Court filing

Plea Agreement — United States v. Aaron Ashcraft (E.D. Cal.)

Filed May 9, 2022 in U.S. v. Ashcraft; one of 15 filings from this case.

Record facts

Court	U.S. District Court, Eastern District of California
Filed	2022-05-09

U.S. District Court, Eastern District of California · No. 2:22-cr-00087-KJM · Doc. 10 · 2022-05-09 · Docket on CourtListener

Full text

PLEA AGREEMENT
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PHILLIP A. TALBERT
United States Attorney
MATTHEW THUESEN
Assistant United States Attorney
501 I Street, Suite 10-100
Sacramento, CA 95814
Telephone: (916) 554-2700
Facsimile: (916) 554-2900

Attorneys for Plaintiff
United States of America

IN THE UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA,
Plaintiff,
v.
AARON ASHCRAFT,

Defendant.

CASE NO. 2:22-cr-87 KJM

PLEA AGREEMENT

DATE: May 9, 2022
TIME: 9:00 a.m.

COURT: Hon. Kimberly J. Mueller

I.
INTRODUCTION

Scope of Agreement.
The Information in this case charges the defendant with two counts of wire fraud, in violation of
18 U.S.C. § 1343, and five counts of bank fraud, in violation of 18 U.S.C. § 1344. This document
contains the complete Plea Agreement between the United States Attorney’s Office for the Eastern
District of California (the “government”) and the defendant regarding this case. This Plea Agreement is
limited to the United States Attorney’s Office for the Eastern District of California and cannot bind any
other federal, state, or local prosecuting, administrative, or regulatory authority.

Court Not a Party.
The Court is not a party to this Plea Agreement. Sentencing is a matter solely within the
discretion of the Court, and the Court may take into consideration any and all facts and circumstances
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concerning the criminal activities of the defendant, including activities that may not have been charged
in the Information. The Court is under no obligation to accept any recommendations made by the
government, and the Court may in its discretion impose any sentence it deems appropriate up to and
including the statutory maximum stated in this Plea Agreement.
If the Court should impose any sentence up to the maximum established by the statute, the
defendant cannot, for that reason alone, withdraw his guilty pleas, and he will remain bound to fulfill all
of the obligations under this Plea Agreement. The defendant understands that neither the prosecutor,
defense counsel, nor the Court can make a binding prediction or promise regarding the sentence he will
receive.
II.
DEFENDANT’S OBLIGATIONS

Guilty Plea.
The defendant will plead guilty to Count One of the Information, which charges him with wire
fraud, in violation of 18 U.S.C. § 1343, and Count Four of the Information, which charges him with
bank fraud, in violation of 18 U.S.C. § 1344. The defendant agrees he is in fact guilty of those charges
and that the facts set forth in the Factual Basis for Plea attached as Exhibit A (“Factual Basis”) are
accurate.
The defendant agrees this Plea Agreement will be filed with the Court and become part of the
record of the case. The defendant understands and agrees he will not be allowed to withdraw his pleas
should the Court not follow the government’s sentencing recommendations.
The defendant agrees the statements he makes in signing this Plea Agreement, including the
factual admissions set forth in the Factual Basis, shall be admissible and useable against the defendant
by the United States in any subsequent criminal or civil proceedings, even if the defendant fails to enter
a guilty plea pursuant to this Plea Agreement. The defendant waives any rights under Rule 11(f) of the
Federal Rules of Criminal Procedure and Rule 410 of the Federal Rules of Evidence, to the extent those
rules are inconsistent with this paragraph or with this Plea Agreement generally.
1.
Waiver of Indictment.
The defendant acknowledges that, under the United States Constitution, he is entitled to be
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indicted by a grand jury on the charges to which he is pleading guilty and that, pursuant to Rule 7(b) of
the Federal Rules of Criminal Procedure, he agrees to waive any and all rights he has to being
prosecuted by way of indictment to the charges set forth in the Information. The defendant agrees that,
at a time set by the Court, he will sign a written waiver of prosecution by indictment and consent to
proceed by information, rather than by indictment.

Restitution.
The Mandatory Victim Restitution Act requires the Court to order restitution to the victims of
certain offenses. The defendant agrees that his conduct that serves as the bases for Count One and Count
Four is governed by the Mandatory Victim Restitution Act, pursuant to 18 U.S.C. § 3663A(c)(1)(a)(ii),
and agrees to pay restitution as follows:
$592,245 to the lender identified as Lender 1 in the Factual Basis;
$153,260 to the lender identified as Lender 2 in the Factual Basis;
$174,093.75 to the lender identified as Lender 3 in the Factual Basis;
$45,979.94 to the United States Small Business Administration; and
$779,832.55 to the company identified as Company 1 in the Factual Basis.
Additionally, the defendant agrees to pay restitution of $58,050 to the Maine Department of
Labor, pursuant to 18 U.S.C. § 3663A(a)(3).
The defendant agrees that all criminal monetary penalties imposed by the court, including
restitution, will be due in full immediately at time of sentencing and subject to immediate enforcement
by the government. The defendant also agrees that any payment schedule or plan set by the court is
merely a minimum and does not foreclose the United States from collecting all criminal monetary
penalties at any time through all available means.
Restitution payments shall be by cashier’s check or certified check made payable to the Clerk of
the Court. The defendant agrees he will not seek to discharge any restitution obligation or any part of
such obligation in any bankruptcy proceeding.

Fine.
The defendant reserves the right to argue to Probation and at sentencing that he is unable to pay a
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fine and no fine should be imposed. The defendant understands it is his affirmative burden to prove he is
unable to pay a fine and agrees to provide a financial statement under penalty of perjury to the Probation
Officer and the government in advance of the issuance of the draft Presentence Investigation Report,
along with supporting documentation. The government retains the right to oppose the waiver of a fine. If
the Court imposes a fine, the defendant agrees to pay such fine if and as ordered by the Court, up to the
statutory maximum fine for the defendant’s offenses.

Special Assessment.
The defendant agrees to pay a special assessment of $200 ($100 for each count of conviction) at
the time of sentencing by delivering a check or money order payable to the United States District Court
to the United States Probation Office immediately before the sentencing hearing. The defendant
understands this Plea Agreement is voidable at the option of the government if he fails to pay the
assessment prior to that hearing.

Violation of Plea Agreement by Defendant/Withdrawal of Plea(s).
If the defendant violates this Plea Agreement in any way, withdraws his pleas, or tries to
withdraw his pleas, this Plea Agreement is voidable at the option of the government. If the government
elects to void this Plea Agreement based on the defendant’s violation, the government will no longer be
bound by its representations to the defendant concerning the limits on criminal prosecution and
sentencing as set forth herein. A defendant violates this Plea Agreement by committing any crime or
providing or procuring any statement or testimony that is knowingly false, misleading, or materially
incomplete in any litigation or sentencing process in this case or engages in any post-plea conduct
constituting obstruction of justice. Varying from stipulated Guidelines application, as set forth in this
Plea Agreement, personally or through counsel, also constitutes a violation of this Plea Agreement. The
government also shall have the right (1) to prosecute the defendant on any of the counts to which he
pleaded guilty; (2) to reinstate any counts that may be dismissed pursuant to this Plea Agreement; and
(3) to file any new charges that would otherwise be barred by this Plea Agreement. The defendant shall
thereafter be subject to prosecution for any federal criminal violation of which the government has
knowledge. The decision to pursue any or all of these options is solely in the discretion of the United
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States Attorney’s Office.
By signing this Plea Agreement, the defendant agrees to waive any objections, motions, and
defenses the defendant might have to the government’s decision. Any prosecutions not time-barred by
the applicable statute of limitations as of the date of this Plea Agreement may be commenced in
accordance with this paragraph, notwithstanding the expiration of the statute of limitations between the
signing of this Plea Agreement and the commencement of any such prosecutions. The defendant agrees
not to raise any objections based on the passage of time with respect to such counts including, but not
limited to, any statutes of limitation or any objections based on the Speedy Trial Act or the Speedy Trial
Clause of the Sixth Amendment to any counts not time-barred as of the date of this Plea Agreement. The
determination of whether the defendant has violated this Plea Agreement will be under a probable cause
standard.
In addition, (1) all statements made by the defendant to the government or other designated law
enforcement agents, or any testimony given by the defendant before a grand jury or other tribunal,
whether before or after this Plea Agreement, shall be admissible in evidence in any criminal, civil, or
administrative proceedings hereafter brought against the defendant; and (2) the defendant shall assert no
claim under the United States Constitution, any statute, Rule 11(f) of the Federal Rules of Criminal
Procedure, Rule 410 of the Federal Rules of Evidence, or any other federal rule, that statements made by
the defendant before or after this Plea Agreement, or any leads derived therefrom, should be suppressed.
By signing this Plea Agreement, the defendant waives any and all rights in the foregoing respects.

Asset Disclosure.
The defendant agrees to make a full and complete disclosure of his assets and financial condition
and will complete the United States Attorney’s Office’s “Authorization to Release Information” and
“Financial Affidavit” within five (5) weeks from the entry of the defendant’s change of plea, including
supporting documentation. The defendant also agrees to have the Court enter an order to that effect. The
defendant understands that, if he fails to complete truthfully and provide the described documentation to
the United States Attorney’s Office within the allotted time, he will be considered in violation of this
Plea Agreement, and the government shall be entitled to the remedies set forth in section II.E above.
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III.
THE GOVERNMENT’S OBLIGATIONS

Other Charges.
The government agrees to move, at the time of sentencing, to dismiss without prejudice the
remaining counts in the pending Information. The government also agrees not to bring any other charges
against the defendant arising from the conduct outlined in the Factual Basis, except if this Plea
Agreement is voided as set forth herein, or as provided in paragraphs II.E (Violation of Plea Agreement
by Defendant/Withdrawal of Plea(s)), VI.B (Guideline Calculations), and VII.B (Waiver of Appeal and
Collateral Attack) herein.

Recommendations.
1.
Incarceration Range.
The government will recommend the defendant be sentenced to the low end of the applicable
guideline range as determined by the Court.
2.
Acceptance of Responsibility.
The government will recommend a two-level reduction (if the offense level is less than 16) or a
three-level reduction (if the offense level reaches 16) in the computation of the defendant’s offense
level, if the defendant clearly demonstrates acceptance of responsibility for his conduct as defined in
U.S.S.G. § 3E1.1. This includes the defendant meeting with and assisting the Probation Officer in the
preparation of the Presentence Investigation Report, being truthful and candid with the Probation
Officer, and not otherwise engaging in conduct that constitutes obstruction of justice within the meaning
of U.S.S.G § 3C1.1, either in the preparation of the Presentence Investigation Report or during the
sentencing proceeding.

Use of Information for Sentencing.
The government is free to provide full and accurate information to the Court and Probation,
including answering any inquiries made by the Court and/or Probation and rebutting any inaccurate
statements or arguments by the defendant, his attorney, Probation, or the Court. The defendant also
understands and agrees that nothing in this Plea Agreement bars the government from defending on
appeal or collateral review any sentence the Court may impose.
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IV.
ELEMENTS OF THE OFFENSES
At a trial, the government would have to prove beyond a reasonable doubt the following
elements of the offenses to which the defendant is pleading guilty:

Count One – wire fraud, in violation of 18 U.S.C. § 1343:
First, the defendant knowingly participated in, devised, or intended to devise a scheme or plan to
defraud, or a scheme or plan for obtaining money or property by means of false or fraudulent pretenses,
representations, or promises;
Second, the statements made or facts omitted as part of the scheme were material; that is, they
had a natural tendency to influence, or were capable of influencing, a person to part with money or
property;
Third, the defendant acted with the intent to defraud, that is, the intent to deceive and cheat; and
Fourth, the defendant used, or caused to be used, an interstate wire communication to carry out
or attempt to carry out an essential part of the scheme.

Count Four – bank fraud, in violation of 18 U.S.C. § 1344(1)
First, the defendant knowingly executed a scheme to defraud a financial institution as to
something of value;
Second, the defendant did so with intent to defraud the financial institution; and
Third, the financial institution was insured by the Federal Deposit Insurance Corporation.
It is not necessary for the government to prove that a financial institution was the only or sole
victim of the scheme to defraud. It also is not necessary for the government to prove that the defendant
was actually successful in defrauding any financial institution. Finally, it is not necessary for the
government to prove that any financial institution lost any money or property as a result of the scheme to
defraud.
The defendant fully understands the nature and elements of the crimes charged in the
Information to which he is pleading guilty, together with the possible defenses thereto, and has
discussed them with his attorney.
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V.
MAXIMUM SENTENCE

Maximum Penalty.
The maximum sentence the Court can impose for a violation 18 U.S.C. § 1343 is twenty years of
incarceration, a fine of up to $250,000, or twice the pecuniary gain or loss under 18 U.S.C. § 3571(d), a
three-year period of supervised release, and a special assessment of $100. The maximum sentence the
Court can impose for a violation of 18 U.S.C. § 1344 is thirty years of incarceration, a fine of up to
$1,000,000, or twice the pecuniary gain or loss under 18 U.S.C. § 3571(d), a five-year period of
supervised release, and a special assessment of $100.
By signing this Plea Agreement, the defendant also agrees the Court can order the payment of
restitution for the full loss caused by the defendant’s wrongful conduct. The defendant agrees the
restitution order is not restricted to the amounts alleged in the specific counts to which he is pleading
guilty. The defendant further agrees, as noted above, he will not attempt to discharge in any present or
future bankruptcy proceeding any restitution imposed by the Court.

Violations of Supervised Release.
The defendant understands that, if he violates a condition of supervised release at any time
during the term of supervised release, the Court may revoke the term of supervised release and require
the defendant to serve up to three additional years of imprisonment.
VI.
SENTENCING DETERMINATION

Statutory Authority.
The defendant understands the Court must consult the Federal Sentencing Guidelines and must
take them into account when determining a final sentence. The defendant understands the Court will
determine a non-binding and advisory guideline sentencing range for this case pursuant to the
Sentencing Guidelines and must take them into account when determining a final sentence. The
defendant further understands the Court will consider whether there is a basis for departure from the
guideline sentencing range (either above or below the guideline sentencing range) because there exists
an aggravating or mitigating circumstance of a kind, or to a degree, not adequately taken into
consideration by the Sentencing Commission in formulating the Guidelines. The defendant further
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understands the Court, after consultation and consideration of the Sentencing Guidelines, must impose a
sentence that is reasonable in light of the factors set forth in 18 U.S.C. § 3553(a).

Guideline Calculations.
The government and the defendant agree there is no material dispute as to the following
sentencing guidelines variables and, therefore, stipulate to the following:
1.
Count One – Wire Fraud
Base offense level: 7, pursuant to U.S.S.G. § 2B1.1(a)(1).
Specific offense characteristic: Pursuant to U.S.S.G. § 2B1.1(b)(1)(H), 14 levels are
added because the intended loss with respect to Count One—approximately $1.2 million,
when accounting for relevant conduct—is more than $550,000 but less than $1,500,000.
2.
Count Four – Bank Fraud
Base offense level: 7, pursuant to U.S.S.G. § 2B1.1(a)(1).
Specific offense characteristic: Pursuant to U.S.S.G. § 2B1.1(b)(1)(H), 14 levels are
added because the loss with respect to Count 4—approximately $780,000, when
accounting for relevant conduct—is more than $550,000 but less than $1,500,000.

Chapter 3 adjustment: Pursuant to U.S.S.G. § 3B1.3, 2 levels are added because the
defendant abused a position of trust.
3.
Other Adjustments
Acceptance of responsibility: 3 levels are subtracted from the combined offense level if
the defendant pleads guilty, accepts responsibility for his offenses, and the offense level
is above 16, as provided in paragraph III.B.2 above.

The parties estimate, but do not stipulate, to the following:

Combined offense level: Counts One and Four will be grouped under U.S.S.G.
§ 3D1.2(d), which results in an aggregated loss amount of approximately $1.98 million.
Such loss amount corresponds to an increase of 16 levels, pursuant to U.S.S.G.
§ 2B1.1(b)(1)(I). Consequently, the combined offense level will be 25.

Adjusted offense level: 22, if the defendant receives a 3-level reduction for acceptance of
responsibility.

Criminal history: Category I.

Sentencing range: 41-51 months. The defendant understands that, if the criminal history
category and/or the adjusted offense level differs from the parties’ estimate, his
sentencing range may differ.
The parties agree they will not seek or argue in support of any other specific offense
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characteristics, Chapter Three adjustments (other than the decrease for “Acceptance of Responsibility”),
or cross-references, except the government may move for a departure or an adjustment based on the
defendant’s post-plea obstruction of justice (§ 3C1.1). Both parties agree not to move for, or argue in
support of, any other departure from the Sentencing Guidelines.
The defendant is free to make any arguments with respect to a variance from the guidelines
under 18 U.S.C. § 3553(a). The government reserves its right to oppose any such variance and agrees to
recommend a sentence at the low end of the applicable guideline range as determined by the Court.
VII.
WAIVERS

Waiver of Constitutional Rights.
The defendant understands that, by pleading guilty, he is waiving the following constitutional
rights: (a) to plead not guilty and to persist in that plea if already made; (b) to be tried by a jury; (c) to be
assisted at trial by an attorney, who would be appointed if necessary; (d) to pursue any affirmative
defenses, Fourth Amendment or Fifth Amendment claims, constitutional challenges to the statute of
conviction, and other pretrial motions that have been filed or could be filed; (e) to subpoena witnesses to
testify on his behalf; (f) to confront and cross-examine witnesses against him; and (g) not to be
compelled to incriminate himself.

Waiver of Appeal and Collateral Attack.
The defendant understands the law gives the defendant a right to appeal his guilty pleas,
convictions, and sentence. The defendant agrees as part of his plea, however, to give up the right to
appeal the guilty pleas, convictions, and the sentence imposed in this case as long as the sentence does
not exceed the statutory maximum penalties for the offenses to which he is pleading guilty. The
defendant understands this waiver includes, but is not limited to, any and all constitutional and/or legal
challenges to the defendant’s convictions and guilty pleas, including arguments that the either of the
statutes to which the defendant is pleading guilty is unconstitutional, and any and all claims that the
Factual Basis is insufficient to support the defendant’s pleas of guilty. The defendant understands this
waiver includes, but is not limited to, any and all constitutional and/or legal challenges to the
defendant’s convictions and guilty pleas, including arguments that either of the statutes to which the
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defendant is pleading guilty is unconstitutional, and any and all claims that the Factual Basis is
insufficient to support the defendant’s pleas of guilty. The defendant specifically gives up the right to
appeal any order of restitution the Court may impose.
Notwithstanding the defendant’s waiver of appeal, the defendant will retain the right to appeal if
one of the following circumstances occurs: (1) the sentence imposed by the District Court exceeds the
statutory maximum; and/or (2) the government appeals the sentence in the case. The defendant
understands these circumstances occur infrequently and in almost all cases this Plea Agreement
constitutes a complete waiver of all appellate rights.
In addition, regardless of the sentence the defendant receives, the defendant also gives up any
right to bring a collateral attack, including a motion under 28 U.S.C. §§ 2255 or 2241, challenging any
aspect of the guilty pleas, convictions, or sentence, except for non-waivable claims.
Notwithstanding the government’s agreements in paragraph III.A above, if the defendant ever
attempts to vacate his plea, dismiss the underlying charges, or modify or set aside his sentence on the
charges to which he is pleading guilty, the government shall have the rights set forth in Section II.E
herein.

Waiver of Attorneys’ Fees and Costs.
The defendant agrees to waive all rights under the “Hyde Amendment,” Section 617, P.L. 105-
119 (Nov. 26, 1997), to recover attorneys’ fees or other litigation expenses in connection with the
investigation and prosecution of all charges in the above-captioned matter and of any related allegations
(including, without limitation, any charges to be dismissed pursuant to this Plea Agreement and any
charges previously dismissed).

Waiver of Venue.
The defendant understands that the law gives the defendant a right to be prosecuted in the district
where the offense was committed. The defendant understands that, by pleading guilty, he is waiving that
right as to the crimes charged in the Information.

Impact of Plea on Defendant’s Immigration Status.
The defendant recognizes that pleading guilty may have consequences with respect to his
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immigration status if he is not a citizen of the United States. Under federal law, a broad range of crimes
are removable offenses. Removal and other immigration consequences are the subject of a separate
proceeding, however, and the defendant understands no one, including his attorney or the district court,
can predict to a certainty the effect of his conviction on his immigration status. The defendant
nevertheless affirms he wants to plead guilty regardless of any immigration consequences his plea may
entail, even if the consequence is his automatic removal from the United States.
VIII.
ENTIRE PLEA AGREEMENT
Other than this Plea Agreement, no agreement, understanding, promise, or condition between the
government and the defendant exists, nor will such agreement, understanding, promise, or condition
exist unless it is committed to writing and signed by the defendant, counsel for the defendant, and
counsel for the United States.
IX.
APPROVALS AND SIGNATURES

Defense Counsel:
I have read this Plea Agreement and have discussed it fully with my client. This Plea Agreement
accurately and completely sets forth the entirety of the agreement. I concur in my client’s decision to
plead guilty as set forth in this Plea Agreement.

Dated:

RACHELLE BARBOUR, ESQ.
Attorney for Defendant
April 22, 2022
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Defendant:
I have read this Plea Agreement and carefully reviewed every part of it with my attorney. I
understand it, and I voluntarily agree to it. Further, I have consulted with my attorney and fully
understand my rights with respect to the provisions of the Sentencing Guidelines that may apply to my
case. No other promises or inducements have been made to me, other than those contained in this Plea
Agreement. In addition, no one has threatened or forced me in any way to enter into this Plea
Agreement. Finally, I am satisfied with the representation of my attorney in this case.
Dated:
AARON ASHCRAFT
Defendant

Attorney for United States:
I accept and agree to this Plea Agreement on behalf of the government.
Dated:
PHILLIP A. TALBERT
United States Attorney
MATTHEW THUESEN
Assistant United States Attorney
4/26/2022
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PLEA AGREEMENT
EXHIBIT “A”
Factual Basis for Plea
If this matter proceeded to trial, the United States would establish the following facts beyond a
reasonable doubt:

During the relevant time period:

Aaron Ashcraft lived in Sacramento, California.

Paycheck Protection Program Fraud

The United States Small Business Administration (“SBA”) was an executive-branch agency of
the United States government that provided support to entrepreneurs and small businesses. 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 Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted
in March 2020 and designed to provide emergency financial assistance to the millions of Americans
who are 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”).

To obtain a PPP loan, a qualifying business was required to submit a PPP loan application that
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 (SBA
Form 2483), the small business (through its authorized representative) was required to state, among
other things, its: (a) average monthly payroll expenses; 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. In
addition, businesses applying for a PPP loan were typically required to provide documentation showing
their payroll expenses.

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, which were 100 percent
guaranteed by the SBA. Data from the application, including information about the borrower, the total
amount of the loan, and the listed number of employees, was transmitted by the lender to the SBA in the
course of processing the loan.

PPP loan proceeds were required to be used on certain permissible expenses, including payroll
costs, mortgage interest, rent, and utilities. Under the applicable PPP rules and guidance, the interest and
principal on the PPP loan were eligible for forgiveness if the business spent the loan proceeds on these
expense items within a designated period of time and used a certain portion of the loan towards payroll
expenses.

Lender 1 was an independent finance provider for small businesses based in California.

Lender 2 was an independent finance provider for small businesses based in Florida.

Lender 3 was an independent finance provider for small businesses based in California.

Bank 1 was financial institution based in Florida, the deposits of which were insured by the
Federal Deposit Insurance Corporation (“FDIC”).

Case 2:22-cr-00087-KJM Document 10 Filed 05/09/22 Page 14 of 17

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PLEA AGREEMENT
Lender 1, Lender 2, Lender 3, and Bank 1 were authorized by the SBA to participate as PPP
lenders to small businesses.

From approximately May 2020 through April 2021, Ashcraft submitted and caused to be
submitted at least seven fraudulent PPP loan applications in the names of purported entities to various
SBA-approved PPP lenders, including Lender 1, Lender 2, Lender 3, and Bank 1.

In submitting the applications, Ashcraft intended to defraud the lenders. Some, but not all, of the
loan requests were funded. In total, Ashcraft’s applications requested over $1.2 million in PPP loans,
and Ashcraft received via interstate wires over $920,000, as described below:

Entity

Lender
Approx.
Application
Date
Approx.
Amount
Sought
Approx.
Date
Funded
Amount
Funded

Aarox, Inc.

Lender 1

5/21/2020

$44,785

5/27/2020

$44,785

AACIIS
Services

Lender 1

5/27/2020

$81,164

6/3/2020

$81,165

Eros
Productions

Lender 1

6/1/2020

$163,034

6/18/2020

$163,035

Booktech
Enterprises

Lender 1

6/7/2020

$303,261

6/30/2020

$303,260

Booktech
Enterprises

Bank 1

6/11/2020

$307,100

N/A

Tech 1
Engineering

Lender 2

2/5/2021

$153,260

2/22/2021

$153,260

Tech 1
Engineering

Lender 3

4/17/2021

$174,093.75

4/21/2021

$174,093.75

In the PPP loan applications, Ashcraft falsely represented, among other things, that each
purported business had employees and an average monthly payroll expense.

Additionally, to support the PPP loan applications, Ashcraft submitted to the lenders fabricated
records, including IRS forms, business checking account statements, and payroll summaries.

Embezzlement

From approximately December 2007 through June 2020, Ashcraft worked for a street sweeping
company located in Sacramento, California—Company 1. Ashcraft served in multiple positions at
Company 1, including as the chief financial officer. Ashcraft was responsible for, among other things,
accounting, financial reporting, and preparing taxes.

Case 2:22-cr-00087-KJM Document 10 Filed 05/09/22 Page 15 of 17

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PLEA AGREEMENT
Company 1 had at least two business credit card accounts held at Bank 2, which was a financial
institution insured by the FDIC. The credit card accounts ended 3519 and 9059. The accounts had
multiple authorized users with separate credit card account numbers. Ashcraft was not an authorized
user of either account, but he had access to the credit card numbers of authorized users.

Beginning in or around September 2017, and continuing through in or around June 2020,
Ashcraft carried out a scheme to defraud Bank 2 by making unauthorized charges using credit card
numbers of authorized users of Company 1’s Bank 2 business accounts to make payments to accounts he
controlled, including an account held at Bank 3 ending in 6657 (“Bank 3 Account”), an account held at
Bank 4 ending in 5236 (“Bank 4 Account”), and an account held at Bank 5 ending in 4409 (“Bank 5
Account”), as well as online payment accounts (each an “Online Account” and, collectively, “Online
Accounts”).

Examples of Ashcraft’s fraudulent charges include the following:

Company 1
Bank 2 Account

Approx. Charge
Date

Approx. Amount of
Charge

Ashcraft Receiving
Account

3519

9/13/2017

$1,188

Online Payment Account

3519

11/6/2018

$3,656.25

Online Payment Account

3519

7/3/2019

$4,655

Online Payment Account

9059

12/3/2019

$4,821.25

Online Payment Account

3519

12/4/2019

$4,829.90

Online Payment Account

3519

12/6/2019

$5,416

Online Payment Account

3519

12/17/2019

$6,942.67

Online Payment Account

3519

12/18/2019

$7,766.25

Online Payment Account

9059

2/4/2020

$3,500

Bank 3 Account

3519

2/11/2020

$6,455.20

Bank 4 Account

9059

3/23/2020

$5,875

Bank 4 Account

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PLEA AGREEMENT

3519

5/9/2020

$3,162.42

Bank 5 Account

9059

5/18/2020

$3,480.50

Bank 5 Account

9059

5/25/2020

$3,850.25

Bank 4 Account

3519

6/16/2020

$3,256.18

Bank 5 Account

In total, through his scheme, Ashcraft fraudulently obtained at least approximately $780,000
from Bank 2.

Unemployment Fraud

In or around July 2020, Ashcraft submitted an application to the Maine Department of Labor for
Pandemic Unemployment Assistance, claiming that he was self-employed and unable to work due to
COVID-19. In his application, Ashcraft falsely represented that he resided in Old Orchard Beach,
Maine, and his county of employment was York, Maine, when, in fact, he resided in California and did
not work in Maine.

To support his unemployment application, Ashcraft submitted a falsified Schedule C (Form
1040) for tax year 2019. In it, Ashcraft falsely claimed that he operated a business in Maine that
received over $160,000 in income and made a net profit of over $66,000.

Based on his fraudulent application, the Maine Department of Labor paid Ashcraft
unemployment compensation of over approximately $31,000 in 2020 and $27,000 in 2021.

I have read and carefully reviewed with my attorney this Factual Basis for Plea. I agree that it is
true and correct. I also agree that, if this matter proceeded to trial, the United States could establish
each of the facts contained within this Factual Basis for Plea beyond a reasonable doubt, and that those
facts satisfy the elements of the offenses to which I am pleading guilty. Additionally, I agree that this
Factual Basis for Plea is a summary made for the purpose of providing the Court with a factual basis
for my guilty pleas, and it does not include all of the facts known to me concerning criminal activity in
which I and others engaged.

Dated:

AARON ASHCRAFT
Defendant

Case 2:22-cr-00087-KJM Document 10 Filed 05/09/22 Page 17 of 17

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Plea Agreement — United States v. Aaron Ashcraft (E.D. Cal.)

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