Indictment — United States v. Deconna Burke

Record facts

U.S. District Court, Middle District of Florida · No. 3:23-cr-00068-TJC-MCR · Doc. 1 · 2023-04-19 · Docket on CourtListener

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Case 3:23-cr-00068-TJC-MCR Document1 Filed 04/19/23 Page 1 of 11 PagelD 1

FILED IN OPE
JACKSONVILLE MGOUR

UNITED STATES DISTRICT COURT #. (4 20045
SVIACKSONVILLE DIVISION wong gSTM OUR

UNITED STATES OF AMERICA
v. CASE NO. 3°23-Ci- 0@- TUC-MCR
DECONNA BURKE 18 U.S.C. § 1343

INDICTMENT

The Grand Jury charges:
COUNT ONE
(WIRE FRAUD)

A. Introduction

At all times relevant to this Indictment:

l. The defendant resided in the Middle District of Florida.

2. Prestamos Community Development Financial Institution
(“Prestamos”’) was a lending service that among other services assisted businesses
in accessing the Small Business Administration Paycheck Protection Program.
Prestamos worked with Blue Acorn to access the Small Business Administration
Paycheck Protection Program.

3. Blue Acorn was a financial services company that among other
services worked with companies to include Prestamos to assist businesses in

accessing the Small Business Administration Paycheck Protection Program.
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4, Blue Acorn utilized computer servers / data centers outside of the
state of Florida, as part of conducting nationwide business operations.

The Small Business Administration

5 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.

6. The SBA enabled and provided for loans through banks, credit
unions, and other lenders. These loans had government-backed guarantees. In
addition to traditional SBA funding programs, The CARES Acct established

several new temporary programs and provided for the expansion of others to
address the COVID-19 outbreak.

The Paycheck Protection Program

¥ 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 could forgive all or part of loans, if employees were kept on the payroll for
eight weeks and borrowers submitted documentation confirming that the loan
proceeds were used for certain qualifying business expenses (i.e., payroll, rent,

mortgage interest, or utilities). The PPP forgiveness process required the applicant
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to electronically submit a PPP Loan Forgiveness Application Form, a SBA Form
3508S.

8. The PPP application process required interested applicants to
electronically submit a Borrower Application Form, a SBA Form 2483. 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.
Applicants were also required to make certain good faith certifications, including
that economic uncertainties had necessitated their loan requests for continued
business operations, and that they intended to use loan proceeds only for the
authorized purposes.

9. Further, when submitting the SBA Form 2483, the authorized
representative certified his understanding that, should the PPP funds be
knowingly used for unauthorized purposes, the United States could hold him
legally liable, including for charges of fraud. The applicant was also required to
certify the truth and accuracy of any information provided on the SBA Form
2483 and in all supporting documents, to include any documents intended to
verify the applicant’s payroll expenses. The applicant was required to certify an
understanding that knowingly making a false statement to obtain a guaranteed

loan from the SBA is punishable under the law and subject to criminal penalties.
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B. The Scheme and Artifice

10. Beginning on an unknown date, but no later than in or around April
2021, and continuing through at least in or around November 2021, in the Middle
District of Florida and elsewhere, the defendant,

DECONNA BURKE,
knowingly devised and intended 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.
C. Manner and Means of the Scheme and Artifice

11. The manner and means by which the defendant sought to
accomplish the scheme to defraud included, among others, the following:

a. It was part of the scheme and artifice that the defendant
would and did fraudulently complete an IRS Form 1040, Schedule C, “Profit or
Loss From Business” for purposes of applying for a PPP loan to which he was not
entitled;

b. It was further a part of the scheme and artifice that when
fraudulently completing the IRS Form 1040, Schedule C, “Profit or Loss From
Business” the defendant listed the principal business or profession as

“Babysitting”;
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c. It was further a part of the scheme and artifice that when
fraudulently completing the IRS Form 1040, Schedule C, “Profit or Loss From
Business” the defendant listed under “Part I Income” gross receipts or sales for
his business as $98,000;

d. It was further a part of the scheme and artifice that when
fraudulently completing the IRS Form 1040, Schedule C, “Profit or Loss From
Business” the defendant listed for his business $500 in supply expenses;

co It was further a part of the scheme and artifice that when
fraudulently completing the IRS Form 1040, Schedule C, “Profit or Loss From
Business” the defendant listed for his business $200 in advertising expenses;

f. It was further a part of the scheme and artifice that when
fraudulently completing the IRS Form 1040, Schedule C, “Profit or Loss From
Business” the defendant listed for his business $1000 in car and truck expenses;

g. It was further a part of the scheme and artifice that when
fraudulently completing the IRS Form 1040, Schedule C, “Profit or Loss From
Business” the defendant listed for his business $200 in office expenses;

h. It was further a part of the scheme and artifice that when
fraudulently completing the IRS Form 1040, Schedule C, “Profit or Loss From

Business” the defendant listed for his business $500 in utilities expenses;
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i. It was further a part of the scheme and artifice that when
fraudulently completing the IRS Form 1040, Schedule C, “Profit or Loss From
Business” the defendant listed for his business $300 in commissions and fees;

j. It was further a part of the scheme and artifice that when
fraudulently completing the IRS Form 1040, Schedule C, “Profit or Loss From
Business” the defendant listed for his business a net profit of $95,300;

k. It was further a part of the scheme and artifice that, in order to
induce the SBA and a SBA Participating Lender to fund a PPP loan for his
purported business, the defendant would and did submit, a false and fraudulent
loan application that included multiple materially false and fraudulent
representations and pretenses, such as:

i. stating a business gross income of $98,000 and that
current economic uncertainty made the loan request necessary to support the
ongoing operations of the defendant;

ii. certifying that the business was in operation on
February 15, 2020;

iii. certifying that the funds would be used to maintain
payroll;

iv. certifying the truth of the statements in the application;

and
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V. including fraudulent supporting documentation, that is,
a fraudulently completed IRS Form 1040, Schedule C, “Profit or Loss From
Business.”

1. It was further a part of the scheme and artifice that the
defendant would and did provide financial institution account information into
which the fraudulently-obtained PPP funds would be transferred via a ACH
payment / wire transfer;

m. It was further a part of the scheme and artifice that the
defendant would and did cause a SBA Participating Lender through their bank to
send PPP loan proceeds via a ACH payment / wire transfer to the defendant’s
bank account at Navy Federal Credit Union;

n. It was further a part of the scheme and artifice that the
defendant would and did retain fraud proceeds for the defendant’s personal
enrichment and entertainment to include among other things, paying off a loan
with Navy Federal Credit Union for a motorcycle;

O. It was further a part of the scheme and artifice that, in order to
induce the SBA and a SBA Participating Lender to forgive the aforementioned
PPP loan for his purported business, the defendant would and did submit, a false

and fraudulent PPP Loan Forgiveness Application, a SBA Form 3508S that
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included multiple materially false and fraudulent representations and pretenses,

such as:
1. stating that the amount of the loan spent on payroll
costs was $20,415;
ii. certifying that he used the PPP loan proceeds for
eligible uses; and
iii. certifying the truth of the statements in the loan

forgiveness application.

p. It was further a part of scheme and artifice that the defendant
would and did perform acts, and make statements to promote and achieve the
object of the scheme and artifice and to misrepresent, hide, and conceal, and
cause to be misrepresented, hidden, and concealed, the purpose of the scheme

and artifice and the acts committed in furtherance thereof.

D. Execution of the Scheme and Artifice

12. Onor about April 29, 2021, in the Middle District of Florida and
elsewhere, the defendant,
DECONNA BURKE,
for the purpose of executing the scheme and artifice described above, transmitted

and caused to be transmitted by means of wire, radio, or television
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communication in interstate and foreign commerce, certain writings, signals,
signs, pictures, and sounds, that is, the on-line electronic submission of a PPP
Loan Application in the amount of $20,415.00, to Blue Acorn.

In violation of 18 U.S.C. § 1343.

FORFEITURE

i The allegations contained in Count One are incorporated by
reference for the purpose of alleging forfeiture pursuant to 18 U.S.C. §
981(a)(1)(C) and 28 U.S.C. § 2461(c).

2s Upon conviction of a violation of 18 U.S.C. § 1343, the defendant
shall forfeit to the United States, pursuant to 18 U.S.C. § 981(a)(1)(C) and 28
U.S.C. § 2461(c), any property, real or personal, which constitutes or is derived
from proceeds traceable to the violation.

3, The property to be forfeited includes, but is not limited to,
approximately $20,415, which represents the proceeds that defendant obtained as
a result of the violation.

4, If any of the property described above, as a result of any act or

omission of the defendant:

a. cannot be located upon the exercise of due diligence;
b. has been transferred or sold to, or deposited with, a third
party,
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e has been placed beyond the jurisdiction of the court;
d. has been substantially diminished in value; or
é, has been commingled with other property which cannot be

divided without difficulty,
the United States shall be entitled to forfeiture of substitute property pursuant to

21 U.S.C. § 853(p), as incorporated by 28 U.S.C. § 2461(c).

A TRUE BILL,

reperson

ROGER B. HANDBERG
United States Attorney

py Veo C. etd

Kevin C. Frein
Assistant United States Attorney

Kel y Katdse :
Assistant United States Attorney
Deputy Chief, Jacksonville Division

10
Case 3:23-cr-00068-TJC-MCR Document1 Filed 04/19/23 Page 11 of 11 PagelD 11

FORM OBD-34
4/18/23 Revised No.

UNITED STATES DISTRICT COURT
Middle District of Florida
Jacksonville Division

THE UNITED STATES OF AMERICA

VS.

DECONNA BURKE

INDICTMENT

Violations: 18 U.S.C. § 1343

A true bill,

ee on

CO

Bail $

GPO 863 525

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