Notice of Maximum Penalties, Elements of Offenses and Factual Basis — United States v. Deconna Burke (M.D. Fla.)

Record facts

U.S. District Court, Middle District of Florida · No. 3:23-cr-00068-TJC-MCR · Doc. 26 · 2023-07-26 · Docket on CourtListener

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Case 3:23-cr-00068-TJC-MCR Document 26 Filed 07/26/23 Page 1 of 7 PagelD 62

FILED IN OPEN COURT
UNITED STATES DISTRICT COURT JACKSONVILLE, FLORIDA

MIDDLE DISTRICT OF FLORIDA ‘ie
JACKSONVILLE DIVISION [Le LoL
U.S. DISTRICT COURT
DNESED STATES Oe SNe MIDDLE DISTRICT OF FLORIDA
v. CASE NO. 3:23-cr-68-TJC-MCR

DECONNA BURKE

NOTICE OF MAXIMUM PENALTIES, ELEMENTS OF OFFENSES,
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:

A. MAXIMUM PENALTIES

The defendant has expressed a desire to enter a plea of guilty to the offense
charged in Count One of the Indictment. Count One of the Indictment charges the
defendant with wire fraud, in violation of 18 U.S.C. § 1343. Count One carries a
maximum sentence of up to twenty years of imprisonment, a fine of up to $250,000,
or both a term of imprisonment and a fine, a term of supervised release of not more
than three years, and a special assessment of $100. A violation of the terms and
conditions of supervised release carries a maximum sentence of up to two years

imprisonment, as well as the possibility of an additional term of supervised release.
Case 3:23-cr-00068-TJC-MCR Document 26 Filed 07/26/23 Page 2 of 7 PagelD 63

With respect to certain offenses, the Court shall order the defendant to make
restitution to any victim of the offense(s), and with respect to the other offense(s), the
Court may order the defendant to make restitution payments to any victim of the
offense(s), or to the community. |

Further, the violation charged in Count One provides for forfeiture pursuant
to 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c), of any property, real or
personal, which constitutes or is derived from proceeds traceable to the offense. 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.
B. ELEMENTS OF THE OFFENSES.

The essential elements of a violation of 18 U.S.C. § 1343, wire fraud, are as

follows:
First: the defendant knowingly devised or participated in a scheme to
defraud to obtain money or property by using false or fraudulent

pretenses, representations, or promises;

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

Third: the defendant acted with 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.
~ Case 3:23-cr-00068-TJC-MCR Document 26 Filed 07/26/23 Page 3 of 7. PagelD 64

xe PERSONALIZATION OF ELEMENTS

1. . Do you admit that from a date unknown, but not later than in or about
April 2021, and continuing through and including in or about November 2021, in the
Middle District of Florida, and elsewhere, that you knowingly devised and |
participated in a scheme to defraud to obtain money or property by using false
pretenses, representations, and promises?

2. | Do you admit that the false pretenses, representations, and promises
were about a material fact?

3. Do you admit that you acted with an intent to defraud?

4, | Do you admit that you caused to be transmitted by wire some
communication in interstate commerce to help carry out the scheme to defraud, that
is, the on-line electronic submission of a Paycheck Protection Program Borrower
Application Form, a SBA Form 2483, in the amount of $20,415.00, on or about
April 29, 2021, to a third party processor, Blue Acorn? |

D. FACTUAL BASIS

In July 2022, the Jacksonville Sheriff's Office (“J SO”) Internal Affairs unit
received a complaint involving JSO Correctional Officer Deconna Burke (“Burke”),
The complaint alleged in substance that Burke fraudulently obtained a Paycheck
Protection Program (“PPP”) loan for $20,000 and used the money to purchase a

_ motorcycle. Because the conduct was criminal in nature JSO Internal Affairs routed
the complaint to the JSO Integrity unit. During follow up investigation conducted by

the Integrity unit with assistance from the United States Secret Service (“USSS”),

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Case 3:23-cr-00068-TJC-MCR Document 26 Filed 07/26/23 Page 4 of 7 PagelD 65

law enforcement determined that Burke applied for a U.S. Small Business
Administration (“SBA”) PPP loan in April 2021. | |
Law enforcement determined that on or about April 29, 2021 , Blue Acorn, a

_ third party processor for PPP loan applications, received Burke’s signed PPP loan
application, that is, a SBA Form 2483 - Borrower Application Form (“PPP loan
application”). Accompanying the PPP loan application was a color image of Burke’s
Florida driver’s license and a color photo of Burke which Burke submitted, as
required by Blue Acorn. In the PPP loan application Burke listed his principal
business or profession as “babysitting.” He claimed that his babysitting business
generated income of $98,000. He certified among other things that his business was
in operation on February 15, 2020 and that the funds would be used to maintain
payroll. Burke further certified that his application and all supporting documentation
he submitted were true and accurate. | |

Accompanying the PPP loan application was a IRS Form 1040,

Schedule C, “Profit or Loss From Business” (“Form 1040”) for Burke’s purported
babysitting business. Investigation determined that the Form 1040 contained among
other materially false statements that Burke materially participated in 2020 in this
non-existent babysitting business, that the babysitting business generated gross
income of $98,000, and incurred multiple business expenditures and fees. The
fraudulent PPP loan application and accompanying fraudulent Form 1040 were sent
from Florida to one of Blue Acorn’s computers servers / data centers outside the

state of Florida. After processing it, Blue Acorn forwarded Burke’s PPP loan

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Case 3:23-cr-00068-TJC-MCR Document 26 Filed 07/26/23 Page 5 of 7 PagelD 66

application and accompanying Form 1040 to Prestamos Community Development
Financial Institution (““Prestamos”), a SBA Participating Lender authorized by the
SBA to lend funds for approved PPP loan applications. In reliance on the materially
false statements contained in the PPP loan application and accompanying Form
1040, Burke’s PPP loan application was approved. Borrowing off a line of credit
from the Federal Reserve, in May 2021, Prestamos funded the PPP loan and
deposited into Burke’s personal bank account at Navy Federal Credit Union
(“NFCU”) $20,415, in PPP loan proceeds via an ACH deposit. Burke subsequently
used the fraudulently obtained loan proceeds for his own personal enrichment to
include paying off a loan with NFCU for a motorcycle.

In November 2021, Burke submitted a signed PPP loan forgiveness |
application, that is, a SBA Form 3508S - PPP Loan Forgiveness Application (“PPP
loan forgiveness application”), that included multiple materially false and fraudulent
representations. In the PPP loan forgiveness application Burke certified among other
things that the amount of the loan spent on payroll costs was $20,415 and that the
PPP loan proceeds were only used for purposes eligible under the terms of the PPP.

7 In reliance on the materially false statements contained in the PPP loan forgiveness
application the SBA forgave the entire amount of the principal, plus interest of |
Burke’s PPP loan.

On December 1, 2022, JSO Det. Bodine conducted a video recorded |

interviewed of Burke at the Integrity Unit. After voluntarily waiving his Miranda

rights in writing, Burke stated in substance and among other things that when he

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Case 3:23-cr-00068-TJC-MCR Document 26. Filed 07/26/23 Page 6 of 7 PagelD 67

lived in New Jersey he did volunteer work with kids. When he moved to Florida
prior to joining JSO he continued to volunteer with kids. Burke stated he was trying
to start a business related to kids, referencing it as a non-profit. When asked by Det.
Bodine whether he (Burke) was ever paid money for his work with kids Burke said
_ he spent his own money and time working with kids and was never paid. Det.
Bodine then showed Burke the PPP loan application that Burke submitted. Burke
acknowledged that he submitted the PPP loan application via a computer. As the
interview progressed, Det. Bodine showed him both the Form 1040 and the portion
of the PPP loan application that listed a business income of “$98,000”. Det. Bodine
asked Burke again if Burke was paid any money for his purported non-profit and
Burke said “no.” |
Respectfully submitted, |
ROGER B. HANDBERG

United States Attorney

By: _/s/ Kevin C. Frein
Kevin C. Frein.
Assistant United States Attorney

- Florida Bar No. 0149144

300 N. Hogan Street, Suite 700
Jacksonville, Florida 32202
Telephone: (904) 301-6300
Facsimile: (904) 301-6310
E-mail: kevin.frein@usdoj.gov

Case 3:23-cr-00068-TJC-MCR Document 26 Filed 07/26/23 Page /7 of 7 PagelD 68

U.S. v. DECONNA BURKE Case No. 3:23-cr-68-TJC-MCR

CERTIFICATE OF SERVICE

I hereby certify that on July 32023, I filed the foregoing with the Clerk of
the Court in open court and previously delivered a true and correct copy to the

following:

Scott T. Schmidt, Esquire
Counsel for the Defendant.

Mer G. tad

Kevin C. Frein

Assistant United States Attorney
Florida Bar No. 0149144

300 N. Hogan Street, Suite 700
Jacksonville, Florida 32202
Telephone: (904) 301-6300
Facsimile: (904) 301-6310
E-mail: kevin.frein@usdoj.gov

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