Criminal complaint — U.S. v. Carter

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AUSA: 
Mark Chasteen
Special Agent: 
Julia MacBeth
UNITED STATES DISTRICT COURT
for the
Eastern District of Michigan
Telephone: (313) 226-9555
Telephone: (313) 919-1373
AO 91 (Rev. 11/11) Criminal Complaint
United States of America
V
JAVA DOMINIQUE CARTER
Case No.
CRIMINAL COMPLAINT
I, the complainant in this case, state that the following is true to the best of my knowledge and belief
On or about the date(s) of 
March 6 – May 5, 2021 
in the county of 
Oakland
Eastern 
District of 
Michigan 
, the defendant(s) violated:
Code Section 
Offense Description
18 U.S.C. §1343
in the
Wire Fraud
This criminal complaint is based on these facts:
p] Continued on the attached sheet.
'/a£lzaM- signature
al Agent
Printed name and title
Sworn to before me and signed in my presence
and/or by reliable electronic means.
Date:
City and state: Detroit, MI
Judge’s signature
Printed name and title
Elizabeth A. Stafford- U.S Magistrate Judge
Case: 2:22−mj−30125
Assigned To : Unassigned
Assign. Date : 3/8/2022
CMP: SEALED MATTER (MAW)
March 8, 2022
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AFFIDAVIT IN SUPPORT OF A COMPLAINT  
I, Julia MacBeth, Special Agent for the Federal Bureau of Investigation, 
being duly sworn, state as follows:   
INTRODUCTION AND AFFIANT BACKGROUND 
1. I am a Special Agent of the FBI and, as such, an investigative or law
enforcement officer of the United States within the meaning of Section
2510(7) of Title 18 of the United States Code.  I am empowered to conduct
investigations of and to make arrests for offenses enumerated in Title 18 of
the United States Code.
2. I have been employed by the FBI since May 2016.  Prior to joining the FBI, I
was a Federal Air Marshal from December 2010 until April 2016.  I earned
a Bachelor’s degree in criminal justice from Western Michigan University
and a Master’s degree in criminal justice from Tiffin University.   I have
received law enforcement training at the Federal Law Enforcement Training
Center (FLETC) and the FBI Academy.  During my employment with the
FBI, I have investigated federal crimes involving mail fraud, wire fraud,
money laundering, investment fraud, identity theft, and various other criminal
matters.   At all times during the investigation described in this affidavit, I
have been acting in an official capacity as a Special Agent of the FBI.
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PURPOSE OF AFFIDAVIT  
3. This affidavit is made in support of a criminal complaint and arrest warrant 
for JAVA DOMINIQUE CARTER of violations of Title 18, U.S.C. §1343 
(Wire Fraud). 
4. Based on my training and experience and the facts set forth in this affidavit, 
there is probable cause to believe that CARTER, resident of the Eastern 
District of Michigan, is responsible for devising and perpetrating a scheme to 
defraud a financial institution and the Paycheck Protection Program, within 
the Eastern District of Michigan.   There is also probable cause to believe that 
this scheme involved the use of interstate wire transactions to execute the 
fraud.  
5. This affidavit is submitted for securing a criminal complaint and arrest 
warrants; therefore, this affidavit does not contain every fact that I have 
learned during the course of the investigation. I have only set forth the facts 
necessary to establish probable cause to believe that CARTER violated the 
statute identified above. The information contained in this affidavit is based 
upon my personal knowledge, training, and experience, as well as the 
combined knowledge, training and experience of other law enforcement 
officers and agents with whom I have had discussions. 
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6. Title 18, U.S.C. § 1343 criminalizes the use of interstate wire 
communications for the purpose of executing or attempting to execute any 
scheme or artifice to defraud, or for obtaining money or property by means of 
false or fraudulent pretenses, representations, or promises. 
BACKGROUND OF THE PAYCHECK PROTECTION PROGRAM 
7. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a 
federal law enacted in or around 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 up to $349 billion in 
forgivable loans to small businesses for job retention and certain other 
expenses, through a program referred to as the Paycheck Protection Program 
(“PPP”).  In or around April 2020, Congress authorized over $300 billion in 
additional PPP funding. 
8. PPP now allows certain eligible borrowers that previously received a PPP loan 
to apply for a Second Draw PPP loan with the same general loan terms as their 
First Draw PPP loan. Second Draw PPP loans can be used to help fund payroll 
costs, including benefits. Funds can also be used to pay for mortgage interest, 
rent, utilities, worker protection costs related to COVID-19, uninsured 
property damage costs caused by looting or vandalism during 2020, and certain 
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supplier costs and expenses for operations. A borrower is generally eligible for 
a Second Draw PPP loan if the borrower: previously received a First Draw PPP 
loan and will or has used the full amount only for authorized uses, has no more 
than 300 employees, and can demonstrate at least a 25% reduction in gross 
receipts between comparable quarters in 2019 and 2020. 
9. In order to obtain a PPP loan, a qualifying business must submit a PPP loan 
application, which is signed by an authorized representative of the business. 
To be a qualified business, certain criteria must be met, such as being in 
operation on Feburary15, 2020 and not permanently closed. The PPP loan 
application requires 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 
small business (through its authorized representative) must state, among other 
things, its: (a) average monthly payroll expenses; and (b) number of 
employees.  These figures are used to calculate the amount of money the small 
business is eligible to receive under the PPP.  In addition, businesses applying 
for a PPP loan must provide documentation showing their payroll expenses.  
The maximum amount which could be claimed for a self-employed individual 
is $100,000, which would equate to $8,333.33 monthly and a maximum loan 
amount of $20,833.  
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10. A PPP loan application must be processed by a participating lender.  If a PPP 
loan application is approved, the participating lender funds the PPP loan using 
its own monies, which are 100% guaranteed by Small Business Administration 
(“SBA”).  Data from the application, including information about the 
borrower, the total amount of the loan, and the listed number of employees, is 
transmitted by the lender to the SBA in the course of processing the loan.    
11. PPP loan proceeds must be used by the business on certain permissible 
expenses—payroll costs, interest on mortgages, rent, and utilities.  The PPP 
allows the interest and principal on the PPP loan to be entirely forgiven if the 
business spends the loan proceeds on these expense items within a designated 
period of time after receiving the proceeds and uses a certain amount of the 
PPP loan proceeds on payroll expenses.   
12. PPP now allows certain eligible borrowers that previously received a PPP loan 
to apply for a Second Draw PPP loan with the same general loan terms as their 
First Draw PPP loan. Second Draw PPP loans can be used to help fund payroll 
costs, including benefits. Funds can also be used to pay for mortgage interest, 
rent, utilities, worker protection costs related to COVID-19, uninsured 
property damage costs caused by looting or vandalism during 2020, and certain 
supplier costs and expenses for operations. A borrower is generally eligible for 
a Second Draw PPP loan if the borrower: previously received a First Draw PPP 
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loan and will or has used the full amount only for authorized uses, has no more 
than 300 employees, and can demonstrate at least a 25% reduction in gross 
receipts between comparable quarters in 2019 and 2020. 
ADDITIONAL BACKGROUND INFOMRATION 
13. Fountainhead Small Business Finance LLC (Fountainhead) is a nationwide 
direct lender headquartered in Lake Mary, Florida. Fountainhead utilizes 
Womply Inc, a San Francisco, California based software company, to assist 
in processing PPP applications. Fountainhead Small Business Finance 
disburses all PPP loans via Automatic Clearing House (ACH) transfer from 
an account held at Capital One Bank, headquartered in McLean, Virginia. 
Therefore, a processed application and funded PPP loan submitted from 
Michigan would cause interstate wire transfers of both the application and 
monetary disbursement.  
PROBABLE CAUSE 
14. Around May 2020, the FBI and US Postal Inspector Service (USPIS) became 
aware that CARTER had applied for numerous PPP loans and received funding 
for two PPP loans under his name as a self-employed individual. Subsequent 
investigative activities conducted by the FBI and USPIS identified multiple 
PPP loans received by CARTER for a business which does not appear to have 
any legitimate business dealings and were filed using falsified tax records. 
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15. A PPP Borrower Application Form was filed on March 29, 2021, by CARTER 
with Fountainhead. The listed address on the application was on Blair Ct, West 
Bloomfield, Michigan in the Eastern District of Michigan. The loan was 
requesting $20,833 for the purpose of payroll costs. CARTER listed himself 
as a sole proprietor doing business as JAVA CARTER with a total gross 
income of $136,720. CARTER provided his verified social security number on 
the application. This application was digitally signed by CARTER as the 
authorized representative of the applicant.  
16. Less than a month later, on April 12, 2021, CARTER filed a Second Draw 
Borrower Application Form with Fountainhead. The application listed address 
on the application was on Blair Ct, West Bloomfield, Michigan located in the 
Eastern District of Michigan. The loan was requesting another $20,833 for the 
purpose of payroll costs. CARTER listed himself as a sole proprietor with a 
gross income of $136,720. This application was digitally signed by CARTER 
as the authorized representative of the applicant.  
17. The same Internal Revenue Service (IRS) tax record was provided by 
CARTER as supporting documents for both applications. The tax form was a 
2019 Schedule C (IRS Form 1040): Profit or Loss from Business for a Sole 
Proprietorship forms for business CARTER SHOP. The listed service of the 
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business is barber. The form reports a gross income for the company in 2019 
as $136,720. The name of the proprietor is CARTER.  
18. According to the Internal Revenue Service (IRS), no Schedule C 1040 forms, 
were filed for CARTER SHOP in 2019 or 2020. Therefore, the Schedule C 
forms submitted to Fountainhead to obtain both PPP loan applications were 
falsified and not legitimately filed tax records.   
19. A search of the State of Michigan’s Department of License and Regulatory 
Affairs revealed there are no records for company CARTER SHOP registered 
to or by CARTER.  
20. State of Michigan’s Department of License and Regulatory Affairs records 
indicate CARTER does not hold a barber or cosmetology license in the State 
of Michigan. Additionally, CARTER SHOP is not a licensed barbershop. 
21. A Bank of America checking account ending in 1151, titled JAVA D 
CARTER, was opened on April 16, 2021. CARTER is the sole signer on the 
account. The most recent billing address for the account is on Blair Ct, West 
Bloomfield, MI.  
22. On April 20, 2021, the bank account ending in 1151, titled JAVA D CARTER, 
received an incoming ACH transfer for $20,833 from Fountainhead, for the 
purpose of a PPP loan disbursement, causing an interstate wire transfer of the 
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funds. On May 5, 2021, a second ACH transfer of $20,833 was transferred to 
account ending in 1151 from Fountainhead for the purpose of a PPP loan.  
23. Monthly bank statements provided by JP Morgan Chase showed that account 
ending in 1151 had only one deposit of $200 to open the account prior to the 
PPP fund transfers in April 2021. A review of the account did not show any 
legitimate business transactions indicative of a hair stylist business as specified 
on the PPP loan applications.  
24. During the course of this investigation, it was discovered CARTER had filed 
other PPP loan applications, which were ultimately declined. CARTER 
submitted a PPP loan application on March 6, 2021, for a different business, 
CARTERCARTER PLLC. On this application CARTER indicated that 
CARTERCARTER PLLC was established on February 19, 2019, had six 
employees on payroll and requested a loan for $40,000. Attached to the 
application were Schedule C IRS forms for years 2019 and 2020 taxes. This 
loan was declined due to the business having already applied for a PPP loan. 
25. As referenced above, according to IRS records, no taxes were filed by 
CARTER for CARTERCARTER PLLC in 2019 or 2020, indicating these tax 
forms were fabricated for the purpose of falsifying the PPP application.  
26. According to the State of Michigan’s Department of License and Regulatory 
Affairs, CARTERCARTER P.L.L.C was organized on February 11, 2020 by 
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CARTER. The purpose of the company was for the purchasing and selling of 
homes. On the referenced PPP application, CARTER listed the year of 
establishment as February 19, 2019.
27. According to the U.S Department of Labor, during this time period, starting
in May 2020, in which CARTER claimed to have been working as a barber,
CARTER also received approximately $10,040 in unemployment benefits.
28. Open source internet checks do not reveal any results for CARTER as a hair
stylist or CARTER SHOP. Additionally, there are no relevant results for
CARTERCARTER PLLC. Based on my experience investigating fraud, the
lack of internet and social media presence, unfiled taxes, and the establishment
of the companies after the start of the pandemic indicates these companies do
not appear to have any legitimate business dealings and are not currently in
business or were fabricated for the purpose of fraud.
CONCLUSION 
29. Based on the investigation thus far, including the facts set forth above, your
affiant submits that there is probable cause to believe that JAVA CARTER
executed a scheme to defraud by knowingly falsifying PPP loan applications
and the attached tax documents. CARTER used fraudulent tax forms and
fabricated businesses to illegally acquire $41,666 in PPP funds and
unsuccessfully attempted to acquire thousands of dollars more. In addition,
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while doing so, CARTER caused interstate wire transmissions of funds.
Therefore, your affiant believes that probable cause exists that JAVA
CARTER violated Title 18, U.S.C. §1343 (Wire Fraud).
Respectfully submitted,
ia MacBeth
Special Agent
Federal Bureau of Investigation
Sworn to before me and signed in my presence
and/or by reliable electronic means.
____________________________________
Elizabeth A. Stafford
United States Magistrate Judge 
Case 2:22-mj-30125-DUTY   ECF No. 1, PageID.12   Filed 03/08/22   Page 12 of 12

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