Plea Agreement re: count(s) Two of the Indictment as to Edrica Leann Watson — USA v. Watson (Dkt. 29, M.D. Fla.)

Record facts

U.S. District Court for the Middle District of Florida · No. 2:21-cr-00107-SPC-KRH · Doc. 29 · 2022-03-15 · Docket on CourtListener

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UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
FORT MYERS DIVISION

UNITED STATES OF AMERICA

V. CASE NO. 2:21-cr-107-SPC-MRM
EDRICA LEANN WATSON

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, EDRICA LEANN WATSON, and the attorney for the

defendant, James Lappan, Esq, mutually agree as follows:

A. - Particularized Terms

1. Count(s) Pleading To

The defendant shall enter a plea of guilty to Count Two of the
Indictment. Count Two charges the defendant with False Statement to a
Lending Institution, in violation of 18 U.S.C. §1014.

2. Maximum Penalties

Count Two carries a maximum sentence of thirty (30) years
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 5 years, and a special assessment of

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$100 per felony count for individuals, and $400 per felony count for persons
other than individuals, such as corporations. With respect to certain offenses,
the Court shall order the defendant to make restitution to any victim of the
offense(s), and with respect to other offenses, the Court may order the defendant
to make restitution to any victim of the offense(s), or to the community, as set
forth below.

3. Elements of the Offense(s)

The defendant acknowledges understanding the nature and
elements of the offense(s) with which defendant has been charged and to which

defendant is pleading guilty. The elements of Count Two are:

First: The Defendant made a false statement to a federally
insured bank;
Second: The Defendant made the false statement to the bank

knowing it was false;

Third: The Defendant did so for the purpose of influencing
in any way the action of the bank.

4. Counts Dismissed

At the time of sentencing, the remaining count(s) against the

defendant, Count One, will be dismissed pursuant to Fed. R. Crim. P.

11(c)(1)(A).

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5. 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 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.

6. Mandatory Restitution to Victim of Offense of Conviction

Pursuant to 18 U.S.C. § 3663A(a) and (b) defendant agrees to
make full restitution to Customers Bank or the Small Business Administration
(SBA) should Customers Bank seek and receive indemnification payment for
the PPP loan referenced in this plea agreement. In the event of Customers
Bank’s indemnification by the SBA for the defendant’s loan, the defendant
agrees to make full restitution to the SBA.

7. 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

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by this 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.
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 recommend 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. Cooperation - Substantial Assistance to be Considered

Defendant agrees to cooperate fully with the United States in the
investigation and prosecution of other persons, and to testify, subject to a
prosecution for perjury or making a false statement, fully and truthfully before
any federal court proceeding or federal grand jury in connection with the
charges in this case and other matters, such cooperation to further include a full
and complete disclosure of all relevant information, including production of any
and all books, papers, documents, and other objects in defendant's possession

or control, and to be reasonably available for interviews which the United States

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may require. If the cooperation is completed prior to sentencing, the
government agrees to consider whether such cooperation qualifies as
"substantial assistance" in accordance with the policy of the United States
Attorney for the Middle District of Florida, warranting the filing of a motion at
the time of sentencing recommending (1) a downward departure from the
applicable guideline range pursuant to USSG §5K1.1, or (2) the imposition of a
sentence below a statutory minimum, if any, pursuant to 18 U.S.C. § 3553(e),
or (3) both. If the cooperation is completed subsequent to sentencing, the
government agrees to consider whether such cooperation qualifies as
"substantial assistance" in accordance with the policy of the United States
Attorney for the Middle District of Florida, warranting the filing of a motion
for a reduction of sentence within one year of the imposition of sentence
pursuant to Fed. R. Crim. P. 35(b). In any case, the defendant understands that
the determination as to whether "substantial assistance" has been provided or
what type of motion related thereto will be filed, if any, rests solely with the
United States Attorney for the Middle District of Florida, and the defendant
agrees that defendant cannot and will not challenge that determination, whether

by appeal, collateral attack, or otherwise.

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10. Use of Information - Section 1B1.8

Pursuant to USSG §1B1.8(a), the United States agrees that no self-
incriminating information which the defendant may provide during the course
of defendant's cooperation and pursuant to this agreement shall be used in
determining the applicable sentencing guideline range, subject to the restrictions
and limitations set forth in USSG §1B1.8(b).

11. Cooperation - Responsibilities of Parties

a. ‘The government will make known to the Court and other
relevant authorities the nature and extent of defendant's cooperation and any
other mitigating circumstances indicative of the defendant's rehabilitative intent
by assuming the fundamental civic duty of reporting crime. However, the
defendant understands that the government can make no representation that the
Court will impose a lesser sentence solely on account of, or in consideration of,
such cooperation.

b. It is understood that should the defendant knowingly
provide incomplete or untruthful testimony, statements, or information
pursuant to this agreement, or should the defendant falsely implicate or
incriminate any person, or should the defendant fail to voluntarily and

unreservedly disclose and provide full, complete, truthful, and honest

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knowledge, information, and cooperation regarding any of the matters noted
herein, the following conditions shall apply:

(1) The defendant may be prosecuted for any perjury or
false declarations, if any, committed while testifying pursuant to this agreement,
or for obstruction of justice.

(2) The United States may prosecute the defendant for
the charges which are to be dismissed pursuant to this agreement, if any, and
may either seek reinstatement of or refile such charges and prosecute the
defendant thereon in the event such charges have been dismissed pursuant to
this agreement. With regard to such charges, if any, which have been dismissed,
the defendant, being fully aware of the nature of all such charges now pending
in the instant case, and being further aware of defendant's rights, as to all felony
charges pending in such cases (those offenses punishable by imprisonment for a
term of over one year), to not be held to answer to said felony charges unless on
a presentment or indictment of a grand jury, and further being aware that all
such felony charges in the instant case have heretofore properly been returned
by the indictment of a grand jury, does hereby agree to reinstatement of such
charges by rescission of any order dismissing them or, alternatively, does hereby
waive, in open court, prosecution by indictment and consents that the United

States may proceed by information instead of by indictment with regard to any

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felony charges which may be dismissed in the instant case, pursuant to this plea
agreement, and the defendant further agrees to waive the statute of limitations
and any speedy trial claims on such charges.

(3) The United States may prosecute the defendant for
any offenses set forth herein, if any, the prosecution of which in accordance
with this agreement, the United States agrees to forego, and the defendant
agrees to waive the statute of limitations and any speedy trial claims as to any
such offenses.

(4) The government may use against the defendant the
defendant's own admissions and statements and the information and books,
papers, documents, and objects that the defendant has furnished in the course
of the defendant's cooperation with the government.

(5) The defendant will not be permitted to withdraw the
guilty pleas to those counts to which defendant hereby agrees to plead in the
instant case but, in that event, defendant will be entitled to the sentencing
limitations, if any, set forth in this plea agreement, with regard to those counts
to which the defendant has pled; or in the alternative, at the option of the United
States, the United States may move the Court to declare this entire plea

agreement null and void.

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12. 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. § 982(a)(2), whether in the possession or
centrol of the United States, the defendant or defendant's nominees. The assets
to be forfeited specifically include, but are not limited to, the $392,563 in
proceeds the defendant admits she obtained as the result of the commission of
the offense to which the defendant is pleading guilty. Additionally, the
defendant agrees and consents to the administrative forfeiture of the $45,000.00
cashier’s check ending in 7353, which was voluntarily tendered by the defendant
to the United States Secret Service on December 15, 2021. The defendant agrees
that these funds are subject to forfeiture and consents to the forfeiture of the
funds by the United States Secret Service. The defendant waives any objections
or challenges to the administrative forfeiture of the funds, including that the
administrative forfeiture was not timely commenced or properly noticed, and
waives his right to administrative notice. The defendant agrees that the
$45,000.00 cashier’s check ending in 7353 will be credited towards the
defendant’s $392,563 order of forfeiture, which will reduce the amount owed

accordingly.

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The defendant acknowledges and agrees that: (1) the defendant
obtained at least $392,563, in total, as a result of the commission of the offense,
and (2) as a result of the acts and omissions of the defendant, the proceeds 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 offense of conviction. The defendant further
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 offense and consents to the entry of the forfeiture order into the Treasury
Offset Program. The defendant agrees that forfeiture of substitute assets as
authorized herein shall not be deemed an alteration of the defendant's sentence.

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 of subpoenas), pursuant to Rule 32.2(b)(3) of the Federal Rules

of Criminal Procedure, to help identify, locate, and forfeit substitute assets.

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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 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 substitute assets and to transfer custody of such assets 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

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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. 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 any substitute assets before the
defendant’s sentencing. In addition to providing full and complete information
about substitute assets, these steps include, but are not limited to, the surrender
of title, the signing of a consent decree of forfeiture, and signing of any other
documents necessary to effectuate such transfers.

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, in the event the Court determines that

the defendant has breached this section of the Plea Agreement, the defendant

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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.

The defendant agrees that the forfeiture provisions of this plea
agreement are intended to, and will, survive the defendant, netwithstanding 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.

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 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

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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, 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.

Z. 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.

dD, 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

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that her financial statement and disclosures will be complete, accurate and
truthful and will include all assets in which her 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. 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,

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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 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

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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).

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.

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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 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

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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
On or about April 2, 2021, Edrica Watson signed and submitted or
caused to be submitted a Payroll Protection Program (PPP) Loan to Customers
Bank to obtain approximately $392,563 in funding for Unity Home Care
Services, LLC (“UHC”). Customers Bank (the lender) is a financial institution
insured by the Federal Deposit Insurance Corporation and is based and
headquartered in Pennsylvania. The Lender participated in the Small Business

Administration’s PPP as a lender and, as such, was authorized to lend funds to

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eligible borrowers under the terms of the PPP.

Florida Division of corporations showed that Edrica Watson is listed
both as the registered agent and the title manager for UHC. The loan application
submitted was digitally initialed and signed as Edrica Watson. The IP address
that captured both digital signatures on the loan application showed the
subscriber and billing information was registered to Edrica Watson at her
personal residence located in Lehigh Acres.

Edrica Watson knowingly submitted or caused to be submitted
materially false representations on the loan application and supporting
documentation. UHC’s number of employees, wages, and income were
misrepresented on the loan application in order to receive the loan amount
requested. Fraudulent tax documents and an income statement were also
submitted to Customers Bank with the loan application to further support the
loan amount of $392,563.

Subsequently, the loan was approved, and funds were dispersed into a
Chase Bank account ending in 8086 on April 7, 2021. The account was in the
name of UHC and Watson was the sole signatory listed on the account.

Customers Bank materially relied on the representations submitted on
the loan application and supporting documentation when approving and

depositing the loan for UHC.

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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.

th Mane
DATED this _|O ~ day of February;2022.

ROGER B. HANDBERG

United States Attorney
Mae
Edrica Leann Watson Shannon Laurie
Defendant Assistant United States Attorney
——SS> Cp rwer
James Lappdan Jesus M. Casas
Attorney for Defendant istant United States Attorney

Chief, Fort Myers Division

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