Indictment — United States v. Floradin (Dkt. 1, S.D. Fla.)

Summary

The indictment of Elie Floradin entered August 11, 2022 in the U.S. District Court for the Southern District of Florida, Case No. 22-20361-CR-MARTINEZ/BECERRA, citing 18 U.S.C. § 1343, 18 U.S.C. § 1957(a) and forfeiture statutes. The general allegations describe the Paycheck Protection Program under the CARES Act and the loan application certifications. They state that on or about July 7, 2020, Lender 1 disbursed approximately $199,999 in loan proceeds into Floradin's personal bank account, and that a later second draw PPP application and applications to Bank Processor 1 and Lender 2 were denied. Counts 1-2 charge wire fraud from in or around June 2020 through in or around April 2021 in Miami-Dade County.

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Case 1:22-cr-20361-JEM Document 1 Entered on FLSD Docket 08/11/2022) Fagé LOfMM oc

Aug 10, 2022
UNITED STATES DISTRICT COURT ee
SOUTHERN DISTRICT OF FLORIDA CLERK U.S. DIST. CT.

5.D. OF FLA. - MIAMI
22-20361-CR-MARTINEZ/BECERRA
CASE NO.
18 U.S.C. § 1343
18 U.S.C. § 1957(a)
18 U.S.C. § 982(a)(1)
18 U.S.C. § 982(a)(2)(A)

UNITED STATES OF AMERICA
Vs.
ELIE FLORADIN,
Defendant.
/
INDICTMENT
The Grand Jury charges that:
GENERAL ALLEGATIONS

At all times relevant to this Indictment:

The Paycheck Protection Program

1. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal
law enacted in or around March 2020 and designed to provide emergency financial assistance to
the millions of Americans who were suffering the economic effects caused by the COVID-19
pandemic. One source of relief provided by the CARES Act was the authorization of forgivable
loans to small businesses for job retention and certain other business expenses, through a program
referred to as the Paycheck Protection Program (“PPP”).

2. In order to obtain a PPP loan, a qualifying business submitted a PPP loan
application, which was signed by an authorized representative of the business. The PPP loan

application required the business (through its authorized representative) to acknowledge the

Case 1:22-cr-20361-JEM Document1 Entered on FLSD Docket 08/11/2022 Page 2 of 9

program rules and make certain affirmative certifications in order to be eligible to obtain the PPP
loan. In the PPP loan application (Small Business Administration (“SBA”) Form 2483), the small
business (through its authorized representative) was required to provide, among other things, its:
(a) average monthly payroll expenses; and (b) number of employees. These figures were used to
calculate the amount of money the small business was eligible to receive under the PPP. In
addition, businesses applying for a PPP loan were often required to provide documentation
confirming their payroll expenses.

3. A PPP loan application was processed by a participating lender. If a PPP
application was approved, the participating lender funded the PPP loan using its own monies.
While it was the participating lender that issued the PPP loan, the loan was 100% guaranteed by
the SBA. Data from the application, including information about the borrower, the total amount
of the loan, and the listed number of employees, was transmitted by the lender to the SBA in the
course of processing the loan.

4, PPP loan proceeds were required to be used by the business on certain permissible
business expenses—payroll costs, interests on mortgages, rent, and utilities. The PPP allowed the
interest and principal on the PPP loan to be entirely forgiven ifthe business spent the loan proceeds
on these expense items within a designated period of time and used a defined portion of the PPP
loan proceeds on payroll expenses.

The Defendant and Relevant Entities

5. Defendant, ELIE FLORADIN, was a resident of Miami-Dade County, Florida.

6. YOU’RE HIRED EMPLOYMENT AGENCY, LLC (“YHEA”), was a limited
liability company registered with the Florida Department of State (Division of Corporations) on
or about May 8, 2018, by ELIE FLORADIN. YHEA had a principal address in Miami, Florida,

which was the same address listed as FLORADIN’s home address.

Case 1:22-cr-20361-JEM Documenti1 Entered on FLSD Docket 08/11/2022 Page 3 of 9

7. Lender 1 was a financial technology and banking services company based in
Atlanta, Georgia. Lender 1 was an approved SBA lender for PPP loans.

8. Bank Processor 1 was a financial technology company based in Redwood City,
California, that processed PPP loan applications for participating SBA-approved lenders.

9. Lender 2 was a lender insured by the Federal Deposit Insurance Corporation, based
in Phoenixville, Pennsylvania. Lender 2 was an approved SBA lender for PPP loans.

10. Bank of America was a financial institution based in Charlotte, North Carolina, and

had branches in Miami-Dade County, Florida.

COUNTS 1-2

Wire Fraud
(18 U.S.C. § 1343)

1, Paragraphs 1 and 10 of the General Allegations section of this Indictment are re-
alleged and incorporated by reference as though fully set forth herein.

2. From in or around June 2020, through in or around April 2021, in Miami-Dade
County, in the Southern District of Florida, and elsewhere, the defendant,

ELIE FLORADIN,

did knowingly, and with the intent to defraud, devise, and intend to devise, a scheme and artifice
to defraud, and to obtain money and property by means of materially false and fraudulent
pretenses, representations, and promises, knowing that the pretenses, representations, and
promises were false and fraudulent when made, and, for the purpose of executing the scheme and
artifice, did knowingly transmit and cause to be transmitted, by means of wire communication in

interstate commerce, certain writings, signs, signals, pictures, and sounds, in violation of Title 18,

United States Code, Sections 1343 and 2.

Case 1:22-cr-20361-JEM Document1 Entered on FLSD Docket 08/11/2022 Page 4 of 9

PURPOSE OF THE SCHEME AND ARTIFICE

3. It was the purpose of the scheme and artifice for ELIE FLORADIN to unlawfully
enrich himself by, among other things: (a) submitting and causing to be submitted false and
fraudulent applications made available through the SBA to provide relief for the economic effects
caused by the COVID-19 pandemic, including PPP loans; (b) diverting fraud proceeds for the
defendant’s personal use, the use and benefit of others, and to further the fraud; and (c) concealing

the commission of the offense and the use of the fraud proceeds.

MANNER AND MEANS OF SCHEME AND ARTIFICE

The manner and means by which the defendant sought to accomplish the purpose of the
scheme and artifice included, among other things, the following:

4. ELIE FLORADIN submitted and caused to be submitted false and fraudulent PPP
loan applications on behalf of YHEA, via interstate wire communications, to Lenders 1 and 2 and
Bank Processor 1. This included two PPP loan applications to Lender 1 and one application each
to Bank Processor | and Lender 2.

5. The false and fraudulent applications included falsified federal tax forms and
falsely and fraudulently represented YHEA’s number of employees and monthly payroll costs.

6. As a result of the false and fraudulent representations made by ELIE FLORADIN
in his initial PPP loan application submitted to Lender 1, on or about July 7, 2020, Lender 1
disbursed approximately $199,999 in loan proceeds into the defendant’s personal bank account.

7. FLORADIN subsequently submitted a “second draw” PPP loan application to
Lender 1, which was denied. FLORADIN then submitted a loan application to Bank Processor 1,

followed by an application to Lender 2, both of which were denied.

Case 1:22-cr-20361-JEM Documenti1 Entered on FLSD Docket 08/11/2022 Page 5 of 9

8. Instead of using the PPP loan proceeds he received for payroll and other permissible
business expenses, ELJE FLORADIN used the loan proceeds for his own use and benefit, and

the use and benefit of others.

USE OF WIRES

9. On or about the dates specified as to each count below, in Miami-Dade County, in
the Southern District of Florida, and elsewhere, the defendant, ELIE FLORADIN, for the purpose
of executing and in furtherance of the aforesaid scheme and artifice to defraud, and to obtain
money and property by means of materially false and fraudulent pretenses, representations, and
promises, knowing that the pretenses, representations, and promises were false and fraudulent
when made, did knowingly transmit and cause to be transmitted in interstate commerce, by means

of wire communication, certain writings, signs, signals, pictures, and sounds, as described below:

COUNT |. APPROXIMATE | © = =————- DESCRIPTION OF WIRE
|. DATE oo rae
1 July 7, 2020 A wire transfer of approximately $199,999 in fraudulently

obtained PPP loan funds, from Lender 1 to Bank of America
checking account ending in 5726, causing a wire transmission
from outside of Florida into the Southern District of Florida.

2 March 18, 2021 A false and fraudulent PPP loan application to Bank Processor
1 on behalf of YHEA, causing a wire transmission from the
Southern District of Florida to outside of Florida.

In violation of Title 18, United States Code, Sections 1343 and 2.

COUNT 3
Engaging in Transactions in Criminally Derived Property

(18 U.S.C. § 1957(a))

1. The General Allegations section of this Indictment, and paragraphs 4 through 8 of
the Manner and Means of Counts | and 2 of this Indictment, are re-alleged and incorporated by

reference as though fully set forth herein.

Case 1:22-cr-20361-JEM Documenti1 Entered on FLSD Docket 08/11/2022 Page 6 of 9

10. On or about July 28, 2020, in Miami-Dade County, in the Southern District of
Florida, and elsewhere, the defendant,

ELIE FLORADIN,

did knowingly engage in a monetary transaction, by, though, and to a financial institution, affecting
interstate commerce in criminally derived property of a value greater than $10,000, and such
property having been derived from a specified unlawful activity, knowing that the property
involved in the monetary transactions represented the proceeds of some form of specified unlawful
activity, that is, a transfer of funds in the approximate amount $177,000, from Bank of America
checking account ending in 5726, to Bank of America checking account ending in 7583.

It is further alleged that the specified unlawful activity is wire fraud, in violation of Title
18, United States Code, Section 1343.

In violation of Title 18, United States Code, Sections 1957(a) and 2.

FORFEITURE ALLEGATIONS

1. The allegations of this Indictment are hereby re-alleged and by this reference fully
incorporated herein for the purpose of alleging forfeiture to the United States of America of certain
property in which the defendant, ELIE FLORADIN, has an interest.

2. Upon conviction of a violation of Title 18, United States Code, Section 1343, as
alleged in this Indictment, the defendant shall forfeit to the United States, any property
constituting, or derived from, proceeds the defendant obtained directly or indirectly, as the result
of such offense, pursuant to Title 18, United States Code, Section 982(a)(2)(A).

3. Upon conviction of a violation of Title 18, United States Code, Section 1957, as
alleged in this Indictment, the defendant shall forfeit to the United States any property, real or
personal, involved in such offense, and any property traceable to such property, pursuant to Title

18, United States Code, Section 982(a)(1).

Case 1:22-cr-20361-JEM Document1 Entered on FLSD Docket 08/11/2022 Page 7 of 9

All pursuant to Title 18, United States Code, Section 982 (a)(2)(A), and the procedures set
forth in Title 21, United States Code, Section 853, as incorporated by Title 18, United States Code,

Section 982(b)(1).

A TRUE BILL

A

JUAN (ATONIO GONDALEZ
D

UNITED STATES ATTORNEY

LL AKL

EDUARDO GARDEA, JR.
ASSISTANT UNITED STATES ATTORNEY


Case 1:22-cr-20361-JEM Document1 Entered on FLSD Docket 08/11/2022 Page 8 of 9
UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA

UNITED STATES OF AMERICA CASE NO.:

Vv.

ELIE FLORADIN,

\

CERTIFICATE OF TRIAL ATTORNEY*

/ Superseding Case Information:
Court Division (select one) New Defendant(s) (Yes or No)
Miami Key West [FTP Number of New Defendants
FTL WPB ' Total number of New Counts
I do hereby certify that:

I have carefully considered the allegations of the indictment, the number of defendants, the number of probable
witnesses and the legal complexities of the Indictment/Information attached hereto.

I am aware that the information supplied on this statement will be relied upon by the Judges of this Court in setting
their calendars and scheduling criminal trials under the mandate of the Speedy Trial Act, Title 28 U.S.C. §3161.

Interpreter: (Yes or No) Yes
List language and/or dialect: Creole

This case willtake 4 days for the parties to try.

Please check appropriate category and type of offense listed below:

(Check only one) (Check only one)
J Oto 5 days Petty

II 6 to 10 days Minor

Ill [11 to 20 days Misdemeanor
IV E21 to 60 days Felony

V E161 days and over

Has this case been previously filed in this District Court? (Yes or No) No

If yes, Judge Case No.

Has a complaint been filed in this matter? (Yes or No) No

If yes, Magistrate Case No.

Does this case relate to a previously filed matter in this District Court? (Yes or No) No
If yes, Judge Case No.

Defendant(s) in federal custody as of

Defendant(s) in state custody as of

Rule 20 from the District of \

Is this a potential death penalty case? (Yes or No) No

Does this case originate from a matter pending in the Northern Region of the U.S. Attorney’s Office
prior to August 8, 2014 (Mag. Judge Shaniek Maynard? (Yes or No) No

Does this case originate from a matter pending in the Central Region of the U.S. Attorney’s Office

prior to October 3, 2019 (Mag. Judge Jared Strauss? (Yes or No) No

EDUARDO GARDEA, JR.
Assistant United States Attorney

Court ID No. A5502663


Case 1:22-cr-20361-JEM Document1 Entered on FLSD Docket 08/11/2022 Page 9 of 9

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA

PENALTY SHEET

Defendant's Name: ELIE FLORADIN

Case No:

Counts #: 1-2

Wire Fraud

Title 18, United States Code, Section 1343

* Max. Term of Imprisonment: Twenty (20) Years

* Mandatory Min. Term of Imprisonment (if applicable): N/A
* Max. Supervised Release: Three (3) Years

* Max. Fine: $250,000

Count #: 3

Engaging in Transactions in Criminally Derived Property

Title 18, United States Code, Section 1957(a) ~

* Max. Term of Imprisonment: Ten (10) Years

* Mandatory Min. Term of Imprisonment (if applicable): N/A
* Max. Supervised Release: Three (3) Years

* Max. Fine: $250,000

*Refers only to possible term of incarceration, supervised release and fines. It does not include
restitution, special assessments, parole terms, or forfeitures that may be applicable.

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