation Department for the
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preparation of a presentence report. I have a copy of
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the report, and I am prepared to go forward with
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sentencing today.
Is there any reason why we shouldn't do the
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report?
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THE DEFENDANT: No, sir.
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THE COURT: All right. Do the report: The
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sentencing.
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THE DEFENDANT: No, sir.
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THE COURT: All right. Have you had enough
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time to review the report with Mr. Gorczyca?
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THE DEFENDANT: Yes.
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THE COURT: Are you satisfied it contains
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all the information that you want in there?

THE DEFENDANT: Yes, sir.
THE COURT: Thank you. And, Mr. Gorczyca,
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you are also satisfied with the report, sir?
MR. GORCZYCA: Yes, I am, your Honor.
THE COURT: And, Mr. Katsaros, how about
you, are you satisfied?
MR. KATSAROS: Yes.
THE COURT: Thank you. As we begin, I have
to say a few things to you, and I want you to make sure
you let me know if there is something you don't
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understand or if you have a question about anything we
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are doing. Okay?
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THE DEFENDANT: Okay.
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THE COURT: Now, whenever any Judge in
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federal court has to impose sentence, the first thing I
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have to do is look at what the maximum statutory sentence
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is, and in each case, the maximum statutory sentence is
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five years.
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Do you understand that?
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THE DEFENDANT: Yes, your Honor.
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THE COURT: All right. Then, what I need to
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do is look at the United States Sentencing Guidelines.
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Now, the Guidelines require me to make a determination as
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to what your total offense level is and then your
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Criminal History Category. Once I make that
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determination, then that gives me a recommended
sentencing range.
In this case, the total offense level is 17
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and the Criminal History Category is I, gives me a
recommended sentencing range of 24 to 30 months in each
case.
THE COURT: All right. Then what I need to
do is look at a statute that is 18 United States Code,
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Section 3553. Now, that enumerates several individual
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factors, and so I take your background, your character,
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your history, and look at those individual factors in
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3553, compare that with all the facts and circumstances
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in the case to hopefully fashion or determine a sentence
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that is sufficient but not greater than necessary to meet
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the ends of justice.
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THE COURT: Now, in addition to that,
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Mr. Katsaros has, at least, given some indication that
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he wishes to make some presentation here on a 5K1.1
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motion.
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MR. KATSAROS: I would, your Honor.
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Pursuant to 5K1.1, the Government would
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respectfully request that the Court go down four levels
pursuant to 5K1.1 for the Defendant's cooperation
throughout the pendency of this case.

THE COURT: Thank you. Now, Ron, do you
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understand what that means when Mr. Katsaros stands up
here and says that?

THE DEFENDANT: Um, yeah. It is moving my
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level down for being cooperative with what they
requested.
THE COURT: Okay. That's a pretty good
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analysis.
I want to make sure that you know that it
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doesn't happen very often, that the United States
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Attorney comes in here and makes such a representation,
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especially -- first of all, it is unusual they make a
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representation under 5K1.1 at all, but when they do,
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usually it is 2 points, 1 point or 2 points.
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That's their usual recommendation. Under
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rare circumstances, they will go more than 2 points in
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making that recommendation; in this case, 4 points, which
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is, in my estimation, significant in light of all my
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experience here with the 5K1.1 request.
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And what that means is, what it means to me
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anyway -- and I guess I am the important one it should
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mean something to -- is that Mr. Katsaros has made the
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decision along with his co-counsel and his investigators
that you have come to them and come clean;

Means you have been honest with them and
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gave them information that confirmed other information
that they already had, and they found you to be truthful
and honest. They also -- Mr. Katsaros is also
representing by that motion that he received information
from you that maybe he otherwise might not have known,
and they checked that out, and it proved to be truthful
as well.
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Once -- this is a several step process as
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you might imagine -- once Mr. Katsaros, his co-counsel
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and the investigators come to that conclusion, then what
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they have to do is go to Mr. Katsaros' supervisor in the
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United States Attorney's Office. So they go to the
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supervisor. They have to make a presentation and say
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"look, this fellow came to us, and he -- and this is the
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information that he gave us. This is what he said. We
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find it truthful, reliable, and it is helpful in this
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case, and it might be helpful in some other case. And we
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think the Judge should give him some consideration."
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The supervisor has to agree, and in this
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case, the supervisor obviously agreed. Then, once the
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supervisor agrees, the supervisor and Mr. Katsaros and
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his crew march down to the office of the United States
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Attorney himself, and they have to make a presentation to
him. He has to agree as well, and in this case, again,
apparently he agreed. But that doesn't end the inquiry.
What happens then is that Mr. Dettelbach has
to make a presentation to the Attorney General himself in
Washington because the idea behind all these steps is
that everybody is going to be treated fairly, and that it
is going to be consistent throughout the country. And
they are going to test whether you really did give
truthful and honest information.
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All that being said, the Attorney General
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apparently agreed as well. So when Mr. Katsaros comes
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here to Court, it is not necessary -- I don't make him
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recite chapter and verse as to everything that you said,
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everything that you did.
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I can tell by the fact that he makes the
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motion and that he asked for a four-level downward
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departure that it is significant, and that it has merit.
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So I am happy to give that consideration based on
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everything that has happened in this case.
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Are you with me?
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THE COURT: Okay. Then that means that your
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final total offense level will be 13, and your Criminal
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History Category is still I, and that gives us a range of
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12 to 18 months on each count.
Okay?
THE COURT: All right. Now,
Mr. Gorczyca, is there anything in addition that you
would like to say?
MR. GORCZYCA: Yes, your Honor.
First, I would like to thank you for that,
your Honor, and I would thank the USDA for that,
Mr. Katsaros, and he has been a true professional
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throughout this entire process.

And actually, it has taken awhile, and that
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has been very hard on Ron. It is not knowing, your
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Honor, as far as exactly what's going to happen. It
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has been for a long time, and what is going to happen
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in your immediate future? That hurts. That actually
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hurts.
I am not going to portray Ron as some
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innocent victim, your Honor, here. Basically, I have a
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man here who is 53 years old. He doesn't have any kind
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of criminal record whatsoever. He has a couple speeding
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tickets, and that's it.

He was born and raised thinking if you work
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hard and make money, good things can happen. You can
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take care of your wife, family, and he fell into this
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scheme.
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Actually, I said this to him -- this is no
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disrespect to him -- but this is a country bumpkin,
pumpkin who fell victim to some city slickers, if you
will. They used him. But actually, I can't say he is
innocent because there is that old expression "if
something sounds too good to be true, it probably isn't,"
or I can even add to that it is probably illegal.

And I don't want you to think that he was
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living large as they say from this. Actually, he has
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been chopped down to having the embarrassment, that when
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everything is over with and all is said and done in this
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case, he is going to be living with his son under his
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son's roof.
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That's how bad it is financially and the
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embarrassment of that. I thought it was interesting,
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your Honor -- and I certainly can't say it any better
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than this -- that the probation officer had spoken with
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Ron's wife, and on page 12 she says "he is good. He
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likes to do things for people. He is giving. He is
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pretty mellow and just a good guy. He offers help to
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anyone that needs it. When you are at our home today, he
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asked me if I wanted the judge to know anything about
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Ron.
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I am sorry I didn't give you a very good
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answer because I knew I would start crying. This has
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been a very difficult and trying time for him. I am
trying to be strong for him because I know how upset he
gets when we talk about it."

I want you to know that's sort of why she is
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not here or any of the family members, and it was at
Ron's request that they not be here. He could have
certainly had people come in here because they are
concerned about him, and people care about him.

"I do want the Judge to know that Ron and I
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have been together for 33 years. He is a wonderful
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husband, a father trying to provide for us with what we
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need and protecting us all the way. He is my best
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friend. We have never been apart from each other for
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maybe more than a week.

"He has always been there to help anyone,
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friend or stranger. Ron started out buying houses as a
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way to supplement our retirement income. He knew we
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couldn't live on my retirement Social Security. I
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believe that Ron considered Matt Songer to be his friend
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and trusted him and didn't think Matt would steer him
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wrong. I also know in my heart Ron did not go into this
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as a way to scam anyone. That's not his nature, and he
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had no idea it would lead to all this. Ron is a very
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good provider, and he was just looking out for our future
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retirement."
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I hope you can factor in, your Honor, his
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lack of a criminal record. Actually, he has cooperated
from the get-go here when he received the target letter
on this preindictment and has cooperated fully from the
beginning of this entire case or cases.

I hope the Court considers a split sentence
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because it is provided for under the statute. I hope the
Court considers a minimum sentence, and if you do
sentence him to an institution, your Honor, he is
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requesting that -- and we have gone over institutions --
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Morgantown.
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And thank you.
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THE COURT: Thank you.
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Mr. Katsaros?
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MR. KATSAROS: Overall I have met with
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Mr. Kightlinger probably four or five times in
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preparation for trial. My overall impression, your
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Honor, is that he is a pretty good guy. He has worked
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his whole life. I think he has a good work ethic.
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He has got a strong family. He has got the
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support of his wife and two sons. I think when he
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initially got into it with Mr. Songer, as he alluded to,
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he relied on a friend to steer him right.
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There wasn't anything he put on his

applications to obtain and engage in financial fraud. It
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was the downpayment assistance that was never disclosed.
For Songer and Sharrock, basically they would dump the
houses on to him. He would rely upon their
representations that this was a good deal, you are going
to make money, you are going to retire, and I think
that's why he got into it.
I think as it progressed, he became aware at
some point in time that what he was doing was completely
wrong, namely, the last deal that he had with
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Mr. Sharrock, but I think at that point in time, he was
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in debt so much, he was losing everything, he couldn't
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make the payments, he went for a money grab.
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He has cooperated from the beginning, from
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the outset of the case; met with us multiple times in
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preparation for trial with Mr. Sharrock. He has always
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owned up to it, and I think a low end of the range is,
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you know, an appropriate sentence for him, at the very
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least the low end of the range.
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I think he is working now, again, at an auto
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body. He has always worked. Obviously, there is a large
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restitution issue here, but overall I think he will do
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well, whether it is supervised release. Whatever you put
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on him, I think he will succeed in that.
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THE COURT: Thank you.
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Ron, how about you, sir, anything that you
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would like to say?

THE DEFENDANT: I know what I did was wrong.
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I didn't know until the end.

THE COURT: How did you come to
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the realization that what was going on was not quite
right?
THE DEFENDANT: Because there was more on TV
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about it, what was going on. Then I was looking more
into it. I was just trying at the end to save my family
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the embarrassment.
THE COURT: How about -- how long were you
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involved with this?
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THE DEFENDANT: A few years.
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THE COURT: Have you seen Songer at
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all?
THE DEFENDANT: I moved from the location
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when this started to happen because I ended up
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bankrupt and losing everything, so we moved down to
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Wadsworth.
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THE COURT: So -- I mean, this has been a
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terrible experience for you. You know, I ask people
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sometimes, especially guys like you who have never been
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in trouble before, are hard working people, average guy
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trying to make a buck and then get an opportunity and say
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"hey, this is pretty good, I can do something else."
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And it all turns around for you, but when
you got the target letter, it must have changed your
whole outlook on what was going on, right?
THE DEFENDANT: Yes.
THE COURT: And, you know, sometimes they
are embarrassed or humiliated, how could I have been this
dumb to get involved with this and not know any better,
but if it means anything, I see a lot of people here who
are really sophisticated, highly educated, who get
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involved in these scams.

And at the beginning, they say "well, it is
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a pretty good deal," and like Mr. Gorczyca says, too good
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to be true; probably is and then too big of a return, and
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then they get caught up in the whole process.
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The only frustrating -- I shouldn't say the
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only -- but the major frustrating point is it is always
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the little guys that get clipped. You know, this system
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was set up that was rife for fraud or people to utilize
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the loans and what not in order to get money and to -- as
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long as the inflation was going and as long as the houses
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increased in price, everything was okay.
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But as soon as that stopped and started
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going down -- I can't tell you from sitting here, and I
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mean, Mr. Katsaros can tell you because he deals in this
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-- but I can't tell you how many times I have seen, how
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many cases I have had that involves this very thing.

But it only goes to a certain level, and
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they haven't the resources or ability thus far. I know
there are guys making millions out of this whole scam
that aren't standing in Court like you are, but I can't
be comparing other people's bad conduct to yours. I have
to only look at you.
But I think a couple things should be said:
First, you listened to your lawyer. You
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took full responsibility for every bit of your conduct,
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and you then did whatever you could to try to make the
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best out of a terrible situation, and you have. I am
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sensitive to that.
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So what I am going to do is, I am going to
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accept Mr. Gorczyca's recommendation, and I am going to
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place you in the custody of the Bureau of Prisons on each
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case for 12 months, but I think it is the way I have to
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write it, it is a six-month sentence to run concurrent
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with six months of home detention, with electronic
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monitoring, right?
PROBATION OFFICER: Yes, your Honor,
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six months on each case to be served concurrently.
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THE COURT: Right. And there is a $200
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special assessment, that's a hundred dollars on each
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case.
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Now, the restitution order is -- and I have
to order this -- it is joint and several with any other
Defendant in 12CR28, is $278,072 and 12CR422 is
$1,392,602. Now, that's all to be followed by three
years of supervised release.
That means you have to make some effort to
pay something towards restitution and all that, and I am
not going to impose a fine or cost of incarceration. I
am going to allow you to self-report, and I will make a
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recommendation as to Morgantown.
I am going to allow -- I gave the grand
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total of the restitution, but without objection, I am
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just going to list in the judgment entry the different
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amounts to the different lending institutions.
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Is that okay, Mr. Gorczyca?
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MR. GORCZYCA: Yes, your Honor.
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THE COURT: Okay. Now, I say you are on
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supervised release for three years to follow. That means
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that you can't commit any law violations. You follow all
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the standard terms and conditions that everyone follows.
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If you are going to be living with your son, they can't
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have any firearms in the home.
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Don't be one of these guys that comes in
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here because there is a firearm in the dining room and
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there is a domestic problem, it is not your gun but
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somebody else's, but if you have access to it, then they
arrest you and find out you are on federal supervised
release, they bring you in here. It is like eight years
mandatory sentence. So if there is any firearm, make
sure they get rid of it.
You are subject to the financial disclosure
requirements and any DNA collection and also if there is
a financial windfall provision, obviously, if you win the
lottery or some big amount of money comes in you have to
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pay your debts first here.
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Are you with me?
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THE DEFENDANT: Yes, sir, your Honor.
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THE COURT: Okay. Anything further,
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Mr. Katsaros?
MR. KATSAROS: The only thing I would ask,
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your Honor, on the restitution, on the first, the
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$278,072 that that be joint and several with Sharrock and
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then the rest would be joint and several with Mr. Songer,
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Mr. Barcomb, and Ms. Hedges.
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THE COURT: Okay. I did say in general that
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it was joint and several, but if you want to still
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identify the individuals, that's fine.
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MR. KATSAROS: Sharrock is the only -- that

$278 is only associated with him.
THE COURT: I am happy to do that. Here is
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the other thing, too, Ron, two things, I think:

First, I don't think I mentioned that you
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may have a right to appeal any sentencing decisions that
I make here today that is not limited by your plea
agreement or otherwise.
And in the event you want to appeal
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something and you didn't have the money to hire a lawyer,
I would appoint one to represent you without cost.

You understand that?
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THE COURT: Second thing is, after you
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complete the sentence and then you complete like a year
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of supervised release, if you are clean and no problems,
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you can come back to me, and I will reconsider the length
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of time I have you on supervised release.
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All right?
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THE COURT: It is really up to you. If you
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can continue with the way you are, you shouldn't have any
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problem with it.
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THE COURT: Fair enough?
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THE COURT: Any objections to the
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sentence?
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MR. KATSAROS: None from the Government,
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your Honor.
THE COURT: Frank?
MR. GORCZYCA: No. Thank you very much,
your Honor.
THE COURT: All right. Good luck, Ron.
THE DEFENDANT: Thank you.
(Hearing concluded at 10:29 a.m.)
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C E R T I F I C A T E
I, George J. Staiduhar, Official Court
Reporter in and for the United States District Court,
for the Northern District of Ohio, Eastern Division,
do hereby certify that the foregoing is a true
and correct transcript of the proceedings herein.
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s/George J. Staiduhar
George J. Staiduhar,
Official Court Reporter
U.S. District Court
801 W. Superior Ave., Suite 7-184
Cleveland, Ohio 44113
(216) 357-7128

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Case: 1:12-cr-00422-DCN Doc #: 64 Filed: 11/25/13 1 of 21.

UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF OHIO

UNITED STATES OF AMERICA,

TRANSCRIPT OF PROCEEDINGS HAD BEFORE THE HONORABLE

ON FRIDAY, SEPTEMBER 27TH, 2013,

COMMENCING AT 10:00 O'CLOCK A.M.

Case: 1:12-cr-00422-DCN Doc #: 64 Filed: 11/25/13 2 of 21. PageID #: 555

On behalf of the Defendant:

FRANK GORCZYCA, ESQ.

Case: 1:12-cr-00422-DCN Doc #: 64 Filed: 11/25/13 3 of 21. PageID #: 556

THE COURT: We are here in Case 12-422. It

is entitled United States versus Ronald Kightlinger. I

am saying your name correctly, aren't I, Ronald?

THE DEFENDANT: Yes, you did, sir.

THE COURT: All right. Do you want to stand

behind the podium for me?

you were previously here and entered guilty pleas, and I

did refer this matter to the Probation Department for the

preparation of a presentence report. I have a copy of

the report, and I am prepared to go forward with

THE DEFENDANT: No, sir.

THE COURT: All right. Do the report: The

THE DEFENDANT: No, sir.

THE COURT: All right. Have you had enough

time to review the report with Mr. Gorczyca?

THE DEFENDANT: Yes.

THE COURT: Are you satisfied it contains

all the information that you want in there?

Case: 1:12-cr-00422-DCN Doc #: 64 Filed: 11/25/13 4 of 21. PageID #: 557

THE COURT: Thank you. And, Mr. Gorczyca,

you are also satisfied with the report, sir?

MR. GORCZYCA: Yes, I am, your Honor.

THE COURT: And, Mr. Katsaros, how about

you, are you satisfied?

MR. KATSAROS: Yes.

THE COURT: Thank you. As we begin, I have

to say a few things to you, and I want you to make sure

you let me know if there is something you don't

understand or if you have a question about anything we

are doing. Okay?

THE DEFENDANT: Okay.

THE COURT: Now, whenever any Judge in

federal court has to impose sentence, the first thing I

have to do is look at what the maximum statutory sentence

is, and in each case, the maximum statutory sentence is

Do you understand that?

THE DEFENDANT: Yes, your Honor.

THE COURT: All right. Then, what I need to

do is look at the United States Sentencing Guidelines.

Now, the Guidelines require me to make a determination as

to what your total offense level is and then your

Criminal History Category. Once I make that

determination, then that gives me a recommended

Case: 1:12-cr-00422-DCN Doc #: 64 Filed: 11/25/13 5 of 21. PageID #: 558

and the Criminal History Category is I, gives me a

recommended sentencing range of 24 to 30 months in each

Do you understand that?

THE DEFENDANT: Yes, your Honor.