Exhibit - United States v. Tracy and Carolyn Wade (Doc. 201-13, filed 2024-11-05)

Summary

This defense exhibit, entered on 11/05/2024 as Document 201-13 in Case 0:23-cr-60173-KMW, is a copy of the Information entered on 07/01/2024 in Case 0:24-cr-60124-RS charging Haydee Rivero, f/k/a Haydee Granados, with conspiracy to commit offenses against the United States under Title 18, United States Code, Section 371. It names Carolyn Wade and Tracy Wade as co-conspirators. The Information alleges that Rivero prepared false and fictitious IRS Schedule C forms and uploaded them through Loan Processor 1's website for PPP loan applications for Tracy Wade on May 6, 2021 and Carolyn Wade on May 13, 2021. It alleges that the Wades paid Rivero $1,000 via Zelle transfer on June 3, 2021 and again on June 7, 2021.

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Case 0:23-cr-60173-KMW   Document 201-13   Entered on FLSD Docket 11/05/2024   Page 1 of
Case 0:23-¢r-60173-KMWodDocument 204-43

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA

CASE NO:: 2A-¢x-WWOI24 Smit | Hunt

18 U.S.C. § 371
18 U.S.C. § 981(a)(1)(C)

UNITED STATES OF AMERICA

VS.
HAYDEE RIVERO,
{/k/a Haydee Granados,
Defendant.
INFORMATION

The United States Attorney charges that:

GENERAL ALLEGATIONS

At all times material to this Information:
The Small Business Administration

L 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.

yan As part of this effort, the SBA enabled and provided loans through banks, credit

unions, and other lenders. These loans had government-backed guarantees.

DEFENDANT'S|
EXHIBIT
CASE

oe

NO ; 23-60173-CR-Williams

EXHIBIT

NO. \G
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The Paycheck Protection Program

3 The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal
law enacted in or around March 2020, designed to provide emergency financial assistance to the
millions of Americans who were suffering from the economic effects caused by the COVID-19
pandemic. One source of relief that the CARES Act provided was the Paycheck Protection
Program (“PPP”), which authorized forgivable loans to small businesses for job retention and
certain other expenses.

4. The SBA promulgated regulations concerning eligibility fora PPP loan. To obtain
a PPP loan, a qualifying business was required to submit a PPP Joan application, which was signed
by an authorized representative of the business. The PPP loan application required the business
(through its authorized representative) to acknowledge the program rules and make certain
affirmative certifications to be eligible to obtain the PPP loan, including that the business was in
operation on February 15, 2020, and either had employees for whom it paid salaries and payroll
taxes or paid independent contractors. Payments to independent contractors are typically reported
to the Internal Revenue Service (“IRS”) on a “Form 1099-MISC.” In the PPP loan application
(SBA Form 2483), the small business (through its authorized representative) was required to state,
among other things, its: (a) average monthly payroll expenses; and (b) number of employees.
These figures were used to calculate the amount of money the small business was eligible to
receive under the PPP.

a. In addition, a business applying for a PPP loan was required to provide
documentation showing its payroll expenses. This payroll information was material to the
application because, pursuant to statutory requirements and implementing regulations, the amount

of the loan that typically could be approved was a function of the applicant’s historical payroll
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costs, consisting of compensation to its employees whose principal place of residence was the
United States, subject to certain exclusions.

6. Individuals who operated a business under a “sole proprietorship” business
structure were eligible for a PPP loan. To qualify for such a PPP loan, individuals had to report
and document their income and expenses from the sole proprietorship. Sole proprietorships
typically report their income and expenses yearly to the IRS on a “Form 1040, Schedule C.” As
with other PPP loans, this information and supporting documentation was used to calculate the
amount of money the individual was entitled to receive under the PPP. The maximum PPP loan
amount for a sole proprietor with no employees was $20,833.

“x PPP loan applications were processed by participating lenders and third-party loan
processors. If a PPP loan application was approved, the participating lender funded the PPP loan
using its own monies. While it was the participating lender that issued the PPP loan, the loan was
100% guaranteed by the SBA. Data from the application, including 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 meneasineg the loan.

8. After the lender funded the PPP loan to the borrower, the lender submitted
disbursement details into the SBA E-Tran system with servers located in Sterling, VA. The SBA’s
Denver Finance Center, located in Denver, Colorado, created payment files and authorized
payments of the PPP processing fee to the lender through the Financial Management System to
the Treasury. The primary server for the Financial Management System is in Sterling, VA. The
PPP processing fee varied depending on the amount of the loan. Once created, the payment files

were then transmitted via wire to the U.S. Treasury disbursing office in Kansas City, Missouri,
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which, in turn, sent instructions for payment of funds to the Federal recat Bank Automated
Clearing House processing site in East Rutherford, New Jersey.

9. The proceeds of a PPP loan could be used only for certain specified items, such as
payroll costs, costs related to the continuation of group health care benefits, or mortgage interest
payments for the business. The proceeds of a PPP loan were not permitted to be used by the
borrowers to purchase consumer goods, automobiles, personal residences, clothing, or jewelry, to
pay the borrower’s personal federal income taxes, or to fund the borrower’s ordinary day-to-day
living expenses unrelated to the specified authorized expenses.

10. The PPP allowed the interest and principal on the PPP loan to be entirely forgiven
if the borrower utilized 60% of the loan in the 24 weeks post-disbursement toward payroll costs
and utilized the remaining 40% on qualified expense items (e.g., mortgage, rent, and utilities).

11. Applying for PPP loan forgiveness was a separate process that required additional
affirmations that the applicant satisfied the eligibility for PPP loan forgiveness. If forgiveness was
approved, the SBA would pay the remaining balance of the loan to the participating lender.
Whatever portion of the PPP loan was not forgiven was serviced as a loan.

The Defendant, Co-Conspirators, and Relevant Entities

12. Defendant HAYDEE RIVERO, f/k/a Hayites Granados, was a resident of
Broward County, Florida.

13. Co-conspirator Carolyn Wade was a resident of Broward County, Florida, and an
employee of the Broward Sheriff's Office.

14. Co-conspirator Tracy Wade was a resident of Broward County, Florida, and an
employee of the Broward Sheriffs Office.

15. Lender 1 was a participating lender in the PPP, and was located in California.
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16. Loan Processor 1 was a third-party loan processor that processed PPP loan

applications for Lender 1, among other participating PPP lenders, and was located in California.
COUNT 1
Conspiracy to Commit Offenses Against the United States
(18 U.S.C. § 371)

17. Paragraphs 1 through 16 of the General Allegations section of this Information are
re-alleged and incorporated by reference as though fully set forth herein.

18. | From in or around April 2021, through in or around August 2021, the exact dates
being unknown to the United States Attorney, in Broward County, in the Southern District of

Florida, and elsewhere, the defendant,

HAYDEE RIVERO,
f{/k/a Haydee Granados,

did willfully, that is, with the intent to further the objects of the conspiracy, and knowingly
combine, conspire, confederate, and agree with Carolyn Wade, Tracy Wade, and with others
known and unknown to the United States Attorney, to commit certain offenses against the United
States, that is:

a) to knowingly, and with the intent to defraud, devise and intend to devise a scheme
and artifice to defraud, and to obtain money and property by means of materially false and
fraudulent pretenses, representations, and promises, knowing that the pretenses, representations,
and promises were false and fraudulent when made, and, for the purpose of executing the scheme
and artifice, knowingly transmit and cause to be transmitted, by means of wire communications in
interstate commerce, certain writings, signs, signals, pictures, and sounds, in violation of Title 18,
United States Code, Section 1343; and

b) to make any statement knowing it to be false for the purpose of obtaining for herself

or for any applicant any loan, or extension thereof by renewal, deferment of action, or for the
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purpose of influencing in any way the action of the United States Small Business Administration,
or for the purpose of obtaining money, property, or anything of value, under Title 15, United States
Code, Chapter 14A, in violation of Title 15, United States Code, Section 645(a).

PURPOSE OF THE CONSPIRACY

19. It was the purpose of the conspiracy for HAYDEE RIVERO, f/k/a Haydee
Granados, and her co-conspirators to unjustly enrich themselves by, among other things, (a)
making false statements to obtain PPP loans and forgiveness of such PPP loans from the SBA and
its lenders; (b) submitting and causing the submission of PPP loan applications that contained false
and fraudulent information; (c) causing the disbursement of false and fraudulent PPP loans; and
(d) submitting and causing the submission of PPP loan forgiveness applications that contained
false and fraudulent information.

MANNER AND MEANS OF THE CONSPIRACY

The manner and means by which HAYDEE RIVERO, f/k/a Haydee Granados, and her
co-conspirators sought to accomplish the purpose of the conspiracy included, among other things,
the following:

20. HAYDEE RIVERO, f/k/a Haydee Granados, prepared and created false and

fictitious IRS Schedule C forms for inclusion with, and in support of, PPP loan applications for

Carolyn Wade, Tracy Wade, and others.

21. HAYDEE RIVERO, f/k/a Haydee Granados, logged in to Loan Processor 1’s
website and electronically accessed PPP loan applications for Carolyn Wade, Tracy Wade, and
others, using login credentials, including one-time, short-lived passcodes, supplied by Carolyn

Wade, Tracy Wade, and others.
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22. HAYDEE RIVERO, f/k/a Haydee Granados, inputted and transmitted through
the internet, via Loan Processor 1’s website, false tax information for PPP loan applications for
Carolyn Wade, Tracy Wade, and others.

23. HAYDEE RIVERO, f/k/a Haydee Granados, uploaded and transmitted through
the internet, via Loan Processor 1’s website, false and fictitious IRS Schedule C forms for inclusion
with, and in support of, PPP loan applications for Carolyn Wade, Tracy Wade, and others;

24. HAYDEE RIVERO, f/k/a Haydee Granados, Carolyn Wade, Tracy Wade, and
others, submitted and caused the submission of PPP loan applications that included false
information, and false and fictious IRS Schedule C forms prepared and created by HAYDEE
RIVERO, f/k/a Haydee Granados.

25. HAYDEE RIVERO, f/k/a Haydee Granados, Carolyn Wade, Tracy Wade, and
others, caused the SBA to approve, and PPP lenders to disburse, PPP loan proceeds to themselves
and others based upon, among other things, false information, and false and fictitious IRS Schedule
C forms prepared and created by HAYDEE RIVERO, f/k/a Haydee Granados.

26. Carolyn Wade, Tracy Wade, and others, paid HAYDEE RIVERO, fik/a Haydee
Granados, and caused her to receive payment, for supplying false information and false and
fictitious IRS Schedule C forms in connection with PPP loan applications.

27. HAYDEE RIVERO, f/k/a Haydee Granados, Carolyn Wade, Tracy Wade, and
others, submitted and caused the submission of false and fraudulent information to the SBA to

attempt to cause and cause the forgiveness of fraudulently obtained PPP loans.
Case 0:23-cr-60173-KMW   Document 201-13   Entered on FLSD Docket 11/05/2024   Page 8 of
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OVERT ACTS

In furtherance of the conspiracy and to achieve the purpose thereof, at least one of the
coconspirators committed and caused to be committed, in the Southern District of Florida, at least
one of the following overt acts, among others:

28. Onor about May 6, 2021, HAYDEE RIVERO, f/k/a Haydee Granados, logged
in to Loan Processor 1’s website and electronically accessed PPP loan application ID “bded28a5-
a9d0-4141-ba64-ad5ca51S5cb8b” for Tracy Wade.

29. On or about May 6, 2021, HAYDEE RIVERO, f/k/a Haydee Granados, inputted
and transmitted through the internet, via Loan Processor 1’s website, false tax information for PPP
loan application ID “bded28a5-a9d0-4141 -ba64-ad5ca515cb8b” for Tracy Wade.

30. On or about May 6, 2021, HAYDEE RIVERO, f/k/a Haydee Granados,
uploaded and transmitted through the internet, via Loan Processor 1’s website, a false and fictitious .
IRS Schedule C form for inclusion with, and in support of, PPP loan application ID “bded28a5~
a9d0-4141-ba64-ad5ca515cb8b” for Tracy Wade.

31. On or about May 13, 2021, HAYDEE RIVERO, f/k/a Haydee Granados, logged
in to Loan Processor 1’s website and electronically accessed PPP loan application ID *72d63c08-
df04-4ale-a649-c6cf086adfb7” for Carolyn Wade.

32. On or about May 13, 2021, HAYDEE RIVERO, f/k/a Haydee Granados,
inputted and transmitted through the internet, via Loan Processor 1’s website, false tax information
for PPP loan application ID “79.d63c08-df04-4ale-a649-c6cf086adfb7” for Carolyn Wade.

33. On or about May 13, 2021, HAYDEE RIVERO, f/k/a Haydee Granados,
uploaded and transmitted through the internet, via Loan Processor 1’s website, a false and fictitious

IRS Schedule C form for inclusion with, and in support of, PPP loan application ID *“72d63c08-
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df04-4ale-a649-c6cf086adfb7” for Carolyn Wade.

34, On or about June 3, 2021, Tracy Wade and Carolyn Wade paid HAYDEE
RIVERO, f/k/a Haydee Granados, and caused her to be paid, $1,000 via Zelle transfer.

35. On or about June 7, 2021, Tracy Wade and Carolyn Wade paid HAYDEE
RIVERO, f/k/a Haydee Granados, and caused her to be paid, $1,000 via Zelle transfer.

All in violation of Title 18, United States Code, Section 371.

FORFEITURE ALLEGATIONS

1. The allegations of this Information are hereby re-alleged and by this reference fully
incorporated herein for the purpose of alleging forfeiture to the United States of America of certain
property in which the defendant, HAYDEE RIVERO, f/k/a Haydee Granados, has an interest.

2. Upon conviction of a violation of Title 18, United States Code, Section 371, as
alleged in this Information, the defendant shall forfeit to the United States any property, real or
personal, which constitutes or is derived from proceeds traceable to such offense, pursuant to Title
18, United States Code, Section 981(a)(1)(C).

All pursuant to Title 18, United States Code, Section 981(a)(1)(C) and the procedures set
forth in Title 21, United States Code, Section 853, as incorporated by Title 28, United States Code,

Section 2461(c).

7. Danes

Gor MARKE ZY LAPOINTE
UNITED rate ATTORNEY

DAV#D A. SNIDER
ASSISTANT UNITED STATES ATTORNEY
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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA

UNITED STATES OF AMERICA CASE NO.:
v.
HAYDEE RIVERO, CERTIFICATE OF TRIAL ATTORNEY
f/k/a Haydee Granados, /
Defendant. Superseding Case Information:
Court Division (select one) New Defendant(s) (Yes or No) __
[7] Miami r1Key West [FTP Number of New Defendants ____
EF] FTL |] WPB Total number of new counts ____
I “ > hereby certify that:
I have carefully considered the allegations of the indictment, the number of defendants, the number of probable
witnesses and the legal complexities of the Indictment/Information attached hereto.
2. Iam aware that the information supplied on this statement will be relied upon by the Judges of this Court in setting
their calendars and scheduling criminal trials under the mandate of the Speedy Trial Act, Title 28 U.S.C. §3161.
3. Interpreter: (Yes or No) No__
List language and/or dialect:
4. This case will take _9 days for the parties to try.
5. Please check appropriate category and type of offense listed below:
(Check only one) (Check only one)
I [] Oto 5 days C1) Petty
IL E] 6to 10 days . EE] Minor
im E111 to 20 days i] Misdemeanor
tv [121 to 60 days Felony
v e1 days and over
6. Has this case been previously filed in this District Court? (Yes or No) No__
If yes, Judge Case No.
7. Has acomplaint been filed in this matter? (Yes or No) No__
If yes, Magistrate Case No.
8. Does this case relate to a previously filed matter in this District Court? (Yes or No) Yes
If yes, Judge Williams Case No. 23-60173-CR-KMW
9. Defendant(s) in federal custody as of N/A
10. Defendant(s) in state custody as of N/A
11. Rule 20 from the District of
12. Is this a potential death penalty case? (Yes or No) No__
13. Does this case originate from a matter pending in the Northern Region of the U.S. Attorney’s Office
prior to August 8, 2014 (Mag. Judge Shaniek Maynard? (Yes or No) No__ ;
14. Does this case originate from a matter pending in the Central Region of the U.S. Attorney’s Office prior
to October 3, 2019 (Mag. Judge Jared Strauss? (Yes or No) No _
15. Did this matter involve the participation of or consultation with Magistrate Judge Eduardo I. Sanchez
during his tenure at the U.S. Attorney’s Office, which concluded on January 22, 2023? No __
16. Did this matter involve the participation of or consultation with now Magistrate Judge Marta Fulgueira

Elfenbein during her tenure at the U.S. Attorney’s Office, which concluded on March 5, 2024? No

| By: Fei A

DAVID A. SNIDER “
Assistant United States Attorney
Court ID No. A5502260
Case 0:23-cr-60173-KMW   Document 201-13   Entered on FLSD Docket 11/05/2024   Page 11 of
Case 0:24-cr- 60124- RS Document'1 Entered on FLSD Docket 07/01/2024 Page 12 ad

AO 455 (Rev. 01/09) Waiver of an Indictment

UNITED STATES DISTRICT COURT

for the
Southern District of Florida Ral

owen gf OR -(0leA Sanit]
hunt

United States of America

HAYDEE RIVERO, fik/a Haydee Granados,

Nees Ne ee ee

Defendant
WAIVER OF AN INDICTMENT

I understand that I have been accused of one or more offenses punishable by imprisonment for more than one
year. I was advised in open court of my rights and the nature of the proposed charges against me.

After receiving this advice, I waive my right to prosecution by indictment and consent to prosecution by
information.

Date:

Defendant’s signature

Signature of defendant's attorney

FRANK SCHWARTZ, ESQ.
Printed name of defendant's attorney

Judge's signature

Judge's printed name and title
Case 0:23-cr-60173-KMW   Document 201-13   Entered on FLSD Docket 11/05/2024   Page 12 of
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA

PENALTY SHEET

Defendant's Name: HAYDEE RIVERO, f/k/a Haydee Granados

Case No:

Count #: 1

Conspiracy to Commit Offenses Against the United States

Title 18, United States Code, Section 371

* Max. Term of Imprisonment: 5 Years
* Max. Supervised Release: 3 years
* Max. Fine: $250,000

*Refers only to possible term of incarceration, supervised release and fines. It does not include restitution,
special assessments, parole terms, or forfeitures that may be applicable.

Revised 5/16/2022


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