Notice of Filing Redacted Indictment by Eric Dean Sheppard — USA v. Sheppard (Dkt. 189, S.D. Fla.)

Record facts

U.S. District Court for the Southern District of Florida · No. 1:22-cr-20290-BB · Doc. 189 · 2024-01-16 · Docket on CourtListener

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UM TEP STATES DISTW CT COURT
SOUTTTRRN DISTRICT OF FLONTDA
CASE NO. 22-20290-CR-BLOOM (s)
18 U.S.C. j 1343
18 U.S.C. j 1028A(a)(1)
18 U.S.C. j 981(a)(1)(C)
21 U.S.C. j 8531)
IfNITEO STATES oF Am m cA
VS.
Em c lm u  SITRPPAAD,
Defendant.
/
SIJP
-  ERSEDING INDICTM RNT
The Grand Jtuy charges that:
GENERAT, AT,LEGATIONS
At all thnes material to this Superseding Iudictment:
Thè Sm all Ba iness Adm inistratiom tNe COW D-19 Em eraencv, aizd the CANES Act
1. The Coronaviras Aid, Relie: 'and Economic Secmity (ççCAItES''I Act was a federal
1aw enacted on Mazch 27, 2020, to provide emergency W ancial assistance to Aaericans suleling
eèonom iç hnrms âom the CO'VD -19 patdemic. To achieve this goal, the CARES Act estàblished
rl 'lni tered by the United States Small
new temporary progrkus alld expanded e<stingprograms a I'nJ s
Business Alministraiion ((çSBA'').
The Paycheck Protection Prozram
2. 
0ne som'ce of relief pr6vided by t11: CARES Ad was the autholjzaion of forgivable
loans to shall businçsses forjob retention arld certain otller expenses, through a program refen'ed
to as tlle Paycheck Protèctipn Program ($TPP'').
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Businesses could apply for PPP loans by submitting a PPP loan application (SBA
Fozm 2483). The PPP loan application zequired That these bushesses acknowledge, through
authorized representatives, the pzogrnm rules and make cel'taitl al rmative certilcations to be
eligible to obtairl the PPP loan. J.n tlle PPP loan application, these busl esses, through authorized
representafves, had to state their: (a) average monthly payroll expenses, atld (b) n'lmber of
employees. Because independent contzactors were able to apply for PPP lonnq on their own,
employers' payroll calculations and n'lmber of employees were based on wages paid to W -2
employees, not payments to independent conkactors. The employers' payroll expenses weze used
to calclzlate the nrnotmt of money the applicant businesses were eligible to receive under the PPP.
In adtlitiono these businesses had to provide docplmentation evidenchag their payroll expenses;
typically, businesses would supply docllnnents showing the amount of payroll taxes repol-ted to the
m  F1 .
4. 
A PPP loarl application had to be processed by a participating lender or the
pe icipating lender's delegee. If a PPP loan application wa.s approved, the lender ftmded the PPP
loarl ushg its own monies, which were fhlly guaranteed by the SBA. Data from tb.e application,
including informntion about the borrower, the total amount of the loan, and tlle reports and
documentation regarding tlle business's incom e and expenses, were tzansnlitted by the lender to
the SBA in the course of processing the loan.
5. 
PPP loan proceeds were required to be used by the business on cedain permissible
exyenses-  employee payroll costs, Gterest on m ortgages, rent, and iltilides. The PPP allowed
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' the hterest arld principal on the PPP loan to be entirely forgiven if the business spent the loan
proceeds on these expense items witlzin a designated period of time and used a defmed polïion of
the PPP loan proceeds on payroll expenses.
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The Economic Iniury Disaster Loan èroaram
The Economic Injury Disaster Loan ((%m L'') program was an SBA program that
existed before the COVID-19 pmldenaic to provide low-interest fmancing to sm all businesses,
rynters, alld hom eowners ill regions affected by de'clared disasters.
The CARES Ac1 authorized the SBA to m ovide EIDLS to eligible sm all businesses
expeziencing substmltial lnmlciat disraptions due to the COV1D-19 pandenlic. Jn order to obtain
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a COVlD-19 EIDL, â quallfying business was required lo submit an EIDL application to the SBA
and provide inform ation about its operations, such as the n'lmber of employees and gross revenues
arld cost of goods sold for tlle lz-month period preceding January 31, 2020. The applicant was
also required to certify that the information in the application was tnze and correct to the best of
the applic= t's knowledge.
to tke SBA, wltich pzocessed the
applicafons with support âom a government contractor. The amount of tb.e lor , ifthe application
was approved, was determined based, in part, on the inform ation pzovided in the application
EIDL applications weze subznitted directly
concerning the number of employees, p oss revenues, and cost of goods sold. The SBA issued
any fcnds under an EIDL directly to the applicant.
The Defçndant and Relevant Entiies
9. 
HM -UP Development Alafaya Trails, LLC (fsAlafaya Trails''l was a Florida limited
liability company with its principal address in either M ismi, Florida or Ba1 Harbotm Florida.
HM  M anagem' ent atld Development, LLC (d: 
'') was a Florida lirnited liability
10.
company witll its principal addzess in either M inm s, Florida oz Bal Hazbour, Flodda.
I-WI Four, LLC (<T1M Four''l was a Flodda limited liability company * 111 its
pdncipal address irl either Miarri Florida or Bal Harbotm Florida.
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Defendant, ERIC DEAN SHTT PARD, was a resident of M iami-Dade Colmty.
STTEPPARD wastheM anagerpf Alafaya-frails, HV MT), andilM Four. SITRPPARD hadaccess
aad contw l over tlle bnnk accopats of Alafaya Trails, HM M D , and EJM  Four at SunTrust Bank.
Banlc Processor 
was a third-parl:y company. .jrocessor, based in San Jose,
Calitbrnia, that processed the PPP loan applications for Bnnk 1. Bnnk Processor 1 processed PPP
loan applications at its ox ces in W ilmington, Delaware, Conshohocken, Pezmsylvania, acd
Tim onillrn, M arylaad.
14. Bnnk 1 wa.s a fnancial institution based in Salt Lake City, Utah, that was instu'ed by
1he FederalDeposit Insurance Corporation (ûTDlC''). Bnnk 1 was an approved SBA lender of PPP
lomzs.
15. Bnnk Processor 2 was a third-party company processor, based in Cllicago, Illinois,
that processed the PPP loan applications for ,Bnnk 2. Bnnk Processor 2 processed PPP loan
applications at its offcç ifl Cllicago,' Illinois.
16. Bfmk 2 was a fmanoial institudon based in Portland, M aine, that was insm ed by tke
FDIC. Bsnk 2 was an approved SBA lender of PPP loans.
Bnnk 3 was alnanoial institufonbased inFort Lée, N ew Jersey, that was instu'ed by
the FDIC. Bnnk 3 was atl approved SBA lender of PPP loans.
COIJNTb 1-9
W ire Fraud
(18 U.S.C. j 1343)
Paragraphs l through 17 of the General Allegations section of tllis Superseding
Indiotme'nt are realleged and incozporated by reference as thoug,h fully set foe herein.
From in and arotmd April 2020, tbroughin and azotmd M azoh 2021, inM iami-Dade
Copntyf in the Southem  District of Florida, azld elsewhere, the defendant,
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EIU C DEAN SHEPPARD,
did lcnowingly, and with intent to defraud, devise, and intend to devise a schem e and M ifice to
degaud, and to obtain m oney and property by m eans of m atedally false mld gaudulentpretenses,
representations arld promises, lcnowing that the pretenses, representations, and prom ises were false
and âaudulentwhenmade, and forthe purpose of executirlg the scheme atad adifce, didknowiugly
transmit and cause to be transmitted, by means of wire oonnmlpnscation in interstate commerce,
ceztain wdtings, signs, signals, pictares and sounds, in violation of Title 18, United States Code,
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Sections 1343 and 2.
PURPOSE OF THE SCIBM
 AND ARTIFICE
It was the purpose of the scheme and al'tisce for tlle defendant and ltis accomplices
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to.lmlalwfully enrichthemselves by, among otherthings: (a) submitling and causing the submission
of false and gaudulent applications and supporting documents for loans and grants m ade available '
through tlle SBA to provide relief for the economic effects caused by tlle COV1D-19 paudenlic,
including PPP loans and ElDLS; and tb) diverting gaud proceeds for the defendant's personal use,
tlle use and benefk of others, atld to further tho fraud.
M ANNER AND M EANS OF THE SCHEM E AN D ARTIFICE
The mmm er and m eans by which the defendmlt and his accomplices sought to accomplish
tlle object and pmpose of the scheme ao.d artifce included, among others, the following:
4. 
ERIC DEAN STTEPPARD and his accomplices submitled and caused to be
submitted false and fraudlzlent PPP loan and EIDL applicadons on behalf of Alafaya Trails,
HMM D, and HM  Fouz, via Yterstate wire commtmications.
5. 
The PPP loan applications submitted and caused to be submitled by ERIC DEAN
SITRPPARD m asked payments to independent contyactors as wages paid to W -2 employees in
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order to qualify for the PPP loans.
6. 
The PPP loan and EIDL applications subm ited and caused to be subnlitled by
ERIC DEAN STTEPPARD included falsï ed docum ents, s'uch as lnternal Revenue Service
(çûm R7') and Florida Depnrtment of Revenue forms. The applications also misrepresented the type
Of busicess the bonowilag entitiel weze engaged in, as well as revenues, m onthly payroll, and
nllmbers of employees.
Some of tlle falsï ed dclcuments subznitled and caused to be submitted by Em C
DEAN SHEPPARD in support of the false and âaudulent PPP arzd EIDL applications contained
tlle names and forged signatures of others, without the H owledge oz consent of those individuals.
Based onthe false and gaudulent PPP loan = IIBIDL applications subm ittçd as part
of this scheme, Bnnk 1, Bank 2, Bnnk 3, and G e SBA disbuzsed loan prooeeds to bnnk accounts
conkolled by ERIC DEAN STTRPPARD that were held by Alafaya Trails, 
, aud I1M
Four, via interstate wire transrnissions.
ERIC DEAN SM PPARD arld llis accomplices used the proceeds âom the âaud
schem e for their own use, 'the use of oi ers, and to fndlner the gaud.
USE OF W m V,8
10. 
On or about the dates specifed as to each count below, irl M iami-Dade Coucty, in
the Southenl District of Floridw and elsewhore, the defendant, ERIC DEAN SITRPPARD, for
the purpose of executing and in fartherance of the aforèsaid scheme and rzrtiqce to degaud, and to
obtain m oney and pzoperty by means of materially false and fraudulentpretenses, representations,
and promises, lcnowing that the pretenses; representations, and proM ses were false and gaudulent
when made, did knowingly kansmit and cause to be transmitled in interstate comrnerce, by meu s
of wire communication, certain m itings, signs, signals, pictuzes, and sounds:
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Count Approximate Date 
Deseriptien ef W ire
Elecàonic subm ission of a false ancl fraudulent EIDL
application on behalf of 11M  Fotm  âom t'Ne Southet'n District
October 22, 2020
of Florida to the SBA, resulting in an EIDL paym ent of
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. approxhuately $150,000.
Electzozlic submission of a falsised lease agreement on behalf
November 4, 2020 of HM  Four's EIDL application, from the Southern Diskict of
Florida to the SBA .
Eleckonic subm ission of a falsifed letter fw m a bnnker in
November 12, 2020 support of HM  Fouz's EIDL application, from  the Southern
Distdct of Florida to the SBA.
Electzonic submission of a false and fraudulent PPP second
January 19, 2021 
draw loan application on behalf of Alafâya Trails, from  the
Southet'n Distriçt of Florida to Bnnk Processor 1.
Eleokonic mzbnlission of false and âaudulent JR S Fonu 941s
(Employer's Qum-terly Tax Retllrnl in support of Alafaya
February 11
, 2021 
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Trails PPP sçcond draw loan application, from  tlw Southem
Distdct of Florida to Bnnk Processor 1.
ElectToaic submission of a false and âaudulent IR.S Fozm 1065
(U.S. Rettum of Pnrtnerslkip Income) ill suppol't of Alafaya
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Febnzazy 26
, 2021 
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Trails PPP second draw loan application, fzom the Southezn
District of Florida to Bnnk Processor 1.
Electronic submission of a false and fraudulent PPP second
draw loa!l applicadon on behalf of Alafaya Trails, âom the
M arch 11, 2021 
Southern Distict of Florida to Bnnk Pzocessor 2, restllting in a
PPP loan of approximately'$148,397.
Electronic subrnission of false and âaudulent IRS Form 1065
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M arck 11, 2021 
(U.S. Retllrln of Pnrtnerslliy Iucome) in support of Alfaya
Trails' PPP sebond draw loan' application, âom  the Southern .
District of Floddato Bnnk Processor 2.
Electronic submission of a false and gaudulent PPP loan
application, IRS Form 1065 (U.S. Retllrn of Partnersllip
hlcome), and IRS Form 940 Tmployer's Annual Federal
March 12
, 2021
Unemployment Tax Return) on behalf of HMM'D, from the
Southez'n Diskict of Florida to Bnnk 3, restllting in a PPP loan
of approximately $148,591.
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ln violadon of Title 18, United States Code, Sections 1343 arld 2.
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COUNTS 10-14
Aggravated Identity Theft
(18 U.S.C. j1028A)
On or about the dates enum erated as to each cotmt below , in M iarni-Dade Cotmty, in the
Southern DisM ct of Florida, and elsewhere, the defendant,
ERIC DEAN SHEPPARD,
d'uzing and in relaûon to a felony violation of Title 18, United States Code, Section 1343, that is,
wi're fraud, as chrged in Counts 2, 3, 6, 8, and 9, of tbis Superseding Indictment, did knowingly
transfer, possess, and use, without lawful authority, the means of identifcation of anotker person,
as speciled in each cotmt below :
Count Approxim ate Date of Use 
M eans of Identifica'tion
Name, sijnattu'e, atld title of M .S., used on a falsifed
Novembez 4, 2020 
lease agqeem ent electrozlically subrnitted to the SBA
in suppol't of tIM Four's EIDL ajplicalion.
Name, signature, and title of H.B., psed on a falsified
Novem ber 12, 2020 
bnnk letler electrorlically submittyd to the SBA irl
support of HM  Folzr's EIDL application.
Name, Employer Idenv cation Nllmber (tGE1N'4), and
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February 26, 2021 
Preparer Tax IdentificationNilmber (GTT1N'') of N.C.,
used on a falsifed FRS Form 1065 tax . refazrn
electronically subm itted to Bank Processor 1 in
support of Alafaya Trails' PPP second dryw loan
a lication.
Name, E1N, mld PTm  of N .C., used on a falsifed IRS
Form  1065 taxretm.n eleckonically submitted to Bnnlr
M arch 11, 2021 
Processor 2 in suppod of Alafaya Trails; PPP 'second
draw loan application.
Nam e, Em , and PTIN of N .C., used on a falsifed IRS
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M arch 12, 2021 
Fonn 1065 taxzetllrn electronically subnlitted to Bnnk
3 in suppot't of T'IM kl-l's PPP loan application,
ln vièlation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
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Dage 10 of 12
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A TRUE BILL
FO O
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