Superseding Information — United States of America v. Rafael Martinez (Southern District of New York)

Summary

Superseding Information in United States of America v. Rafael Martinez, Doc. 64 in No. 1:22-cr-00251-LJL, Southern District of New York, filed March 23, 2023. Count One (Conspiracy to Commit Wire Fraud) charges that from in or about April 2020 through at least in or about February 2022, Martinez and others conspired to commit wire fraud in violation of Title 18, United States Code, Section 1343. It alleges that false and fraudulent pretenses were used to obtain capital to issue Paycheck Protection Program loans and approval for MBE Capital Partners, LLC to become a non-bank PPP lender. The forfeiture allegations list $250,273.84, $10,544,757.26 and $4,560,000 formerly on deposit, real property and vehicles. Damian Williams, United States Attorney, is named in the signature block.

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Case 1:22-cr-00251-LJL Document 64 _ Filed 03/23/23 Page1of5

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

UNITED STATES OF AMERICA SUPSERSEDING INFORMATION
Vv. S2 22 Cr, 251 (LJL)
RAFAEL MARTINEZ,
Defendant.
COUNT ONE

(Conspiracy to Commit Wire Fraud)

The United States Attorney charges:

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, and others
known and unknown, willfully and knowingly combined, conspired, confederated, and agreed
together and with each other to commit an offense against the United States, to wit, wire fraud, in
violation of Title 18, United States Code, Section 1343.

2. It was a part and an object of the conspiracy that RAFAEL MARTINEZ, the
defendant, and others known and unknown, 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, would and did transmit and cause 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, in violation of Title 18, United States Code,
Section 1343, to wit, (a) MARTINEZ and others used false and fraudulent pretenses,
representations, and documents to fraudulently obtain capital to issue loans through the Paycheck

Protection Program (the “PPP”) from both an insurance company (the “Company”’) and the Federal

Case 1:22-cr-00251-LJL Document64 _ Filed 03/23/23 Page2of5

Reserve Bank of San Francisco, and to earn millions of dollars in lender fees associated with the
PPP, including by, among other things, making false representations to the United States Small
Business Administration (the “SBA”) in order to obtain approval for his company, MBE Capital
Partners, LLC (“MBE”), to become a non-bank PPP lender; and (b) MARTINEZ and others
engaged in a scheme to obtain a Government-guaranteed PPP loan for MBE from an FDIC-insured
bank by means of false and fraudulent pretenses, representations, and documents.
Overt Acts

3. In furtherance of the conspiracy and to effect its illegal object, the following overt
acts, among others, were committed in the Southern District of New York and elsewhere:

a. On or about April 5, 2020, RAFAEL MARTINEZ, the defendant, applied to
a financial institution for a government-guaranteed PPP loan for Republic Group, d/b/a MBE.

b. On or about April 9, 2020, within five days of applying for the PPP loan
referenced above, MARTINEZ submitted an application to the SBA for MBE to become a non-
bank PPP lender.

c. On or about April 15, 2020, in connection with MBE’s application for a PPP
loan, MARTINEZ submitted to a financial institution fraudulent IRS Forms 941 (Employer’s
Quarterly Federal Tax Return) for MBE, including the forged signature of MBE’s tax preparer,

who had not prepared or signed the forms.

(Title 18, United States Code, Section 371.)

Case 1:22-cr-00251-LJL Document64 _ Filed 03/23/23 Page3of5

FORFEITURE ALLEGATIONS

4. As the result of committing the wire fraud offense charged in Count One of this
Superseding Information, 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
offense, including but not limited to a sum of money in United States currency representing the
amount of proceeds traceable to the commission of said offense, and the following specific
property:

a. i. $250,273.84 formerly on deposit in JPMorgan Chase Bank, N.A.
account number 3375794608, held in the name of Rafael Martinez, seized by the Government on
or about March 8, 2022;

b. ii. $10,544,757.26 formerly on deposit in Carver Federal Savings
Bank account number 110013868, held in the name of “MBE Capital Partners, LLC,” seized by
the Government on or about March 9, 2022;

Cc. $4,560,000 formerly on deposit in Citibank, N.A. account number
9348809151, held in the name of Rafael Martinez, seized by the Government on or about March
9, 2022; <

d. The real property commonly described as 21 Shinnecock Trails, Franklin
Lakes, New Jersey 07417, more particularly described as Lot 7.01 on Block 1106.05 in the
Municipality of Franklin Lakes in Bergen County, as recorded on April 15, 2021, and associated

with Document No./Book-Page: 2021057494 / 4081-102;

Case 1:22-cr-00251-LJL Document64 _ Filed 03/23/23 Page4of5

e. The real property commonly described as a 1.19-acre lot on Costamar 10,
Casa De Campo, 22000 Buena Vista, Dominican Republic, at the location with Global
Positioning System coordinates 18.42557, -68.96918;

f A White 2017 Ferrari Model 488 Spider, with VIN No.
ZFF80AMAXH0228614, and New Jersey License Plate No. D7NWE;

g. A Black 1962 Mercedes Benz Model 190, with VIN No. 1210421000394,
and New Jersey License Plate No. S69NAZ;

h. A Black 2021 BMW Model 750, with VIN No. WBA7U2C04MCF02203,
and New Jersey License Plate No. R56PBG;

i. A 2017 Bentley Model Continental GT, with VIN No.
SCBFT7ZA9HC061995; and

je A 2018 Porsche Model 911 Turbo, with VIN No. WP0CD2A98JS162197,

and New Jersey License Plate No. M38PVZ.

Substitute Assets Provision

5. If any of the above-described forfeitable property, as a result of any act or
omission of the defendant:
k. cannot be located upon the exercise of due diligence;
1. has been transferred or sold to, or deposited with, a third person;

m. has been placed beyond the jurisdiction of the Court;

n. has been substantially diminished in value; or
oO. has been commingled with other property which cannot be subdivided
without difficulty;

Case 1:22-cr-00251-LJL Document64 _ Filed 03/23/23 Page5of5

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.)

DAMIAN WILLIAMS
United States Attorney

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