Court filing
Information — U.S. v. Maurice Fayne (Dkt. 344, N.D. Ga. No. 1:20-cr-00228, GAND 278524)
Filed November 13, 2024 in United States v. Maurice Fayne; one of 156 filings from this case.
Record facts
| Court | U.S. District Court for the Northern District of Georgia |
|---|---|
| Filed | 2024-11-13 |
U.S. District Court for the Northern District of Georgia · No. 1:20-cr-00228-MHC-JKL · Doc. 344 · 2024-11-13 · Docket on CourtListener
Full text
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION
UNITED STATES OF AMERICA
v.
MAURICE FAYNE A/K/A ARKANSAS MO
Criminal Action No.
1:20-cr-00228-MHC
MOTION TO SUBSTITUTE RESTITUTION PAYEE
AND BRIEF IN SUPPORT THEREOF
The United States of America, by Ryan K. Buchanan, United States
Attorney, and Vanessa A. Leo, Assistant United States Attorney for the Northern
District of Georgia, respectfully requests an order substituting a restitution payee
pursuant to 18 U.S.C. § 3663A, and in support shows:
Background Information
1.
On September 14, 2021, Defendant Maurice Fayne a/k/a Arkansas
Mo (“Fayne”) was convicted of wire fraud and bank fraud in connection with the
Paycheck Protection Program (“PPP”) a federal loan program and ordered to pay
$4,465,865.55 in criminal restitution to the following:
a. United Community Bank;
b. U.S. Small Business Administrative/DFC;
(Doc. 230.)
2.
On September 15, 2021, an amended Judgment and Commitment
was entered ordering restitution for the following victims is owed jointly and
Case 1:20-cr-00228-MHC-JKL Document 344 Filed 11/13/24 Page 1 of 6
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severally with Michael Sargent (Case No. 1:21-CR-219-MHC):
a. Jimia Cain;
b. Sean Frank;
c. Laura Wolf;
d. Robert Tuscana;
e. Amanda Napier;
f. Marla Newman;
g. Jeanne Johnston;
h. Mike Rubial;
i. Linda Appleby;
j. Alejandro Davila;
k. Edie Lenaburg;
l. Ruben Azrak;
m. Terrance Miller;
n. Ken Pritchett;
o. Elizabeth Baun;
p. John Baun;
q. Tameika Price;
r. Jamar Rucker; and
s. Sherrie Odom.
(Doc. 231.)
3.
Individual PPP loans were issued by private/ approved lenders
who received and processed PPP applications and supporting documentation/
and then made loans using the lenders own funds/ which were 100% guaranteed
Case 1:20-cr-00228-MHC-JKL Document 344 Filed 11/13/24 Page 2 of 6
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by the Small Business Administration (“SBA”).
4.
The SBA is an executive branch agency of the United States
government that provides support to entrepreneurs and small businesses. The
SBA’s mission is 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
provides relief by enabling and providing loans through banks, credit unions,
and other lenders.
5.
Fayne submitted a PPP loan application to United Community
Bank containing materially false information and received a PPP loan in the
amount of $2,045,300.00.
6.
As evidenced by the Notice of PPP Guaranteed Purchase Payment,
attached hereto as Exhibit A, the SBA purchased the guaranty on the PPP loan
Fayne obtained and became subrogated to all rights of United Community Bank.
7.
The United States agrees that the SBA is entitled to compensation
as subrogee of United Community Bank.
8.
The Clerk of Court should be ordered to immediately begin making
restitution payments to the SBA.
Argument and Application of Law
9.
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
Case 1:20-cr-00228-MHC-JKL Document 344 Filed 11/13/24 Page 3 of 6
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commission of an offense for which restitution may be ordered.” 18 U.S.C. §
3663A. The SBA suffered a proven financial loss as result of Fayne’s fraud yet
possesses no hope of being made whole with the judgement as it currently reads.
Thus, the United States recommends substituting the SBA as restitution payee in
this matter.
10.
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.
11.
In this case, United Community Bank has received compensation
with respect to the loss in this case from the SBA. Accordingly, the United States
requests that the Clerk of Court substitute the SBA as victim and disburse all
restitution payments to the SBA until the awarded restitution has been satisfied.
12.
A proposed order is submitted to the Court contemporaneously for
its consideration.
WHEREFORE, the United States respectfully requests that the Court
substitute the Small Business Administration for United Community Bank as the
restitution payee in the above-captioned case. This amendment would not change
Case 1:20-cr-00228-MHC-JKL Document 344 Filed 11/13/24 Page 4 of 6
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the balance of Defendant’s restitution debts and therefore would not substantively
alter her criminal sentence.
Respectfully submitted this 13th day of November 2024.
RYAN K. BUCHANAN
UNITED STATES ATTORNEY
/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-00228-MHC-JKL Document 344 Filed 11/13/24 Page 5 of 6
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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 November 13, 2024, 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: November 13, 2024.
/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
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