Exhibit A — USA v. Harun (Dkt. 71-1, S.D. Ga.)

Record facts

U.S. District Court for the Southern District of Georgia · No. 3:22-cr-00009-DHB-BKE · Doc. 71-1 · 2022-11-14 · Docket on CourtListener

Full text

Case 3:22-cr-00009-DHB-BKE

Document 71-1

Filed 11/14/22

Page 1 of 37

BY UPS OVERNIGHT AND ELECTRONIC MAIL
September 19, 2022
Gladys Harun
Business Name #3332 / GYH
1220 Russell Pkwy #5
Warner Robins, GA 31088
@yahoo.com
Re:

Notice of Termination of Franchise Agreements for Territories GA037, GA038, GA039, GA040,
GA055, GA056, GA530, GA532, GA540, GA573, and GA577 and Reservation of Rights

Dear Gladys Harun:
This letter is being sent to you in your individual capacity as an owner and guarantor of the legal entity to which
this letter is addressed (the “Franchisee”) and as the representative of such Franchisee. All further references in
this letter to “you” will mean both you and the Franchisee.
This letter relates to critical defaults under those certain Franchise Agreements (the “Franchise Agreements”)
dated December 16, 2016, July 12, 2017, February 6, 2019, and November 24, 2020, pursuant to which Jackson
Hewitt Inc. (“Jackson Hewitt,” “we,” “us” or “our”) granted you the right to operate, and you undertook certain
obligations with respect to the operation of, Jackson Hewitt Tax Service Businesses (the “Franchised Businesses”)
in the territories designated in the Franchise Agreements as GA037, GA038, GA039, GA040, GA055, GA056,
GA530, GA532, GA540, GA573, and GA577.
Notice Of Termination for Felony Or Criminal Offense Charges Related To The Franchised Business
Pursuant to Section 19.2(n) of the Franchise Agreements, “[w]e may immediately terminate this Agreement upon
the occurrence of any of the following: …(n) you or an Owner of five percent (5%) or more interest in you is
charged with…any felony or any criminal offense related to the Franchised Business (or any related business such
as an accounting practice), including, but not limited to, tax fraud or tax evasion or any other felony that could in
our reasonable opinion reflect poorly on the goodwill of our name or any of our Marks, Operating System, or the
Network.”
On July 5, 2022, the United States government (the “Government”) filed a complaint against you for (1) wire
fraud, and (2) making a false statement to the Small Business Administration (the “Complaint”). A copy of the
Complaint is attached hereto as Exhibit A. On September 8, 2022, the Government filed a superseding indictment
charging you with seven counts, including two counts of wire fraud, one count of false declaration, and four counts
of money laundering (the “Superseding Indictment”). A copy of the Superseding Indictment is attached hereto as
Exhibit B.
The allegations in the Complaint and the charges in the Superseding Indictment are related to the Franchised
Business. See, e.g., Exhibit A at ¶¶ 16, 19, 21, 23, and 26; Exhibit B at ¶¶ 1, 19, 20, and 21. Accordingly, we
hereby exercise our rights under Section 19.2(n) of the Franchise Agreements to declare the Franchise
Agreements terminated effective immediately.

10 Exchange Place, 27th Floor, Jersey City, NJ 07302
www.jacksonhewitt.com


Case 3:22-cr-00009-DHB-BKE

Document 71-1

Filed 11/14/22

Page 2 of 37

Liquidated Damages, Walmart License Fees, And Outstanding Receivables Balance
Because the Franchise Agreements are terminated for your defaults, pursuant to Section 19.5 we are entitled to
and you are responsible for paying damages caused by the interruption of the revenue stream that we bargained
for and damages caused to the Jackson Hewitt brand (the “Liquidated Damages”). Pursuant to Section 19.5 of the
Franchise Agreements, the Liquidated Damages are calculated as follows:
by multiplying (1) the number of calendar months in the Measurement Period, by (2) the
aggregate of the Royalty and advertising and marketing fee percentages, by (3) the average
monthly Gross Volume of Business of the Franchised Business during the 12 full calendar months
immediately preceding the termination date.
Accordingly, below is the Liquidated Damages calculation:
GA037

(1) Number of calendar months in the Measurement Period (9/1//20222/6/2029):
(2) Aggregate of the Royalty and advertising and marketing fee percentages:
(3) Average monthly Gross Volume of Business during the 12 full calendar
months immediately preceding the termination date: 1
Liquidated Damages:

GA038

(1) Number of calendar months in the Measurement Period (9/1/20227/12/2027):
(2) Aggregate of the Royalty and advertising and marketing fee percentages:
(3) Average monthly Gross Volume of Business during the 12 full calendar
months immediately preceding the termination date: 2
Liquidated Damages:

GA039

(1) Number of calendar months in the Measurement Period (9/1/20227/12/2027):
(2) Aggregate of the Royalty and advertising and marketing fee percentages:
(3) Average monthly Gross Volume of Business during the 12 full calendar
months immediately preceding the termination date: 3
Liquidated Damages:

77
21%
$14,792.00
$239,189.02
58
21%
$4,658
$56,738.50
58
21%
$14,792.00
$180,168.35

This amount is equal to $177,506.00 of total Gross Volume of Business during the 12 full calendar months immediately
preceding the termination date, divided by 12.
2
This amount is equal to $55,900.00 of total Gross Volume of Business during the 12 full calendar months immediately
preceding the termination date, divided by 12.
3
This amount is equal to $177,506.00 of total Gross Volume of Business during the 12 full calendar months immediately
preceding the termination date, divided by 12.
1

10 Exchange Place, 27th Floor, Jersey City, NJ 07302
www.jacksonhewitt.com


Case 3:22-cr-00009-DHB-BKE

Document 71-1

Filed 11/14/22

GA040

(4) Number of calendar months in the Measurement Period (9/1/2022 –
7/12/2027):
(5) Aggregate of the Royalty and advertising and marketing fee percentages:
(6) Average monthly Gross Volume of Business during the 12 full calendar
months immediately preceding the termination date: 4
Liquidated Damages:

GA055

Number of calendar months in the Measurement Period (9/12022 –
7/12/2027):
(4) Aggregate of the Royalty and advertising and marketing fee percentages:
(5) Average monthly Gross Volume of Business during the 12 full calendar
months immediately preceding the termination date: 5
Liquidated Damages:

GA056

(4) Number of calendar months in the Measurement Period (9/1/2022 –
7/12/2027):
(5) Aggregate of the Royalty and advertising and marketing fee percentages:
(6) Average monthly Gross Volume of Business during the 12 full calendar
months immediately preceding the termination date: 6
Liquidated Damages:

GA530

(7) Number of calendar months in the Measurement Period (9/1/2022 –
7/12/2027):
(8) Aggregate of the Royalty and advertising and marketing fee percentages:
(9) Average monthly Gross Volume of Business during the 12 full calendar
months immediately preceding the termination date: 7
Liquidated Damages:

Page 3 of 37

58
21%
$18,886.00
$230,029.45
58
21%
$2,318.00
$28,233.24
58
21%
$4,626.00
$56,343.67
58
21%
$4,133.00
$50,344.00

This amount is equal to $226,630.00 of total Gross Volume of Business during the 12 full calendar months immediately
preceding the termination date, divided by 12.
5
This amount is equal to $27,816.00 of total Gross Volume of Business during the 12 full calendar months immediately
preceding the termination date, divided by 12.
6
This amount is equal to $55,511.00 of total Gross Volume of Business during the 12 full calendar months immediately
preceding the termination date, divided by 12.
7
This amount is equal to $49,600.00 of total Gross Volume of Business during the 12 full calendar months immediately
preceding the termination date, divided by 12.
4

10 Exchange Place, 27th Floor, Jersey City, NJ 07302
www.jacksonhewitt.com


Case 3:22-cr-00009-DHB-BKE

Document 71-1

Filed 11/14/22

GA532

(6) Number of calendar months in the Measurement Period (9/1/2022 –
12/16/2026 ):
(7) Aggregate of the Royalty and advertising and marketing fee percentages:
(8) Average monthly Gross Volume of Business during the 12 full calendar
months immediately preceding the termination date: 8
Liquidated Damages:

GA540 (Year 2 Scaled Royalty)
(1) Number of calendar months in the Measurement Period (9/1/2022 –
5/30/2023):
(2) Aggregate of the Royalty and advertising and marketing fee percentages:
(3) Average monthly Gross Volume of Business during the 12 full calendar
months immediately preceding the termination date: 9
Liquidated Damages:
GA540 (Remainder of Term)
(4) Number of calendar months in the Measurement Period (6/1/2023 –
11/24/2030):
(5) Aggregate of the Royalty and advertising and marketing fee percentages:
(6) Average monthly Gross Volume of Business during the 12 full calendar
months immediately preceding the termination date: 10
Liquidated Damages:
GA573 (Year 2 Scaled Royalty)
(1) Number of calendar months in the Measurement Period (9/1/2022 –
5/30/2023):
(2) Aggregate of the Royalty and advertising and marketing fee percentages:
(3) Average monthly Gross Volume of Business during the 12 full calendar
months immediately preceding the termination date: 11
Liquidated Damages:
GA573 (Remainder of Term)
(4) Number of calendar months in the Measurement Period (6/1/2023 –
11/24/2030):
(5) Aggregate of the Royalty and advertising and marketing fee percentages:
(6) Average monthly Gross Volume of Business during the 12 full calendar
months immediately preceding the termination date: 12
Liquidated Damages:

Page 4 of 37

51
21%
$27,470.00
$294,201.03
10
16%
$2,907.00
$4,651.47
88
21%
$2,907.00
$53,724.54
10
16%
$2,230.00
$3,568.00
88
21%
$2,230.00
$41,210.40

This amount is equal to $329,637.00 of total Gross Volume of Business during the 12 full calendar months immediately
preceding the termination date, divided by 12.
9
This amount is equal to $34,886.00 of total Gross Volume of Business during the 12 full calendar months immediately
preceding the termination date, divided by 12.
10
This amount is equal to $34,886.00 of total Gross Volume of Business during the 12 full calendar months immediately
preceding the termination date, divided by 12.
11
This amount is equal to $26,760.00 of total Gross Volume of Business during the 12 full calendar months immediately
preceding the termination date, divided by 12.
12
This amount is equal to $26,760.00 of total Gross Volume of Business during the 12 full calendar months immediately
preceding the termination date, divided by 12.
8

10 Exchange Place, 27th Floor, Jersey City, NJ 07302
www.jacksonhewitt.com


Case 3:22-cr-00009-DHB-BKE

Document 71-1

Filed 11/14/22

GA577

(9) Number of calendar months in the Measurement Period (9/1/2022 –
7/12/2027):
(10) Aggregate of the Royalty and advertising and marketing fee percentages:
(11) Average monthly Gross Volume of Business during the 12 full calendar
months immediately preceding the termination date: 13
Liquidated Damages:

Page 5 of 37

58
21%
$18,407.00
$219,808.40

In addition to the aforementioned amounts, you are also responsible for license fees in connection with the
Agreements Regarding Walmart Locations for territories GA055, GA038, GA573, GA056, GA540, GA530,
GA038, and GA532, which were executed on November 24, 2020 and July 6, 2022 (the “Addendums”). Section
10 of the Addendums dictates “in the event of a termination of this Agreement…the license fee for the full Term
shall become immediately due and payable.” The amounts are set forth below:
(1) Number of years remaining on Addendums
(2) Number of locations operated under Addendums
(3) License fee per year per location
Total Amount:

3
8
$8,000.00 /
$4,000 for
location 50840
$ 168,000.00

Additionally, your outstanding receivables balance as of September 15, 2022 is $7.20.
Total Amount Due to Jackson Hewitt (Liquidated Damages + Walmart
License Fees + receivables balance):

$1,626,217.27

Attached to this letter are the invoice and payment instructions for the above amounts which, pursuant to Section
19.4 of the Franchise Agreements, are immediately due and payable to us. Please coordinate making timely
payment of the amounts reflected in the invoice in accordance with the enclosed instructions. In accordance with
Section 4.11 of the Franchise Agreements, if you fail to timely pay the above amounts, you will be charged interest
at the simple daily equivalent rate of 18% per year or, to the extent it is lower, the highest interest rate permitted
by law. Please note that there may be other monies owed to us under the Franchise Agreements due to revenue
that was not reported to us. We have, and hereby reserve, the right to audit your business to ascertain any such
amounts and determine if any additional amounts are owed. Please understand that our right to audit and your
obligation to cooperate with any audit does not end with the termination of the Franchise Agreements.
Please bear in mind that you have personally guaranteed both the performance and payment obligations under the
Franchise Agreements. Please immediately contact the Accounts Receivable Department at (877) 282-9629 to
discuss reporting and payment of such debt. If you do not pay, we will pursue all rights afforded to us under the
law, up to and including collections and litigation.
Post-Termination Covenants
As a result of the termination of the Franchise Agreements, you will have no further rights to operate the
Franchised Businesses or to use the Jackson Hewitt trademarks, confidential information or system, and you will

This amount is equal to $216,560.00 of total Gross Volume of Business during the 12 full calendar months immediately
preceding the termination date, divided by 12.

13

10 Exchange Place, 27th Floor, Jersey City, NJ 07302
www.jacksonhewitt.com


Case 3:22-cr-00009-DHB-BKE

Document 71-1

Filed 11/14/22

Page 6 of 37

be required to comply with all obligations under the Franchise Agreements that are triggered by the termination
of the Franchise Agreements, including the following:
(a) cease exercising any rights granted to you under the Franchise Agreements, including the right to use
the Marks, the Manual or any of our confidential information and trade secrets;
(b) return to Jackson Hewitt and cease using, without retaining any copies, the originals and all copies of
all of Jackson Hewitt’s trade secrets, confidential and proprietary materials (including, without
limitation, client files and data) and provide access to Jackson Hewitt or its designee to remove all
copies of any such items from any computers or storage media that are not part of the Assets but are
in your possession or control;
(c) return to Jackson Hewitt or destroy at your expense and according to Jackson Hewitt’s direction, all
literature, sign facings, and unused advertising materials bearing the Marks that are not transferred to
Jackson Hewitt as part of the Assets;
(d) notify the telephone company and all listing agencies and advertising directories where the numbers
are listed, that you no longer have the right to use any telephone numbers, listings, and advertisements
used with the Marks, and authorize them to transfer all such telephone numbers, listings and
advertisements to Jackson Hewitt or its designee;
(e) cancel all registrations of fictitious name that include any of the Marks;
(f) cease identifying yourself as a Jackson Hewitt Tax Service business franchisee;
(g) return to Jackson Hewitt all customer files and data; and
(h) comply with the post-term covenants in Section 17 of the Franchise Agreements that: (1) prohibit
post-termination competition (Section 17.2); prohibit solicitation of customers (Section 17.4); and
require protection of trade secrets (Section 17.5).
We direct your attention to those provisions of the Franchise Agreements that, either by their expressed terms or
by their nature, survive the termination, including, without limitation, your indemnification obligations under
Section 27 of the Franchise Agreements. We also note that under Section 15.3 our right to audit and your
obligation to cooperate with any audit does not end with the termination of the Franchise Agreements.
Nothing contained in this letter shall be considered a waiver of any rights or remedies we have under the Franchise
Agreements (including any Collateral Agreements) or at law or in equity, all of which we hereby expressly reserve.
In any litigation between the parties, we reserve our right to assert any other defaults or bases supporting
termination which are supported by the facts, whether or not set forth in this Notice of Termination. Capitalized
terms used but not defined in this letter have the meanings given them in the Franchise Agreements.
Sincerely,

Victoria McShane
Director, Franchise Administration and Compliance

10 Exchange Place, 27th Floor, Jersey City, NJ 07302
www.jacksonhewitt.com


Case 3:22-cr-00009-DHB-BKE

Bill To

Gladys Harun
1220 Russell Pkwy #5
Warner Robins, GA 31088

Document 71-1

Filed 11/14/22

Page 7 of 37

Entity Number
Date
3332
19-Sept-2022

Description

Amount

090-5074-40610 – Liquidated Damages - Royalties – GA037
090-5074-40611 – Liquidated Damages - Advertising – GA037
090-5074-40610 – Liquidated Damages - Royalties – GA038
090-5074-40611 – Liquidated Damages - Advertising – GA038
090-5074-40610 – Liquidated Damages - Royalties – GA039
090-5074-40610 – Liquidated Damages - Advertising – GA039
090-5074-40610 – Liquidated Damages - Royalties – GA040
090-5074-40610 – Liquidated Damages - Advertising – GA040
090-5074-40610 – Liquidated Damages - Royalties – GA055
090-5074-40610 – Liquidated Damages - Advertising – GA055
090-5074-40610 – Liquidated Damages - Royalties – GA056
090-5074-40610 – Liquidated Damages - Advertising – GA056
090-5074-40610 – Liquidated Damages - Royalties – GA530
090-5074-40610 – Liquidated Damages - Advertising – GA530
090-5074-40610 – Liquidated Damages - Royalties – GA532
090-5074-40610 – Liquidated Damages - Advertising – GA532
090-5074-40610 – Liquidated Damages - Royalties – GA540 (Year 2)
090-5074-40611 – Liquidated Damages - Advertising – GA540 (Year 2)
090-5074-40610 – Liquidated Damages - Royalties – GA540 (Remainder of Term)
090-5074-40611 – Liquidated Damages - Advertising – GA540 (Remainder of Term)
090-5074-40610 – Liquidated Damages - Royalties – GA573 (Year 2)
090-5074-40611 – Liquidated Damages - Advertising – GA573 (Year 2)
090-5074-40610 – Liquidated Damages - Royalties – GA573 (Remainder of Term)
090-5074-40611 – Liquidated Damages - Advertising – GA573 (Remainder of Term)
090-5074-40610 – Liquidated Damages - Royalties – GA577
090-5074-40611 – Liquidated Damages - Advertising – GA577
090-0000-11703 – Walmart Licensing Fees
Outstanding Receivables Balance as of 9/15/2022

Total :

$170,849.30
$68,339.72
$40,527.50
$16,211.00
$128,691.68
$51,476.67
$164,306.75
$65,722.70
$20,166.60
$8,066.64
$40,245.48
$16,098.19
$35,960.00
$14,384.00
$210,143.59
$84,057.44
$2,907.17
$1,744.30
$38,374.60
$15,349.94
$2,230.00
$1,338.00
$29,436.00
$11,774.40
$157,006.00
$62,802.40
$168,000.00
$7.20

$1,626,217.27


Case 3:22-cr-00009-DHB-BKE

Document 71-1

Filed 11/14/22

Special Instructions:
Accordingly, upon termination, please pay using one of the following methods:

1. Wire Transfer:

Bank Name and Address:
Account Name:
ABA/Routing Number:
Account Number:

2. Mail check to:

CIBC Bank USA
120 South LaSalle
Chicago, IL 60603
Jackson Hewitt Inc.
071006486
2699907

Jackson Hewitt Inc.
ATTN: Accounts Receivable Dept.
10 Exchange Place
27th Floor
Jersey City, NJ 07302

Page 8 of 37


Case 3:22-cr-00009-DHB-BKE

Exhibit A

Document 71-1

Filed 11/14/22

Page 9 of 37


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Exhibit B

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Filed 11/14/22

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF GEORGIA
DUBLIN DIVISION
-c

UNITED STATES OF AMERICA

O 7:

SUPERSEDING INDICTMEN
3:22-CR-09

V.

18 U.S.C. § 1623
GLADYS HARUN

False Declaration

a/k/a "GLADYS CHEGE"

18 U.S.C. § 1343
Wire Fraud

18 U.S.C. § 1957

Money Laundering Transaction
Over $10,000

THE GRAND JURY CHARGES THAT:

At all times relevant to this Superseding Indictment:
INTRODUCTION
Defendant and Her Business

1.

GLADYS HARUN was a resident of Georgia. She owned and operated

a franchise of Jackson Hewitt Inc., a tax-preparation business headquartered in New

Jersey. HARUN's tax-preparation business had locations in the Southern District of
Georgia and elsewhere and did business as "Jackson Hewitt."
The COVID-19 Pandemic and the CARES Act

2.

The Coronavirus Aid, Relief, and Economic Security ("CARES")Act was

a federal law enacted in or about March 2020 designed to provide emergency financial
assistance to the millions who suffered economic effects caused by the COVID-19
pandemic.


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3.

Among other relief efforts, the United States sought to provide financial

support to eligible businesses that could be used to offset certain business expenses.
4.

At all times material to this Indictment, the Small Business

Administration ("SBA") was an executive branch agency of the United States
government that provided support to entrepreneurs and small businesses. The SBA
was headquartered in Washington, DC and maintained its computer servers outside
of the State of Georgia. The SBA's mission was to maintain and strengthen the
nation's economy by enabhng the establishment and viability ofsmall businesses and

by assisting in the economic recovery of communities after disasters.

5.

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. In addition, the SBA provided loans that came directly from the U.S.
Government.

The Pavcheck Protection Program

6.

One source of relief provided by the CARES Act was the authorization

of up to $349 billion in forgivable loans to small businesses for job retention and
certain other expenses, through a program referred to as the Paycheck Protection
Program ("PPF'). In or around April 2020, Congress authorized over $300 biUion in
additional PPP funding.

7.

To obtain a PPP loan, a qualifying business had to submit a PPP loan

application signed by an authorized representative of the business. The PPP loan
application required the business (through its authorized representative) to


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acknowledge the program rules and make certain affirmative certifications to be

eligible to obtain the PPP loan. In the PPP loan application, the small business
(through its authorized representative) bad to state, among other things, its: (a)
average monthly payroll expenses; and (b) number of employees. These figures were
then used to calculate the amount of money the small business was eligible to receive
under the PPP. In addition, a business applying for a PPP loan had to provide
documentation showing its payroll expenses.

8.

A PPP loan application must be processed by a participating lender,

such as a financial institution. If a PPP loan is approved, the participating lender

funds the PPP loan using its own monies, which are 100% guaranteed by the SBA.

Data from the application, including the 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.

9.

The PPP loan proceeds must be used by the business on certain

permissible expenses—^payroll costs, interest on mortgages, rent, and utilities. The
PPP allows the interest and principal of the PPP loan to be entirely forgiven if the
business spends the loan proceeds on these expense items within a designated period
of time and uses a certain percentage of the PPP loan proceeds on payroll expenses.
10.

Lendistry SBLC,LLC was a wholly owned subsidiary of B.S.D. Capital,

Inc. ("Lendistry") and was based in California. Lendistry was an approved lender
authorized to receive and process PPP applications and supporting documentation,
and then make loans as part of the PPP.


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Economic Im'urv Disaster Loans

11.

Another source of relief provided by the CARES Act was the

authorization for the SBA to provide EIDLs to eligible small businesses experiencing
substantial financial disruption due to the COVID-19 pandemic.
12.

In order to obtain an EIDL, a qualifying business had to submit an

online apphcation to the SBA and provide information about its operations, such as
the number of employees, gross revenues for the twelve-month period preceding the

disaster, and the cost of goods the business sold in the twelve-month period preceding
the disaster. In the case of EIDLs, the twelve-month period was that preceding

January 31, 2020. The applicant also had to certify that all the information in its

application was true and correct to the best of the applicant's knowledge.
13.

In addition, the CARES Act authorized the SBA to issue advances of up

to $10,000 to small businesses within three days of applying for an EIDL ("EIDL

Advance"). The amount of the EIDL Advance was determined the number of
employees the applicant certified having.

14.

EIDL applications were submitted directly to the SBA online at

https://covidl9relief.sba.gOv/#/ and processed by the agency with support from a
government contractor. Rapid Finance. The amount of each loan was determined
based, in part, on the information provided by the application about employment,
revenue, and cost of goods. Any funds issued under an EIDL were issued directly by
the SBA. EIDL funds could be used for payroll expenses, sick leave, production costs,
and business obligations, such as debts, rent, and mortgage payments.


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COUNT ONE

False Declaration

18 U.S.C. § 1623

15.

On or about December 2, 2019, within the Southern District of Georgia,

defendant,
GLADYS HARUN

a/k/a "GLADYS CHEGE,"

in a declaration under penalty of pequry in case number 3:18-CV-051 before the
United States District Court for the Southern District of Georgia, knowingly did make

a false material declaration in an Application to Proceed in District Court Without
Prepaying Fees or Costs, to wit:

a.

Defendant falsely claimed she had not worked in the past four years;

b.

Defendant falsely claimed that neither she nor her spouse had any
employment history for the previous two years; and

c.

Defendant falsely claimed that her only income source during the
previous 12 months was from disabihty,

when, in truth and in fact, as the Defendant knew, she had worked in 2019 and in

years prior, and she and her spouse had derived income in 2019 for which she did not
report.

All in violation of Title 18, United States Code, Section 1623.


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COUNT TWO
Wire Fraud

18 U.S.C. § 1343

16.

The Grand Jury realleges and incorporates by reference paragraphs 1-

14 above in their entirety as if fully set forth herein.
The Scheme

17.

From in or about May 2021, through in or about June 2021, defendant

GLADYS HARUN devised and intended to devise a scheme to defraud Lendistry,
and to obtain money and property by means of materially false and fraudulent
pretenses, representations, and promises. Defendant GLADYS HARUN's scheme

was to unjustly enrich herself by obtaining PPP proceeds under false and misleading
pretenses, including by making false statements in a PPP appHcation and providing
false and altered supporting documentation.
18.

In reliance on false representations and records submitted in and with

Defendant's PPP application, Lendistry, headquartered in California, approved the

requested loan and deposited nearly $300,000 into a bank account in Georgia
controlled by Defendant.
Manner and Means

19.

It was part of the scheme that defendant GLADYS HARUN submitted,

or caused the submission of, a PPP loan application to Lendistry.

The loan

appHcation sought $299,913 and fraudulently represented that Defendant's business
averaged $119,965 in monthly payroll.
20.

It was further part of the scheme that, to substantiate the amount of


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average monthly payroll represented in the PPP loan application, defendant
submitted, or caused the submission of, altered and false IRS Forms and other

records with amounts that were fraudulently inflated.
21.

On or about June 18, 2021, in the Southern District of Georgia, and

elsewhere, GLADYS HARUN,for the purpose of executing the scheme and artifice
described above, caused to be transmitted in interstate commerce, by means of a wire
communication, certain signs, signals, and sounds: that is, Defendant GLADYS
HARUN,caused to be transmitted via electronic signature closing documents for the
PPP loan from the Southern District of Georgia to Lendistry in California, which

caused Lendistry to deposit the requested loan amount into Defendant's hank
account.

All in violation of Title 18, United States Code, Section 1343.


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COUNTS THREE THROUGH SIX

Money Laundering Transaction Over $10,000
18 U.S.C. § 1957

22.

The Grand Jury realleges and incorporates by reference paragraphs 1—

14 and 16-21 above in their entirety as if fully set forth herein.
23.

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

Georgia, and elsewhere, the defendant,
GLADYS HARUN

a/k/a "GLADYS CHEGE,"

did knowingly engage and attempt to engage in the following monetary transactions
by, through, or to a financial institution, affecting interstate or foreign commerce, in

criminally derived property of a value greater than $10,000, such property having
been derived firom a specified unlawful activity, that is. Wire Fraud, in violation of

Title 18 U.S.C. § 1343, knowing that the property was criminally derived:
COUNT
3

DATE

Feb. 17, 2022

DESCRIPTION OF MONETARY TRANSACTION

The purchase of a Wells Fargo cashier's check of
$150,000 fi:om Defendant's Wells Fargo account
ending in 5484 payable to Gladys Harun

4

Feb. 17, 2022

The purchase of a Wells Fargo cashier's check of
$150,000 from Defendant's Wells Fargo account
ending in 5484 payable to Blue Sky

5

The deposit of a cashier's check of $150,000 payable to
March 4, 2022 Gladys Harun into Defendant's Truist account ending
in 6416

6

The deposit of a cashier's check of $150,000 payable to
March 4, 2022 Blue Sky into a Truist account Defendant controlled
ending in 7890

All in violation of Title 18, United States Code, Section 1957.


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COUNT SEVEN
Wire Fraud

18 U.S.C. § 1343

24.

The Grand Jury realleges and incorporates by reference paragraphs 1-

14 above in their entirety as if fully set forth herein.
The Scheme

25.

In or about July 2021, through in or about August 2021, defendant

GLADYS HARUN devised and intended to devise a scheme to defraud the SBA,and

to obtain money and property by means of materially false and fraudulent pretenses,
representations, and promises. Defendant GLADYS HARUN's scheme was to use

the personal identifying information ofan individual with the initials K.E.W. to cause
the SBA to pay out EIDL funds based on false and misleading pretenses, including
false statements in an EIDL application Defendant caused to be transmitted
electronically.
Manner and Means

26.

It was part of the scheme that defendant GLADYS HARUN submitted,

or caused the submission of, false EIDL applications to the SBA. The EIDL
applications falsely claimed that an individual with the initials K.E.W. had a
business opened on December 1, 2019, and that such business generated $2,114 in
gross revenues in 2019, and had $165 in cost of goods sold in 2019.
27.

On or about July 27, 2021, in the Southern District of Georgia, and

elsewhere, GLADYS EARUN,for the purpose of executing the scheme and artifice
described above, caused to be transmitted in interstate commerce, by means of a wire

communication, certain signs, signals, and sounds: that is. Defendant GLADYS


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HARUN,caused to be transmitted via electronic wire EIDL Application 3322814905
into the Southern District of Georgia and to the SBA's servers outside the State of
Georgia.
All in violation of Title 18, United States Code, Section 1343.

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FORFEITURE ALLEGATIONS

The allegations contained in Counts Two through Seven of this Superseding
Indictment are hereby re-alleged and incorporated by reference for the purpose of
alleging forfeitures pursuant to Title 18, United States Code, Sections 981(a)(1)(C),
982(a)(1), 982(a)(3), and Title 28, United States Code, Section 2461(c)Upon conviction of one or more of the offenses in violation of Title 18, United

States Code, Section 1343 set forth in Counts Two and Seven of this Superseding
Indictment, the defendant, GLADYS HARUN, shall forfeit to the United States of

America, pursuant to Title 18, United States Code, Section 981(a)(1)(C) and Title 28,

United States Code, Section 2461(c), any property, real or personal, which constitutes
or is derived from proceeds traceable to the offenses.

Pursuant to Title 18, United States Code, Section 982(a)(1), upon conviction
of an offense in violation of Title 18, United States Code, Section 1957, set forth in
Counts Three through Six, the defendant, GLADYS HARUN,shall forfeit to the
United States of America any property, real or personal, involved in such offense,
and any property traceable to such property.

If any of the property described above, as a result of any act or commission 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

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e.

has been commingled with other property which cannot be
divided without difficulty,

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

pursuant to Title 21, United States Code, Section 853(p), as incorporated by Title 28,
United States Code, Section 2461(c).

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A True Bill.

David H. Estes

Chris Howard

United States Attorney

Assistant United States Attorney
*Lead Counsel

Patricia G. Rhodes

Assistant United States Attorney
Chief, Criminal Division

13

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