Free Other Notice - District Court of Arizona - Arizona

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PAUL K. CHARLTON United States Attorney District of Arizona RACHEL C. HERNANDEZ Arizona State Bar No. 016543 GARY M. RESTAINO Assistant U.S. Attorney Two Renaissance Square 40 N. Central Avenue, Suite 1200 Phoenix, Arizona 85004-4408 Arizona State Bar No. 017450 Telephone (602) 514-7500 [email protected] [email protected]

UNITED STATES DISTRICT COURT DISTRICT OF ARIZONA United States of America Plaintiff, v. Harvey L. Sloniker, Jr., Tye Sloniker, Kindy Jonagan, Robert Shinn, Richard Nail, and John Desiderio, Defendants. The United States, through counsel undersigned, and pursuant to Fed. R. Crim. P. GOVERNMENT'S SUPPLEMENTAL NOTICE OF INTENT TO INTRODUCE EXPERT TESTIMONY CR04-0820-PHX-FJM

17 16(a)(1)(G), Rule 702 of the Federal Rules of Evidence and this Court's scheduling order, 18 supplements its original notice of expert witnesses, filed August 1, 2005. In the original notice, 19 the government provided a summary of anticipated testimony as to electronic funds transfers 20 through the Automated Clearing House, and also noticed its intent to designate a witness from 21 a major credit company as to risk factors associated with chargebacks generally. (Notice at 2:1622 17 [dkt. # 94]; see also Response to Defendants' Motion to Preclude Expert Testimony at f.n. 23 1 [dkt. # 168.) Following a September 30, 2005 defense request for additional information, on 24 October 13, 2005 the government designated Ginger Bergman of Visa, Inc. as the additional 25 expert, and on November 14, 2005 the government produced her c.v. This supplemental notice 26 further describes the anticipated testimony as to "risk factors associated with chargebacks." 27 28

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Ms. Bergman has over eighteen years experience in risk management for merchants and

2 financial institutions, and has been employed as a Director by Visa since August 2001. In her 3 position at Visa she has management responsibility for various chargeback monitoring programs. 4 Based on her experience and current position, she would be expected to testify as to Visa's 5 programs in order to provide a benchmark to the jury for fraud rates. In particular, her testimony 6 as to chargebacks would be anticipated to include the following: 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
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­ an assessment that outbound telemarketers have higher chargeback ratios than other types of merchants; ­ a description of average chargeback ratios in the Visa system, to include a .04% chargeback ratio as to all merchants, and a .38% chargeback ratio as to transactions in which the card is not physically present at the sale; ­ an analysis and discussion as to the threshold chargeback ratios that trigger corrective action at Visa, to include the ratios during the indictment period (more than fifty transactions, more than fifty chargebacks and a 1% chargeback to sale ratio) and the revised ratios currently in effect (more than one hundred transactions, more than one hundred chargebacks and either a 2.5% overall chargeback ratio or a 1% consumer dispute chargeback ratio).

Respectfully submitted this 22nd day of November, 2005. PAUL K. CHARLTON United States Attorney District of Arizona /s/ Gary M. Restaino RACHEL C. HERNANDEZ GARY M. RESTAINO Assistant U.S. Attorneys

Case 2:04-cr-00820-FJM

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CERTIFICATE OF SERVICE

I hereby certify that on this date, I electronically transmitted the attached document to the Clerk's Office using the CM/ECF System for filing and transmittal of a Notice of Electronic 3 Filing to the following CM/ECF registrants: Bruce Blumberg, Jeanette Alvarado, Ivan Mathew, Tom Hoidal, Greg Parzych and Michael Bresnehan. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
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Case 2:04-cr-00820-FJM

Document 186

Filed 11/22/2005

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