So, from the looks of it, both the DA and the defense attorney were now ready.  The defense had already made four continuances for this formal sentencing for Rene Montes, the leader and mastermind and the last of the defendants to be sentenced in the AIG/Matrix embezzlement scam which took place in the workers’ compensation claims departments of both AIG (now called Chartis) and Matrix Absence Management from 2003 to 2006. 

Things got going swiftly, as Fred McBride exited through the side door and descended down the stairs to the holding area where the defendants wait before being escorted by deputies into the court room.  Fred went down clearly to talk to Rene Montes, then he came back up, and then he went back down to talk to him again.  Then, Rene was escorted into the court room and seated at the far right end of the table (from the perspective of the audience). 

Rene looked aged.  Very pale.  He has very white skin naturally and in health, but he looked even paler, and like he’s lost even more weight since his last court appearance.  He was wearing a puke-mustard yellow T-shirt with a white T-shirt underneath it, with darker yellow-orange pants.  His outfit looked aesthetically frightening even by jail standards. 

The two counsels announced themselves and then Deputy D.A. Thomas Schultz spoke first:

D.A. Thomas Schultz:  “I sufficiently laid it out.  (In his written argument.)  There’s a 12 year ceiling.  I would be arguing for a higher sentence.” 

He explained that Montes and his attorney were ignoring the fact the other co-conspirator they kept referring to (Hector Porrata) was only involved in 80% of the transactions.  Rene Montes was involved in 100% of the transactions.  

Montes and his attorney, McBride, were arguing that if Hector Porrata only got 8 years, then Rene Montes should only get 8 years. 

D.A. Thomas Schultz:  “My offer pre-trial was 14 years.  There were 61 transactions.  Mr. Montes received all the money.  All 1.5 million went into Mr. Montes’ (bank) account.” 

Schultz explained that George Martinez, co-defendant, confessed that he got around $3,000 cash from Montes, Ms. (Cara) Thompson, co-defendant, received a used car, and he didn’t know how much Hector Porrata received.

D.A. Thomas Schultz:  “I could not link any of the money (to the other defendants).”   Rene Montes, “started the enterprise, led the enterprise, and negotiated with the true providers.  In addition, he has tax evasion.  I admit he should be sentenced to more than 12 years.” 

They (the court) had a July 20th 2010 letter from Chartis.

D.A. Thomas Schultz:  “It’s good we have the letter from Chartis.   They had to go to 57 different medical providers.  They had to remedy that crime.  Chartis chose to make these victims whole.  They made payments to the companies involved.”

Tom Schultz went on a little further to tell how Chartis made restitution to the clients who had been ripped off in order to save their reputation and to make good to the clients because of the abuse.  They took responsibility.  This theft had a profound impact on Chartis.  Thousands of hours of work were put in to remedy the embezzlement and make amends.

In closing, Schultz said,

D.A. Thomas Schultz: “With that, I thank you for your consideration of this case.”   

Then, it was the time and the opportunity for Rene’s defense attorney, Fred McBride, to speak. 

Fred McBride: “That the money all went to Mr. Montes has never been supported by any evidence.  This was Mr. Porrata’s and Mr. Montes’ deal.  This was a group activity.  I have never accepted that this was his (Montes’) baby. 

“It started out with both of them (Porrata and Montes) at the get go.  It ended with both of them from the get go.

“Mr. Schultz talks about the lack of remorse.  How does he know that?  In Mr. Montes’ situation, anyone would be struggling to minimize the consequences.  I think to say Mr. Montes feels a lack of remorse is a gratuitous remark not supported by the evidence.” 

Then the judge spoke, directly to Rene.

Judge Frank Fasel:  “You’ve got 122 felony counts with enhancements.” 

Then, he told Rene he’d gotten his advisement and waiver of rights, and that if he went to trial and was found guilty on all counts, his exposure would be 112 years in prison. 

Judge Frank Fasel:  “That’s life in prison.

“I thought the fair punishment was 12 years—considering your background.  They thought (the DA’s office) 14 years. 

“You’re the guy who’s got the exposure.  If there was something that might mitigate it, we’d have gotten that to the probation office. Try to give you less than 12 years. 

“I understand that you and your attorney--- you expect the 8 years that Porrata got. But, I’m not convinced.  8 years.  That was not the deal.   I’m trying to consider.  I’m not convinced.” 

Fasel named off some of the things the Probation Officer named in her report.  Of the aggravation factors she listed:

• Position of leadership
• Inside knowledge
• Planning and sophistication
• Misrepresentation to insurance company collection agencies
• Taking advantage of positions of trust

Of the mitigating factors, the Probation Department named:

• Insignificant record of criminal conduct. 

Judge Frank Fasel:  “The DA is cynical regarding your expression of remorse.  But I’m willing to consider your remorse as sincere.  I take you as being sincere.  And one other mitigating factor is that you stipulated to the full amount of restitution.  But I’m not accepting the ‘Porrata versus you’.”

Montes’ counsel tried to argue as a mitigating factor (not openly in court, but in his written argument) for a lesser sentence the fact that Rene committed the crimes because he had a drug addiction, most likely cocaine (this is my belief, that it was cocaine, I do not know that cocaine was cited in the argument).  To that fact, and the argument designed to use it as a mitigating factor, Judge Fasel replied,

Judge Frank Fasel: “I find somewhat troubling your drug usage.  That was the major reason you went South: The Drug Habit.  It’s a voluntary problem.  I’m not viewing that as a mitigating factor.  I consider it an aggravating factor—taking 1.5 million dollars to party.

“To scam all these people in order to go out there to do drugs.  It’s NOT a mitigating factor.  That just gets me to the top of the list the Court promised you.  So, with all that in mind, Mr. Montes, the Court commits you to 12 years in state prison.”

And that was that.  The judge then rattled off the counts and the charges according to Section Codes in rapid succession. 

McBride then brought up the issue of the changes in the law on credit for time served.  There was debate which included the DA and the Judge together with McBride, over what credits Rene should get for time served, and it was finally settled at 271 days credit.  He had served by Friday 542 actual days in jail. 

The restitution owed to AIG/Chartis is $1,179,703; to Matrix Absence Management $310,503; and to the state of California Franchise Tax Board $286,451. 

So, at the end of these proceedings for sentencing, Rene was unhandcuffed from in front of his body by the Bailiff, and then rehandcuffed with his hands behind his back.  He seemed to have shrunk, even though he’s a small man in the first place who is no more than five feet, four inches tall. Maybe even a little shorter.  Of course, he still had his bald head, but he somehow looked even older.  He seemed forlorn, even defeated, which is understandable considering his journey ahead. 

Then, he was led out of the court room by the Bailiff to begin that journey… a journey which must feel to Rene at this moment, like a highway without end, reaching out before his life like a monotonous blackness of night stretching forward to infinity with no glimpse of dawn… 

Readers may write to writer Lonce LaMon at lonce@adjustercom.com