Factual Proffer — United States v. Geronimo (Dkt. 62, S.D. Fla.)

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A factual proffer entered August 27, 2021 in United States v. Roberto Geronimo, Case No. 21-60119-CR-SMITH/VALLE, in the U.S. District Court for the Southern District of Florida, in which the United States and Geronimo agree to the facts the government would prove at trial. It states that a grand jury indicted Geronimo on February 6, 2020 for conspiracy to distribute five kilograms or more of cocaine, and that he was on bond pending trial in that case. Starting in or around June 2020, according to the proffer, Geronimo took part in a scheme to submit false applications for PPP loans and EIDLs, paid kickbacks and received proceeds for a company under his control, BSC. It describes a June 14, 2020 meeting with a recruiter about a $150,000 to $200,000 PPP loan for BSC for a 20% fee.

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Case 0:21-cr-60119-KMW Document 62 Entered on FLSD Docket 08/27/2021 Page 1 of 4

UNITED STATES DISTRICT COURT
‘SOUTHERN DISTRICT OF FLORIDA

CASE NO. 21-60119-CR-SMITH/VALLE
UNITED STATES OF AMERICA
VS.
ROBERTO GERONIMO,

Defendant.
/

FACTUAL PROFFER

The United States of America and Roberto Geronimo (the “Defendant”) agree that, were ©
~ this case to proceed to trial, the United States would prove beyond a reasonable doubt the following
facts, among others, which occurred, in the Southern District of Florida:

On or about February 6, 2020, a federal grand jury in the Southern District of Florida
returned an. indictment charging the Defendant with conspiracy to distribute five kilograms or more
of cocaine, in violation of Title 21, United States Code, Sections 846 & 841(a)(1). See Case No.
20-20066-CR-WILLIAMS (S.D. Fla.). At all relevant times, the Defendant knew he was under ;
federal indictment, and was on bond pending trial in that case. |

Starting in or around June 2020, the Defendant participated in a scheme to submit and
cause the submission of false and fraudulent applications for loans and grants made available
through the Small Business: Administration to provide relief for the economic effects caused by
the COVID-19 pandemic, including Paycheck Protection Program (“PPP”) loans and Economic
Injury Disaster Loans (“EIDL”); paid kickbacks in furtherance of the scheme; and received the
proceeds from fraudulent PPP loans and BIDLs submitted on behalf of a company under his

control.

Case 0:21-cr-60119-KMW Document 62 Entered on FLSD Docket 08/27/2021 Page 2 of 4

In or around May 2020, W.D.., a tax preparer who controlled a company called CMS, began
recruiting individuals with business entities to submit false and fraudulent applications for PPP
loans and EIDLs in exchange for kickbacks. M.M. and E.M. were recruiters for W.D.

In or around June 2020, E.M. recruited the Defendant, who controlled a company called
BSC, into the scheme. On or about June 14, 2020, in the afternoon, the Defendant and E.M. met
at a Hooter’s restaurant, and discussed, among other matters, that EM. knew someone who could
help the Defendant obtain a $150,000 to $200,000 PPP loan for his liquor store, BSC, for a 20%
fee. Based on a prior PPP loan application-that was not submitted as part of this conspiracy and
that contained accurate information about BSC, the Defendant knew what payroll documentation
was required to obtain a PPP loan and that individuals subject to federal indictment, like himself,
were ineligible.

On or about June 14, 2020, at approximately 3:30 p.m., the Defendant sent a WhatsApp
message to E.M. attaching a February 2020 bank statement for BSC. On or about June 14, 2020,
between approximately 3:30 p.m. and 3:37 p.m., E.M. sent to M.M. via WhatsApp the February

20202 BSC bank statement, photographs of the front and back of the Defendant’s Florida driver’s
license, and the following information about BSC seeking a PPP loan for $400,000 for 12
employees.

BUSINESS EIN#82-3242040
BUSINESS NAME: [BSC]
INCORPORATED DATE: 10/19/2017
SS#[REDACTED] ~
CONTACT#[REDACTED]

EMAIL: [REDACTED]@hotmail.com
400k 12 employees

On or about June 18, 2020, through a loan processor based in Redwood City, California

that utilized servers in Northern Virginia to process PPP loan applications (“Loan Processor #1”),

ee

Case 0:21-cr-60119-KMW Document 62 Entered on FLSD Docket 08/27/2021 Page 3 of 4

a PPP loan application was submitted electronically on behalf of BSC using an IP Address ending
in .64 that was associated with W.D.’s company, CMS. The BSC PPP loan application submitted
electronically through Loan Processor #1 requested a PPP loan in the amount of $249,990
purportedly to pay a monthly payroll of approximately $99,996 for 12 employees. An IRS Form
941-SS (titled, “Employer’s Quarterly Federal Tax Return”) for the first quarter (January,
February, and March) of 2020 was attached to the application, which purported to report that BSC
had 12 employees and quarterly wages of $375,400. Florida Department of Revenue records for
BSC show payroll expenses did not exceed $12,770 for no more than two salaried employees
during the first quarter (January, February, and March) of 2020.

A subsequent search of CMS’s office revealed photographs of the front and back of the
Defendant’s Florida driver’s license and an electronic version of the same IRS Form 941-SS for
BSC on the CMS server. In addition, law enforcement found paper records related to BSC’s
fraudulent PPP loan, including corporate records for BSC, and an approval letter regarding BSC’s
PPP loan application. The corporate records contained handwritten notes with the Defendant’s
social security number, telephone number, birthdate, and address.

On or about June 18, 2020, based on the representations made in the loan application

paperwork and supporting documents, BSC’s PPP loan application was approved by Bank

Processor #1. On or about June 19, 2020, Bank #2, a financial institution insured by the Federal

Deposit Insurance Corporation, wired approximately $249,990 in PPP loan proceeds into a BSC
bank account ending in -1104 for which the Defendant was an authorized signatory. Prior to the
receiving the approximately $249,990 in fraudulent PPP loan proceeds, BSC’s bank account had

a balance of approximately $732.

Case 0:21-cr-60119-KMW | Document 62 Entered on FLSD Docket 08/27/2021 Page 4 of 4

S approxima fi en .
), a cheek ; ia th PProximately 25% of the $249,990 loan amount. On or about June 19,
e “PProximate
BSc’ amount of $63,497, 50, made payable to E M. , was drawn from

S bank acc
ount en
ding j in -1104 and subsequently deposited into a bank account ending in -

1515 unde
T the con
trol of E, M. On-the same day, EM. obtained two cashier’s checks from. the

“bank acco}
unt ¢
nding in -1515: one payable to: W. D.’s company, CMS, for approximately

$42, 501 -50 and another payable to M. M.’s spoise for approximately . $16, 000. A copy of the
oo $42,501 50 cashier’ ‘S chéck from MLG to CMS was seized during the search of cms’ S s office,
. Thereafter, the Defendant agreed with E.M. that the Defendant would recruit additional
loan: applicants who would pay kickbacks equal. to 25% of loan proceeds, with the Defendant and
E.M. to split 5%. Approximately 15. individuals recruited, by’ the’ Defendant provided information
for loan applications either directly or through ‘the. Defendant to E.M, but none of the loan
applications for the Defendant’s recruits were. approved...
These aré not the only facts known to the United States of America in this matter, nor are
they all of the facts that the United States of America would present, had this case gone to trial.

JUAN ANTONIO GONZALEZ |
ACTING UNITED STATES ATTORNEY —

DATE: _ 8/23/2021.

‘ RopEnTO GERONIMO
DEFENDANT

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