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Law360 (August 6, 2020, 10:13 PM EDT ) Prosecutors urged an Indiana federal judge to reject a "frivolous" request made by an ex-Celadon Group Inc. executive to travel to Mexico for "nothing more than to party with his friends" while he faces criminal securities and accounting fraud charges in the U.S.
William Meek, the trucking company's former chief operating officer, asked the court last week to let him fly to Playa Del Carmen, Mexico, "for a weeklong vacation at an adults-only, all-inclusive beachfront resort" in order to celebrate his 40th birthday with his wife and friends, prosecutors said Wednesday.
"Such a request — particularly from a defendant facing the kinds of charges Meek is facing, and during a global pandemic — is not one that the government can endorse," the U.S. Department of Justice said.
"He presents no compelling need to travel internationally," it added. "His request is not tethered to his defense or trial preparation. Nor is it related to his employment, or even a pressing personal matter. He does not seek to travel to attend a funeral, visit a sick relative, or attend a wedding."
Prosecutors accuse Meek, along with Celadon's ex-Chief Financial Officer Bobby Peavler, of hiding tens of millions of dollars in losses through a truck-swapping operation between 2016 and 2017. The two filed false financial reports with the U.S. Securities and Exchange Commission to cover up the declining value of the trucks, prosecutors claim.
The former executives were both arrested and indicted in early December on charges of securities and accounting fraud.
Beyond the lack of necessity and the increased flight risk created by international travel, prosecutors raised concerns on Wednesday that the coronavirus would pose an additional risk to Meek's health if he goes to Playa Del Carmen, which the Mexican government currently designates as "orange" on its yellow-orange-red COVID-19 risk-level system. Prosecutors also questioned his ability to return to the U.S. if pandemic-related travel restrictions are imposed while he is away.
"If that happens, and Meek becomes trapped outside the United States due to COVID-19 restrictions, it would risk non-appearance and non-compliance with the remaining conditions of his release," they said.
In his July 30 motion, Meek said prosecutors previously indicated in an email that they would oppose his travel request, and in anticipation of their arguments he contended "the government's concerns are not valid" because they are generic and do not pertain to him specifically.
He booked and paid for the trip in early December prior to his arrest, and his pretrial services officer has no issue with his travel plans, Meek said. Meek also shed doubt on the odds of getting stuck abroad due to the coronavirus.
"In the unlikely event there is a restriction on Mr. Meek's ability to return to the United States, it seems inconceivable that Mr. Meek would not be allowed back to the United States in sufficient time to prepare for his May 2021 trial," he said. "Indeed, if that were a realistic scenario, Mr. Meek and his wife would not leave their children at home in Indianapolis."
The DOJ said Wednesday Meek would not lose money by canceling the trip because he bought trip insurance and noted he waited until July to even broach the topic of the vacation with the court.
Prosecutors also took issue with Meek's offer to let the government hold onto his children's passports while he is away in order to "provide additional security to the government."
"Minor children are not a sort of surety bond," prosecutors said. "Were Meek to flee, it would not be appropriate for the government to seek recourse against his children by refusing to return their passports and barring their foreign travel to keep them of [sic] reuniting with their parents."
Representatives for the parties did not immediately respond late Thursday to requests for comment.
Meek is represented by Sean Berkowitz, Josh Hamilton and Eric Swibel of Latham & Watkins LLP.
The government is represented by Kyle W. Maurer and L. Rush Atkinson of the DOJ's Criminal Division and Steven D. DeBrota and Nicholas J. Linder of the U.S. Attorney's Office for the Southern District of Indiana.
The case is U.S. v. Meek et al., case number 1:19-cr-00378, in the U.S. District Court for the Southern District of Indiana.
--Editing by Janice Carter Brown.
For a reprint of this article, please contact reprints@law360.com.
