Indictment as to Bernard Okojie (1) count(s) 1, 2, 3 — USA v. Okojie (Dkt. 3, S.D. Ga.)

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U.S. District Court for the Southern District of Georgia · No. 4:22-cr-00084-LGW-BWC · Doc. 3 · 2022-06-09 · Docket on CourtListener

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UNITED STATES DISTRICT COURT-
SOUTHERN DISTRICT OF GEORG4A
SAVANNAH DIVISION
U. S. DISTRICT COURT
Southern Dletrlct of 0«.
Filed In OfflGe
Pm ^
Deputy Clerk
UNITED STATES OF AMERICA
V.
BERNARD OKOJIE
INDICTMENT NO.CR422 -008 4
18 U.S.C. § 1349
Conspiracy to Commit Wire and
Bank Fraud
18 U.S.C. § 1343
Wire Fraud
18 U.S.C. § 1956(h)
Money Laundering Conspiracy
THE GRAND JURY CHARGES THAT:
At all times relevant to this Indictment:
INTRODUCTION
1. 
Beginning in or about May 2020 and continuing until in or about
January 2021, BERNARD OKOJIE led a scheme to defraud the United States by
submitting Economic Injury Disaster Loan ("EIDL") applications to the U.S. Small
Business Administration ("SBA") for non-existent companies.
2. 
OKOJIE submitted these EIDL applications in his name, on behalf of
companies he had made up, and in the names of others. For the EIDLs he submitted
for others, he took a percentage of the fraudulent proceeds for his services
orchestrating the fraud.
3. 
OKOJIE then ran the fraudulent proceeds through multiple bank
accounts in the names of various companies in an effort to launder the funds.
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4. 
Through this scheme, OKO 
JIE sought to take advantage of a program
meant to help struggling businesses during a global pandemic, and to defraud the
United States out of millions of dollars through the fraudulent EIDL applications he
submitted.
5. 
OKO 
JIE committed this vast fraud scheme to enrich himself in the form
of massive amounts of cash. He then used these funds for his own personal benefit,
including spending thousands of dollars spent at stores like Gianni Versace and
others.
The Defendant and His Purported Businesses
6. 
OKOJIE was an individual residing in Georgia who submitted EIDL
applications for individuals in several states, including for an individual residing in
the Southern District of Georgia.
7. 
B&K FREIGHT LLC was a Georgia limited liability company owned and
controlled by OKOJIE.
8. 
K0JIE9 LC was a Georgia limited liabihty company owned and
controlled by OKOJIE.
9. 
OKOJIE claimed ownership in many businesses that were purportedly
located in Georgia, hut were not actually in existence and were not registered
corporate entities, including:
a. Kojie9 Home Care LLC, a purported Georgia health services
business;
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b. Kojie9 Plumbing Service LLC, a purported Georgia construction and
contractors business; and
c. B & K Automobile Sale Inc., a purported Georgia car dealership.
The COVID-19 Pandemic and the CARES Act
10. 
The Coronavirus Aid, Relief, and Economic Security ("CARES") Act was
a federal law enacted in or about March 2020 designed to provide emergency financial
assistance to the millions who are suffering the economic effects caused by the
COVID-19 pandemic.
11. 
Among other relief efforts, the United States sought to provide financial
support to eligible businesses that could be used to offset certain business expenses.
12. 
The SBA was an executive branch agency of the United States
government that provided support to entrepreneurs and small businesses. The SBA
was headquartered in Washington, DC and maintained its computer servers outside
of the State of Georgia. The SBA's mission was to maintain and strengthen the
nation's economy by enabling the establishment and viability of small businesses and
by assisting in the economic recovery of communities after disasters.
13. 
As part of this effort, the SBA enabled and provided for loans through
banks, credit unions, and other lenders. These loans have government-backed
guarantees. In addition, the SBA provided loans that came directly from the U.S.
Government.
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Economic Injury Disaster Loans
14. 
One source of relief provided by the CARES Act was the authorization
for the SBA to provide EIDLs to eligible small businesses experiencing substantial
financial disruption due to the COVID-19 pandemic.
15. 
In order to obtain an EIDL, a qualifying business had to submit an
online apphcation to the SBA and provide information about its operations, such as
the number of employees, gross revenues for the twelve-month period preceding the
disaster, and the cost of goods the business sold in the twelve-month period preceding
the disaster. In the case of EIDLs, the twelve-month period was that preceding
January 31, 2020. The applicant also had to certify that all the information in its
application was true and correct to the best of the applicant's knowledge.
16. 
EIDL applications were submitted directly to the SBA online at
https://covidl9relief.sba.gOv/#/ and processed by the agency with support from a
government contractor. Rapid Finance. The amount of each loan was determined
based, in part, on the information provided by the application about employment,
revenue, and cost of goods, as described above. Any funds issued under an EIDL were
issued directly by the SBA.
17. 
EIDL funds could be used for payroll expenses, sick leave, production
costs, and business obligations, such as debts, rent, and mortgage payments.
The Pavcheck Protection Program
18. 
Another source of relief provided by the CARES Act was the
authorization of up to $349 biUion in forgivable loans to small businesses for job
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retention and certain other expenses, through a program referred to as the Paycheck
Protection Program ("PPP"). In or around April 2020, Congress authorized over $300
billion in additional PPP funding.
19. 
In order to obtain a PPP loan, a qualifying business had to submit a PPP
loan application signed by an authorized representative of the business. The PPP loan
application required the business (through its authorized representative) to
acknowledge the program rules and make certain affirmative certifications in order
to be eligible to obtain the PPP loan. In the PPP loan application, the small business
(through its authorized representative) had to state, among other things, its: (a)
average monthly payroll expenses; and (b) number of employees. These figures were
then used to calculate the amount of money the small business was eligible to receive
under the PPP. In addition, a business applying for a PPP loan had to provide
documentation showing its payroll expenses.
20. 
A PPP loan application must be processed by a participating lender,
such as a financial institution. If a PPP loan is approved, the participating lender
funds the PPP loan using its own monies, which are 100% guaranteed by the SBA.
Data from the application, including the information about the borrower, the total
amount of the loan, and the listed number of employees, is transmitted by the lender
to the SBA in the course of processing the loan.
21. 
The PPP loan proceeds must be used by the business on certain
permissible expenses—^payroll costs, interest on mortgages, rent, and utilities. The
PPP allows the interest and principal of the PPP loan to be entirely forgiven if the
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business spends the loan proceeds on these expense items within a designated period
of time and uses a certain percentage of the PPP loan proceeds on payroll expenses.
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COUNT ONE
Conspiracy to Commit Wire and Bank Fraud
18 U.S.C. § 1349
22. 
The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 21 of this Indictment as if fully set
forth herein.
23. 
Beginning in or about May 2020 and continuing until in or about
January 2021, in the Southern District of Georgia, and elsewhere, the Defendant,
BERNARD OKO 
JIE,
with other co-conspirators, known and unknown, did conspire, confederate, and agree
with each other to commit the following offenses:
a. 
wire fraud, that is, to devise and intend to devise a scheme and
artifice to defraud individuals and to obtain money and property by means of
materially false and fraudulent pretenses, representations and promises, and
for the purpose of executing this scheme, and attempting to do so, caused to be
transmitted by means of wire communication in interstate commerce signals
and sounds, all in violation of Section 1343 of Title 18 of the United States
Code; and
b. 
bank fraud, that is, to knowingly execute or attempt to execute a
scheme and artifice to obtain any of the moneys, funds, credits, assets,
securities, and other property under the custody and control of a financigd
institution by means of false and fraudulent pretenses, representations, and
promises, all in violation of Section 1344 of Title 18 of the United States Code.
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The Object of the Conspiracy
24. 
It was the object of the conspiracy for OKO 
JIE and others to unlawfully
enrich themselves by, among other things, obtaining EIDL and PPP proceeds under
false and fraudulent pretenses, including by making false statements about
OKOJIE's and his coconspirators' companies' gross revenue.
Manner and Means
25. 
It was part of the conspiracy, and the manner and means thereof, that
OKOJIE submitted, or caused to be submitted, one or more false and fraudulent
applications for PPP loans to financial institutions, and multiple electronic
applications for EIDLs from the SBA at https://covidl9relief.sba.gOv/#/, knowing the
same to contain material false representations.
26. 
From May 2020 through January 2021, OKOJIE submitted, or caused
to be submitted, no less than ten different EIDL applications to the SBA on behalf of
various businesses purportedly owned and operated by OKOJIE. In each, OKOJIE
falsely affirmed that the businesses had substantial gross revenue in the twelve
months prior to January 31, 2020, including but not limited to:
a. On June 25, 2020, applying for an EIDL for "Bernard Okojie," and
falsely stating that "Bernard Okojie" had $180,000 in gross revenue
in the twelve months prior to January 31, 2020;
b. On June 27, 2020, applying for an EIDL for "kojieO 11c," and falsely
stating that "kojieO 11c" had $160,000 in gross revenue in the twelve
months prior to January 31, 2020;
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c. On July 31, 2020, applying for an EIDL for "kojieO home care lie,"
and falsely stating that "kojieO home care Uc" had $238,000 in gross
revenue in the twelve months prior to January 31, 2020;
d. On August 1, 2020, applying for an EIDL for "kojieO plumbing service
11c," and falsely stating that "kojieO plumbing service 11c" had
$219,900 in gross revenue in the twelve months prior to January 31,
2020;
e. On September 27, 2020, applying for an EIDL for "B & K Automobile
Sale Inc" and falsely stating that "B & K Automobile Sale Inc" had
$268,000 in gross revenue in the twelve months prior to January 31,
2020;
f. On October 16, 2020, applying for an EIDL for "kojie911c," and falsely
stating that "kojie9 11c" had $243,600 in gross revenue in the twelve
months prior to January 31, 2020; and
g. On January 12, 2021, applying for an EIDL for "B & k Freight LLC,"
and falsely stating that "B & k Freight LLC" had $187,000 in gross
revenue in the twelve months prior to January 31, 2020.
27. 
From July 2020 through August 2020, OKOJIE also submitted, or
caused to be submitted, at least eight different EIDL apphcations to the SBA on
behalf of various businesses purportedly owned and operated by individuals known
to OKOJIE. In return, the individuals paid OKOJIE a kickback in the form of a
percentage of the EIDL amount received. In each, OKOJIE falsely affirmed that the
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businesses had substantial gross revenue in the twelve months prior to January 31,
2020, including but not limited to:
a. On July 14, 2020, applying for an EIDL for Individual 1 of Locust
Grove, Georgia, and falsely stating that Individual I's business had
$233,900 in gross revenue in the twelve months prior to January 31,
2020;
b. On July 16, 2020, applying for an EIDL for Individual 2 of Macon,
Georgia, and falsely stating that Individual 2's business had
$242,800 in gross revenue in the twelve months prior to January 31,
2020;
c. On July 20, 2020, applying for an EIDL for Individual 3 of Jonesboro,
Georgia, and falsely stating that Individual 3's business had
$234,000 in gross revenue in the twelve months prior to January 31,
2020;
d. On July 21, 2020, applying for an EIDL for Individual 4 of Savannah,
Georgia, and falsely stating that Individual 4's business had
$246,800 in gross revenue in the twelve months prior to January 31,
2020;
e. On July 21, 2020, applying for an EIDL for Individual 5 of Gloster,
Mississippi, and falsely stating that Individual 5's business had
$244,500 in gross revenue in the twelve months prior to January 31,
2020;
10
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f. On July 23, 2020, applying for an EIDL for Individual 6 of McComb,
Mississippi, and falsely stating that Individual 6's business had
$246,900 in gross revenue in the twelve months prior to January 31,
2020;
g. On August 4, 2020, applying for an EIDL for Individual 7 of McComb,
Mississippi, and falsely stating that Individual 7's business had
$244,900 in gross revenue in the twelve months prior to January 31,
2020; and
h. On August 7, 2020, applying for an EIDL for Individual 8 of
Lawrenceville, Georgia, and falsely stating that Individual S's
business had $238,500 in gross revenue in the twelve months prior
to January 31, 2020.
28. 
It was further a part of the scheme that, after individuals for whom
OKOJIE applied for EIDLs received their loan payments from the SBA, OKOJIE
would receive a percentage of the fraudulent loan for his role in obtaining the
fraudulent loan. Individuals made these payments to OKOJIE by depositing money
into a bank account in the name of one of OKO 
JIE's "businesses." These payments
include:
a. A July 24, 2020 payment of $14,040 from Individual 3;
b. A July 27, 2020 payment of $30,575 from Individual 5;
c. A July 31, 2020 payment of $18,495 from Individual 4;
d. A July 31, 2020 payment of $15,510 from Individual 6;
11
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e. An August 13, 2020 payment of $15,375 from Individual 7;
f. An August 17, 2020 payment of $17,550 from Individual 1;
g. An August 20, 2020 payment of $17,745 from Individual 8; and
h. An August 24, 2020 payment of $18,210 from Individual 2.
29. 
It was further part of the conspiracy that OKO 
JIE submitted, or caused
to be submitted, one or more PPP applications containing representations that
OKO 
JIE then and there knew to be false and fraudulent, including a PPP application
to Lender 1, a financial institution, for a food services business in the name of Bernard
Okojie. In connection with this PPP application, OKO 
JIE submitted, or caused to be
submitted, a fake tax document to Lender 1 with fake gross receipt numbers.
All in violation of Title 18, United States Code, Section 1349.
12
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COUNT TWO
Wire Fraud
18 U.S.C. §§ 1343 and 2
30. 
The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 21 of this Indictment as if fully set
forth herein.
31. 
On or about July 21, 2020, in the Southern District of Georgia, and
elsewhere, the Defendant,
BERNARD OKO 
JIE
aided and abetted by others, devised and intended to devise a scheme to defraud the
United States, and to obtain money and property, by means of materially false and
fraudulent pretenses, representations, and promises, and for the purpose of executing
the scheme and artifice and to obtain money and property, caused interstate and
foreign wire communications to be made, in furtherance of the scheme and artifice to
defraud, to wit, the online submission of an EIDL apphcation ending in 9966 in the
name of Individual 4, who was claimed by OKO 
JIE in EIDL application 9966 to
operate a seven-employee health services business in Savannah, Georgia that had 12-
month gross revenue prior to January 31, 2020 of $246,800.00, when in truth and in
fact, and as OKOJIE then and there knew. Individual 4 operated no such business
and had no such revenue.
All in violation of Title 18, United States Code, Sections 1343 and 2.
13
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COUNT THREE
Money Laundering Conspiracy
18 U.S.C. § 1956(h)
32. 
The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 21 of this Indictment as if fully set
forth herein.
33. 
From in or about May 2020 up to and continuing until in or about
January 2021, in the Southern District of Georgia and elsewhere, the Defendant,
BERNARD OKO 
JIE
and others known and unknown, willfully and knowingly did combine, conspire,
confederate, and agree together and with each other to commit money laundering, in
violation of Title 18, United States Code, Sections 1956(a)(l)(B)(i), 1956(a)(l)(B)(ii),
and 1957.
34. 
It was part and an object of the conspiracy that OKOJIE, and others
known and unknown, knowing that the property involved in certain financial
transactions represented the proceeds of some form of unlawful activity, would and
did conduct and attempt to conduct such financial transactions that in fact involved
the proceeds of specified unlawful activity, that is, the wire and bank fraud schemes
and conspiracy charged in Counts One and Two of this Indictment, knowing that the
transactions were designed in whole and in part to conceal and disguise the nature,
the location, the source, the ownership, and the control of the proceeds of specified
unlawful activity, in violation of Title 18, United States Code, Section 1956(a)(l)(B)(i).
35. 
It was also a part and an object of the conspiracy that OKOJIE, and
others known and unknown, knowing that the property involved in certain financial
14
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transactions represented the proceeds of some form of unlawful activity, would and
did conduct and attempt to conduct such financial transactions that in fact involved
the proceeds of specified unlawful activity, that is, the wire and bank fraud schemes
and conspiracy charged in Counts One and Two of this Indictment, knowing that the
transactions were designed in whole and in part to avoid a transaction reporting
requirement under State and Federal law, in violation of Title 18, United States Code,
Section 1956(a)(l)(B)(ii).
36. 
It was also part and an object of the conspiracy that OKOJIE, and
others known and unknown, within the United States, knowingly engaged and
attempted to engage in monetary transactions in criminally derived property of a
value greater than $10,000.00 that was derived from specified unlawful activity, that
is, fraud schemes involving COVID-19 stimulus funds, including EIDL funds and
PPP funds, in violation of Title 18, United States Code, Section 1957.
All in violation of Title 18, United States Code, Section 1956(h).
15
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FORFEITURE ALLEGATION
The allegations contained in Counts One through Three of this Indictment are
hereby re-alleged and incorporated by reference for the purpose of alleging forfeitures
pursuant to Title 18, United States Code, Sections 981(a)(1)(C) and 982(a) and Title
28, United States Code, Section 2461(c).
Upon conviction of one or more of the offenses in violation of Title 18, United
States Code, Sections 1349 and 1343 set forth in Counts One and Two of this
Indictment, DEFENDANT shall forfeit to the United States of America, pursuant to
Title 18, United States Code, Section 981(a)(1)(C) and Title 28, United States Code,
Section 2461(c), any property constituting, or derived from, proceeds obtained,
directly or indirectly, as a result of such violation.
Additionally, upon conviction of violating Title 18, United States Code, Section
1956(h) as alleged in Count Three of this Indictment, DEFENDANT shall forfeit to
the United States of America, pursuant to Title 18, United States Code, Section
982(a), any property, real or personal, involved in the offense, or any property
traceable to such property.
If any of the property described above, as a result of any act or commission of
the defendant:
a. 
cannot be located upon the exercise of due diligence;
b. 
has been transferred or sold to, or deposited with, a third party;
c. 
has been placed beyond the jurisdiction of the court;
d. 
has been substantially diminished in value; or
16
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e. 
has been commingled with other property which cannot be
divided without difficulty,
the United States of America shall be entitled to forfeiture of substitute property
pursuant to Title 21, United States Code, Section 853(p), as incorporated by Title 28,
United States Code, Section 2461(c).
A True Bill.
FoX trptrx S3U1X
David H. Estes
United States Attorney
JokiajJat^ A. Porter
Assistant United States Attorney
*Lead Counsel
Patricia G. Rhodes
Assistant United States Attorney
Chief, Criminal Division
'atrick J. ScHwedler
Assistant United States Attorney
*Co-lead Counsel
17
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