Criminal Information — United States v. Arashio Harris

Record facts

U.S. District Court, Southern District of Florida · No. 1:23-cr-20295-CMA · Doc. 1 · 2023-07-14 · Docket on CourtListener

Full text

UNITED STATES DISTRICT COURT 
.SOUTHERN DISTRICT OF FLORIDA 
CASE NO. ----------
18 u.s.c. § 1343 
18 U.S.C. § 981(a)(l)(C) 
UNITED STATES OF AMERICA 
vs. 
ARASHIO HARRIS, 
Defendant. 
I 
--------------
INFORMATION 
The United States Attorney charges that: 
GENERAL ALLEGATIONS 
At all times material to this Information: 
1. 
The United States Small Business Administration ("SBA") was an agency of the 
executive branch of the Government of the United States. The mission of the SBA was to maintain 
and strengthen the nation's economy by enabling the establishment and viability of small 
businesses and by assisting in the economic recovery of communities after disasters. 
The Paycheck Protection Program 
2. 
The Coronavirus Aid, Relief, and Economic Security ("CARES") Act was a federal 
law enacted in or around March 2020 and 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 
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loans to small businesses for job retention and certain other expenses, through a program referred 
to as the Paycheck Protection Program ("PPP"). 
3. 
In order to obtain a PPP loan, a qualifying business submitted a PPP loan application 
(SBA Form 2483), which was signed by an authorized representative of the business. The PPP 
loan application required the business (through its authorized representative) to acknowledge the 
program rules and make certain affirmative certifications in order to be eligible to obtain the PPP 
loan. In the PPP loan application, the business (through its authorized representative) was required 
to provide, among other things, its: (a) average monthly payroll; 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. This application and the supporting documentation submitted in connection 
with the application were used to calculate the amount of money the applicant was entitled to 
receive under the PPP. 
4. 
The PPP also allowed a qualifying business that had obtained a PPP loan in 2020 and 
experienced a required revenue reduction in 2020 to obtain a second PPP loan in 2021. These 
second PPP loans were also known as "second draw" loans. Starting on or about March 4, 2021, 
small businesses could apply for this second draw loan by using a PPP second draw application 
(SBA Form 2483-SD) that provided their average monthly payroll and their number of employees. 
This second draw application and the supporting documentation submitted were used to calculate 
the amount of second draw money the applicant was entitled to receive under the PPP. 
5. 
A PPP loan application was processed by a participating lender. If a PPP loan 
application was approved, the participating lender funded the PPP loan using its own monies. 
While it was the participating lender that issued the PPP loan, the loan was 100% guaranteed by 
the SBA. Data from the application, including information about the borrower, the total amount 
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of the loan, and the listed number of employees, was transmitted by the lender to the SBA in the 
course of processing the loan. 
Economic Injury Disaster Loans 
6. 
The CARES Act also authorized and provided funding to the SBA to provide 
Economic Injury Disaster Loans ("EIDLs") to eligible small businesses experiencing substantial 
financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations 
and operating expenses that could have been met had the disaster not occurred. These COVID-19 
EIDLs included the possibility of an advance of up to $10,000 for qualifying applicants. The 
applicant was not obligated to repay this advance. 
7. 
In order to obtain a COVID-19 EIDL, a qualifying for-profit business was required 
to submit an EIDL application to the SBA and provide information about its operations, including 
its gross revenues and number of employees, for the 12-month period preceding January 31, 2020. 
The applicant also was required to certify under penalty of perjury that all the information in the 
application was true and correct. 
8. 
EIDL applications were submitted directly to and processed by the SBA. The 
amount of the loan approved and any advance provided was determined based, in part, on the 
information provided in the application concerning the number of employees and cost of goods 
sold. Any EIDL funds were issued directly by the United States government to the applicant's 
bank account. 
The Defendant and the Relevant Entities 
9. 
Defendant ARASHIO HARRIS was a resident of Miami-Dade County, Florida, 
who at all times relevant to this Information was employed by the Miami-Dade Corrections and 
Rehabilitation Department as a Correctional Sergeant. 
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10. 
The Good Family Property Solutions Inc. ("Good Family") was a Nevada 
corporation that was registered with the State of Florida as a Foreign Profit Corporation. At all 
relevant times, ARASHIO HARRIS was the President and owner of Good Family. 
11. 
The Flying Lions LLC ("Flying Lions") was a Nevada limited liability company that 
was registered with the State of Florida as a Foreign Limited Liability Company. At all relevant 
times, ARASIDO HARRIS was the President and owner of Flying Lions. 
12. 
Lender 1 was an SBA-approved lender for PPP loans, and processed PPP loan 
applications from applicants located throughout the United States. Lender 1 's servers were located 
outside the state of Florida. 
13. 
The Financial Technology Company operated an online platform that received PPP 
loan applications from throughout the United States. The Financial Technology Company was not 
a PPP lender, but rather was a business that received and processed PPP applications for multiple 
SBA-approved PPP lenders. The Financial Technology Company then would make qualified PPP 
applications available to one of the lenders that retained its services for the lender's review, final 
approval, and funding of the PPP loan. 
14. 
Lender 2 was an SBA-approved lender for PPP loans, and processed PPP loan 
applications from applicants located throughout the United States. Lender 2 contracted with the 
Financial Technology Company to receive PPP applications for funding by Lender 2. Lender 2's 
servers were located outside the state of Florida. 
15. 
The Bank was a bank that did business throughout the United States, including 
maintaining branches in the Southern District of Florida. 
16. 
Individual 1 was a resident of Miami-Dade County, Florida. 
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COUNTl 
Wire Fraud 
(18 u.s.c. § 1343) 
1. 
Paragraphs 1 through 16 of the General Allegations section of this Information are 
re-alleged and incorporated by reference as through fully set forth herein. 
2. 
From in or around April 2020, and continuing through in or around May 2021, in 
Miami-Dade County, in the Southern District of Florida, and elsewhere, the defendant, 
ARASHIO HARRIS, 
did knowingly, and with the intent to defraud, devise, and intend to devise, a scheme and artifice 
to defraud, and to obtain money and property by means of materially false and fraudulent 
pretenses, representations, and promises, knowing that the pretenses, representations, and 
promises were false and fraudulent when made, and, for the purpose of executing the scheme and 
artifice, did knowingly transmit and cause to be transmitted, by means of wire communication in 
interstate and foreign commerce, certain writings, signs, signals, pictures and sounds, in violation 
of Title 18, United States Code, Section 1343. 
PURPOSE OF THE SCHEME AND ARTIFICE 
3. 
The purpose of the scheme and artifice was for ARASHIO HARRIS to unlawfully 
enrich himself by submitting false and fraudulent PPP and EIDL applications to obtain loan 
proceeds for his own use and benefit. 
THE SCHEME AND ARTIFICE 
The manner and means by which ARASHIO HARRIS sought to accomplish the purpose 
of the scheme and artifice included, among others, the following: 
4. 
ARASHIO HARRIS submitted, and with the assistance oflndividual 1 caused to 
be submitted, to the SBA, via interstate wire communications, a false and fraudulent EIDL 
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application claiming to be the 100% owner of Good Family. That EIDL application falsely 
certified that for the twelve (12) month period prior to January 31, 2020, Good Family had gross· 
revenues of approximately $130,000 and 9 employees. 
5. 
As a result of this false and fraudulent EIDL application, Good Family obtained 
from the SBA a $9,000 EIDL advance and approximately $14,500 in EIDL loan proceeds. These 
fraudulently obtained EIDL funds were provided via Electronic Funds Transfers to Good Family's 
account at the Bank. These Electronic Funds Transfers involved the use of interstate wire 
communications. 
6. 
ARASHIO HARRIS submitted, and with the assistance of Individual 1 caused to 
be submitted, to the SBA, via interstate wire communications, a false and fraudulent EIDL 
application claiming to be the 100% owner of Flying Lions. That EIDL application falsely 
certified that for the twelve (12) month period prior to January 31, 2020, Flying Lions had gross 
revenues of approximately $480,452 and 10 employees. 
7. 
As a result of this false and fraudulent EIDL application, Flying Lions obtained 
from the SBA approximately $150,000 in EIDL loan proceeds. These fraudulently obtained EIDL 
funds were provided via Electronic Funds Transfer to Flying Lions' account at the Bank. This 
Electronic Funds Transfer involved the use of interstate wire communications. 
8. 
ARASHIO HARRIS submitted, and with the assistance oflndividual. 1 caused to 
be submitted, to Lender 1 a false and fraudulent PPP 2020 loan application (SBA Form 2483) 
claiming to be the President, Manager, and 100% owner of Good Family. That PPP loan 
application falsely and fraudulently represented that Good Family's monthly payroll was 
approximately $51,710 and that Good Family had 10 employees, and as part of the application 
process, HARRIS submitted and caused to be submitted documents including: a false and 
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fraudulent IRS Form 1120 for tax year 2019 claiming that Good Family had total income of 
approximately $1,050,152 and paid wages and salaries of approximately $768,932; numerous false 
and fraudulent IRS Forms W-2 showing large wage payments to supposed employees; and, false 
and fraudulent Good Family payroll records for those supposed employees. As part of the review 
and approval process for this application, Lender 1 electronically transmitted this PPP application 
to the SBA via interstate wire communications. 
9. 
As a result of this false and fraudulent PPP application, Good Family obtained 
approximately $129,275 in PPP loan proceeds from Lender 1 that were electronically deposited 
by the Lender into the Good Family account at the Bank. 
10. 
ARASHIO HARRIS submitted, and with the assistance of Individual 1 caused to 
be submitted, to the Financial Technology Company, via interstate wire communications, a false 
and fraudulent 2021 PPP second draw loan application (SBA Form 2483-SD) claiming to be the 
President and 100% owner of Good Family. That PPP loan application falsely and fraudulently 
represented that Good Family's monthly payroll was approximately $51,710 and that Good Family 
had 10 employees. As part of the application process, HARRIS submitted and caused to be 
submitted documents including: a false and fraudulent IRS Form 1120 for tax year 2019 claiming 
that Good Family had total income of approximately $1,050,152 and paid wages and salaries of 
approximately $768,932; a false and fraudulent IRS Form 940 for tax year 2019 claiming that 
Good Family paid approximately $620,527 to all employees; and, false and fraudulent Good 
Family payroll records for nine supposed employees including HARRIS. 
11. 
As a result of this false and fraudulent PPP second draw application, Good Family 
obtained approximately $129,276 in PPP loan proceeds from Lender 2 that were electronically 
deposited by Lender 2 into the Good Family account at the Banlc. This electronic deposit involved 
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the use of interstate wire communications. 
USE OF WIRES 
12. 
On or about the date specified below, in the Southern District of Florida, and 
elsewhere, ARASIDO HARRIS, for the purpose of executing and in furtherance of the aforesaid 
scheme and artifice to defraud, and to obtain money and property by means of materially false and 
fraudulent pretenses, representations, and promises, knowing that the pretenses, representations, 
and promises were false and fraudulent when made, did knowingly transmit and cause to be 
transmitted in interstate and foreign commerce, by means of wire communication, certain writings, 
signs, signals, pictures, and sounds, as described below: 
COUNT" 
APPROXIMATE 
I)E~C:RIPTI0~ OF.WIRE . . ··· 
.. . 
. . 
-
.. ~ -
.. . . 
DATE 
1 
April 3, 2020 
Electronic transmission of an EIDL application 
containing false information about the gross 
revenues and number of employees of Good 
Family during the twelve (12) month period prior 
to January 31, 2020, causing a wire transmission 
from the Southern District of Florida to outside 
of the State of Florida 
In violation of Title 18, United States Code, Sections 1343 and 2. 
FORFEITURE ALLEGATIONS 
1. 
The allegations of this Information are hereby re-alleged and by this reference fully 
incorporated herein for the purpose of alleging forfeiture to the United States of America of certain 
property in which the defendant, ARASHIO HARRIS, has an interest. 
2. 
Upon conviction of a violation of Title 18, United States Code, Section 1343, as 
alleged in this Information, the defendant, ARASHIO HARRIS, shall forfeit to the United States 
any property, real or personal, which constitutes or is derived from proceeds traceable to such 
offense, pursuant to Title 18, United States Code, Section 981(a)(l)(C). 
8 
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All pursuant to Title 18, United States Code, Section 981(a)(l)(C), and the procedures set 
forth in Title 21, United States Code, Section 853, as incorporated by Title 28, United States Code, 
Section 2461(c). 
OINTE 
ATTORNEY 
EDWARDN. STAMM 
ASSISTANT UNITED STATES ATTORNEY 
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UNITED STATES DISTRICT COURT 
SOUTHERN DISTRICT OF FLORIDA 
UNITED STATES OF AMERICA 
CASE NO.: -----------------
v. 
CERTIFICATE OF TRIAL ATTORNEY 
Arashio Harris 
I 
------D=-e=fe-n---,d.-an-t,---.----
Superseding Case Information: 
NewDefendant(s) (Yes orNo) ---
Court Division (select one) 
Number of New Defendants 
~ Miami 
□ Key West 
□ FTP 
Total number of counts 
□FTL 
□WPB 
I do hereby certify that: 
1. 
I have carefully considered the allegations of the indictment, the number of defendants, the number of probable 
witnesses and the legal complexities of the Indictment/Information attached hereto. 
2. 
I am aware that the information supplied on this statement will be relied upon by the Judges of this Court in setting 
their calendars and scheduling criminal trials under the mandate of the Speedy Trial Act, Title 28 U.S.C. §3161. 
3. 
Interpreter: (Yes or No) No ---
List language and/or dialect: ------
4. 
This case will take _o_ days for the parties to try. 
5. 
Please check appropriate category and type of offense listed below: 
(Check only one) 
(Check only one) 
I 
ml O to 5 days 
□ Petty 
II 
□ 6 to 10 days 
Cl Minor 
III 
□ 11 to 20 days 
□ Misdemeanor 
IV □ 21 to 60 days 
ral Felony 
V 
□ 61 days and over -
6. 
Has this case been previously filed in.this District Court? (Yes or No) N_o __ 
If yes, Judge___________ Case No. ______________ _ 
7. 
Has a complaint been filed in this matter? (Yes or No) No 
---
lfyes, Magistrate Case No. ___________ _ 
8. 
Does this case relate to a previously filed matter in this District Court? (Yes or No )N 
__ o __ 
If yes, Judge___________ Case No. ______________ _ 
9. 
Defendant(s) in federal custody as-of ____________________ _ 
10. 
Defendant(s) in state custody as of _____________________ _ 
11. 
Rule 20 from the ____ District of -------
12. 
Is this a potential death penalty case? (Yes or No) N_o __ 
13. 
Does this case originate from a matter pending in the Northern Region of the U.S. Attorney's Office 
prior to August 8, 2014 (Mag. Judge Shaniek Maynard? (Y_es or No) No 
---
14. 
Does this case originate from a matter pending in the Central Region of the U.S. Attorney's Office 
prior to October 3, 2019 (Mag. Judge Jared Strauss? (Yes or No) No ---
15. 
Did this matter involve the participation of or consultation with now Magistrate Judge Eduardo I. Sanchez 
during his tenure at the U.S. Attorney's Office, which concluded on January 22, 2023? _N_o __ 
By: 
Edward N. Stamm 
Assistant United States Attorney 
FL Bar No. 
373826 
Case 1:23-cr-20295-CMA   Document 1   Entered on FLSD Docket 07/14/2023   Page 10 of 12

UNITED STATES DISTRICT COURT 
SOUTHERN DISTRICT OF FLORIDA 
PENAL TY SHEET 
Defendant's Name: "'-Ar=a""'shi==·""'o__,,H""a=rr""'1""· s'----------~-------------
Case No: --------------------------------
Count#: 1 
Wire Fraud 
18 U.S.C. § 1343 
* Max. Term of Imprisonment: 20 years 
* Mandatory Min. Term of Imprisonment (if applicable): N/A 
* Max. Supervised Release: 5 years 
* Max. Fine: $250,000 
* Special Assessment: $100 
*Refers only to possible term of incarceration, supervised release and fines. It does not include 
restitution, special assessments, parole terms, or forfeitures that may be applicable. 
Case 1:23-cr-20295-CMA   Document 1   Entered on FLSD Docket 07/14/2023   Page 11 of 12

AO 455 (Rev. 01/09) Waiver of an Indictment 
UNITED STATES DISTRICT COURT 
United States of America 
V. 
Arashio Harris 
Defendant 
for the 
Southern District of Florida 
) 
) 
) 
) 
) 
Case No. 
WAIVER OF AN INDICTMENT 
I understand that I have been accused of one or more offenses punishable by imprisonment for more than one 
year. I was advised in open court of my rights and the nature of the proposed charges against me. 
After receiving this advice, I waive my right to prosecution by indictment and consent to prosecution by 
information. 
Date: --------
Defendant's signature 
Signature of defendant's attorney 
Mark Eiglarsh, Esq. 
Printed name of defendant's attorney 
Judge's signature 
Judge 'sprinted name and title 
Case 1:23-cr-20295-CMA   Document 1   Entered on FLSD Docket 07/14/2023   Page 12 of 12

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