Court filing
Indictment — United States v. Velma Taper and Tiara West — United States v. Kenneth C. Sparks III et al. (E.D. Mo., 2024-09-03, 2)
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-00129-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
F\LED
SEP O 3 2024
LI S DISTRICT COURT
EASTE.RN DISTRICT OF MO
CAPE GIRARDEAU
UNITED STATES OF AMERICA,
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Plaintiff,
1:24CR129SNLJ-ACL
vs.
Case No.
VELMA 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. Velma 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 Velma 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 govenunent that provides support 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-19 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 Progran1 ("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 ce1iain affirmative
ce1iifications 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 certifications 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 supp01iing their payroll expenses.
7. A PPP loan application was then processed by a paiiicipating lender. If a PPP loai1
application was approved, the paiticipating lender funded the loan using its own monies, which
were then guaranteed 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 ce1iain pennissible expenses,
including payroll costs, mortgage interest, rent, and utilities for the business. In the PPP loan
application (SBA Form 2483), the bonower 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 paiiicipating lender and issued PPP loans guai·anteed by the
SBA. Hai·vest 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
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Missouri and elsewhere, the defendants, Velma 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.
COUNT II
False Statement (18 U.S.C. § 1014)
13.
Paragraphs 1-10 are realleged and incorporated by reference as if fully set forth herein.
14. On or about May 20, 2021, in the Southeastern Division of the Eastern District of Missouri
and elsewhere, the defendants, Velma 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
(Counts I & II)
15. It was a part of the scheme that, on or about April 19, 2021 , Velma 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 Velma Taper. Velma Taper and Tiara West, each aided and abetted by the
other, filed a second draw PPP loan application on or about May 20, 2021, and each application
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falsely stated:
a) That Velma 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.
16.
Further, Velma Taper, aided and abetted by Tiara West knowingly submitted and caused
to be submitted certain documents in support of each of the fraudulent PPP loan applications,
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 on either April 19, 2021 or May 20,
2021, and Velma Taper had not obtained the gross income listed, nor incurred the expenses
claimed, and Velma Taper did not spend the proceeds of the loan in a manner consistent with the
rules of the program.
COUNT III
Wire Fraud (18 U.S.C. § 1343)
1 7.
Paragraphs 1-10 are realleged and incorporated by reference as if fully set forth herein.
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18.
On or about April 19, 2021, in the Southeastern Division of the Eastern District of Missouri
and elsewhere, the defendants, Velma 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 Velma 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.
COUNTIV
Wire Fraud (18 U.S.C. § 1343)
19.
Paragraphs 1-10 are realleged and incorporated by reference as if fully set forth herein.
20.
On or about May 20, 2021, in the Southeastern Division of the Eastern District of Missouri
and elsewhere, the defendants, Velma 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 Velma Taper, in
furtherance of the scheme, and the scheme affected Harvest Small Business Finance, LLC, a
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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.
Manner and Means
(Counts III & IV)
21.
It was a part of the scheme that, on or about April 19, 2021, Velma Taper, aided and abetted
by Tiara West submitted and caused to be submitted a fraudulent PPP loan application on behalf
of Velma Taper. A second draw PPP Loan application was filed on or about May 20, 2021, and
each application falsely stated:
a) That Velma 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.
22. Further, Velma Taper and Tiara West, each aided and abetted by the other, submitted and
caused to be submitted certain documents in support of each of the two fraudulent PPP loan
applications, 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,
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g) $24,560 for wages.
When in truth and fact, there was no such business on either April 19, 2021, or May 20,
2021, and Velma Taper had not obtained the gross income listed, nor incurred the expenses
claimed and Velma Taper did not spend the proceeds of the loan in a manner consistent with the
rules of the program.
23. As a result of the materially false and fraudulent application for a PPP loan, the lender did
electronically transfer $20,833.00 on two occasions to a bank account of Velma Taper, for a total
of $41,666.00 in PPP loan proceeds.
Forfeiture Allegations
The Grand Jury fi.uiher 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 forth 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 sum 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 $41 ,666.00.
If any of the property described above, as a result of any act or omission 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 comi;
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' .
d. has been substantially diminished in value; or
e. has been commingled with other property which cannot be divided without
difficulty,
the United States of America will be entitled to the forfeitme of substitute property
pursuant to Title 21, United States Code, Section 853(p).
SAYLER A. FLEMING
United States Attorney
Tim J. Willis, # 62428MO
Assistant United States Attorney
A TRUE BILL
Foreperson
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