JACKSONVILLE, Fla. – One week before former JEA CEO Aaron Zahn goes before a federal judge to learn his sentence for conspiracy and wire fraud, federal prosecutors are arguing that punishment should be one of “multi-year incarceration.”
Zahn was convicted in March, following a trial focused on a proposed bonus plan that prosecutors said could have paid out millions of dollars to Zahn and other executives, had the city-owned utility been sold, as was being explored in 2019.
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Federal prosecutors submitted their sentencing memorandum to the court Tuesday afternoon. The memorandum outlines legal arguments around the sentencing. Much of the government’s filing focused on arguments around financial loss, or in this case, intended loss.
DOCUMENT: Prosecution’s sentencing memorandum for Aaron Zahn
A pre-sentencing report, compiled by a federal probation officer, looked at factors surrounding the case and calculated a sentencing range under federal guidelines. While that report is not made public, it is referenced in the sentencing memo.
Prosecutors write that the report found an intended loss of $40 million, as that was the amount Zahn alone expected to receive from what was known as the performance unit plan, or PUP, had JEA been sold. That money would have come from the proceeds that the city would have received from such a sale.
According to the sentencing memo, that amount of intended loss drives the sentencing guidelines to 87 to 108 months or roughly seven to nine years in prison. Prosecutors spent a portion of the memo referencing other court cases where intended loss was treated as the amount of loss, for sentencing purposes.
Taking other factors into consideration, prosecutors argue Zahn should not receive a sentence at the high end of the range given by the guidelines.
Prosecutors write that while it is true that Zahn had no criminal history and “otherwise lived a law-abiding life,” the JEA case is a crime that overshadows that, saying a “multi-year sentence of incarceration for Zahn reflects the seriousness of the offense, promotes respect for law, and provides just punishment.”
Prosecutors said they will make additional arguments at the July 30 sentencing hearing and request a specific sentence at that time.
Zahn’s defense attorneys will be filing a sentencing memorandum as well. Tuesday, they filed a motion asking for permission to file a memo that was 30 pages long, saying they will describe his background, including his personal history, early life and education, career path, community engagement, family life and parental responsibilities, and more.
The defense also plans to argue why the guidelines calculated in the presentencing report are incorrect, and why other factors support leniency for Zahn.
Additionally, the sentencing memo from prosecutors states that the defense’s position is that the guidelines should reflect a range of zero to six months, and a sentence of probation for Zahn.
Following the trial, defense attorneys also filed several motions, asking for a judgment of acquittal or a new trial. Prosecutors responded to those motions in May, opposing the requests.
A judge has not yet ruled on those motions.