Third Defendant in Modesto Racketeering Case Pleads Guilty

FRESNO, CA—Acting United States Attorney Lawrence G. Brown announced today that REYNALDO W. SOTELO, 52, of Gilroy, pleaded guilty today to conspiracy to traffic in motor vehicle parts, as part of the overall racketeering indictment brought by the United States against Stanislaus County business owner ROBERT C. HOLLOWAY and others.

This case was the result of an extensive investigation conducted by the Central Valley Gang Impact Task Force, which included the Stanislaus County District Attorney’s Office, the Modesto Police Department, the Stanislaus County Sheriff's Department, and the FBI.

According to Assistant United States Attorneys Mark E. Cullers and Laurel J. Montoya, who are prosecuting the case, SOTELO, the former chief executive officer of Indian Motorcycles, admitted that, between September 21, 2007, and November 2, 2007, he conspired with HOLLOWAY, FREDRICK NOREBERG and others to traffic in motor vehicle parts by supplying false Manufacturer Statements of Origin to HOLLOWAY for a motorcycle that was to be shipped from Modesto to Sweden. According to the plea agreement, SOTELO has agreed to cooperate and testify for the government in any future trials in the case.

Sentencing is scheduled for September 28, 2009, at 9:00 a.m. before United States District Judge Oliver W. Wanger.

SOTELO faces a statutory maximum sentence of up to five years in prison and a fine of up to $250,000.The actual sentence, however, will be determined at the discretion of the court after consideration of the Federal Sentencing Guidelines, which take into account a number of variables and any applicable statutory sentencing factors.