USA v. Khanna

EX PARTE REQUEST RE: SUBPOENA TO SCRAPRIGHT; [PROPOSED ORDER] 	1
U.S. v. Michael Khanna. 2:22-CR-0213 KJM
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OLAF W. HEDBERG (Bar No. 151082)
Law Office of Olaf W. Hedberg
901 H Street, Suite 301
Sacramento, CA 95814-1808
Telephone: (916) 447-1192
Email: ohedberg@yahoo.com
Attorney for Defendant
MICHAEL KHANNA
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF CALIFORNIA
UNITED STATES OF AMERICA,
Plaintiff,
vs.
MICHAEL KHANNA.,
Defendant.
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Case No. 2:22-CR-0213 KJM
EX PARTE REQUEST FOR ORDER
ISSUING SUBPOENA DUCES
TECUM TO THE KAIMON GROUP,
INC. dba SCRAPRIGHT;
[PROPOSED] ORDER DIRECTING
U.S. MARSHAL TO SERVE
SUBPOENA
[LOCAL RULE 141]1
Case N
I. 	INTRODUCTION
Michael Khanna, through appointed counsel Olaf Hedberg (“Defendant”), requests an
order 	to 	issue 	a 	Subpoena 	Duces 	Tecum 	to 	The 	Kaimon 	Group, 	Inc. 	dba 	ScrapRight
(“ScrapRight”), 413 Phoenix Drive, Chambersburg, PA 17021. Defendant also seeks a court
order directing the United States Marshal to serve the subpoena duces tecum upon ScrapRight.
The ScrapRight subpoena is attached to Defendant’s request as Exhibit A.
/ / /
1 Submitted to Duty Judge Magistrate Judge Kim at cskorders@caed.uscourts.gov.

EX PARTE REQUEST RE: SUBPOENA TO SCRAPRIGHT; [PROPOSED ORDER] 	2
U.S. v. Michael Khanna. 2:22-CR-0213 KJM
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II. BACKGROUND
Defendant Michael Khanna, members of his family, and others are charged with
conspiracy to transport stolen property interstate; conspiracy to launder money; and interstate
transportation of property. First Superseding Indictment, Doc. 247 (“1SSI”). 	The government
alleges that Defendants conspired to transmit catalytic converters to the Khanna Defendants’
place of business where the precious metal powders were extracted and then transported
elsewhere to be sold for profit. 1SSI ¶¶ 10-11.
In November 2022, Defendant and his parents, Anita Khanna and Nirmal Khanna, took
over business operations under a new name after the arrest of his brothers. 1SSI ¶¶ 30 and 31.
As part of daily business operations, Defendant used proprietary software technology called
ScrapRight to inventory all vehicles purchased for scrap and recycling. Counsel anticipates that
Defendant Michael Khanna’s use of ScrapRight to disclose inventory and comply with all laws
and regulations may contradict the government’s allegations against him and his parents and
decrease any loss amount.
Defendant and his parents purchased a subscription for ScrapRight, a database designed
specifically for scrap metal recycling businesses to inventory non-operational and wholesale
vehicles. ScrapRight also served as the mechanism to inform New Jersey Department of
Transportation that vehicles were recycled for scrap. Information entered into ScrapRight, such
as the VIN, condition and composition of the vehicle (often the absence of tires, catalytic
converters and various parts), and other details were transmitted from ScrapRight to New Jersey
Department of Transportation to demonstrate compliance with New Jersey state regulations.
Defendant must subpoena records from ScrapRight because it is the only custodian and
source of the vehicle information entered into its database. Defendant did not maintain any paper
records of ScrapRight transactions.
/ / /
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/ / /

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U.S. v. Michael Khanna. 2:22-CR-0213 KJM
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III. GOOD CAUSE EXISTS TO REQUIRE RETURN OF THE DOCUMENTS BEFORE
TRIAL
Defendant’s subpoena to ScrapRight is relevant to his defense because these records will
establish that Defendant engaged in lawful business by subscribing to proprietary recycling and
scrap yard software to report his compliance with New Jersey laws and regulations. Counsel
anticipates that ScrapRight records will generate additional defense investigation and third-party
subpoenas. Counsel may also designate ScrapRight records as defense trial exhibits.
The subpoena specifying material sought by the ScrapRight is based upon Defendant’s
use of the proprietary software, confirmation of the subscription held by Defendant with
ScrapRight’s creator Shon Duty, and review of the ScrapRight website characterizing its product
as “recycling software … [to] ensure total metal purchase compliance, generate key reports
instantly, and … deliver[ ] real-time, detailed summaries and reports. …”.
https://www.scrapright.com/

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U.S. v. Michael Khanna. 2:22-CR-0213 KJM
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Defendant Khanna has not accessed ScrapRight since March or April 2022. 	He
utilized its Purchasing, Inventory Management, and Accounting and Reporting features but
did archive this data. According to ScrapRight’s online content, the software is capable of
“generating detailed reports with a breeze.”
https://www.scrapright.com/
Defendant’s subpoena addresses ScrapRight’s burden to comply with the subpoena
with instructions to (1) produce ScrapRight ESI and reports in readable usable CSV format or
as images (TIFF, JPG, and/or PDF), and (2) furnish an index referring to common metadata
(file/document title, creator, date/time created, accessed, modified). Defendant’s production
protocol conserves resources because the alternative approach, seeking funds for a monthly
ScrapRight subscription to examine and convert ESI, is impractical.
The ScrapRight subpoena also seeks all communication and documents regarding
Defendant’s subscription. Finally, the subpoena contains a request for ScrapRight to sign a
certificate to authenticate its records. The burden to produce ScrapRight records sought is
outweighed by the likelihood that such information can establish that Defendant operated a
lawful business.
Rule 17(c) of the Federal Rules of Criminal Procedure authorizes issuance of third

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U.S. v. Michael Khanna. 2:22-CR-0213 KJM
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party subpoenas duces tecum, requiring pretrial production of documents pertaining to the
defense. For the reasons stated herein, the subpoena duces tecum for ScrapRight records is
relevant and admissible and has been identified with specificity. See, e.g., United States v.
Eden, 659 F.2d 1376, 1381 (9 th 	Cir. 1981). 	Eden further requires that the proponent
demonstrate that the materials are not available from any other source and that their
examination should not await trial. Eden, 659 F.2d at 1381.
IV. THE ATTACHED SUBPOENA INDICATES THAT SCRAPRIGHT MAY RETURN
THE DOCUMENT TO THE COURT
The records sought by the ScrapRight subpoena were generated by Defendant in the course
of business and maintained in a proprietary database. As such, the ScrapRight subpoena allows
return of the business records to defense counsel to eliminate the need for an ex parte hearing
to release the records.
V. CONCLUSION
It is respectfully requested that Your Honor sign the order below, and return to defense
counsel, so that the subpoena may issue and that copies of this order may be filed with the
clerk.
Dated: December 11, 2025 	LAW OFFICES OF OLAF W. HEDBERG
/s/Olaf W. Heberg
OLAF W. HEDBERG
Counsel for Defendant MICHAEL KHANNA

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U.S. v. Michael Khanna. 2:22-CR-0213 KJM
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ORDER
The Court has considered Defendant Michael Khanna’s Ex Parte Request for a
Subpoena to The Kaimon Group Inc. dba ScrapRight, and finds that good cause to issue this
subpoena and order service of the subpoena by the U.S. Marshal.
Accordingly, IT IS HEREBY ORDERED that:
1. 	The Clerk of Court issue the subpoena duces tecum to ScrapRight;
2. 	The U.S. Marshal serve the subpoena upon The Kaimon Group Inc. dba ScrapRight,
at 413 Phoenix Drive, Chambersburg, PA 17021; and
3. 	The U.S. Marshal furnish the return of service to counsel for Michael Khanna.
Dated: December 11, 2025
_____________________________________
CAROLYN K. DELANEY
UNITED STATES MAGISTRATE JUDGE