Indictment returned in open court as to Emmet Bowens (1) count(s) 1-2, 3 — United States v. Bowens (Dkt. 1, M.D. Fla.)

Record facts

U.S. District Court for the Middle District of Florida · No. 6:21-cr-00141-RBD-EJK · Doc. 1 · 2021-11-10 · Docket on CourtListener

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Case 6:21-cr-00141-RBD-EJK Document1 Filed 11/10/21 Page 1 of 12 PagelD 1

riLED

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
ORLANDO DIVISION 2021 NOY 10 PH 5: 29

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UNITED STATES OF AMERICA nk DIS TRlCT OF FLORIDA
v. CASE NO. 6:21-cr- |41-OR]- RBD-ETK
18 U.S.C. § 1343
EMMET BOWENS 18 U.S.C. § 1957
a/k/a Emmitt Bowens

INDICTMENT

The Grand Jury charges:

COUNTS ONE AND TWO
(Wire Fraud)

A. Introduction

At times material to this Indictment:

1. The United States Small Business Administration (“SBA”) was an
executive-branch agency of the United States government that provided support to
entrepreneurs and small businesses. The mission of the SBA was to maintain and
strengthen the nation’s economy by enabling the establishment and viability of small
businesses and by assisting in the economic recovery of communities after disasters.
As part of this effort, the SBA enabled and provided for loans through banks, credit
unions, and other lenders. These loans had government-backed guarantees.

a In March 2020, the Coronavirus Aid, Relief, and Economic Security Act,
or the “CARES Act,” was enacted to provide immediate assistance to individuals,
families, and organizations affected by the COVID-19 emergency. Among its various

provisions, the CARES Act authorized the SBA to guarantee loans under the
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Paycheck Protection Program (“PPP”), and the full principal amount of the loans
could qualify for forgiveness.

3. Borrowers were required to use PPP loan proceeds only for enumerated
purposes, including payroll costs, rent and utilities, and mortgage interest payments.
Knowing misuse of PPP funds would subject borrowers to additional liability, such as
charges for fraud.

4, Under the PPP, the maximum loan amount was the lesser of $10 million
or an amount calculated using a payroll-based formula specified in the CARES Acct.
The payroll-based formula considered the borrower’s total payroll costs from the
preceding twelve months for all domestic employees. Once an average monthly payroll
cost was established, the borrower would multiply that figure by 2.5 to arrive at a total
maximum PPP loan amount. This payroll-based formula expressly excluded the
compensation of an individual employee in excess of an annual salary of $100,000,
prorated as necessary, and, with limited exceptions, businesses with more than 500
employees did not qualify to obtain PPP loans.

5. To apply for a PPP loan, a potential borrower electronically submitted
an SBA Form 2483 with supporting payroll documentation to a financial institution
that would administer the loan and serve as custodian of the funds. On the SBA Form
2483, an authorized representative of the business was required to certify information
regarding business operations. Those certifications included that: (i) the applicant was
in operation on February 15, 2020 and had employees for whom it paid salaries and

payroll taxes or paid independent contractors, as reported on a Form 1099-MISC; (ii)
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current economic uncertainty made the loan request necessary to support the
applicant’s ongoing operations; and (iii) the PPP funds would be used to retain workers
and to maintain payroll or pay other qualifying expenses.

6. Further, when submitting the SBA Form 2483, the authorized
representative certified his understanding that, should the PPP funds be knowingly
used for unauthorized purposes, the United States could hold him legally liable,
including for charges of fraud. The applicant was also required to certify the truth and
accuracy of any information provided on the SBA Form 2483 and in all supporting
documents, including any documents submitted to verify the applicant’s payroll
expenses. Such supporting documents could include payroll processor records, bank
records, wage records, payroll tax filings with the Internal Revenue Service, or other
records sufficient to demonstrate the qualifying payroll amount.

7. Finally, the applicant was required to certify the following warning
regarding false statements and other criminal penalties:

I understand that knowingly making a false statement to obtain a
guaranteed loan from SBA is punishable under the law, including
under 18 U.S.C. §§ 1001 and 3571 by imprisonment of not more
than five years and/or a fine of up to $250,000; under 15 U.S.C.
§ 645 by imprisonment of not more than two years and/or a fine
of not more than $5,000; and, if submitted to a federally insured
institution, under 18 U.S.C. § 1014 by imprisonment of not more
than thirty years and/or a fine of not more than $1,000,000.
8. PPP loan applications would then be processed by participating lenders.

If a PPP loan application was approved, the participating lender funded the PPP loan

using its own monies, which were 100% guaranteed by the SBA. Data from the
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application, including information from 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.

9. Buccaneer Technologies LLC. (“Buccaneer”) was a State of Florida
corporation established on or about May 11, 2020 by the defendant, who listed himself
as Buccaneer’s CEO and registered agent.

10. Harvest Small Business Finance, LLC (“Lender”) was a financial
institution headquartered in California, that participated in the SBA’s PPP as a lender
and, as such, was authorized to lend funds to eligible borrowers under the terms of
PPP.

11. Barclays Bank, East West Bank, Trustco Bank, and Wells Fargo Bank
were financial institutions as defined by 18 U.S.C. § 20, the accounts and deposits of
which were federally insured by the Federal Deposit Insurance Corporation.

B. The Scheme and Artifice

12. Beginning on or about an unknown date but at least by or about May 5,
2020, and continuing through on or about May 29, 2020, in the Middle District of
Florida, and elsewhere, the defendant,

EMMET BOWENS
a/k/a Emmitt Bowens,

did knowingly, and with intent to defraud, devise and intend to devise, a scheme and

artifice to defraud, and for obtaining money and property by means of materially false
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and fraudulent pretenses, representations, and promises, the substance of which
scheme and artifice is described below.
C. Manner and Means of the Scheme and Artifice
13. The manner and means by which the defendant sought to accomplish the
scheme and artifice to defraud included, among others, the following:

a. It was part of the scheme and artifice to defraud that the defendant
would and did submit and cause the submission of a false and fraudulent PPP loan
application to the Lender on behalf of Buccaneer Technologies LLC seeking a PPP
loan from the SBA.

b. It was further part of the scheme and artifice to defraud that the
defendant would and did falsely and fraudulently certify that the PPP funds acquired
from the requested loan would be used to retain workers, maintain payroll, or make
mortgage interest payments, lease payments, and utility payments.

c. It was further part of the scheme and artifice to defraud that the
defendant would and did falsely and fraudulently represent that Buccaneer had 102
employees with an average monthly payroll of $295,833.00.

d. It was further part of the scheme and artifice to defraud that the
defendant would and did submit and cause to be submitted false and fraudulent
supporting documentation to the Lender, including, among others, false Buccaneer
Annual Federal Unemployment Tax Act (FUTA) tax (IRS Form 940), and false

Federal 941 Deposit reports.
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e. It was further part of the scheme and artifice to defraud that the
defendant’s materially false, fraudulent, and misleading representations and
documentation would and did cause the SBA to approve the PPP application and the
SBA to issue approximately $739,582.50 in PPP funds to the Lender, which the Lender
then deposited into the defendant’s personal checking account at Trustco Bank, ending
in 4982.

f. It was further part of the scheme and artifice to defraud that the
defendant would and did use and cause the PPP funds to be used for unauthorized
purposes and for his own personal enrichment, including purchases at retail stores and
restaurants within the Middle District of Florida, as well as purchases at retail stores
and restaurants in Arizona, Texas, Mississippi, Georgia, and Tennessee.

g. It was further part of the scheme and artifice to defraud that the
defendant would and did transfer PPP funds from his personal checking account at
Trustco Bank to new bank accounts at Barclays Bank that he opened with himself
being the sole signatory.

h. It was further part of the scheme and artifice to defraud that the
defendant would and did misrepresent, hide, and conceal, and cause to be
misrepresented, hidden, and concealed, the purpose of acts performed in furtherance

of the scheme to defraud.
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14,

and elsewhere, the defendant,

D. Executions of the Scheme and Artifice

On or about the dates set forth below, in the Middle District of Florida

EMMET BOWENS

a/k/a Emmitt Bowens,

for the purpose of executing the aforesaid scheme and artifice to defraud and for

obtaining money and property by means of materially false and fraudulent pretenses,

representations and promises, did knowingly, and with intent to defraud, transmit and

cause to be transmitted by means of wire communication in interstate and foreign

commerce, the following writings, signs, signals, pictures, and sounds:

Submission of the PPP loan application from the

ONE May 5, 2020 Middle District of Florida to the Lender, processed
using a server located outside of Florida

Wire transfer in the amount of $739,582.50 from the

? B bo y

Two May 20, 2020 Lender’s East West Bank account into Emmet Bowens

Trustco account ending in 4982, processed using al
server located outside of Florida

All in violation of 18 U.S.C. § 1343.

1.

COUNT THREE

(Illegal Monetary Transaction)

Paragraphs one through eleven of Counts One and Two of this

Indictment are realleged and incorporated by reference as if fully set forth herein.
Case 6:21-cr-00141-RBD-EJK Document1 Filed 11/10/21 Page 8 of 12 PagelD 8

2. On or about the dates set forth below, in the Middle District of Florida
and elsewhere, the defendant,

EMMET BOWENS
a/k/a Emmitt Bowens,

did knowingly engage and attempt to engage in the described monetary transaction,
in and affecting interstate and foreign commerce, in criminally derived property of a

value greater than $10,000, such property having been derived from specified unlawful

activity, that is, wire fraud, in violation of 18 U.S.C. § 1343:

fal ra!

Draft from Trustco Bank account
ending in 4982 in the name of Emmet
THREE | May 28, 2020 $100,000.00 | Bowens to Wells Fargo savings
account ending in 0200 in the name of
Emmet Bowens

Draft from Trustco Bank account
ending in 4982 in the name of Emmet
Bowens to Barclays account ending in
9467 in the name of Emmet Bowens

FOUR | May 29, 2020 $250,000.00

Case 6:21-cr-00141-RBD-EJK Document1 Filed 11/10/21 Page 9 of 12 PagelD 9

Draft from Trustco Bank account
ending in 4982 in the name of
FIVE | May 29, 2020 $250,000.00 | Emmet Bowens to Barclays account
ending in 8297 in the name of
Emmet Bowens

Draft from Trustco Bank account
ending in 4982 in the name of
sIx May 29, 2020 $115,000.00 | Emmet Bowens to Barclays account
ending in 8303 in the name of

Emmet Bowens
In violation of 18 U.S.C. §§ 1957 and 2.
FORFEITURE
1. The allegations contained in Counts One through Six are incorporated

by reference for the purpose of alleging forfeiture pursuant to 18 U.S.C. §§
981(a)(1)(C), 982(a)(1), and 28 U.S.C. § 2461(c).

2. Upon conviction of a violation of 18 U.S.C. § 1343, the defendant shall
forfeit to the United States, pursuant to 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. §
2461(c), any property, real or personal, which constitutes or is derived from proceeds
traceable to the violation.

3. Upon conviction of a violation of 18 U.S.C. § 1957, the defendant shall
forfeit to the United States, pursuant to 18 U.S.C. § 982(a)(1), any property, real or
personal, involved in such offense, or any property traceable to such property.

4, The property to be forfeited includes, but is not limited to, the following:

a. an order of forfeiture in the amount of $739,582.50, which

represents the proceeds obtained from the offenses;
Case 6:21-cr-00141-RBD-EJK Document1 Filed 11/10/21 Page 10 of 12 PagelD 10

b. approximately $250,610.82 seized from Barclays Bank
account number 1300066779467 held in the name of Emmet
Bowens;

C. approximately $250,668.76 seized from Barclays Bank
account number 130006698297 held in the name of Emmet
Bowens; and

d. approximately $115,321.18 seized from Barclays Bank

account number 130006698303 held in the name of Emmet

Bowens.
5. If any of the property described above, as a result of any act or omission
of the defendant:
a. cannot be located upon the exercise of due diligence;

b. has been transferred or sold to, or deposited with, a third party;
c. has been placed beyond the jurisdiction of the Court;
d. has been substantially diminished in value; or

the United States shall be entitled to forfeiture of substitute property under the

10
Case 6:21-cr-00141-RBD-EJK Document1 Filed 11/10/21 Page 11 of 12 PagelD 11

provisions of 21 U.S.C § 853(p), as incorporated by 18 U.S.C § 982(b)(1) and 28
U.S.C. § 2461 (c).

A TRUE

Foreperson

KARIN HOPPMANN
Acting United States Attorney

By:
Amanda S. Daniels
Assistant United States Attorney

TUG ME

Roger B. Handberg
Assistant United States Attorney
Chief, Orlando Division

1]
FORM OBD-34

APR 1991]

Case 6:21-cr-00141-RBD-EJK Document1 Filed 11/10/21 Page 12 of 12 PagelD 12

No,

UNITED STATES DISTRICT COURT
Middle District of Florida
Orlando Division

THE UNITED STATES OF AMERICA
VS.

EMMET BOWENS
a/k/a Emmitt Bowens

INDICTMENT

Violations:

18 U.S.C. § 1343
18 U.S.C. § 1957 |

A true bill,

Foreperson

Filed in open court this 10th day of November, 2021.

Clerk

Bail

$

GPO 863 525

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