Amended Plea Agreement re: count(s) Two, Eight — USA v. Tisone (Dkt. 54, M.D. Fla. No. 2:22-mj-01043, docketed in No. 2:22-cr-00039)

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U.S. District Court for the Middle District of Florida · No. 2:22-cr-00039-SPC-NPM · Doc. 54 · 2022-08-26 · Docket on CourtListener

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UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
FORT MYERS DIVISION
UNITED STATES OF AMERICA
Vv. CASE NO. 2:22-cr-39-SPC-NPM
DANIEL JOSEPH TISONE

AMENDED PLEA AGREEMENT

Pursuant to Fed. R. Crim. P. 11(c), the United States of America, by Roger B.
Handberg, United States Attorney for the Middle District of Florida, and the
defendant, Daniel Joseph Tisone, and the attorney for the defendant, Mark Eiglarsh,
mutually agree as follows:
A.  Particularized Terms

1. Counts Pleading To

The defendant shall enter a plea of guilty to Counts Two, Eight,

Fourteen, and Eighteen of the Indictment. Count Two charges the defendant with
Wire Fraud, in violation of 18 U.S.C. § 1343; Count Eight charges the defendant
with Bank Fraud, in violation of 18 U.S.C. § 1344; Count Fourteen charges the
defendant with Illegal Monetary Transaction, in violation of 18 U.S.C. § 1957; and
Count Eighteen charges the defendant with Possession of Ammunition by a

Convicted Felon, in violation of 18 U.S.C. § 922(g)(1).

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a Maximum Penalties

Counts Two and Eight each carry a maximum sentence of 30 years of
imprisonment, a fine of up to $1,000,000, or twice the gross gain caused by the
offense, or twice the gross loss caused by the offense, whichever is greater, a term of
supervised release of not more than five years, and a special assessment of $100 per
felony count. Count Fourteen carries a maximum sentence of 10 years of
imprisonment, a fine of up to $250,000 or alternate fine of twice the amount of the
criminally derived property, a term of supervised release of not more than three
years, and a special assessment of $100 per felony count. Count Eighteen carries a
maximum sentence of 10 years of imprisonment, a fine of up to $250,000, a term of
supervised release of not more than three years, and a special assessment of $100 per
felony count.

With respect to certain offenses, the Court shall order the defendant to
make restitution to any victim of the offenses, and with respect to other offenses, the
Court may order the defendant to make restitution to any victim of the offenses, or to
the community, as set forth below.

3. Elements of the Offenses
The defendant acknowledges understanding the nature and elements of

the offenses with which defendant has been charged and to which defendant is

pleading guilty.

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The elements of Count Two, which charges Wire Fraud in violation of

18 U.S.C. § 1343, are:

The Defendant knowingly devised or participated in a
scheme to defraud, or to obtain money or property by
using false pretenses, representations, or promises;

the false pretenses, representations, or promises were
about a material fact;

The Defendant acted with the intent to defraud; and
The Defendant transmitted or caused to be transmitted by

wire some communication in interstate commerce to help
carry out the scheme to defraud.

The elements of Count Eight, which charges Bank Fraud in violation of

18 U.S.C. § 1344, are:

First:

Fourth:

The Defendant knowingly carried out or attempted to
carry out a scheme to defraud a financial institution or to
get money, assets, or other property from a financial
institution by using false or fraudulent pretenses,
representations, or promises about a material fact;

The false or fraudulent pretenses, representations, or
promises were material;

The Defendant intended to defraud the financial
institution or someone; and

The financial institution was federally insured or
chartered.

The elements of Count Fourteen, which charges Illegal Monetary

Transaction in violation of 18 U.S.C. 1957, are:

First:

The Defendant knowingly engaged in a monetary
transaction;

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Second:

Third:

Fourth:

ee
S

The monetary transaction was of a value greater than
$10,000;

The monetary transaction involved criminally derived
property,

Criminally derived property was derived from
specified unlawful activity, namely Wire Fraud;

The Defendant knew that the monetary transaction
involved criminally derived property; and

The monetary transaction took place within the United
States.

The elements of Count Eighteen, which charges Possession of

Ammunition by a Convicted Felon in violation of 18 U.S.C. § 922(g)(1), are:

ery

irst:

Second:

Third:

The defendant knowingly possessed ammunition in or
affecting interstate commerce;

Before possessing the ammunition, the defendant had been
convicted of a crime punishable by imprisonment for more
than one year (commonly referred to as a “felony”’); and

At the time he possessed the ammunition, the
defendant knew he had been convicted of a crime
punishable by imprisonment for more than one year.

3. Counts Dismissed

At the time of sentencing, the remaining counts against the defendant,

Counts One, Three through Seven, Nine through Thirteen, and Fifteen through

Seventeen, will be dismissed pursuant to Fed. R. Crim. P. 11(c)(1)(A).

4. No Further Charges

If the Court accepts this plea agreement, the United States Attorney's

Office for the Middle District of Florida agrees not to charge defendant with

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committing any other federal criminal offenses known to the United States
Attorney's Office at the time of the execution of this agreement, related to the
conduct giving rise to this plea agreement.

« d Mandatory Restitution to Victim of Offense of Conviction

Pursuant to 18 U.S.C. § 3663A and (b), defendant agrees to make full
restitution to the Small Business Administration, MS Facilities, LLC, and Bank of
Clarke County. While this amount will be determined and set by the Court, the
defendant agrees that restitution should be ordered for at least $2,617,447.17 which
he admits he obtained from the scheme.

In anticipation of a restitution order for these victims, the defendant has
agreed to take all necessary steps to liquidate assets for payment toward his
anticipated restitution. Doc. 41. The defendant will take all necessary steps to
liquidate the assets identified in the Stipulation and apply the proceeds to his
anticipated restitution order in accordance with the Stipulation and the Order
allowing for prejudgment payment of restitution in this case. Docs. 41 and 37.

6. Guidelines Sentence

Pursuant to Fed. R. Crim. P. 11(c)(1)(B), the United States will
recommend to the Court that the defendant be sentenced within the defendant’s
applicable guidelines range as determined by the Court pursuant to the United States
Sentencing Guidelines, as adjusted by any departure the United States has agreed to
recommend in this plea agreement. The parties understand that such a

recommendation is not binding on the Court and that, if it is not accepted by this

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Court, neither the United States nor the defendant will be allowed to withdraw from
the plea agreement, and the defendant will not be allowed to withdraw from the plea

of guilty.

7. Acceptance of Responsibility - Three Levels

At the time of sentencing, and in the event that no adverse information
is received suggesting such a recommendation to be unwarranted, the United States
will recommend to the Court that the defendant receive a two-level downward
adjustment for acceptance of responsibility, pursuant to USSG § 3E1.1(a). The
defendant understands that this recommendation or request is not binding on the
Court, and if not accepted by the Court, the defendant will not be allowed to
withdraw from the plea.

Further, at the time of sentencing, if the defendant's offense level prior
to operation of subsection (a) is level 16 or greater, and if the defendant complies
with the provisions of USSG § 3E1.1(b) and all terms of this Plea Agreement,
including but not limited to, the timely submission of the financial affidavit
referenced in Paragraph B.5., the United States agrees to file a motion pursuant to
USSG § 3E1.1(b) for a downward adjustment of one additional level. The defendant
understands that the determination as to whether the defendant has qualified for a
downward adjustment of a third level for acceptance of responsibility rests solely
with the United States Attorney for the Middle District of Florida, and the defendant
agrees that the defendant cannot and will not challenge that determination, whether

by appeal, collateral attack, or otherwise.

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8. Low End

At the time of sentencing, and in the event that no adverse information
is received suggesting such a recommendation to be unwarranted, the United States
will not oppose the defendant’s request to the Court that the defendant receive a
sentence at the low end of the applicable guideline range, as calculated by the Court.
The defendant understands that this recommendation or request is not binding on
the Court, and if not accepted by the Court, the defendant will not be allowed to
withdraw from the plea.

9. Forfeiture of Assets

The defendant agrees to forfeit to the United States immediately and
voluntarily any and all assets and property, or portions thereof, subject to forfeiture,
pursuant to 18 U.S.C. §§ 924(d)(1), 981(a)(1)(C), 982(a)(2)(A), and 982(a)(1), and 28
U.S.C. § 2461(c), whether in the possession or control of the United States, the
defendant, or defendant's nominees. The assets to be forfeited specifically include,
but are not limited to, the following: the $2,617,447.17 in proceeds the defendant
admits he obtained as the result of the commission of the offenses, as well as the
amount involved in the money laundering offense, to which the defendant is
pleading guilty, as well as the following:

a) Approximately $64,813.43 seized from Bank of Clarke County
account ending in 2616, held in the name of TEC Ventures LLC;

b) Approximately $832.26 seized from JP Morgan Chase account
ending in 8870, held in the name of TEC Ventures LLC;

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8)

a 4.02 carat diamond engagement ring;

a 2019 Tiara 34LS boat, hull number SSUKC007L819;

real property located at 1001 10% Avenue South, Naples, Florida
34102, including all improvements thereon and appurtenances
thereto, the legal description for which is as follows:

Unit 101, OLDE NAPLES SEAPORT, a Condominium,
according to the Declaration of Condominium thereof as recorded
in Official Records Book 3869, Page 3913, as amended from time to
time, of the Public Records of Collier County, Florida;

real property located at 550 Starboard Drive, Naples, Florida
34103, including all improvements thereon and appurtenances
thereto, the legal description for which is as follows:

Lot 5, Block F, THE MOORINGS, UNIT NO. 6, in accordance

with and subject to the plat thereof, recorded in Plat Book 8, pages
7 and 8, of the Public Records of Collier County, Florida; and

assorted ammunition,

which assets constitute proceeds of the offenses and/or property involved in the

offenses. While the defendant and the United States agree that the assets above are

subject to forfeiture, in order to expedite the return to victims, the United States has

agreed to allow the defendant to sell and liquidate the diamond engagement ring, the

Tiara boat, and the two real properties, identified above, and to apply the sale

proceeds to the anticipated restitution order in this case, in accordance with the terms

detailed in the parties’ Stipulation Regarding Restitution (Doc. 41). The defendant

agrees that any payments made to the Clerk of Court from the sale of any assets in

accordance with the Stipulation Regarding Restitution will not reduce his forfeiture

obligation in this case. Furthermore, in the event any of these assets is not sold by 30

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days prior to his sentencing, the defendant consents to entry of preliminary orders of
forfeiture for these assets. The net proceeds from the forfeiture and sale of any
specific assets will be credited to and reduce the amount the United States shall be
entitled to forfeit as substitute assets pursuant to 21 U.S.C. § 853(p).

The defendant acknowledges and agrees that (1) the defendant
obtained $2,617,447.17 as a result of the commission of the offenses and (2) as a
result of the acts and omissions of the defendant, the proceeds not recovered by the
United States through the forfeiture of the directly traceable assets listed herein have
been transferred to third parties and cannot be located by the United States upon the
exercise of due diligence. Therefore, the defendant agrees that, pursuant to 21
U.S.C. § 853(p), the United States is entitled to forfeit any other property of the
defendant (substitute assets), up to the amount of proceeds the defendant obtained,
as the result of the offenses of conviction and, further, the defendant consents to, and
agrees not to oppose, any motion for substitute assets filed by the United States up to
the amount of proceeds obtained from commission of the offenses and consents to
the entry of the forfeiture order into the Treasury Offset Program.

The defendant additionally agrees that since the criminal proceeds have
been transferred to third parties and cannot be located by the United States upon the
exercise of due diligence, the preliminary and final orders of forfeiture should
authorize the United States Attorney’s Office to conduct discovery (including

depositions, interrogatories, requests for production of documents, and the issuance

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of subpoenas), pursuant to Rule 32.2(b)(3) of the Federal Rules of Criminal
Procedure, to help identify, locate, and forfeit substitute assets.

The defendant agrees that forfeiture of substitute assets as authorized
herein shall not be deemed an alteration of the defendant's sentence and the United
States shall not be limited to the forfeiture of the substitute assets, if any, specifically
listed in this plea agreement.

The defendant agrees and consents to the forfeiture of these assets
pursuant to any federal criminal, civil, judicial or administrative forfeiture action.
The defendant also agrees to waive all constitutional, statutory and procedural
challenges (including direct appeal, habeas corpus, or any other means) to any
forfeiture carried out in accordance with this Plea Agreement on any grounds,
including that the forfeiture described herein constitutes an excessive fine, was not
properly noticed in the charging instrument, addressed by the Court at the time of
the guilty plea, announced at sentencing, or incorporated into the judgment.

The defendant admits and agrees that the conduct described in the
Factual Basis below provides a sufficient factual and statutory basis for the
forfeiture of the property sought by the government. Pursuant to Rule 32.2(b)(4),

the defendant agrees that the preliminary order of forfeiture will satisfy the notice

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requirement and will be final as to the defendant at the time it is entered. In the
event the forfeiture is omitted from the judgment, the defendant agrees that the
forfeiture order may be incorporated into the written judgment at any time pursuant
to Rule 36.

The defendant agrees to take all steps necessary to identify and locate
all property subject to forfeiture (including substitute assets) and to transfer custody
of such property to the United States before the defendant’s sentencing. To that end,
the defendant agrees to make a full and complete disclosure of all assets over which
defendant exercises control, including all assets held by nominees, to execute any
documents requested by the United States to obtain from any other parties by lawful
means any records of assets owned by the defendant, and to consent to the release of
the defendant’s tax returns for the previous five years. The defendant agrees to be
interviewed by the government, prior to and after sentencing, regarding such assets
and their connection to criminal conduct. The defendant further agrees to be
polygraphed on the issue of assets, if it is deemed necessary by the United States.
The defendant agrees that Federal Rule of Criminal Procedure 11 and USSG § 1B1.8
will not protect from forfeiture assets disclosed by the defendant as part of the
defendant’s cooperation.

The defendant agrees to take all steps necessary to assist the
government in obtaining clear title to the forfeitable assets before the defendant’s
sentencing. In addition to providing full and complete information about forfeitable

assets, these steps include, but are not limited to, the surrender of title, the signing of

_

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a consent decree of forfeiture, and signing of any other documents necessary to
effectuate such transfers.

The defendant agrees that, in the event the Court determines that the
defendant has breached this section of the Plea Agreement, the defendant may be
found ineligible for a reduction in the Guidelines calculation for acceptance of
responsibility and substantial assistance, and may be eligible for an obstruction of
justice enhancement.

Forfeiture of the defendant's assets shall not be treated as satisfaction of
any fine, restitution, cost of imprisonment, or any other penalty the Court may
impose upon the defendant in addition to forfeiture.

The defendant agrees that the forfeiture provisions of this plea agreement are
intended to, and will, survive the defendant, notwithstanding the abatement of any
underlying criminal conviction after the execution of this agreement. The
forfeitability of any particular property pursuant to this agreement shall be
determined as if the defendant had survived, and that determination shall be binding
upon defendant’s heirs, successors and assigns until the agreed forfeiture, including
the forfeiture of any substitute assets, is final.

10. Abandonment of Property - Firearms and Ammunition

The United States of America and defendant hereby agree that any
firearm and/or ammunition as defined in 18 U.S.C. § 921, seized from defendant
and currently in the custody and/or control of the Bureau of Alcohol, Tobacco and

Firearms, Federal Bureau of Investigation, or other government agency, were

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properly seized and are subject to forfeiture to the government according to 18
U.S.C. § 924(d) and/or that the firearms and ammunition constitute evidence,
contraband, or fruits of the crime to which he/she has pled guilty. As such,
defendant hereby relinquishes all claim, title and interest he/she has in the firearms
and ammunition to the United States of America with the understanding and
consent that the Court, upon approval of this agreement, hereby directs the Bureau
of Alcohol, Tobacco and Firearms, or other appropriate agency, to cause the
firearms and/or ammunition described above to be destroyed forthwith without
further obligation or duty whatsoever owing to defendant or any other person.

As part of the plea agreement in this case, defendant in this case hereby
states under penalty of perjury that he is the sole and rightful owner of the property,
and that defendant hereby voluntarily abandons all right and claim to assorted
ammunition, including Speer ammunition, Winchester ammunition, Sellier & Bellot
ammunition, PMC ammunition, BVAC ammunition, Remington ammunition, IMT
ammunition, Fiocchi ammunition, Blazer ammunition, FC ammunition, RP
ammunition, YVX ammunition, PPU ammunition, and GFL ammunition.

B. Standard Terms and Conditions

1; Restitution, Special Assessment and Fine

The defendant understands and agrees that the Court, in addition to or
in lieu of any other penalty, shall order the defendant to make restitution to any
victim of the offense(s), pursuant to 18 U.S.C. § 3663A, for all offenses described in

18 U.S.C. § 3663A(c)(1); and the Court may order the defendant to make restitution

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to any victim of the offense(s), pursuant to 18 U.S.C. § 3663, including restitution as
to all counts charged, whether or not the defendant enters a plea of guilty to such
counts, and whether or not such counts are dismissed pursuant to this agreement.
The defendant further understands that compliance with any restitution payment
plan imposed by the Court in no way precludes the United States from
simultaneously pursuing other statutory remedies for collecting restitution (28 U.S.C.
§ 3003(b)(2)), including, but not limited to, garnishment and execution, pursuant to
the Mandatory Victims Restitution Act, and inclusion of the debt in the Treasury
Offset Program, in order to ensure that the defendant’s restitution obligation is
satisfied.

On each count to which a plea of guilty is entered, the Court shall
impose a special assessment pursuant to 18 U.S.C. § 3013. The special assessment is
due on the date of sentencing.

The defendant understands that this agreement imposes no limitation as
to fine.

2: Supervised Release

The defendant understands that the offense(s) to which the defendant is
pleading provide(s) for imposition of a term of supervised release upon release from
imprisonment, and that, if the defendant should violate the conditions of release, the

defendant would be subject to a further term of imprisonment.

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3. Immigration Consequences of Pleading Guilty

The defendant has been advised and understands that, upon conviction,
a defendant who is not a United States citizen may be removed from the United
States, denied citizenship, and denied admission to the United States in the future.

4, Sentencing Information

The United States reserves its right and obligation to report to the Court
and the United States Probation Office all information concerning the background,
character, and conduct of the defendant, to provide relevant factual information,
including the totality of the defendant's criminal activities, if any, not limited to the
count(s) to which defendant pleads, to respond to comments made by the defendant
or defendant's counsel, and to correct any misstatements or inaccuracies. The
United States further reserves its right to make any recommendations it deems
appropriate regarding the disposition of this case, subject to any limitations set forth
herein, if any.

2. Financial Disclosures

Pursuant to 18 U.S.C. § 3664(d)(3) and Fed. R. Crim. P. 32(d)(2)(A)(ii),
the defendant agrees to complete and submit to the United States Attorney's Office
within 30 days of execution of this agreement an affidavit reflecting the defendant's
financial condition. The defendant promises that his financial statement and
disclosures will be complete, accurate and truthful and will include all assets in
which he has any interest or over which the defendant exercises control, directly or

indirectly, including those held by a spouse, dependent, nominee or other third party.

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The defendant further agrees to execute any documents requested by the United
States needed to obtain from any third parties any records of assets owned by the
defendant, directly or through a nominee, and, by the execution of this Plea
Agreement, consents to the release of the defendant's tax returns for the previous five
years. The defendant similarly agrees and authorizes the United States Attorney's
Office to provide to, and obtain from, the United States Probation Office, the
financial affidavit, any of the defendant's federal, state, and local tax returns, bank
records and any other financial information concerning the defendant, for the
purpose of making any recommendations to the Court and for collecting any
assessments, fines, restitution, or forfeiture ordered by the Court. The defendant
expressly authorizes the United States Attorney's Office to obtain current credit
reports in order to evaluate the defendant's ability to satisfy any financial obligation
imposed by the Court.

6. Sentencing Recommendations

It is understood by the parties that the Court is neither a party to nor
bound by this agreement. The Court may accept or reject the agreement, or defer a
decision until it has had an opportunity to consider the presentence report prepared
by the United States Probation Office. The defendant understands and
acknowledges that, although the parties are permitted to make recommendations and
present arguments to the Court, the sentence will be determined solely by the Court,
with the assistance of the United States Probation Office. Defendant further

understands and acknowledges that any discussions between defendant or

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defendant's attorney and the attorney or other agents for the government regarding
any recommendations by the government are not binding on the Court and that,
should any recommendations be rejected, defendant will not be permitted to
withdraw defendant's plea pursuant to this plea agreement. The government
expressly reserves the right to support and defend any decision that the Court may
make with regard to the defendant's sentence, whether or not such decision is
consistent with the government's recommendations contained herein.

7. Defendant's Waiver of Right to Appeal the Sentence

The defendant agrees that this Court has jurisdiction and authority to
impose any sentence up to the statutory maximum and expressly waives the right to
appeal defendant's sentence on any ground, including the ground that the Court
erred in determining the applicable guidelines range pursuant to the United States
Sentencing Guidelines, except (a) the ground that the sentence exceeds the

defendant's applicable guidelines range as determined by the Court pursuant to the

United States Sentencing Guidelines; (b) the ground that the sentence exceeds the
statutory maximum penalty; or (c) the ground that the sentence violates the Eighth
Amendment to the Constitution; provided, however, that if the government exercises
its right to appeal the sentence imposed, as authorized by 18 U.S.C. § 3742(b), then
the defendant is released from his waiver and may appeal the sentence as authorized

by 18 U.S.C. § 3742(a).

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8. Middle District of Florida Agreement

It is further understood that this agreement is limited to the Office of the
United States Attorney for the Middle District of Florida and cannot bind other
federal, state, or local prosecuting authorities, although this office will bring
defendant's cooperation, if any, to the attention of other prosecuting officers or

others, if requested.

9, Filing of Agreement

This agreement shall be presented to the Court, in open court or in
camera, in whole or in part, upon a showing of good cause, and filed in this cause, at
the time of defendant's entry of a plea of guilty pursuant hereto.

10. Voluntariness

The defendant acknowledges that defendant is entering into this
agreement and is pleading guilty freely and voluntarily without reliance upon any
discussions between the attorney for the government and the defendant and
defendant's attorney and without promise of benefit of any kind (other than the
concessions contained herein), and without threats, force, intimidation, or coercion
of any kind. The defendant further acknowledges defendant's understanding of the
nature of the offense or offenses to which defendant is pleading guilty and the
elements thereof, including the penalties provided by law, and defendant's complete
satisfaction with the representation and advice received from defendant's
undersigned counsel (if any). The defendant also understands that defendant has the

right to plead not guilty or to persist in that plea if it has already been made, and that

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defendant has the right to be tried by a jury with the assistance of counsel, the right
to confront and cross-examine the witnesses against defendant, the right against
compulsory self-incrimination, and the right to compulsory process for the
attendance of witnesses to testify in defendant's defense; but, by pleading guilty,
defendant waives or gives up those rights and there will be no trial. The defendant
further understands that if defendant pleads guilty, the Court may ask defendant
questions about the offense or offenses to which defendant pleaded, and if defendant
answers those questions under oath, on the record, and in the presence of counsel (if
any), defendant's answers may later be used against defendant in a prosecution for
perjury or false statement. The defendant also understands that defendant will be
adjudicated guilty of the offenses to which defendant has pleaded and, if any of such
offenses are felonies, may thereby be deprived of certain rights, such as the right to
vote, to hold public office, to serve on a jury, or to have possession of firearms.
11. Factual Basis

Defendant is pleading guilty because defendant is in fact guilty. The
defendant certifies that defendant does hereby admit that the facts set forth below are
true, and were this case to go to trial, the United States would be able to prove those
specific facts and others beyond a reasonable doubt.

FACTS
Background on PPP, EIDL, and MSLP
In March of 2020, the Coronavirus Aid, Relief, and Economic Security

(“CARES”) Act was enacted as a federal law, designed to provide emergency

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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 expenses, through a program referred to as the Paycheck
Protection Program (“PPP”). Another source of relief was the Economic Injury
Disaster Loan (“EIDL”) program, which was a Small Business Administration
(“SBA”) program that provided low-interest financing to small businesses affected by
declared disasters. The CARES Act authorized the SBA to provide EIDLs of up to
$2 million to eligible businesses experiencing substantial financial disruption due to
the COVID-19 pandemic. Additionally, eligible businesses could apply for an EIDL
advance of up to $10,000, which was determined by the number of employees the
applicant certified having and did not have to be repaid.

To obtain a PPP loan, qualifying businesses were required to submit a
PPP loan application, which contained numerous certifications, to a participating
PPP lender. In the PPP application, the small business (through its authorize
representative) was required to state and certify, among other things, its: (a) average
monthly payroll expense; 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. Furthermore, businesses applying for a PPP loan were required to provide
documentation showing their payroll expenses.

PPP loan applications were processed, approved, and funded by

participating lenders. The PPP loan funds were 100% guaranteed by the SBA. PPP

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loan proceeds were required to be used for certain permissible expenses, including
payroll costs, mortgage interest, rent, and utilities. In December 2020, the SBA was
authorized by federal law to guarantee Second Draw PPP loans under generally the
same terms and conditions available under the original PPP (“First Draw PPP
loans”). First Draw PPP loan borrowers were only eligible for Second Draw PPP
loans if the borrower had 300 or fewer employees and experience a revenue
reduction of 25% or greater in 2020 relative to 2019. Second Draw PPP loan
applicants were also required to make the same or similar certifications and
representations concerning the use of PPP funds.

To obtain an EIDL and advance, a qualifying business had to submit an
application directly to the SBA and provide information about its operation, such as
the number of employees, gross revenues for the 12-month period preceding the
disaster, and cost of goods sold in the 12-month period preceding the disaster. These
figures were used by the SBA to calculate the EIDL and advance amount. For
COVID-19 relief EIDLs, the 12-month period was that preceding January 31, 2020.

EIDL funds could be used for payroll expenses, sick leave, production
costs, and business obligations, such as debts, rents, and mortgage payments. If the
applicant also obtained a loan under the PPP, the EIDL funds could not be used for

the same purpose as the PPP funds.

An additional source of relief for small and medium sized businesses
affected by the COVID-19 pandemic was the Main Street Lending Program

(“MSLP”), which was an emergency lending program established by the Federal

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Reserve Board. As part of the MSLP, the Federal Reserve Bank of Boston (“FRBB”)
created MS Facilities LLC — a special-purpose vehicle that borrowed funds from the
FRBB and used the funds to purchase participation in loans made by private lenders
that conformed to the MSLP terms. Eligible MSLP borrowers would apply through a
private lender. If the lender approved the application, the lender would originate and
service the loan, though it would sell a 95% participation at par to MS Facilities
LLC. MSLP loans were 5-year term loans. Interest repayment was deferred for the
first year and principal repayment was deferred for two years.

Defendant’s Background and Businesses

The defendant, Daniel Joseph Tisone, was a resident of Naples, Florida
and owned and operated five businesses that had been incorporated in the State of
Virginia and for which he had fraudulently sought PPP, EIDL, and MSLP loans.
Those businesses were TEC Ventures, LLC (“TEC Ventures”), Rub a Dub, LLC
(“RAD”), Rub a Dub Atlantic, LLC (“RAD Atlantic”), Rub a Dub Eco Wash, LLC
(“RAD Eco Wash”), Rub a Dub Marines, LLC (“RAD Marines”). Additionally, the
defendant owned and operated Rub a Dub Holdings, Inc. (“RAD Holdings”), which
was a Delaware corporation. The defendant was a previously convicted felon as of

October 24, 2007.
Wire Fraud
Between March 30, 2020 and November 9, 2020, the defendant, Daniel
Joseph Tisone, electronically submitted four (4) false and fraudulent EIDL

applications that were approved by the SBA. In each EIDL application, the

Defendant’s Initials V7 92
defendant falsely represented his businesses’ gross revenues and costs of goods sold
for the 12 months prior to January 31, 2020 (the date of the disaster) to qualify for
the loan. Further, in the EIDL applications, the defendant falsely represented the
number of employees for each business. The defendant’s false and fraudulent
representations caused the SBA to approve a total of $562,200 in EIDL funds and
$6,000 in EIDL Advance funds, which were deposited into accounts controlled by
the defendant. Below is a chart summarizing each fraudulent EIDL application that

was approved and funded by the SBA.

EIDL Applications
Business | Employees | Application Loan Adv Count
Date Amount
sioliiees 6 3/30/2020 | $150,000 y ONE
($6,000)
TEC
‘Tenis 3 4/1/2020 $112,200 N Two
RAD Atlantic 5 10/12/2020 $150,000 N THREE
RAD Marines
dba
RAD Eco 4 11/9/2020 $150,000 N FOUR
Wash

Defendant’s Initials _?? a 23

Specifically, on April 1, 2020, the defendant electronically submitted a
false and fraudulent EIDL application for TEC Ventures (Count Two). In
furtherance of the fraud, the defendant submitted the application using his father’s
name, an individual with the initials A.T., as the applicant and without A.T.’s
consent or approval. In the application, the defendant falsely represented that TEC
Ventures’s gross revenues for the year preceding the pandemic were $480,000 and the
cost of goods sold were $249,000. The defendant’s false and fraudulent
representations caused the SBA to approve and fund a $112,200 EIDL for TEC
Ventures. The funds were deposited into an Evolve Bank & Trust account ending in
5581, that the defendant was the sole signatory on.

Bank Fraud

Between April 20, 2020 and March 31, 2021, the defendant submitted
five fraudulent PPP applications (three First Draw PPP loan applications and two
Second Draw PPP loan applications) to Blue Ridge Bank, a federally-insured bank
based in Virginia. In each application, the defendant falsely represented the business’
number of employees and average monthly payroll. Additionally, the defendant
falsely represented and certified that the PPP funds would be used to retain workers,
maintain payroll, or make mortgage interest payments, lease payments, and utility

payments.

In furtherance of the fraud, the defendant submitted fake quarterly
federal tax returns (IRS Form 941s) for each applicant business that contained false

representations about the business’s quarterly payroll expenses. Additionally, the

Defendant’s Initials P 7 24
Case 2:22-cr-00039-SPC-NPM Document 54

Filed 08/26/22

Page 25 of 28 PagelD 231

defendant unlawfully used the personal identifiable information (PI) of an

individual with initials S.A. to create fake payroll documents, which enabled him to

fraudulently obtain a First Draw and Second Draw PPP loan for TEC Ventures.

Below is a chart summarizing each fraudulent First Draw and Second Draw PPP

application that was approved and funded by Blue Ridge Bank.

Business Name Application Date ae 4 a rege
First Draw PPP Loans
TEC Ventures 4/20/2020 $103,900 FIVE
RAD 4/22/2020 $130,600 SIX
RAD Atlantic 7/16/2020 $130,600 SEVEN
Second Draw PPP Loans
TEC Ventures 01/12/2021 $104,954.17 NINE
RAD Atlantic 03/31/2021 $103,900 TEM

In total, the defendant’s false and fraudulent representations caused

Blue Ridge Bank to approve and a fund a total of $573,954.17 in First Draw and

Second Draw PPP loans for the businesses described above. The funds were

deposited into accounts that were opened and controlled by the defendant.

On or about November 9, 2020, the defendant submitted a false and

Defendant’s Initials 77
fraudulent MSLP application to the Bank of Clarke County, a federally-insured bank
based in Virginia, for TEC Ventures (Count Eight). In support of his application, the
defendant submitted false and fraudulent corporate income tax returns for the years
2018 and 2019, as well as false and fraudulent profit and loss statements for 2018,
2019, and the first nine months of 2020. These materials falsely reported revenues
earned and waged paid between 2018 and 2020 by TEC Ventures. The defendant's
false and fraudulent representations caused Bank of Clarke County to approve a
$1,500,000 MSLP loan for TEC Ventures. The funds were deposited into a Bank of
Clarke County account ending in 2616, which was controlled and maintained by the

defendant.

Illegal Monetary Transaction

In total, approximately $2,617,447.17 in fraudulently obtained EIDL,
PPP, and MSLP loan funds were deposited into accounts controlled and maintained
by the defendant. The funds were misused for the defendant’s own personal
enrichment. This included monetary transactions of a value greater than $10,000.
Specifically, on November 5, 2020, the defendant wired $185,000 from his Morgan
Stanley account ending in 38001 to a law firm for the purchase of a residence in
Naples, FL (Count Fourteen). Additionally, the defendant used fraudulently
obtained loan funds to purchase more than $1,000,000 in stocks and securities with
use of his Morgan Stanley brokerage accounts.

The fraudulently obtained loan funds, as well as funds derived from the

fraudulently obtained loan funds, were also used to purchase a 2019 Tiara 34LS

Defendant’s Initials Di 26

boat, a 4.02 carat diamond engagement ring, and real property located at 1001 10th
Avenue South, #101, Naples, FL 34102 and real property located at 550 Starboard
Drive, Naples, FL 34103.

Possession of Ammunition by a Convicted Felon

On March 30, 2022, the FBI executed a federal search warrant at the
defendant’s residence located at 550 Starboard Drive, Naples, FL. Prior to the search
of the residence, the defendant’s financial records revealed he had purchased, and
had shipped to him, ammunition and firearms parts on August 13, 2020 and January
8, 2021 from online ammunition and firearms part retailers outside the State of
Florida. During a search of the residence, FBI agents discovered rounds of assorted
ammunition in the defendant’s master bedroom and garage. Specifically, more than
800 rounds of assorted .223/5.56 caliber ammunition and 9mm ammunition were
found in the defendant’s residence. The assorted ammunition was manufactured by
Winchester, Sellier & Bellot, PMC, BVAC, Remington, IMT, Fiocchi, Blazer, Speer,
RP, YVX, PPU, FC, and FM. A portion of the ammunition found in the defendant’s
residence matched the type, caliber, and manufacturer of the ammunition purchased
by the defendant online.

On the date the ammunition was discovered in the defendant’s
residence, he had already been convicted of multiple felony offenses, including those
listed in the Indictment in this case. Because the defendant had actually served a
term of imprisonment of more than one year in connection to a prior conviction, he

was aware of his status as a convicted felon at the time he possessed the ammunition.

Defendant’s Initials (7 27
Additionally, an interstate nexus expert with the Bureau of Alcohol, Tobacco,
Firearms, and Explosives (ATF) examined the assorted ammunition found in the
defendant’s residence and determined it met the federal definition of ammunition
and that it had been manufactured outside of the State of Florida. Thus, the
ammunition had traveled in or affected interstate or foreign commerce before coming
into the defendant’s possession.

12. Entire Agreement

This plea agreement constitutes the entire agreement between the
government and the defendant with respect to the aforementioned guilty plea and no
other promises, agreements, or representations exist or have been made to the
defendant or defendant's attorney with regard to such guilty plea.

13. Certification

The defendant and defendant's counsel certify that this plea agreement

has been read in its entirety by (or has been read to) the defendant and that defendant

fully understands its terms.

DATED this 2G day of_Avavet _, 2022.

ROGER B. HANDBERG
oe _ Attorney

Daniel Joseph Tisone Ty nion J. ; Reichting’ ~—S

~ a, y IZ ssistant United =o ne a
~ Mark EigtarSh cme M. Casas

Attorney for Defendant sistant United States Attorney

Chief, Fort Myers Division

Defendant’s Initials @7_ 28

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