Superseding Indictment — United States of America v. Rafael Martinez (Southern District of New York, 22 Cr. 251)

Summary

Superseding indictment in the Southern District of New York against defendant Rafael Martinez. Count One charges wire fraud, alleging that from in or about April 2020 through at least in or about February 2022 Martinez engaged in a scheme to fraudulently obtain millions of dollars in capital from an insurance company and the Federal Reserve Bank of San Francisco in order to issue loans through the Paycheck Protection Program and earn PPP lender fees, including by making false statements to the United States Small Business Administration to obtain approval for MBE Capital Partners, LLC to become a non-bank PPP lender. The later counts are titled Making False Statements to the SBA, Bank Fraud, Making False Statements to a Bank and Aggravated Identity Theft. The indictment also contains forfeiture allegations.

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Case hia 54226100251 io Document 50 Filed 01/19/23. Page 1 of 7

LRP LOEESIA

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

ee
UNITED STATES OF AMERICA
- V.- SUPERSEDING INDICTMENT
RAFAEL MARTINEZ, Sl 22 Cr. 251 (LJL)
Defendant.
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COUNT ONE tCALEY FILED

(Wire Fraud) ij Os ;
Des SRILEDY
The Grand Jury charges: oer .

1. From in or about April 2020 through at least in or
about February 2022, in the Southern District of New York and
elsewhere, RAFAEL MARTINEZ, the defendant, willfully and
knowingly, having devised and intending to devise a scheme and
artifice to defraud, and for obtaining money and property by
means of false and fraudulent pretenses, representations, and
promises, transmitted and caused to be transmitted by means of
wire, radio, and television communication in interstate and
foreign commerce, writings, signs, signals, pictures, and
sounds, for the purpose of executing such scheme and artifice,
which affected a financial institution, to wit, MARTINEZ engaged
in a scheme to fraudulently obtain millions of dollars in
capital from an insurance company (the “Company”) and the
Federal Reserve Bank of San Francisco, in order to issue loans

through the Paycheck Protection Program (the “PPP”), and thereby

Case 1:22-cr-00251-LJL Document50_ Filed 01/19/23 Page 2 of 7

to fraudulently earn PPP lender fees, through false and
fraudulent pretenses, representations, and documents, including
by making false statements to the United States Small Business
Administration (the “SBA”) in order to obtain approval for
MARTINEZ’s company, MBE Capital Partners, LLC (“MBE”), to become
a non-bank PPP lender.

(Title 18, United States Code, Sections 1343 and 2.)

COUNT TWO
(Making False Statements to the SBA)

The Grand Jury further charges:

2. From at least in or about April 2020 through at least
in or about February 2022, in the Southern District of New York
and elsewhere, RAFAEL MARTINEZ, the defendant, knowingly and
willfully made a false statement, knowing such statement to be
false, for the purpose of obtaining a loan, and extension
thereof by renewal, deferment of action, and otherwise, and the
acceptance, release, and substitution of security therefor, for
himself and an applicant, influencing in any way the action of
the SBA, and obtaining money, property, and anything of value,
under Chapter 14 of Title 15 of the United States Code, to wit,
MARTINEZ made false statements to the SBA regarding, among other
things, the audited financial statements of MBE, for the purpose
of obtaining the approval of the SBA for MBE to be a non-bank
lender through the PPP.

(Title 15, United States Code, Sections 645(a), and Title 18,

Case 1:22-cr-00251-LJL Document50_ Filed 01/19/23 Page 3 of 7

United States Code, Section 2.)

COUNT THREE
(Bank Fraud)

The Grand Jury further charges:

3. From at least in or about April 2020 through at least
in or about September 2021, in the Southern District of New York
and elsewhere, RAFAEL MARTINEZ, the defendant, willfully and
knowingly executed, and attempted to execute, a scheme and
artifice to defraud a financial institution, the deposits of
which were insured by the Federal Deposit Insurance Corporation
(“FDIC”), and to obtain moneys, funds, credits, assets,
securities, and other property owned by, and under the custody
and control of, such financial institution, by means of false
and fraudulent pretenses, representations and promises, to wit,
MARTINEZ engaged in a scheme to obtain a Government-guaranteed
loan for MBE through the PPP from an FDIC-insured bank by means
of false and fraudulent pretenses, representations, and
documents.

(Title 18, United States Code, Sections 1344 and 2.)

COUNT FOUR
(Making False Statements to a Bank)

The Grand Jury further charges:
4, From at least in or about April 2020 through at least
in or about September 2021, in the Southern District of New York

and elsewhere, RAFAEL MARTINEZ, the defendant, knowingly made

Case 1:22-cr-00251-LJL Document50_ Filed 01/19/23 Page 4 of 7

false statements and reports, and willfully overvalued land,
property, and security, for the purpose of influencing the
actions of a financial institution, the accounts of which were
insured by the FDIC, in connection with an application, advance,
discount, purchase, purchase agreement, repurchase agreement,
commitment, loan, and insurance agreement and application for
insurance and a guarantee, and charge and extension of any of
the same, by renewal, deferment of action and otherwise, and the
acceptance, release, and substitution of security therefor, to
wit, MARTINEZ made false statements to an FDIC-insured bank
regarding, among other things, the number of employees of MBE
and the wages paid to MBE employees, for the purpose of
obtaining a Government-guaranteed loan for MBE through the PPP.
(Title 18, United States Code, Sections 1014 and 2.)

COUNT FIVE
(Aggravated Identity Theft)

The Grand Jury further charges:

5. From at least in or about April 2020 through at least
in or about September 2021, RAFAEL MARTINEZ, the defendant,
knowingly did transfer, possess, and use, without lawful
authority, a means of identification of another person, during
and in relation to a felony violation enumerated in Title 18,
United States Code, Section 1028A(c), to wit, MARTINEZ used the
name and identity of another person, specifically, a tax

preparer, in connection with the submission of a fraudulent loan

Case 1:22-cr-00251-LJL Document50_ Filed 01/19/23. Page 5of 7

application and supporting documentation to at least one
financial institution during and in relation to the bank fraud
and false statement charges in Counts Three and Four of this
Indictment.

(Title 18, United States Code, Sections 1028A(a) (1), (b) &
(c) (4)-(5), and 2.)

FORFEITURE ALLEGATIONS

6. As the result of committing the offenses charged in
Counts One, Three, and Four of this Indictment, RAFAEL MARTINEZ,
the defendant, shall forfeit to the United States, pursuant to
Title 18, United States Code, Section 982(a) (2) (A), any and all
property constituting, or derived from, proceeds obtained
directly or indirectly, as a result of the commission of said
offenses, including but not limited to a sum of money in United
States currency representing the amount of proceeds traceable to
the commission of said offenses.

Substitute Assets Provision

7. If any of the above-described forfeitable property, 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 person;
c. has been placed beyond the jurisdiction of the

Court;

Case 1:22-cr-00251-LJL Document50_ Filed 01/19/23 Page 6of7

d. has been substantially diminished in value; or

e. has been commingled with other property which
cannot be subdivided without difficulty;
it is the intent of the United States, pursuant to Title 21,
United States Code, Section 853(p), and Title 28, United States
Code, Section 2461, to seek forfeiture of any other property of
the defendant up to the value of the forfeitable property
described above.

(Title 18, United States Code, Section 982;

Title 21, United States Code, Section 853; and
Title 28, United States Code, Section 2461.)

Mt ¢ Err te

FOREPERSON DAMIAN WILLIAMS
United States Attorney

Case 1:22-cr-00251-LJL Document50_ Filed 01/19/23 Page 7 of 7

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

UNITED STATES OF AMERICA
Vv.
RAFAEL MARTINEZ,

Defendant.

SUPERSEDING INDICTMENT

Sl 22 Cr.

(15 U.S.C. § 645(a); 18 U.S.C. §§ 1014,
1028A, 1343, and 1344.)

DAMIAN WILLIAMS
United States Attorney

Foreperson

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