Criminal Information — United States v. Mandy Ellen Bauer

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U.S. District Court for the Western District of Kentucky · No. 1:22-cr-00004-GNS · Doc. 1 · 2022-01-18 · Docket on CourtListener

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UNITED STATES DISTRICT COURT 
WESTERN DISTRICT OF KENTUCKY 
AT BOWLING GREEN 
FILED 
JAMES J. VILT, JR. - CLERK 
JAN 18 2022 
U.S. DISTRICT COURT 
WEST'N. DIST. KENTUCKY 
UNITED STATES OF AMERICA 
V. 
NO. 
INFORMATION 
1 ~ ~'J. a- I.\- 6 t.J r 
18 u.s.c. § 1343 
MANDY ELLEN BAUER 
The United States Attorney Charges: 
COUNTS 1-9 
(Wire Fraud) 
On or about and between April 2, 2020, and July 1, 2020, in the Western District of 
Kentucky, Green County, Kentucky, the defendant, MANDY ELLEN BAUER, devised a scheme 
to defraud and to obtain money by means of false and fraudulent pretenses and representations, 
and transmitted writings and signs in interstate wire communications for the purpose of executing 
the scheme, to wit: 
1. The Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Families 
First Coronavirus Response Act (FFCRA) established that eligible employers that retain 
their employees are allowed tax credits against applicable employment taxes. Employers 
are required to file employment tax returns, e.g. quarterly Form 941, Employer 's 
Quarterly Federal Tax Return, for the business to report employment taxes; and 
required to file annual Form W-2, Wage and Tax Statement, for each employee to report 
paid wages. 
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2. The Internal Revenue Service (IRS) created the Form 7200, Advance of Employer 
Credits Due To COVID-19, to allow employer businesses to request an advance 
payment of the tax credits prior to the filing of their Form 941. 
The IRS is 
headquartered in Washington, DC, and maintains its computer servers outside of the 
state of Kentucky. 
3. The United States Small Business Administration (SBA) is an executive-branch agency 
of the United States government that provides support to entrepreneurs and small 
businesses. The SBA is headquartered in Washington, DC, and maintains its computer 
servers outside Kentucky. The mission of the SBA is 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. 
4. As part of this effort, the SBA enables and provides for loans through banks, credit 
unions and other lenders. These loans have government-backed guarantees. In addition 
to traditional SBA funding programs, the CARES Act, which was signed into law in 
March 2020, established several new temporary programs and provided for the 
expansion of others to address the COVID-19 outbreak. 
5. One of the new programs was the SBA Paycheck Protection Program (PPP), which was 
a loan designed to provide a direct incentive for small businesses to keep their workers 
on the payroll. Under this program, the SBA would forgive all or part of loans if all 
employees were kept on the payroll for eight weeks and borrowers submitted 
documentation confirming that the loan proceeds were used for payroll, rent, mortgage 
interest, or utilities. Interested applicants applied through an existing SBA lender or 
any other participating federally insured financial institution. 
2 
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6. The PPP application process required applicants to submit a Borrower Application 
Form through an SBA-approved financial entity. The application contained 
information as to the purpose of the loan, average monthly payroll, number of 
employees and background of the business and its owner, including questions relating 
to criminal history. Applicants were also required to make good faith certifications, 
including that economic uncertainties have necessitated their loan requests for 
continued business operations and that they intended to use loan proceeds only for 
authorized purposes. 
7. Another related response to the COVID-19 outbreak was an expansion of an existing 
disaster-related program - the Economic Injury Disaster Loan (EIDL) - to provide for 
loan assistance (including $10,000 advances) for small businesses and other eligible 
entities for loans up to $2 million. The EIDL proceeds could be used to pay fixed debts, 
payroll, accounts payable and other bills that could have been paid had the disaster not 
occurred; however, such loan proceeds were not intended to replace lost sales or profits 
or for expansion of a business. 
8. Unlike certain other types of SBA-guaranteed loans, EIDL funds were issued directly 
from the United States Treasury and applicants applied through the SBA via an online 
portal and application. The EIDL application process, which also used certain outside 
contractors for system support, collected information concerning the business and the 
business owner, including: 
a. 
information as to the gross revenues for the business prior to January 31, 
2020; 
b. 
the cost of goods sold; 
3 
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c. 
and information as to any criminal history of the business owner. 
9. EIDL applicants electronically certified that the information provided was accurate and 
were warned that any false statement or misrepresentation to the SBA or any 
misapplication of loan proceeds may result in sanctions, including criminal penalties. 
10. On April 2, 2020, BAUER filed an application (3301428208) for a Small Business 
Administration (SBA) Economic Injury Disaster Loan (EIDL) for FPS. BAUER 
falsely claimed that FPS had six employees, $29,500 in gross revenue, and $1,800 in 
lost rents due to the disaster. The potential loan amount was $1,800. 
11. On April 5, 2020, BAUER filed an application (3302541838) for a SBAEIDL for FPS. 
BAUER falsely claimed that FPS had six employees, $52,300 in gross revenue, and 
$9,000 in lost rents due to the disaster. The potential loan amount was $9,000. 
12. On April 7, 2020, BAUER applied for a PPP loan for FPS and submitted a SBA Form 
2483, Paycheck Protection Program Borrower Application Form, to ReadyCap 
Lending. BAUER falsely claimed that FPS had average monthly payroll of $11,100 
and six employees. The potential loan amount was $30,800. 
13. On April 8, 2020, BAUER applied for a PPP loan for FPS and submitted a SBA Form 
2483 to ReadyCap Lending. BAUER falsely claimed that FPS had average monthly 
payroll of $11,000 and six employees. The potential loan amount was $27,700. 
14. On April 13, 2020, BAUER filed an application (330697682) for a SBA EIDL for FPS. 
BAUER falsely claimed that FPS had six employees, $28,000 in gross revenue, and 
$15,000 in cost of goods sold. The potential loan amount was $6,500. 
15. On April 29, 2020, BAUER applied for a PPP loan for FPS, and submitted a SBA Form 
2483, Paycheck Protection Program Borrower Application Form, to ReadyCap 
4 
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Lending. BAUER falsely claimed that FPS had average monthly payroll of $13,496 
and six employees. The potential loan amount was $33,700. 
16. On May 29, 2020, BAUER faxed a Form 7200,Advance Payment of Employer Credits 
Due to COVID-19, to the Internal Revenue Service (IRS). BAUER falsely claimed 
that FPS had 10 employees and $37,000 in quarterly wages, when in fact FPS did not 
have any employees or wage expenses. 
BAUER requested a $70,000 advance 
payment. 
17. On June 29, 2020, BAUER filed an application (33073299618) for a SBA EIDL for 
FPS. BAUER falsely claimed that FPS had 10 employees, $43,900 in gross revenue, 
and $26,000 in cost of goods sold. The potential loan amount was $8,950. 
18. On July 1, 2020, BAUER faxed another Form 7200. BAUER falsely claimed that FPS 
had six employees and $37,350 in quarterly wages, when in fact FPS did not have any 
employees or wage expenses. BAUER requested a $43,064.55 advance payment. 
19. With each SBA Form 2483, BAUER submitted a fraudulent Form 941, Employer 's 
Quarterly Federal Tax Return, for the first quarter of 2020, which stated FPS has six 
employees, gross wages of $37,350, and $7,527 of taxes due. 
20. According to IRS records, FPS did not file any Forms 941 or W-2 and has never made 
any tax deposits. 
COUNT 
DATE 
INTERSTATE WIRE COMMUNICATION 
1 
April 2, 2020 
EIDL loan application transmitted by wire from Kentucky to the 
SBA outside of Kentucky 
2 
April 5, 2020 
EIDL loan application transmitted by wire from Kentucky to the 
SBA outside of Kentucky 
5 
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COUNT 
DATE 
INTERSTATE WIRE COMMUNICATION 
3 
April 7, 2020 
SBA Form 2483 in support of PPP loan application 
transmitted by wire from Kentucky to ReadyCap lending in New 
Jersey 
4 
April 8, 2020 
SBA Form 2483 in support of PPP loan application 
transmitted by wire from Kentucky to ReadyCap lending in New 
Jersey 
5 
April 13, 2020 
EIDL loan application transmitted by wire from Kentucky to the 
SBA in outside of Kentucky 
6 
April 29, 2020 
SBA Form 2483 in support of PPP loan application 
transmitted by wire from Kentucky to ReadyCap lending in New 
Jersey 
7 
May 29, 2020 
IRS Form 7200 transmitted by wire from Kentucky to the IRS in 
Oklahoma requesting advance payment of tax credits 
8 
June 29, 2020 
EIDL loan application transmitted by wire from Kentucky to the 
SBA outside of Kentucky 
9 
July 1, 2020 
IRS Form 7200 transmitted by wire from Kentucky to the IRS in 
Virginia requesting advance payment of tax credits 
In violation of Title 18, United States Code, Section 1343. 
MAB:DW:lb:01072022 
:'\~' ?'.\· ~ 
MICHAEL A. BENNETT 
UNITED STATES ATTORNEY 
6 
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UNITED STATES OF AMERICA v. MANDY ELLEN BAUER 
PENALTIES 
Counts 1-9: NM 20 yrsJ$250,000/both/NM 3 yrs. Supervised Release ( each count) 
NOTICE 
ANY PERSON CONVICTED OF AN OFFENSE AGAINST THE UNITED STA TES SHALL BE SUBJECT TO SPECIAL 
ASSESSMENTS, FINES, RESTITUTION & COSTS. 
SPECIAL ASSESSMENTS 
18 U.S.C. § 3013 requires that a special assessment shall be imposed for each count of a conviction of offenses committed after 
November 11, 1984, as follows: 
Misdemeanor: 
$ 25 per count/individual 
$125 per count/other 
Felony: 
$100 per count/individual 
$400 per count/other 
In addition to any of the above assessments, you may also be sentenced to pay a fine. Such fine is due immediately unless the court 
issues an order requiring payment by a date certain or sets out an installment schedule. You shall provide the United States Attorney's 
Office with a current mailing address for the entire period that any part of the fine remains unpaid, or you may be held in contempt of 
court. 18 U.S.C. § 3571, 3572, 3611, 3612 
Failure to pay fine as ordered may subject you to the following: 
1. 
INTEREST and PENAL TIES as applicable by law according to last date of offense. 
For offenses occurring after December 12, 1987: 
No INTEREST will accrue on fines under $2,500.00. 
INTEREST will accrue according to the Federal Civil Post-Judgment Interest Rate in effect at 
the time of sentencing. This rate changes monthly. Interest accrues from the first business day 
following the two week period after the date a fine is imposed. 
PENALTIES of: 
10% of fine balance if payment more than 30 days late. 
15% of fine balance if payment more than 90 days late. 
2. 
Recordation of a LIEN shall have the same force and effect as a tax lien. 
3. 
Continuous GARNISHMENT may apply until your fine is paid. 
18 u.s.c. §§ 3612, 3613 
If you WILLFULLY refuse to pay your fine, you shall be subject to an ADDITIONAL FINE 
of not more than the greater of $10,000 or twice the unpaid balance of the fine; or 
IMPRISONMENT fornot more than 1 year or both. 18 U.S.C. § 3615 
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RESTITUTION 
If you are convicted of an offense under Title 18, U.S.C., or under certain air piracy offenses, you may also be ordered to make 
restitution to any victim of the offense, in addition to, or in lieu of any other penalty authorized by law. 18 U.S.C. § 3663 
APPEAL 
If you appeal your conviction and the sentence to pay your fine is stayed pending appeal, the court shall require: 
l. 
That you deposit the entire fine amount ( or the amount due under an installment schedule 
during the time of your appeal) in an escrow account with the U.S. District Court Clerk, or 
2. 
Give bond for payment thereof. 
18 u.s.c. § 3572(g) 
PAYMENTS 
If you are ordered to make payments to the U.S. District Court Clerk's Office, certified checks or money orders should be made payable 
to the Clerk, U.S. District Court and delivered to the appropriate division office listed below: 
LOUISVILLE: 
BOWLING GREEN: 
OWENSBORO: 
PADUCAH: 
Clerk, U.S. District Court 
106 Gene Snyder U.S. Courthouse 
601 WestBroadway 
Louisville, KY 40202 
502/625-3500 
Clerk, U.S. District Court 
120 Federal Building 
241 East Main Street 
Bowling Green, KY 42101 
270/393-2500 
Clerk, U.S. District Court 
126 Federal Building 
423 Frederica 
Owensboro, KY 42301 
270/689-4400 
Clerk, U.S. District Court 
127 Federal Building 
501 Broadway 
Paducah, KY 42001 
270/415-6400 
If the court finds that you have the present ability to pay, an order may direct imprisonment until payment is made. 
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