Court filing
TRANSCRIPT of Proceedings as to Darrell Thomas held on 06/16/2022, before Judge JP… — USA v. Thomas et al (Dkt. 604)
Record facts
| Court | U.S. District Court for the Northern District of Georgia |
|---|---|
| Filed | 2022-11-21 |
U.S. District Court for the Northern District of Georgia · No. 1:20-cr-00296-JPB-CMS · Doc. 604 · 2022-11-21 · Docket on CourtListener
Summary
Transcript of change of plea proceedings in United States v. Darrell Thomas, Docket No. 1:20-CR-00296-JPB, before U.S. District Judge J.P. Boulee in the U.S. District Court for the Northern District of Georgia, Atlanta Division, filed November 21, 2022 as Document 604. The proceedings opened at 10:12 A.M. and concluded at 10:45 A.M., with Assistant United States Attorneys appearing for the government and Benjamin Black Alper for the defendant. After the signatures on the guilty plea and plea agreement were verified and the waived rights reviewed, the prosecutor read the agreement's terms paragraph by paragraph. Those terms include a plea to Counts 1 and 18, dismissal of the remaining counts, a stipulation that relevant conduct includes an auto loan fraud scheme, no agreement on a role adjustment under Section 3B1.1(a), a cooperation agreement and a conditional 5K or Rule 35 motion.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
THE FOLLOWING IS THE PDF OF AN OFFICIAL TRANSCRIPT.
OFFICIAL TRANSCRIPTS MAY ONLY BE FILED IN CM/ECF BY THE OFFICIAL
COURT REPORTER AND WILL BE RESTRICTED IN CM/ECF FOR A PERIOD OF 90
DAYS. YOU MAY CITE TO A PORTION OF THE ATTACHED TRANSCRIPT BY THE
DOCKET ENTRY NUMBER, REFERENCING PAGE AND LINE NUMBER, ONLY AFTER
THE COURT REPORTER HAS FILED THE OFFICIAL TRANSCRIPT; HOWEVER, YOU
ARE PROHIBITED FROM ATTACHING A FULL OR PARTIAL TRANSCRIPT TO ANY
DOCUMENT FILED WITH THE COURT.
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 1 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
1
UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION
UNITED STATES OF AMERICA, )
)
)
-VS-
) DOCKET NO. 1:20-CR-00296-JPB
)
DARRELL THOMAS,
)
)
DEFENDANT.
)
TRANSCRIPT OF CHANGE OF PLEA PROCEEDINGS
BEFORE THE HONORABLE J.P. BOULEE
UNITED STATES DISTRICT JUDGE
JUNE 16, 2021
APPEARANCES:
ON BEHALF OF THE GOVERNMENT:
TAL COHEN CHAIKEN, ESQ.
NATHAN PARKER KITCHENS, ESQ.
ASSISTANT UNITED STATES ATTORNEYS
ON BEHALF OF THE DEFENDANT:
BENJAMIN BLACK ALPER, ESQ.
STENOGRAPHICALLY RECORDED BY:
PENNY PRITTY COUDRIET, RMR, CRR
OFFICIAL COURT REPORTER
UNITED STATES DISTRICT COURT
ATLANTA, GEORGIA
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 2 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
2
(PROCEEDINGS HELD IN OPEN COURT AT 10:12 A.M., ATLANTA)
THE COURT: Ms. Walker, if you want to call the case, we
can get started. And then if counsel could note their appearances
please.
COURTROOM DEPUTY CLERK: Yes, your Honor.
This is case 20-CR-296. USA v. Daryl Thomas.
MS. CHAIKEN: Good morning, your Honor. Tal Chaiken and
Nathan Kitchens from the US Attorney Office for the United States.
And with us at counsel table is Jeffrey Hill from IRS.
THE COURT: Good to see all of you.
MR. ALPER: Good morning, Judge. Benjamin Alper here
with Mr. Thomas.
THE COURT: Good to see you, Mr. Alper. And good to see
you as well, Mr. Thomas.
Mr. Alper, if you and Mr. Thomas could please stand, I'm
going to have Ms. Walker swear in Mr. Thomas.
COURTROOM DEPUTY CLERK: Good morning. Mr. Thomas, if
you can raise your right hand for me.
(Defendant duly sworn)
COURTROOM DEPUTY CLERK: You may be seated. State your
name for the record.
THE DEFENDANT: Darrell Thomas.
COURTROOM DEPUTY CLERK: Thank you so much.
And you can bring that mic a little bit closer to you.
Okay. Thank you.
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 3 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
3
THE COURT: Ms. Chaiken, if you can please verify the
signatures on the plea agreement.
MS. CHAIKEN: Yes, your Honor.
Mr. Thomas, I'm showing you a document that is entitled
"Guilty Plea and Plea Agreement." On page 23 on the right line
above where it says your name, is that your signature?
THE DEFENDANT: Yes, it is.
MS. CHAIKEN: Mr. Alper, on the left line above where it
says your name, is that your signature?
MR. ALPER: Yes, it is.
MS. CHAIKEN: And, for the record, page 23 and 24 are
also signed by representatives of the United States.
Mr. Thomas, is that your signature on page 25 above
where it says your name?
THE DEFENDANT: Yes, it is.
MS. CHAIKEN: Mr. Alper, is that your signature on page
26 above where it says your name?
MR. ALPER: Yes, it is.
MS. CHAIKEN: May I tender the plea agreement, your
Honor?
THE COURT: Sure. Thank you.
Mr. Thomas, before I can accept your plea of guilty, I
need to go over several matters with you. As we go through this
process, if anything I state is unclear, let me know and I will
repeat or rephrase it for you. It's important that you understand
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 4 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
4
not only my statements to you but also my questions. You need to
understand my questions so that you can answer them truthfully.
A failure to truthfully answer any question could result in
additional charges being brought against you.
Also, as I ask questions please answer the questions
out loud. This will allow the court reporter to take down your
responses so that we can have an accurate record of these
proceedings. Do you understand, sir?
THE DEFENDANT: Yes, your Honor.
THE COURT: How old are you, sir?
THE DEFENDANT: Thirty-five.
THE COURT: And how far did you go in school?
THE DEFENDANT: Some college.
THE COURT: In the last 24 hours have you taken any
drugs, medicine, pills or had any alcoholic beverages to drink?
THE DEFENDANT: No, your Honor.
THE COURT: And have you been treated recently for any
mental illness or addiction to alcohol or drugs, sir?
THE DEFENDANT: No, your Honor.
THE COURT: Mr. Alper, are you aware of any issues
regarding your client's competence to enter a plea this morning?
MR. ALPER: No, your Honor.
THE COURT: Sir, I will now review with you the rights
that you're guaranteed under the Constitution and laws of the
United States. I want to be sure that you understand your rights
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 5 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
5
and that by entering this plea of guilty, you're giving up many of
these rights.
Do you understand, first, that under the Constitution
and laws of the United States you have a right to plead not guilty
and have a trial by jury?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you understand that you're entitled to a
speedy and public trial on charges against you?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you understand that you have the right to
be represented by an attorney throughout all proceedings and if
you cannot afford an attorney, one will be appointed to represent
you at no cost to you?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you understand that if you pled not
guilty and went to trial, at the trial you would be presumed to
be innocent and the government would have to overcome that
presumption and prove you guilty beyond a reasonable doubt?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you understand that at a trial you would
not have to prove you're innocent because the burden would be on
the government to prove you're guilty beyond a reasonable doubt?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you understand that at a trial you would
have the right to subpoena witnesses which would be an order from
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 6 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
6
the Court compelling their appearance at trial to testify on your
behalf?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you understand that during a trial
witnesses for the government must come to the Court and testify in
your presence?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you understand that your attorney would
have the opportunity to cross-examine the witnesses for the
government, object to evidence offered by the government and offer
evidence on your behalf?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you understand that at a trial, while you
would have the right to testify if you chose to do so, you would
also have the right not to testify? And do you understand that if
you chose not to testify or put on any evidence, those facts could
not be used against you?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you understand that in order to convict
you at a trial the jury would have to reach a unanimous verdict
that you were guilty of the crimes with which you're charged?
THE DEFENDANT: Yes, your Honor.
THE COURT: If I accept your plea of guilty, you will
not have a trial and a jury will not decide your guilt, but I will
find you're guilty of the charges based on your admission that
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 7 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
7
you're guilty. Do you understand?
THE DEFENDANT: Yes, your Honor.
THE COURT: Are you willing to give up your right to a
trial and proceed with a plea of guilty at this time?
THE DEFENDANT: Yes, your Honor.
THE COURT: You earlier verified your signature on the
plea agreement that you entered into with the government. In a
moment I will ask the Assistant US Attorney to review the terms
of the plea agreement other than the potential penalties which we
will discuss a bit later in this proceeding. After that I will be
asking you whether the agreement as presented accurately reflects
your understanding of the agreement that you reached with the
government.
Ms. Chaiken.
MS. CHAIKEN: Thank you, your Honor.
Pursuant to the plea agreement the defendant is pleading
guilty to Counts 1 and 18 of the indictment.
Paragraph 11 sets forth that the government agrees to
dismiss the remaining counts pending against the defendant.
Paragraph 12 sets forth that the government agrees
not to bring further charges related to the charges to which
Mr. Thomas is pleading guilty.
Paragraphs 13 through 21 set forth a series of guideline
stipulations between the parties. Specifically, paragraph 14 sets
forth that the applicable offense guideline is Section 2B1.1; that
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 8 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
8
a 20-level upward adjustment applies under Section 2B1.1(b)(1)(K)
because the amount of loss is greater than 9.5 Million but less
than 25 Million; a two-level upward adjustment applies under
Section 2B1.1(b)(2)(A)(1) because there are ten or more victims; a
two-level upward adjustment applies under Section 2B1.1(b)(10)
because the offense involved sophisticated means and the defendant
intentionally engaged in or caused the conduct constituting
sophisticated means; a two-level upward adjustment applies under
Section 2B1.1(b)(17)(A) because defendant derived more than $1
Million in gross receipts from one or more financial institutions.
Paragraph 15 sets forth the parties' agreement that
the relevant conduct includes conduct related to defendant's
participation in an auto loan fraud scheme.
Paragraph 16 sets forth that the parties do not have
an agreement as to the applicability of an adjustment for the
defendant's role in the offense pursuant to Section 3B1.1(a), but
that defendant understands that the United States will argue that
a four-level adjustment applies and will present evidence related
to that at sentencing.
Paragraph 17 sets forth the parties' agreement that a
two-level upward adjustment applies pursuant to Section 3C1.1 for
obstruction.
Paragraph 18 sets forth that the applicable offense
guideline as to Count 18 is Section 2S1.1; that the base offense
level for the underlying offense from which the laundered funds
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 9 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
9
were derived is 33; that a two-level upward adjustment applies
pursuant to Section 2S1.1(b)(2)(B) because the defendant is
pleading guilty to a violation of Title 18 United States Code,
Section 1956; and that a two-level adjustment will not apply
pursuant to Section 2S1.1(b)(3) for sophisticated means.
Paragraph 19 sets forth that the parties do not have
an agreement as to the applicability for an adjustment for the
defendant's role in the offense pursuant to Section 3B1.1(a), but
that the defendant understands the United States will argue for
a four-level adjustment and will present evidence as to that
adjustment at sentencing.
Paragraph 20 provides that a two-level upward adjustment
applies pursuant to Section 3C1.1 for obstruction.
And paragraph 21 sets forth that no adjustment will
apply pursuant to Section 3D1.4 for grouping of multiple counts.
Paragraph 22 sets forth that the government will
recommend an adjustment for acceptance of responsibility to the
maximum extent authorized by the guidelines subject to the
exceptions that are listed in that paragraph.
Paragraph 23 sets forth the parties' recognition that
each party reserves the right to make recommendations for
sentencing and that there are no agreements on the guidelines
other than those specifically mentioned in the agreement.
Paragraph 24 sets forth that the United States reserves
the right to modify its sentencing recommendation if it learns
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 10 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
10
additional information.
Paragraph 25 sets forth a cooperation agreement that the
defendant agrees to cooperate truthfully and completely with the
government, including producing all records requested, making
himself available for interviews, responding truthfully to all
government inquiries, and at the government's request testifying
at trial or another proceeding.
Paragraph 26 provides that the defendant consents to
direct contact with the government outside the presence of his
attorney for cooperation purposes.
Paragraph 27 provides that the government agrees to
abide by Section 1B1.8 of the United States Sentencing Guidelines
and not to use information previously unknown for sentencing
purposes with the caveat that if the defendant is not truthful in
cooperation, he may be prosecuted for perjury, false statements,
obstruction, and all information he provided may be used against
him.
Paragraph 28 provides for a conditional 5K/Rule 35
motion. And the government agrees to inform the Court of
defendant's cooperation.
Specifically, if the government determines that the --
defendant's cooperation qualifies as substantial assistance, it
will file a motion for a downward departure if that happens before
sentencing or a Rule 35 motion for reduction of sentence if that
happens after sentencing.
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 11 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
11
The defendant understands that the government alone
determines if the defendant provided substantial assistance. And
the defendant understands that the government may recommend a
sentence if it files a motion but the ultimate decision would rest
with the Court.
Paragraph 29 provides that the government agrees to
recommend a sentence at the low end of the applicable guideline
range subject to the caveats in paragraph 22 related to acceptance
of responsibility.
Paragraph 30 provides that the government agrees to make
no specific recommendation as to the fine to be imposed.
Paragraph 31 provides that the defendant agrees to pay
$14,748,786.35, plus applicable interest, in restitution to the 15
victims and in the amounts that are identified in that paragraph.
Paragraph 32 provides that the defendant agrees to
forfeiture of three real properties in Atlanta, Georgia, that
are identified in that paragraph, funds seized from three bank
accounts held in the names of Bellator Phront Group, Inc., or
Elite Executive Services, Inc., that are identified in that
paragraph, $131,000 in cash, three vehicles that are identified
in the plea agreement, and three pieces of jewelry that are
identified in the plea agreement.
Paragraphs 33 to 37 set forth the forfeiture provision
and provide that the defendant waives his interest in that
property that is being forfeited and agrees to the forfeiture
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 12 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
12
procedure set forth in those paragraphs.
Paragraph 38 provides that the defendant agrees to pay a
special assessment of $200.
Paragraphs 39 through 43 provide that the defendant
agrees to cooperate fully in the collection of any restitution and
fine pursuant to the terms that are laid out in paragraphs 39
through 43.
Paragraph 44 provides that the defendant understands
that the recommendations and the agreement are not binding on the
Court.
Paragraph 45 sets forth an appeal waiver, which I would
like to read in full into the record:
To the maximum extent permitted by federal law, the
defendant voluntarily and expressly waives the right to appeal his
conviction and sentence and the right to collaterally attack his
conviction and sentence in any post-conviction proceeding,
including but not limited to motions filed pursuant to 28 United
States Code, Section 2255, on any ground except that the defendant
may file a direct appeal of an upward departure or upward variance
above the sentencing guideline range as calculated by the district
court.
Claims that the defendant's counsel rendered
constitutionally ineffective assistance are excepted from this
waiver.
The defendant understands that this plea agreement does
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 13 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
13
not limit the government's right to appeal, but if the government
initiates a direct appeal of the sentence imposed, the defendant
may file a cross-appeal of that same sentence.
Paragraph 46 provides that the defendant agrees to the
standard FOIA and Privacy Act waivers.
And paragraph 47 provides that there are no other
agreements between the parties other than those set forth in the
plea agreement.
THE COURT: Thank you.
Mr. Thomas, does that accurately reflect the agreement
that you believe you've reached with the government?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you understand that any provisions in the
agreement regarding recommendations to be made by the government
are not binding on the Court? In other words, if I choose not to
follow some recommendation that the government makes, do you
understand that you will still be bound by your plea of guilty and
would not be entitled to withdraw the plea based on the Court not
following the recommendation?
THE DEFENDANT: Yes, your Honor.
THE COURT: Is this the only agreement that you've
entered into with the government?
THE DEFENDANT: Yes, your Honor.
THE COURT: Other than the terms of this agreement has
any promise of any kind been made to you to cause you to plead
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 14 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
14
guilty?
THE DEFENDANT: No, your Honor.
THE COURT: Per the terms of the plea agreement, the
United States Attorney for the Northern District of Georgia has
agreed not to bring any additional charges related to the offenses
to which you're pleading guilty. Other than those terms, has
anyone threatened or forced you to plead guilty or told you that
if you do not plead guilty, further charges will be brought
against you or other adverse action taken against you?
THE DEFENDANT: No, your Honor.
THE COURT: Mr. Alper, are you aware of any plea
agreement or promise being made to your client other than what's
been discussed here in open court?
MR. ALPER: No, sir.
THE COURT: Mr. Thomas, in a moment I will ask the
Assistant US Attorney to state the elements of the offenses to
which you're pleading guilty. The elements of the offenses are
those matters that the government must prove beyond a reasonable
doubt in order to convict you of the charges.
Ms. Chaiken.
MS. CHAIKEN: Thank you, your Honor.
Count 1 of the indictment charges conspiracy to commit
bank fraud and wire fraud in violation of Title 18 United States
Code, Section 1349.
The elements of conspiracy to commit bank fraud and wire
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 15 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
15
fraud are as follows:
One, two or more persons in some way or manner agreed to
try to accomplish a common and unlawful plan to commit bank fraud
and wire fraud as charged in the indictment;
And, two, the defendant knew the unlawful purpose of the
plan and willfully joined in it.
The elements of bank fraud are as follows:
One, 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;
Two, the false or fraudulent pretenses, representations
or promises were material;
Three, the defendant intended to defraud the financial
institution;
And, four, the financial institution was federally
insured.
The elements of wire fraud are as follows:
The defendant knowingly devised or participated in a
scheme to defraud someone by using false or fraudulent pretenses,
representations or promises;
Two, the false pretenses, representations or promises
were about a material fact;
Three, the defendant acted with the intent to defraud;
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 16 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
16
And, four, the defendant transmitted or caused to be
transmitted by wire some communication in interstate commerce to
help carry out the scheme to defraud.
And Count 18 of the indictment charges money laundering
in violation of Title 18 United States Code, Section 1956.
The elements of money laundering are as follows:
One, the defendant knowingly conducted or tried to
conduct a financial transaction;
Two, the defendant knew that the money or property
involved in the transaction were the proceeds of some kind of
unlawful activity;
Three, money or property did come from an unlawful
activity, specifically bank fraud and/or wire fraud;
And, four, the defendant knew that the transaction was
designed in whole or in part to conceal or disguise the nature,
location, source, ownership or control of the proceeds.
THE COURT: Thank you.
Mr. Thomas, do you understand that those are the
elements that the government would have to prove beyond a
reasonable doubt in order to convict you of the charges?
THE DEFENDANT: Yes, your Honor.
THE COURT: And in a moment I will ask the Assistant US
Attorney to summarize the evidence that the government would
expect to present at trial to prove each of these elements. In
other words, these are what the government contends are the facts
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 17 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
17
of the case. It's necessary for the government to state these
facts because I must determine whether there is a factual basis
for you to enter this plea of guilty. After this statement, I
will ask you whether you disagree with any of the facts as stated
by the prosecutor. If you do, tell me and we'll discuss those
facts at that time.
Ms. Chaiken.
MS. CHAIKEN: Thank you, your Honor.
If this case were to go to trial, the United States
would prove by admissible evidence and beyond a reasonable doubt
the following facts:
The Paycheck Protection Program, referred to as the PPP,
was authorized as part of the Coronavirus Aid, Relief and Economic
Security Act to provide forgivable loans to eligible small
businesses.
Under the PPP small businesses could apply for loans
that must be used for payroll expenses, interest on mortgage, rent
and/or utilities. The amount of a PPP loan that a business could
receive was generally two-and-a-half times, or 250 percent, of the
business's average monthly payroll cost.
While the United States Small Business Administration
oversaw the PPP, individual PPP loans were issued by private
approved lenders, including Cross River Bank, which is a
federally-insured financial institution.
The PPP borrower application form asked the applicant to
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 18 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
18
provide information related to their loan application, including
the amount of the business's average monthly payroll, the number
of the business's employees and the purpose of the loan with
options for payroll, lease or mortgage interest, utilities and/or
other.
The lender then used this information to calculate the
amount of the loan that the business was eligible to receive.
The application form also included certain representations and
certifications, including certifications as to the accuracy of
the information included in the application itself and in any
supporting documents and a certification that the funds would be
used to retain workers and maintain payroll or to make mortgage
interest payments, lease payments and utility payments.
Defendant Darrell Thomas is the owner of a Georgia
company called Bellator Phront Group, Inc. Starting in or around
April 2020 and continuing to the present, Thomas orchestrated a
fraudulent PPP loan and money laundering scheme involving at least
14 PPP loans totaling approximately $11.2 Million. The 14 loan
applications were submitted between April 21, 2020, and August 10,
2020, and contained false representations about each business's
number of employees, average monthly payroll and the purpose of
the PPP loan.
The loan applications also included fabricated
documentation supporting the business's false representations,
including fabricated IRS Form 941s, which are employer's quarterly
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 19 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
19
federal tax returns, fabricated bank statements, fabricated
payroll spreadsheets and other fabricated financial and tax
documents.
On or around May 18th, 2020, Thomas submitted or
assisted in the submission of a PPP loan application for a Georgia
business called Gaines Reservation & Travel, which I'll refer to
as Gaines Reservation. In the PPP loan application Gaines
Reservation represented that it had 69 employees and $322,684 in
average monthly payroll and that the purpose of the loan was
payroll, lease or mortgage interest and utilities.
To support these payroll figures, Gaines Reservation
submitted IRS Form 941s for Gaines Reservation for each quarter of
2019 and a JP Morgan Chase Bank statement for Gaines Reservation
for February 2020.
Thomas and his co-conspirators fabricated the Form 941s
as the IRS confirmed that Gaines Reservation did not file a Form
941 for any quarter in 2019. Thomas and his co-conspirators also
fabricated the JP Morgan Chase Bank statement as the actual bank
statement for Gaines Reservation chose (sic). In reality Gaines
Reservation did not have any employees or any monthly payroll
costs.
Based on the false representations in Gaines
Reservation's PPP loan application and the fabricated supporting
documents, Cross River Bank issued an $806,710 PPP loan to Gaines
Reservation.
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 20 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
20
On or about May 29th, 2020, a $93,785 check purportedly
for "Roswell Road Warehouse Rent" from Gaines Reservation's JP
Morgan Chase account was deposited into Bellator Phront Group's
Bank of America account. Gaines Reservation did not rent any
warehouse space from Bellator. Instead the transaction was a
payment to Thomas that was designed to conceal or disguise the
nature, location, source, ownership or control of Gaines
Reservation's PPP loan proceeds and to make it appear as though
Gaines Reservation was spending its PPP loan proceeds on rent,
which is an approved expense.
THE COURT: All right. Thank you.
Mr. Thomas, do you disagree with any of the facts as
stated by the Assistant US Attorney?
THE DEFENDANT: No, your Honor.
THE COURT: I'm going to now read through with you again
those elements and ask you about them.
Do you admit that two or more persons in some way or
manner agreed to try to accomplish a common and unlawful plan to
commit bank fraud and wire fraud as charged in the indictment?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you admit that you knew the unlawful
purpose of the plan and willfully joined in it?
THE DEFENDANT: Yes, your Honor.
THE COURT: As to bank fraud, do you admit that you
knowingly carried out or attempted to carry out a scheme to
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 21 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
21
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 DEFENDANT: Yes, your Honor.
THE COURT: Do you admit that the false or fraudulent
pretenses, representations or promises were material?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you admit that you intended to defraud
the financial institution?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you admit that the financial institution
was federally insured?
THE DEFENDANT: Yes, your Honor.
THE COURT: As to wire fraud, do you admit that you
knowingly devised or participated in a scheme to defraud someone
by using false or fraudulent pretenses, representations or
promises?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you admit that the false pretenses,
representations or promises were about a material fact?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you admit that you acted with the intent
to defraud?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you admit that you transmitted or caused
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 22 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
22
to be transmitted by wire some communication in interstate
commerce to help carry out the scheme to defraud?
THE DEFENDANT: Could you explain interstate commerce,
could you explain that to me.
THE COURT: Sure.
Ms. Chaiken, would you like to take a first crack at
that. And then I'll let Mr. Alper see if he disagrees in any way
with your representation.
MS. CHAIKEN: Sure.
Interstate commerce means that the communication passed
from one state to another state.
THE DEFENDANT: Yes, your Honor.
THE COURT: Mr. Alper, is there any disagreement with
that synopsis?
MR. ALPER: No, your Honor.
THE COURT: And, Mr. Thomas, let me ask you again, just
so the record is clear, although I think you have answered: Do
you admit that you transmitted or caused to be transmitted by wire
some communication in interstate commerce to help carry out the
scheme to defraud?
THE DEFENDANT: Yes, your Honor.
THE COURT: As to money laundering, do you admit that
you knowingly conducted or tried to conduct a financial
transaction?
THE DEFENDANT: Yes, your Honor.
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 23 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
23
THE COURT: Do you admit that you knew that the money or
property involved in the transaction were the proceeds of some
kind of unlawful activity?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you admit that money or property did come
from an unlawful activity, specifically bank fraud and/or wire
fraud?
THE DEFENDANT: Yes, your Honor.
THE COURT: And do you admit that you knew that the
transaction was designed in whole or in part to conceal or
disguise the nature, location, source, ownership or control of the
proceeds?
THE DEFENDANT: Yes, your Honor.
THE COURT: Ms. Chaiken, if you could please now state
the potential penalties that the defendant faces for the charges,
including maximum penalties and any mandatory minimums.
MS. CHAIKEN: Yes, your Honor.
Mr. Thomas faces the following maximum and mandatory
minimum penalties as to Count 1:
The maximum term of imprisonment is 30 years. There is
no mandatory minimum;
The authorized term of supervised release is zero years
to five years;
The maximum fine is $1 Million or twice the gain or
twice the loss, whichever is greatest, which is due and payable
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 24 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
24
immediately;
There's full restitution due and payable immediately to
all victims of the offense and relevant conduct;
A mandatory special assessment of $100 due and payable
immediately;
And forfeiture of any property, real or personal,
constituting or derived from proceeds obtained directly or
indirectly as a result of the offense.
And Mr. Thomas faces the following maximum and mandatory
minimum penalties as to count 18:
The maximum term of imprisonment is 20 years. There is
no mandatory minimum;
The authorized term of supervised release is zero to
three years;
The maximum fine is $500,000 or twice the gain or twice
the loss, whichever is greatest, due and payable immediately;
Full restitution due and payable immediately to all
victims of the offense and relevant conduct;
A mandatory special assessment of $100 due and payable
immediately;
And forfeiture of any and all property, real or
personal, involved in the offense or any property traceable to
such property.
THE COURT: Thank you.
Mr. Thomas, do you understand that those are the
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 25 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
25
possible penalties that you could receive in this case?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you understand that it's not possible for
me to state to you today what your sentence will be?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you understand that in deciding your
sentence I will consider sentencing guidelines and that the
guidelines are advisory, which means that I have the discretion to
impose a sentence that is either within the guidelines, greater
than the guidelines or less than the guidelines?
THE DEFENDANT: Yes, your Honor.
THE COURT: In the plea agreement that was reviewed with
you a few moments ago, you waived certain appeal rights. I want
to be sure that you understand the meaning of that waiver.
Let me first state to you the rights you would have if
you did not waive or give up these rights.
The defendant in every case has a right to file a direct
appeal immediately after his conviction and sentence. In that
appeal you may raise any issues concerning the handling of your
case in this court that you wish to raise. Those issues would be
reviewed by the Court of Appeals. If errors were found, the Court
of Appeals could order that action be taken to correct those
errors.
Besides the right to a direct appeal, you would have an
additional opportunity for review of your case by filing a writ of
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 26 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
26
habeas corpus pursuant to 28 USC, Section 2255. That's another
opportunity for you to challenge the legality of your conviction
and/or your sentence. These are rights that every defendant has
unless he waives or gives them up.
In your plea agreement you have for the most part given
up these rights. Your right of review will be limited to three
specific circumstances:
First, after calculating the sentencing guidelines that
apply in your case, I then impose a sentence that is greater than
the guidelines, you would have a right to file a direct appeal
challenging that sentence;
Second, if the government files an appeal for any
reason, you have a right to file a cross-appeal raising any issues
that you wish to raise;
Finally, you always reserve the right to challenge
constitutionally ineffective assistance of counsel.
But aside from those three very narrow circumstances,
you will have no right of appeal and will be essentially bound by
my decision. Do you understand all that, sir?
THE DEFENDANT: Yes, your Honor.
THE COURT: And, Mr. Alper, have you reviewed the rights
with your client such that you're comfortable he understands both
his rights and the waiver of those rights?
MR. ALPER: Yes, your Honor, he does.
THE COURT: Mr. Thomas, do you understand that parole
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 27 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
27
has been abolished in the federal system and that if you're
sentenced to prison, you will not be released early on parole?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you understand that you may be sentenced
to a term of supervised release that will follow any term of
imprisonment and will include rules governing your conduct that if
you violate could result in more time in prison?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you understand that you may be ordered to
pay restitution to any victim of the offense?
THE DEFENDANT: Yes, your Honor.
THE COURT: Are you a citizen of the United States
government?
THE DEFENDANT: Yes, your Honor.
THE COURT: Do you understand that as part of your
sentence certain property that's been identified by the government
may be forfeited by you to the government?
THE DEFENDANT: Yes, your Honor.
THE COURT: Is there anything that we've talked about
today that you do not feel you fully understand?
THE DEFENDANT: No, your Honor.
THE COURT: Have you had a sufficient opportunity to
talk about your case with your attorney and have your attorney
answer any questions that you have before entering your plea?
THE DEFENDANT: Yes, your Honor.
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 28 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
28
THE COURT: Are you satisfied with the representation
that your attorney has provided to you?
THE DEFENDANT: Yes, your Honor.
THE COURT: How do you plead to Counts 1 and 18 of the
indictment?
THE DEFENDANT: Guilty.
THE COURT: Mr. Alper, do you feel that you've had a
sufficient opportunity to investigate your client's case and
advise him concerning the entry of this plea?
MR. ALPER: Yes, your Honor.
THE COURT: Are you aware of any reason I should not
accept the plea?
MR. ALPER: No, sir.
THE COURT: Is there anything else you want me to
address with your client on the record at this time?
MR. ALPER: No, thank you.
THE COURT: And, Ms. Chaiken, is there anything further
that the government wishes the Court to address at this time?
MS. CHAIKEN: No, your Honor. Thank you.
THE COURT: I find that the defendant understands the
charges and the consequences of the plea.
I've observed the defendant during this proceeding and
he does not appear to be under the influence of any substance that
might affect his judgment or actions in any manner.
The Court finds that the plea has a factual basis and is
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 29 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
29
free of any coercive influence of any kind.
I find that there have been no promises made to the
defendant except those set out in the plea agreement.
I find that the defendant is competent to understand
these proceedings and enter a knowing plea of guilty.
I find that the plea is freely and voluntarily entered.
It's therefore ordered that the plea of guilty of the
defendant to Counts 1 and 18 of the indictment is accepted and
entered.
Mr. Thomas, you are hereby adjudged guilty of the
charges contained in Counts 1 and 18 of the indictment.
I will now be referring your case to a probation officer
who will prepare a presentence report. Before I receive the
report, Mr. Thomas, you and your attorney will receive a report --
excuse me, will receive a copy of the report and will have an
opportunity to object to any findings in the report.
At your sentencing hearing I will hear from the
government and any witnesses that it wishes to present and from
you, your attorney and any witnesses that you wish to present. At
that time I will decide the proper sentence in your case.
Do you understand, sir?
THE DEFENDANT: Yes, your Honor.
THE COURT: Counsel, anything else?
MS. CHAIKEN: No, your Honor.
MR. ALPER: No, your Honor.
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 30 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
30
THE COURT: All right.
Good to see all of you. And the defendant is remanded
to the Marshal service.
Ms. Walker, Ms. Coudriet, Officer, thank you.
We're adjourned.
(PROCEEDINGS REPORTED WERE CONCLUDED AT 10:45 A.M.)
___________________________
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 31 of 32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UNITED STATES DISTRICT COURT - OFFICIAL CERTIFIED TRANSCRIPT
31
C E R T I F I C A T E
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF GEORGIA
I do hereby certify that the foregoing pages are a true and
correct transcript of the proceedings taken down by me in the case
aforesaid.
This the 9th of November, 2022.
________________________________
PENNY PRITTY COUDRIET, RMR, CRR
OFFICIAL COURT REPORTER
Case 1:20-cr-00296-JPB-CMS Document 604 Filed 11/21/22 Page 32 of 32File and source
- File
- gov.uscourts.gand.279863.604.0.pdf
- Size
- 347,028 bytes
- SHA-256
- 70729ee9b4468da800bbd6e305cba6c73193f12bfc88b00839f6b7beccb063dd
- Original
- PACER (login required)