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Notice of Maximum Penalties, Elements of Offense and Factual Basis — United States v. Amber Rewis Bruey

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A Notice of Maximum Penalties, Elements of Offense, Personalization of Elements and Factual Basis filed by the United States on March 11, 2022 in United States v. Amber Rewis Bruey, No. 2:21-cr-00074, U.S. District Court for the Middle District of Florida, Fort Myers Division, as Doc. 68. It sets out the elements of conspiracy to commit wire fraud under 18 U.S.C. § 1349, wire fraud under 18 U.S.C. § 1343, money laundering conspiracy under 18 U.S.C. § 1956(h) and illegal monetary transactions under 18 U.S.C. § 1957, with the maximum penalties for each group of counts. The factual basis describes the PPP and EIDL programs and states the government's account that fraudulent applications led to $881,058.35 in PPP and EIDL funds. It then lists the transactions charged in Counts Fifteen through Eighteen.

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No. 2:21-cr-00074 · Doc. 68 · Docket on CourtListener

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Case 2:21-cr-00074-TPB-K_D      Document 68     Filed 03/11/22   Page 1 of 12 PageID 153




                          UNITED STATES DISTRICT COURT
                           MIDDLE DISTRICT OF FLORIDA
                              FORT MYERS DIVISION

    UNITED STATES OF AMERICA

    v.                                           CASE NO. 2:21-cr-74-TPB-MRM

    AMBER REWIS BRUEY

         NOTICE OF MAXIMUM PENALTIES, ELEMENTS OF OFFENSE,
          PERSONALIZATION OF ELEMENTS AND FACTUAL BASIS

           The United States of America, by Roger B. Handberg, United States

    Attorney for the Middle District of Florida, hereby files this Notice of

    Maximum Penalties, Elements of Offense, Personalization of Elements and

    Factual Basis, stating as follows:

                              ESSENTIAL ELEMENTS

           The essential elements of a violation of 18 U.S.C. § 1349, Conspiracy to

    Commit Wire Fraud, charged in Count One, are as follows:


                 First:        Two or more persons, in some way or manner,
                               agreed to try to accomplish a common and unlawful
                               plan to commit wire fraud, as charged in the
                               indictment; and

                 Second:       The Defendant knew the unlawful purpose of the
                               plan and willfully joined in it.
Case 2:21-cr-00074-TPB-K_D    Document 68     Filed 03/11/22   Page 2 of 12 PageID 154




          The essential elements of a violation of 18 U.S.C. § 1343, Wire Fraud,

    charged in Counts Two through Eleven, are as follows:


                First:       The Defendant knowingly devised or participated in
                             a scheme to defraud, or to obtain money or property
                             by using false pretenses, representations, or
                             promises;

                Second:      The false pretenses, representations, or promises
                             were about a material fact;

                Third:       The Defendant acted with the intent to defraud; and

                Fourth:      The Defendant transmitted or caused to be
                             transmitted by wire some communication in
                             interstate commerce to help carry out the scheme to
                             defraud.
          The essential elements of a violation of 18 U.S.C. § 1956(h), Conspiracy

    to Commit Money Laundering, charged in Count Fourteen, are as follows:


                First:       Two or more people agreed to try to accomplish a
                             common and unlawful plan to violate 18 U.S.C. §
                             1957; and

                Second:      The Defendant knew about the plan’s unlawful
                             purpose and voluntarily joined in it.




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Case 2:21-cr-00074-TPB-K_D     Document 68      Filed 03/11/22    Page 3 of 12 PageID 155




          The essential elements of a violation of 18 U.S.C. § 1957, Illegal

    Monetary Transaction, charged in Counts Fifteen through Eighteen, are as

    follows:


                 First:        The Defendant knowingly engaged in or attempted
                               to engage in a monetary transaction;

                 Second:       The Defendant knew the transaction involved
                               property or funds that were the proceeds of some
                               criminal activity;

                 Third:        The property had a value of more than $10,000;

                 Fourth:       The property was in fact proceeds of wire fraud; and

                 Fifth:        The transaction took place in the United States.

                                      PENALTY

          The penalties for the offenses charged in Counts One through Eleven of

    the Indictment are a term of imprisonment of not more than 30 years, a fine of

    up to $1,000,000, a term of supervised release of up to five (5) years, and a

    $100 special assessment for each count.

          The penalties for the offenses charged in Counts Fourteen through

    Eighteen of the Indictment are a maximum of ten (10) years imprisonment, a

    fine of up to $250,000 or alternate fine of twice the amount of the criminally

    derived property, a term of supervised release of up to three (3) years, and

    $100 special assessment for each count.


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           Additionally, the defendant must forfeit property, pursuant to 18

    U.S.C. §§ 981(a)(1)(C) and 982(a)(1), and 28 U.S.C. § 2461(c), as outlined in

    the Indictment.

                                  FACTUAL BASIS

                            Background on PPP and EIDL

          In March of 2020, the Coronavirus Aid, Relief, and Economic Security

    (“CARES”) Act was enacted as a federal law, designed to provide emergency

    financial assistance to the millions of Americans who were suffering the

    economic effects caused by the COVID-19 pandemic. One source of relief

    provided by the CARES Act was the authorization of forgivable loans to small

    businesses for job retention and certain other expenses, through a program

    referred to as the Paycheck Protection Program (“PPP”). Another source of

    relief was the Economic Injury Disaster Loan (“EIDL”) program, which was

    a Small Business Administration (“SBA”) program that provided low-interest

    financing to small businesses affected by declared disasters. The CARES Act

    authorized the SBA to provide EIDLs of up to $2 million to eligible businesses

    experiencing substantial financial disruption due to the COVID-19 pandemic.

    Additionally, eligible businesses could apply for an EIDL advance of up to

    $10,000, which was determined by the number of employees the applicant

    certified having and did not have to be repaid.




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           To obtain a PPP loan, qualifying businesses were required to submit a

    PPP loan application, which contained numerous certifications, to a

    participating PPP lender. In the PPP application, the small business (through

    its authorize representative) was required to state and certify, among other

    things, its: (a) average monthly payroll expense; 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. Furthermore, businesses applying for a

    PPP loan were required to provide documentation showing their payroll

    expenses. Individuals who operated as a sole proprietorship, independent

    contractor, or eligible self-employed individual were also eligible to apply for a

    PPP loan. All PPP applicants was required to disclosed whether the applicant

    (if the loan was for an individual) or an owner of the applicant business had

    been convicted of a felony or had served a term of probation within the last

    five years.

           PPP loan application were processed, approved, and funded by

    participating lenders. The PPP loan funds were 100% guaranteed by the SBA.

    PPP loan proceeds were required to be used for certain permissible expenses,

    including payroll costs, mortgage interest, rent, and utilities.

           To obtain an EIDL and advance, a qualifying business had to submit an

    application directly to the SBA and provide information about its operation,




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    such as the number of employees, gross revenues for the 12-month period

    preceding the disaster, and cost of goods sold in the 12-month period

    preceding the disaster. These figures were used by the SBA to calculate the

    EIDL and advance amount. For COVID-19 relief EIDLs, the 12-month

    period was that preceding January 31, 2020. An EIDL applicant was also

    required to disclose whether the applicant had been convicted of a felony or

    had served a term of probation within the last five years.

          EIDL funds could be used for payroll expenses, sick leave, production

    costs, and business obligations, such as debts, rents, and mortgage payments.

    If the applicant also obtained a loan under the PPP, the EIDL funds could not

    be used for the same purpose as the PPP funds.

                          Conspiracy to Commit Wire Fraud

          Beginning on an unknown date, but no later than in or around April

    2020, the defendant, Amber Rewis Bruey, and her husband and co-conspirator

    Anthony James Bruey (hereinafter, “the Brueys”), conspired to defraud PPP

    lenders and the SBA by submitting false and fraudulent PPP and EIDL

    applications. In total, the Brueys submitted approximately 26 fraudulent PPP

    and EIDL applications between April 2020 and June 2020. The false and

    fraudulent applications were electronically submitted from the Middle District




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Case 2:21-cr-00074-TPB-K_D     Document 68      Filed 03/11/22   Page 7 of 12 PageID 159




    of Florida (MDFL) to SBA approved lenders, loan processing companies, and

    the SBA, all located outside of the State of Florida.

          The fraudulent applications contained numerous false and fraudulent

    misrepresentations concerning the applicant’s dates of operation, payroll,

    gross revenues, total number of employees, and the criminal history of the

    applicant or business owner. The Brueys’ false and fraudulent

    misrepresentations caused PPP lenders and the SBA to approve approximately

    12 loans and issue a total of $881,058.35 in PPP and EIDL funds. The PPP

    and EIDL funds were deposited into bank accounts that were controlled and

    maintained by the Brueys. The defendant then used these fraudulently

    obtained funds for her own personal enrichment, which included financial

    transactions of more than $10,000, discussed in detail below.

                                      Wire Fraud

          The defendant electronically submitted or caused the electronic

    submission of approximately five fraudulent EIDL applications to the SBA

    that were funded and approved. In each application, the defendant falsely

    represented that she had not been placed on probation in the last five years.

    Additionally, in each EIDL application, the defendant misrepresented the

    number of employees, gross revenue, and cost of goods sold for businesses that

    did not exist. The defendant also submitted fraudulent tax returns, income




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Case 2:21-cr-00074-TPB-K_D       Document 68     Filed 03/11/22   Page 8 of 12 PageID 160




    statements, and profit and loss statements to the SBA in furtherance of the

    fraud.

             As specified in the Indictment, each of the five fraudulent EIDL

    applications were submitted by the defendant electronically from MDFL to

    the SBA, located outside of the State of Florida, on April 2, 2020 (Count

    Two), April 3, 2020 (Count Three), May 18, 2020 (Count Nine), June 16,

    2020 (Count Ten), and June 24, 2020 (Count Eleven). In all, the defendant’s

    false and fraudulent representations caused the SBA to approve and fund a

    total of $660,900 in EIDL funds and $15,000 in EIDL advance funds. The

    EIDLs and advance funds were deposited into bank accounts the defendant

    controlled and maintained.

             The defendant also electronically submitted or caused the electronic

    submission of approximately five fraudulent PPP loan applications to PPP

    loan servicers and lenders. In each PPP loan application, the defendant falsely

    represented that she had not been placed on probation in the last five years.

    Additionally, in each PPP application, the defendant false represented the

    average monthly payroll for businesses that did not exist. To further the fraud,

    the defendant submitted fraudulent tax documents and an income statement.

             Each of the five fraudulent PPP applications were submitted by the

    defendant electronically from MDFL to PPP loan servicers and lenders,




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Case 2:21-cr-00074-TPB-K_D    Document 68      Filed 03/11/22   Page 9 of 12 PageID 161




    located outside of the State of Florida, on April 12, 2020 (Count Four), May

    4, 2020 (Count Five), May 5, 2020 (Count Six), May 6, 2020 (Count Seven),

    and May 15, 2020 (Count Eight). In all, the defendant’s false and fraudulent

    representations caused PPP loan servicers and lenders to approve and fund a

    total of $97,775.01 in PPP funds. The PPP funds were deposited into bank

    accounts the defendant controlled and maintained.

                     Conspiracy to Commit Money Laundering

          Beginning on an unknown date, but no later than in or around April

    2020, the Brueys conspired to use and attempted to use fraudulently obtained

    PPP and EIDL funds for financial transactions of a value greater than

    $10,000. Specifically, after unlawfully obtained PPP and EIDL funds were

    deposited into accounts controlled and maintained by the Brueys, including an

    account with Stride Bank/Chime ending in 3607, the funds were used to

    purchase a 2019 GMC Yukon SUV, a 2020 Honda Talon side by side UTV,

    and a residence in North Carolina. These transactions affected interstate and

    foreign commerce. Additionally, the Brueys used fraudulently obtained loan

    proceeds to purchase a 2021 Chevrolet Spark LS and a 2020 Polaris RZR side

    by side UTV.




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Case 2:21-cr-00074-TPB-K_D     Document 68      Filed 03/11/22   Page 10 of 12 PageID 162




                             Illegal Monetary Transactions

           On June 5, 2020, a $29,214.93 check (Count Fifteen) was issued from a

     bank account controlled and maintained by the Brueys to Sun Sports Cycle,

     located in Fort Myers, Florida, for the purchase of a Honda Talon and

     Yamaha dirt bike. Sales records from Sun Sport Cycle revealed the

     defendant’s husband, Anthony James Bruey, was the registered owner and

     purchaser of the Honda Talon and Yamaha dirt bike. The funds used for the

     purchase were proceeds from the Brueys’ PPP and EIDL fraud scheme.

           On July 22, 2020, the defendant had her bank issue a $23,566 cashier’s

     check to JPay (Count Seventeen) for the payment of restitution in a case

     (2018CF000164) the defendant was on probation for in the State of Florida.

     The funds used for the cashier’s check were proceeds from the Brueys’ PPP

     and EIDL fraud scheme.

           On August 11, 2020, the defendant submitted a $49,688.55 ACH

     payment (Count Eighteen) to Carvana for the purchase of a 2019 GMC

     Yukon XL. The funds used for the purchase of the GMC Yukon were

     proceeds from the Brueys’ PPP and EIDL fraud scheme.




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           On August 27, 2020, $211,457.57 was wired (Count Sixteen) from a

     bank account controlled and maintained by the defendant to a law firm for the

     purchase of a residence located at 114 Kemp Lane, Hertford, North Carolina.

     A review of the property’s purchase records and deed revealed the defendant

     was the co-purchaser and owner of the property. The funds used for the

     property’s purchase were proceeds from the Brueys’ PPP and EIDL fraud

     scheme.

                                             Respectfully submitted,

                                             ROGER B. HANDBERG
                                             United States Attorney


                                       By:   /s/Trent Reichling
                                             Trenton J. Reichling
                                             Assistant United States Attorney
                                             Florida Bar Number 0084601
                                             2110 First Street, Suite 3-137
                                             Ft. Myers, Florida 33901
                                             Telephone: (239) 461-2200
                                             Facsimile: (239) 461-2219
                                             E-mail: Trenton.reichling@usdoj.gov




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Case 2:21-cr-00074-TPB-K_D       Document 68      Filed 03/11/22   Page 12 of 12 PageID 164




     U.S. v. Amber Rewis Bruey                      Case No. 2:21-cr-74-TPB-MRM

                             CERTIFICATE OF SERVICE


            I hereby certify that on March 11, 2022, I electronically filed the

     foregoing with the Clerk of the Court by using the CM/ECF system which

     will send a notice of electronic filing to the following:


                   James Lappan
                   Jim_Lappan@fd.org


                                                /s/Trent Reichling
                                                Trenton J. Reichling
                                                Assistant United States Attorney
                                                Florida Bar Number 0084601
                                                2110 First Street, Suite 3-137
                                                Ft. Myers, Florida 33901
                                                Telephone: (239) 461-2200
                                                Facsimile: (239) 461-2219
                                                E-mail: Trenton.reichling@usdoj.gov




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