Court filing

MOTION TO SUBSTITUTE RESTITUTION PAYEES re 624 Judgment and Commitment,,,, 1055… — USA v. Thomas et al (Dkt. 1206)

Record facts

Court	U.S. District Court for the Northern District of Georgia
Filed	2025-12-10

U.S. District Court for the Northern District of Georgia · No. 1:20-cr-00296-JPB-CMS · Doc. 1206 · 2025-12-10 · Docket on CourtListener

Full text

1
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION

UNITED STATES OF AMERICA
v.
DARRELL THOMAS,
TELDRIN FOSTER, ET AL.

Criminal Action No.
1:20-CR-00296-JPB

OMNIBUS MOTION TO SUBSTITUTE RESTITUTION
PAYEES AND BRIEF IN SUPPORT THEREOF
The United States of America, by Theodore S. Hertzberg, United States
Attorney, and Vanessa A. Leo, Assistant United States Attorney for the Northern
District of Georgia, respectfully requests an order substituting the restitution
payees pursuant to 18 U.S.C. § 3663A, and in support shows:
Background Information
1.
On March 29, 2020, the Coronavirus Aid, Relief, and Economic
Security (CARES) Act was enacted into federal law. The CARES Act was designed
to provide emergency financial assistance to 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 guaranteed forgivable
loans to small businesses through the Paycheck Protection Program (PPP).
2.
In order to obtain a PPP loan, a qualifying business submitted a PPP
loan application, which was signed by an authorized representative of the
Case 1:20-cr-00296-JPB-CMS Document 1206 Filed 12/10/25 Page 1 of 10

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 (Smal Business Administration Form 2483), the small business
(through its authorized representative) was required to provide, among other
things, its: (a) average monthly payroll expenses; and (b) number of employees.
These figures were used to calculate the amount of money the small business was
eligible to receive under the PPP. In addition, businesses applying for a PPP loan
were required to provide documentation confirming their payroll expenses.
3.
A PPP loan application was processed by a participating lender. If a
PPP loan application was approved, the participating lender funded the PPP loan
using its own monies. While it was the participating lender that issued the PPP
loan, the loan was 100% guaranteed by the Small Business Administration
(“SBA”). Data from the application, including information about the borrower, the
total amount of the loan, and the listed number of employees, was transmitted by
the lender to the SBA in the course of processing the loan.
4.
PPP loan proceeds were required to be used by the business on certain
permissible expenses- payroll costs, interest on mortgages, rent, and utilities. The
PPP allowed the interest and principal on the PPP loan to be entirely forgiven if
the business spent the loan proceeds on these expense items within a designated
Case 1:20-cr-00296-JPB-CMS Document 1206 Filed 12/10/25 Page 2 of 10

period of time and used a defined portion of the PPP loan proceeds on payroll
expenses.
5.
The present case containing twenty (20) defendants initially
commenced on August 4, 2020, by indictment. Each of the 20 defendants entered
negotiated pleas of guilty to various offenses related to fraudulently obtained PPP
loans during the COVID pandemic.
6.
This Court imposed criminal monetary penalties on each of the 20
defendants, ordering restitution be paid jointly and severally in this case and in
related criminal cases1 to the following respective lenders: Harvest Small Business
Finance, CDC Small Business Finance, Cross River Bank, Customers Bank, and
Celtic Bank.
7.
The SBA purchased the guarantees on the fraudulently obtained PPP
loans as required by the CARES Act in this case and related criminal cases. The
SBA’s purchase of the guarantees on the fraudulently obtained PPP loans made
the respective lenders whole, and the SBA became subrogated to all rights of the
respective lenders. SBA’s purchase of the guarantees on the fraudulently obtained
PPP loans is detailed in Exhibit 1 attached to this Motion and coincides with the

1 U.S. v. Redding, 1:21-cr-178; U.S. v. Denesseria Slaton, 1:21-cr-179; U.S. v. Gaines, 1:21-cr-206; and U.S. v.
Pyfrom-Foster, 1:23-cr-164.
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Judgment and Commitment entered in Teldrin Foster’s case (Dkt. 1055). More
specifically, the SBA purchased the following guarantees:
a.
Harvest Small Business Finance Loan No. 5333777210 made to Darrell
Thomas and Megan Thomas on behalf of their company, Bellator
Phront Group, Inc., in the amount of $799,955.35. At the time the
Judgment and Commitment was entered in Teldrin Foster’s case (Dkt.
1055), the amount due to Harvest Small Business Finance was
$775,956.69. The Certified Statement of Account showing the SBA
purchased this loan is attached as Exhibit A.
b.
Harvest Small Business Loan No. 9948117804 made to Derek Parker
on behalf of his company, D. Parker Holdings, Inc., in the amount of
$818,102.00. At the time the Judgment and Commitment was entered
in Teldrin Foster’s case (Dkt. 1055), the amount due to Harvest Small
Business Finance was $793,558.94. The Certified Statement of Account
showing the SBA purchased this loan is attached as Exhibit B.
c.
Harvest Small Business Loan No. 9097577901 made to Charmaine
Redding (U.S. v. Redding, 1:21-cr-178) on behalf of her company, All
Star Room & Board Services of Michigan Inc., in the amount of
$750,298.11. At the time the Judgment and Commitment was entered
in Teldrin Foster’s case (Dkt. 1055), the amount due to Harvest Small
Business Finance was $715,826.05. The Certified Statement of Account
showing the SBA purchased this loan is attached as Exhibit C.
d.
CDC Small Business Finance Corporation loan No. 5005788003 made
to Ryan Whittley on behalf of his company, ML Exotic Customs, Inc.,
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in the amount of $797,275.000. At the time the Judgment and
Commitment was entered in Teldrin Foster’s case (Dkt. 1055), the
amount due to CDC Small Business Finance Corporation was
$773,356.75. The Certified Statement of Account showing the SBA
purchased this loan is attached as Exhibit D.
e.
CDC Small Business Finance Corporation loan No. 7688278109 made
to El Hadj Sall on behalf of his company, Bellevie Corp., in the amount
of $823,585.00. At the time the Judgment and Commitment was
entered in Teldrin Foster’s case (Dkt. 1055), the amount due to CDC
Small Business Finance Corporation was $798,877.45. The Certified
Statement of Account showing the SBA purchased this loan is
attached as Exhibit E.
f.
CDC Small Business Finance Corporation loan No. 7071928005 made
to Charles Hill, IV on behalf of his company, Infinite Education
Services, Inc., in the amount of $854,805.00. At the time the Judgment
and Commitment was entered in Teldrin Foster’s case (Dkt. 1055), the
amount due to CDC Small Business Finance Corporation was
$829,160.00. The Certified Statement of Account showing the SBA
purchased this loan is attached as Exhibit F.
g.
Cross River Bank loan No. 8300887401 made to John Gaines and
Andre Gaines (U.S. v. Gaines, 1:21-cr-206) on behalf of their company,
Gaines Reservation and Travel, in the amount of $806,710.00. At the
time the Judgment and Commitment was entered in Teldrin Foster’s
case (Dkt. 1055), the amount due to Cross River Bank was $782,508.70.
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The Certified Statement of Account showing the SBA purchased this
loan is attached as Exhibit G.
h.
Cross River Bank loan No. 7871687410 made to Kahlil Gibran Green,
Sr. on behalf of his company, Impact Creations, LLC, in the amount
of $830,000.00. At the time the Judgment and Commitment was
entered in Teldrin Foster’s case (Dkt. 1055), the amount due to
Harvest Small Business Finance was $805,100.00. The Certified
Statement of Account showing the SBA purchased this loan is
attached as Exhibit H.
i.
Cross River Bank loan No. 9327227407 made to Bern Benoit on behalf
of his company, Transportation Management Services, in the amount
of $830,417.00. At the time the Judgment and Commitment was
entered in Teldrin Foster’s case (Dkt. 1055), the amount due to Cross
River Bank was $805,504.49. The Certified Statement of Account
showing the SBA purchased this loan is attached as Exhibit I.
j.
Customers Bank loan No. 3869848006 made to David Belgrave III on
behalf of his company, Continuing Success, Inc., in the amount of
$727,000.00. At the time the Judgment and Commitment was entered
in Teldrin Foster’s case (Dkt. 1055), the amount due to Customers
Bank was $705,190.00. The Certified Statement of Account showing
the SBA purchased this loan is attached as Exhibit J.
k.
Customers Bank loan No. 6917877410 made to Ricky Dixon on behalf
of his company, RK Painting Company, in the amount of $775,000.00.
At the time the Judgment and Commitment was entered in Teldrin
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Foster’s case (Dkt. 1055), the amount due to Customers Bank was
$751,750.00. The Certified Statement of Account showing the SBA
purchased this loan is attached as Exhibit K.
l.
Celtic Bank loan No. 9096407404 made to Ricky Dixon on behalf of his
company, Lee Operations, LLC, in the amount of $805,813.00. At the
time the Judgment and Commitment was entered in Teldrin Foster’s
case (Dkt. 1055), the amount due to Celtic Bank was $781,638.61. The
Certified Statement of Account showing the SBA purchased this loan
is attached as Exhibit L.

8.
The United States contends the SBA is entitled to restitution as
subrogee of the respective lenders: Harvest Small Business Finance, CDC Small
Business Finance, Cross River Bank, Customers Bank, and Celtic Bank in this case
and in related criminal cases.
9.
The Clerk of Court should be ordered to substitute the restitution
payee in this case to the SBA as subrogee of the respective lenders pursuant to
Exhibit 1 which coincides with the Judgment and Commitment entered in Teldrin
Foster’s case (Dkt. 1055).
Argument and Application of Law
10.
18 U.S.C. § 3664(f)(1)(A) requires the Court to order restitution in the
full amount of each victim’s loss. The Mandatory Victims Restitution Act defines
a victim as “a person directly and proximately harmed as a result of the
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commission of an offense for which restitution may be ordered.” 18 U.S.C. §
3663A. The SBA suffered proven financial losses as result of fraudulently obtained
PPP loans, yet possesses no hope of being made whole with the judgements as
they currently stand. Thus, the United States recommends substituting the SBA as
restitution payee pursuant to Exhibit 1 which coincides with the Judgment and
Commitment entered in Teldrin Foster’s case (Dkt. 1055).
11.
The United States does not seek to alter the court’s judgment ordering
the defendant’s liability to pay the total amount of restitution originally imposed.
The United States merely requests an adjustment to the disbursement of restitution
payments in compliance with 18 U.S.C. § 3664(j)(1), which provides:
If a victim has received compensation from insurance or any other
source with respect to a loss, the court shall order that restitution be
paid to the person who provided or is obligated to provide the
compensation, but the restitution order shall provide that all
restitution of victims required by the order be paid to the victims
before any restitution is paid to such a provider of compensation.

12.
The victim payees comprised of the respective lenders: Harvest Small
Business Finance, CDC Small Business Finance, Cross River Bank, Customers
Bank, and Celtic Bank have received compensation from the SBA. Accordingly,
the United States requests that the Clerk of Court substitute the SBA as the victim
and disburse restitution payments pursuant to Exhibit 1 which coincides with the
Judgment and Commitment entered in Teldrin Foster’s case (Dkt. 1055).
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13.
A proposed order is submitted to the Court contemporaneously for
its consideration.
WHEREFORE, the United States respectfully requests that this Court
substitute the Small Business Administration as the restitution payee in the above-
captioned case pursuant to Exhibit 1 which coincides with the Judgment and
Commitment entered in Teldrin Foster’s case (Dkt. 1055). This amendment would
not change the balance of Defendants’ restitution debts and therefore would not
substantively alter their rights, or the criminal sentences imposed by the court.

Submitted this 10th day of December, 2025.

Respectfully Submitted,

THEODORE S. HERTZBERG
United States Attorney

/s/ Vanessa A. Leo
Vanessa A. Leo
Assistant United States Attorney
Georgia Bar No. 410598
600 United States Courthouse
75 Ted Turner Drive, S.W.
Atlanta, Georgia 30303
(404) 581-6037
Vanessa.Leo@usdoj.gov

Case 1:20-cr-00296-JPB-CMS Document 1206 Filed 12/10/25 Page 9 of 10

CERTIFICATE OF COMPLIANCE
I hereby certify, pursuant to Local Rules 5.1B and 7.1D, that the foregoing
response has been typed using 13-point Book Antiqua font.
/s/ Vanessa A. Leo

VANESSA A. LEO

Assistant United States Attorney

CERTIFICATE OF SERVICE
This is to certify that on this date, the foregoing document was electronically
filed using the Court’s Electronic Case Filing program, which sends a notice of this
document and an accompanying link to this document to all parties who have
appeared in this case under the Court’s Electronic Case Filing program.
Dated: December 10, 2025

/s/ Vanessa A. Leo

VANESSA A. LEO
Assistant United States Attorney

Georgia Bar No. 410598

600 U.S. Courthouse

75 Ted Turner Drive, S.W.

Atlanta, Georgia 30303
404-581-6037
Vanessa.Leo@usdoj.gov

Case 1:20-cr-00296-JPB-CMS Document 1206 Filed 12/10/25 Page 10 of 10

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