Court filing
Indictment — United States v. Katrina Taper and Tiara West — United States v. Kenneth C. Sparks III et al. (E.D. Mo., 2024-09-03, 1)
Filed September 3, 2024 in United States v. Kenneth C. Sparks III et al.; one of 5 filings from this case.
Record facts
| Court | U.S. District Court for the Eastern District of Missouri, Southeastern Division |
|---|---|
| Filed | 2024-09-03 |
U.S. District Court for the Eastern District of Missouri, Southeastern Division · No. 1:24-cr-00128-SNLJ · Doc. 2 · 2024-09-03 · Docket on CourtListener
Full text
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF MISSOURI
SOUTHEASTERN DIVISION
FILED
Sl:.P O 3 2024
0. S. DISTRICT COURT
EASTERN DISTRICT OF MO
CAPE GIRARDEAU
UNITED STATES OF AMERICA,
Plaintiff,
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1 :24CR 128SNLJ-ACL
vs.
Case No.
KATRINA TAPER,
TIARA WEST,
Title 18, U.S.C. §§ 2 and 1014.
Title 18, U.S.C. §§ 2 and 1343.
Forfeiture allegations.
Defendants.
INDICTMENT
THE GRAND JURY CHARGES THAT:
At all times material to this Indictment, unless otherwise specified below:
1. Katrina Taper, a defendant herein, was a resident of Caruthersville, Pemiscot County
Missouri, within the Southeastern Division of the Eastern District of Missouri.
2. Tiara West, a defendant herein, was a legal resident of the state of Texas.
3. Neither Katrina Taper, nor Tiara West owned or operated a business registered
or incorporated within the State of Missouri which was in operation on February 15, 2020.
The Paycheck Protection Program
4. The United States Small Business Administration ("SBA") is an executive-branch
agency of the United States government that provides suppo1i to entrepreneurs and small
businesses. The mission of the SBA is to maintain and strengthen the nation's economy by
enabling the establishment and viability of small businesses and by assisting in economic
recovery after disasters.
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5. The Coronavirus Aid, Relief, and Economic Security ("CARES") Act, Pub. L. No.
116-136, 134 Stat. 281 (2020), is a federal law that was enacted in or around March 2020 to
provide emergency financial assistance to the millions of Americans suffering the economic
impact caused by the COVID-1 9 pandemic. One source of relief provided for in the CARES Act
was the authorization of forgivable loans to small businesses for job retention and certain other
expenses through the Paycheck Protection Program ("PPP"). The purpose of loans issued under
the PPP was to enable small businesses suffering from the economic downturn to continue to pay
salary, wages and to provide benefits, such as health insurance coverage, to their employees.
6.
To obtain a PPP loan, a qualifying business was required to submit a PPP loan
application, signed by an authorized representative of the business. The PPP loan application
required the business to acknowledge the program rules and make certain affirmative
certifications to obtain the PPP loan. ln the PPP loan application (SBA Form 2483), the small
business (through its authorized representative) was required to certify: (a) that the small
business was in operation on February 15, 2020; and (b) the average monthly payroll expenses;
and ( c) the nun1ber of employees. These ce1iifications were used to calculate the amount of
money the small business was eligible to receive under the PPP. In addition, businesses applying
for PPP loans were required to submit documentation supporting their payroll expenses.
7. A PPP loan application was then processed by a paiiicipating lender. If a PPP loai1
application was approved, the paiiicipating lender funded the loai1 using its own monies, which
were then guai·anteed by the SBA. Generally, in the event that the borrower defaulted on a PPP
loan, the SBA would purchase the borrower's debt from the lending financial institution and
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assume the responsibility for paying back the loan.
8. PPP loan funds were required to be used on certain permissible expenses,
including payroll costs, mortgage interest, rent, and utilities for the business. In the PPP loan
application (SBA Form 2483), the borrower must certify that "[a]ll SBA loan proceeds will be
used only for business-related purposes as specified in the loan application and consistent with
the Paycheck Protection Program Rule." In that same application, the borrower must also ce1iify
that "[t]he funds will be used to retain workers and maintain payroll or make mortgage interest
payments, lease payments, and utility payments, as specified under the Paycheck Protection
Program Rule."
9. Under the applicable PPP rules and guidance, the interest and principal on the
PPP loan was eligible for forgiveness if the business spent the loan proceeds on these authorized
expense items within a designated period of time and used a certain portion of the loan toward
payroll expenses.
10. Harvest Small Business Finance, LLC. (Harvest), a financial institution headquaiiered in
Laguna Hills, California, was a participating lender and issued PPP loans guaranteed by the
SBA. Harvest processed applications for PPP loans that were submitted through an internet-
based web portal, which affected interstate commerce.
The Scheme to Defraud
COUNTI
False Statement (18 U.S.C. § 1014)
11. Paragraphs 1-10 are realleged and incorporated by reference as if fully set forth herein.
12. On or about April 19, 2021 , in the Southeastern Division of the Eastern District of Missouri
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and elsewhere, the defendants, Katrina Taper and Tiara West, each aided and abetted by each
other, knowingly made a false statement to Harvest Small Business Finance, LLC, a financial
institution, for the purpose of influencing the action of Harvest Small Business Finance, LLC,
upon an application for a SBA backed PPP loan, in violation of Title 18, United States Code,
Section 1014 and Title 18, United States Code, Section 2, and punishable under Title 18, United
States Code, Section 1014.
Manner and Means
13. It was a part of the scheme that, on or about April 19, 2021, Katrina Taper and Tiara West,
each aided and abetted by the other, submitted and caused to be submitted a fraudulent PPP loan
application on behalf of Katrina Taper, which falsely stated:
a) That Katrina Taper was the owner / operator of a small business that was in operation in
Missouri on February 15, 2020.
b) That any funds received by way of a PPP loan would be spent on permissible expenses,
such as payroll costs, mortgage interest, rent and utilities for the business which she
claimed.
14. Further, Katrina Taper, aided and abetted by Tiara West knowingly submitted and caused to
be submitted certain documents in support of the fraudulent PPP loan application, including a
materially false and fraudulent Internal Revenue Service (IRS) Schedule C (Form 1040) Profit or
Loss From Business form (Schedule C) for 2019 which falsely represented a gross income of
$135,000, and expenses for;
a) $2,215.00 for advertising,
b) $3,472 for contract labor,
c) $1,000 for legal and professional services,
d) $1,500 for office expenses,
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e) $4,500 for supplies,
f) $2,579.00 for travel,
g) $24,560 for wages.
When in truth and fact, there was no such business and Katrina Taper had not obtained the
gross income listed, nor incurred the expenses claimed, and Katrina Taper did not spend the
proceeds of the loan in a manner consistent with the rules of the program.
COUNT II
Wire Fraud (18 U.S.C. § 1343)
15. Paragraphs 1-10 are realleged and incorporated by reference as if fully set f01ih herein.
16. On or about April 19, 2021, in the Southeastern Division of the Eastern District of Missouri
and elsewhere, the defendants, Katrina Taper and Tiara West, each aided and abetted by the other,
voluntarily and intentionally devised or participated in a scheme to obtain money by means of
material false representations, namely the submission of a fraudulent PPP loan application, with
the intent to defraud, and the defendants used, or caused to be used an interstate wire
communication, that is the electronic submission of a fraudulent loan application via the internet,
for the purpose of obtaining an electronic deposit of funds into a bank account of Katrina Taper,
in furtherance of the scheme, and the scheme affected Harvest Small Business Finance, LLC, a
financial institution, in violation of Title 18 United States Code, Section 1343 and Title 18, United
States Code, Section 2, and punishable under Title 18, United States Code, Section 1343.
17. It was a part of the scheme that, on or about April 19, 2021 , Katrina Taper, aided and abetted
by Tiara West submitted and caused to be submitted a fraudulent PPP loan application on behalf
of Katrina Taper, which falsely stated:
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a) That Katrina Taper was the owner / operator of a small business that was in operation in
Missouri on February 15, 2020.
b) That any funds received by way of a PPP loan would be spent on permissible expenses,
such as payroll costs, mortgage interest, rent and utilities for the business which she
claimed.
18. Further, Katrina Taper and Tiara West, each aided and abetted by the other, submitted and
caused to be submitted certain documents in support of the fraudulent PPP loan application,
including a materially false and fraudulent Internal Revenue Service (IRS) Schedule C (Form
1040) Profit or Loss From Business form (Schedule C) for 2019 which falsely represented a gross
income of $135,000, and expenses for;
a) $2,215.00 for advertising,
b) $3,472 for contract labor,
c) $1,000 for legal and professional services,
d) $1,500 for office expenses,
e) $4,500 for supplies,
f) $2,579.00 for travel,
g) $24,560 for wages.
When in truth and fact, there was no such business and Katrina Taper had not obtained the
gross income listed, nor incurred the expenses claimed and Katrina Taper did not spend the
proceeds of the loan in a manner consistent with the rules of the program.
19. As a result of the materially false and fraudulent application for a PPP loan, the lender did
electronically transfer $20,833.00 to a bank account of Katrina Taper.
Forfeiture Allegations
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The Grand Jwy fmiher finds by probable cause that:
Pursuant to Title 18, United States Code, Section 982(a)(2)(A) and (a)(3)(F), upon
conviction of an offense in violation of Title 18, United States Code, Section 1014 and/or
Section 1343, as set fo1ih in the Indictment, the defendant shall forfeit to the United States of
America any prope1iy constituting, or derived from, proceeds obtained, directly or indirectly, as
a result of such violation. Subject to forfeiture is a smn of money equal to the total value of the
property, real or personal, constituting or derived from any proceeds traceable to such violation,
which is at least $20,833.00.
If any of the property described above, as a result of any act or omission of the defendant:
a. caimot be located upon the exercise of due diligence;
b. has been transfe1Ted or sold to, or deposited with, a third pai·ty;
c. has been placed beyond the jurisdiction of the comi;
d. has been substai1tially diminished in value; or
e. has been c01mningled with other property which caimot be divided without
difficulty,
the United States of America will be entitled to the forfeiture of substitute property
pursuant to Title 21, United States Code, Section 853(p).
SAYLER A. FLEMING
United States Attorney
A TRUE BILL
Foreperson
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Tim J. Willis, # 62428MO
Assistant United States Attorney
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Case: 1:24-cr-00128-SNLJ Doc. #: 2 Filed: 09/03/24 Page: 8 of 8 PageID #: 18File and source
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