Court filing
Criminal Information — United States v. Cassie Will-Darnall
Summary
A criminal Information filed May 29, 2024 as Document 1 in United States v. Cassie Will-Darnall, Case No. CR 24-00292-PCP, in the U.S. District Court for the Northern District of California, San Jose Division. It lists violations of 18 U.S.C. § 1344(2) (bank fraud) and 18 U.S.C. § 1343 (wire fraud), with a forfeiture allegation under 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c). The Information describes the PPP and EIDL programs and alleges that the defendant used pre-existing non-operating business entities to seek approximately $9.1 million in loan proceeds, receiving over $2.8 million. It details two PPP applications: one for Alternative Health Services Inc to Lender 1 funded at $968,989, and one for Rosswood Properties LLC to Lender 2 with $1,864,565 transferred. The filing is 10 pages and ends with a defendant information sheet.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
No. 5:24-cr-00292-PCP · Doc. 1 · Docket on CourtListener
Full text
Case 5:24-cr-00292-PCP Document 1 Filed 05/29/24 Page 1 of 10
1 ISMAIL J. RAMSEY (CABN 189820)
United States Attorney
2
3
4
5
6
7
8 UNITED STATES DISTRICT COURT
9 NORTHERN DISTRICT OF CALIFORNIA
10 SAN JOSE DIVISION
11 UNITED STATES OF AMERICA, )
)
CASE NO. CR 24-00292-PCP
12 Plaintiff, ) VIOLATIONS:
) 18 U.S.C. § 1344(2) – Bank Fraud;
13 v. ) 18 U.S.C. § 1343 – Wire Fraud;
) 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c) –
14 CASSIE WILL-DARNALL, )
) Forfeiture Allegation
15 Defendant. )
) SAN JOSE VENUE
16 )
)
17
18 INFORMATION
19 The United States Attorney charges:
20 Introductory Allegations
21 At all times relevant to this Information:
22 1. CASSIE WILL-DARNALL was a resident of Los Gatos, California. WILL-DARNALL
23 owned or controlled multiple business entities.
24 2. Alternative Health Services Inc was a Colorado corporation that was first registered on or
25 about May 16, 2007, dissolved on or about November 15, 2018, and reinstated on or about November
26 11, 2019. In a Statement of Information filed with the California Secretary of State on or about
27 December 8, 2020, and signed with WILL-DARNALL’s name, WILL-DARNALL was listed as the
28 Chief Executive Officer.
INFORMATION 1
Case 5:24-cr-00292-PCP Document 1 Filed 05/29/24 Page 2 of 10
1 3. Rosswood Properties LLC was a California limited liability company that was first
2 registered on or about November 19, 2015, and whose registration was cancelled on or about August 10,
3 2020. In a Statement of Information for Rosswood Properties LLC filed on or about October 4, 2018,
4 WILL-DARNALL was listed as the Chief Executive Officer.
5 4. Rosswood LLC was a Wyoming limited liability company that was first registered on or
6 about July 11, 2012, and went inactive on or about September 8, 2016. The 2013, 2014, and 2015
7 annual reports were signed with WILL-DARNALL’s name, and the 2015 annual report listed Rosswood
8 LLC’s principal office address as 111 Belwood Gateway, Los Gatos, California, which was WILL-
9 DARNALL’s personal residence.
10 The Small Business Administration
11 5. The United States Small Business Administration (“SBA”) was an executive-branch
12 agency of the United States government that provided support to entrepreneurs and small businesses.
13 The mission of the SBA was to maintain and strengthen the nation’s economy by enabling the
14 establishment and viability of small businesses and by assisting in the economic recovery of
15 communities after disasters.
16 The Paycheck Protection Program
17 6. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law
18 enacted in or around March 2020 and designed to provide emergency financial assistance to the millions
19 of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief
20 provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small
21 businesses for job retention and certain other expenses, through a program referred to as the Paycheck
22 Protection Program (“PPP”). In or around April 2020, Congress authorized over $300 billion in
23 additional PPP funding.
24 7. In order to obtain a PPP loan, a qualifying business was required to submit a PPP loan
25 application, which was signed by an authorized representative of the business. The PPP loan application
26 required the business (through its authorized representative) to acknowledge the program rules and make
27 certain affirmative certifications in order to be eligible to obtain the PPP loan. In the PPP loan
28 application, the small business (through its authorized representative) was required to state, among other
INFORMATION 2
Case 5:24-cr-00292-PCP Document 1 Filed 05/29/24 Page 3 of 10
1 things, its: (a) average monthly payroll expenses; and (b) number of employees. These figures were
2 used to calculate the amount of money the small business was eligible to receive under the PPP. In
3 addition, businesses applying for a PPP loan were required to provide documentation showing their
4 payroll expenses.
5 8. Among the types of businesses eligible for a PPP loan were individuals who operated
6 under a “sole proprietorship” business structure. In order to be eligible to receive such a PPP loan,
7 individuals had to report and document their income and expenses from the sole proprietorship, as
8 typically reported to the Internal Revenue Service (“IRS”) on Form 1040, Schedule C, for a given tax
9 year. The lending institution or loan processor used this information and documents to calculate the
10 amount of money the individual was entitled to receive under the PPP.
11 9. A PPP loan application was required to be processed by a participating lender. If a PPP
12 loan application was approved, the participating lender funded the PPP loan using its own monies,
13 which were 100% guaranteed by the SBA. Data from the application, including information about the
14 borrower, the total amount of the loan, and the listed number of employees, was transmitted by the
15 lender to the SBA in the course of processing the loan.
16 10. PPP loan proceeds were required to be used by the business on certain permissible
17 expenses—payroll costs, interest on mortgages, rent, and utilities. The PPP allowed the interest and
18 principal on the PPP loan to be entirely forgiven if the business spent the loan proceeds on these expense
19 items within a designated period of time after receiving the proceeds and used a certain amount of the
20 PPP loan proceeds on payroll expenses.
21 11. On December 27, 2020, the Consolidated Appropriations Act of 2021, which included
22 the Economic Aid to Hard-Hit Small Businesses, Nonprofit, and Venues Act (the “Relief Act”) was
23 signed into law, which provided an additional $284.5 billion for the PPP. Under the Relief Act, certain
24 eligible borrowers that previously obtained a PPP loan under the original PPP were eligible to apply for
25 a Second Draw PPP loan. The Relief Act also re-opened the application period for First Draw PPP
26 loans to businesses that had not been approved for a “first draw” loan prior to August 8, 2020, or who
27 may have been eligible to receive more funds during the “first draw” period than they actually received.
28
INFORMATION 3
Case 5:24-cr-00292-PCP Document 1 Filed 05/29/24 Page 4 of 10
1 12. Borrowers were generally eligible to apply for a Second Draw PPP loan if they
2 previously received a PPP loan and would or had already used the full amount only for authorized uses,
3 had no more than 300 employees, and could demonstrate at least a 25% reduction in gross receipts
4 between comparable quarters in 2019 and 2020. Second Draw PPP loans were approved with the same
5 general loan terms as the first draw PPP loans.
6 The Economic Injury Disaster Loan Program
7 13. The Economic Injury Disaster Loan (“EIDL”) program was a SBA program that provided
8 low-interest financing to small businesses, renters, and homeowners in regions affected by declared
9 disasters.
10 14. The CARES Act also authorized the SBA to provide EIDL loans of up to $2 million to
11 eligible small businesses experiencing substantial financial disruption due to the COVID-19 pandemic.
12 In addition, the CARES Act authorized the SBA to issue advances of up to $10,000 to small businesses
13 within three days of applying for an EIDL loan. The amount of the advance was determined by the
14 number of employees the applicant certified having. The advances did not have to be repaid.
15 15. In order to obtain an EIDL loan and/or advance, a qualifying business was required to
16 submit an application to the SBA and provide information about its operations, such as the number of
17 employees, gross revenues for the 12-month period preceding the disaster, and cost of goods sold in the
18 12-month period preceding the disaster. In the case of EIDL loans for COVID-19 relief, the 12-month
19 period was that preceding January 31, 2020. The applicant was also required to certify that all of the
20 information in the application was true and correct to the best of the applicant’s knowledge.
21 16. EIDL applications were submitted directly to the SBA. The amount of the loan, if the
22 application was approved, was determined based, in part, on the information provided by the applicant
23 about employment, revenue, and cost of goods, as described above. Any funds issued under an EIDL
24 loan or advance were issued directly by the SBA. EIDL funds could be used for payroll expenses, sick
25 leave, production costs, and business obligations, such as debts, rent, and mortgage payments. If the
26 applicant also obtained a loan under the PPP, the EIDL funds amount needed to be declared by the
27 applicant and deducted from the total loan eligibility.
28 / / /
INFORMATION 4
Case 5:24-cr-00292-PCP Document 1 Filed 05/29/24 Page 5 of 10
1 Relevant PPP Lenders
2 17. Lender 1 was a federally insured financial institution based in New Jersey. Lender 1
3 participated as an SBA-approved PPP lender to small businesses.
4 18. Lender 2 was a non-bank lender based in California. Lender 2 participated as an SBA-
5 approved PPP lender to small businesses.
6 The Scheme and Artifice to Defraud
7 19. Beginning at least as early as March 2020, and continuing through in or around March
8 2021, in the Northern District of California and elsewhere, WILL-DARNALL knowingly and with
9 intent to defraud, devised, participated in, and executed a scheme to defraud the SBA and SBA-
10 approved lenders as to material matters, and to obtain moneys, funds, assets, and other property owned
11 by and under the custody and control of lenders and the SBA by means of material false and fraudulent
12 pretenses, representations, and promises, and the concealment of material facts.
13 20. WILL-DARNALL identified pre-existing non-operating business entities for the purpose
14 of submitting false and fraudulent applications for PPP and EIDL loans.
15 21. WILL-DARNALL made, and caused to be made, false and fraudulent statements to the
16 SBA and lenders, including Lender 1 and Lender 2, in connection with applications for PPP and EIDL
17 loans, including false and fraudulent representations regarding the dates of operation of the loan
18 applicants (e.g., falsely asserting that the loan applicants were operating at the time of the applications);
19 falsely overstating the number of persons employed by the loan applicants; and falsely overstating the
20 loan applicants’ monthly payroll expenses.
21 22. WILL-DARNALL also electronically submitted, and caused to be submitted, false and
22 fictitious documents to the SBA and lenders, including Lender 1 and Lender 2, in support of the
23 fraudulent PPP and EIDL loan applications, including tax documents, a bank statement, and voided
24 checks.
25 23. WILL-DARNALL submitted and caused to be submitted at least five PPP loan
26 applications and at least two EIDL loan applications, submitted in her name. In total, WILL-DARNELL
27 sought approximately $9.1 million in PPP and EIDL loan proceeds through these applications and
28 received over $2.8 million from the SBA and SBA-approved lenders.
INFORMATION 5
Case 5:24-cr-00292-PCP Document 1 Filed 05/29/24 Page 6 of 10
1 24. WILL-DARNALL directed that PPP loan proceeds be electronically deposited into a
2 Wells Fargo business account at ending in -7528 held in the name of Rosswood LLC that WILL-
3 DARNALL controlled.
4 25. After receiving PPP and EIDL loan proceeds, WILL-DARNALL used the fraudulently
5 obtained funds for various purposes, including to pay off real estate loans, pay down credit card debt,
6 make deposits into an investment account, make cryptocurrency transfers, and make retail store and
7 restaurant purchases.
8 Alternative Health Services Inc Application to Lender 1
9 26. On or about May 20, 2020, Lender 1 received a PPP application in the name of
10 Alternative Health Services Inc seeking a PPP loan in the amount $968,989. The application was
11 submitted in the name of WILL-DARNALL and represented she was the sole Partner of Alternative
12 Health Services Inc.
13 27. The PPP application falsely stated that Alternative Health Services Inc’s average monthly
14 payroll was $387,595.67, and that the company had ten employees. The PPP loan file included a false
15 and fraudulent Employer’s Annual Federal Tax Return (IRS Form 944) for year 2019, which claimed
16 that Alternative Health Services Inc had paid $19,526,696.30 in wages, tips, and other compensation,
17 and was signed with WILL-DARNALL’s name. The PPP loan file also included a false and fraudulent
18 February 2020 City National Bank statement for an account ending in -6529, which purported to be the
19 in the name of Alternative Health Services Inc. The City National Bank account ending in -6529 was in
20 the name of Rosswood Properties LLC and was closed in September 2018. WILL-DARNALL was a
21 signer on this account. The PPP loan file also included several voided checks purporting to be in the
22 name of Alternative Health Services Inc, including a check on the City National Bank account ending in
23 -6529 and a check on the Wells Fargo account ending in -7528.
24 28. Based on the false information provided to Lender 1 in the Alternative Health Services
25 Inc PPP application and supporting documentation, Lender 1 approved and funded the PPP loan. On or
26 about May 20, 2020, $968,989 was transferred to a business account at Wells Fargo ending in -7528
27 held in the name of Rosswood LLC and controlled by WILL-DARNALL.
28 / / /
INFORMATION 6
Case 5:24-cr-00292-PCP Document 1 Filed 05/29/24 Page 7 of 10
1 Rosswood Properties LLC Application to Lender 2
2 29. On or about July 12, 2020, Lender 2 received a PPP application in the name of Rosswood
3 Properties LLC seeking a PPP loan in the amount $1,650,500. The application was submitted in the
4 name of WILL-DARNALL and represented that she was the CEO of Rosswood Properties LLC.
5 30. The PPP application falsely stated that Rosswood Properties LLC’s average monthly
6 payroll was $816,551, and that the company had 35 employees. The PPP loan file included a false and
7 fraudulent Employer’s Annual Federal Tax Return (IRS Form 944) for year 2019, which claimed that
8 Rosswood Properties LLC had paid $8,949,906 in wages, tips, and other compensation, and was signed
9 with WILL-DARNALL’s name.
10 31. Based on the false information provided to Lender 2 in the Rosswood Properties LLC
11 application and supporting documentation, Lender 2 approved and funded the PPP loan. On or about
12 July 21, 2020, $1,864,565 was transferred to a business account at Wells Fargo ending in -7528 held in
13 the name of Rosswood LLC and controlled by WILL-DARNALL.
14 COUNT ONE: (18 U.S.C. § 1344(2) – Bank Fraud)
15 32. Paragraphs 1 through 31 of this Information are re-alleged and incorporated as if fully set
16 forth here.
17 33. Beginning at least as early as March 2020, and continuing through in or around March
18 2021, in the Northern District of California and elsewhere, the defendant,
19 CASSIE WILL-DARNALL,
20 knowingly and with the intent to defraud, devised, participated in, executed, and attempted to execute a
21 scheme to obtain moneys, funds, credits, assets, and other property owned by and under the custody and
22 control of federally insured financial institutions by means of material false and fraudulent pretenses,
23 representations, and promises, and the concealment of material facts.
24 34. On or about May 20, 2020, in the Northern District of California and elsewhere, for the
25 purpose of executing the aforementioned scheme and attempting to do so, the defendant,
26 CASSIE WILL-DARNALL,
27 committed and willfully caused others to commit the following act, which constituted an execution of
28 the fraudulent scheme: Lender 1 transferred $968,989 to a Wells Fargo business account ending in -7528
INFORMATION 7
Case 5:24-cr-00292-PCP Document 1 Filed 05/29/24 Page 8 of 10
1 and controlled by WILL-DARNALL to fund a PPP loan to Alternative Health Services Inc.
2 All in violation of Title 18, United States Code, Section 1344(2).
3 COUNT TWO: (18 U.S.C. § 1343 – Wire Fraud)
4 35. Paragraphs 1 through 31 of this Information are re-alleged and incorporated as if fully set
5 forth here.
6 36. Beginning at least as early as March 2020, and continuing through in or around March
7 2021, in the Northern District of California and elsewhere, the defendant,
8 CASSIE WILL-DARNALL,
9 knowingly and with the intent to defraud, participated in, devised, and intended to devise a scheme and
10 artifice to defraud as to a material matter, and to obtain money and property by means of materially false
11 and fraudulent pretenses, representations, and promises, and by means of omission and concealment of
12 material facts.
13 37. On or about July 12, 2020, in the Northern District of California and elsewhere, for the
14 purpose of executing the aforementioned scheme and artifice to defraud and attempting to do so, the
15 defendant,
16 CASSIE WILL-DARNALL,
17 did knowingly transmit and cause to be transmitted in interstate and foreign commerce, by means of a
18 wire communication, certain writings, signs, signals, pictures, and sounds, specifically: a PPP loan
19 application for Rosswood Properties LLC transmitted from WILL-DARNELL in California to the SBA
20 through its server in Virginia.
21 All in violation of Title 18, United States Code, Section 1343.
22 FORFEITURE ALLEGATION: (18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c))
23 The allegations contained in this Information are re-alleged and incorporated by reference for the
24 purpose of alleging forfeiture pursuant to Title 18, United States Code, Section 981(a)(1)(C) and Title
25 28, United States Code, Section 2461(c).
26 Upon conviction for any of the offenses set forth in this Information, the defendant,
27 CASSIE WILL-DARNALL,
28 shall forfeit to the United States, pursuant to Title 18, United States Code, Section 981(a)(1)(C) and
INFORMATION 8
Case 5:24-cr-00292-PCP Document 1 Filed 05/29/24 Page 9 of 10
1 Title 28, United States Code, Section 2461(c), all property, real or personal, constituting, or derived
2 from proceeds the defendant obtained directly and indirectly, as the result of those violations, including
3 but not limited to the following:
4 1. 111 Belwood Gateway, Los Gatos CA 95032, Santa Clara County, APN 527-31-019;
5 2. 306 Los Gatos Almaden Rd., Los Gatos, CA 95032, Santa Clara County, APN 527-46-
6 002;
7 3. A forfeiture money judgment in the amount of $2,833,554, representing the total value of
8 proceeds obtained directly or indirectly by the defendant from the commission of the offense of
9 conviction.
10 If any of the property described above, as a result of any act or omission of the defendant:
11 a. cannot be located upon exercise of due diligence;
12 b. has been transferred or sold to, or deposited with, a third party;
13 c. has been placed beyond the jurisdiction of the court;
14 d. has been substantially diminished in value; or
15 e. has been commingled with other property which cannot be divided without
16 difficulty,
17 the United States of America shall be entitled to forfeiture of substitute property pursuant to Title 21,
18 United States Code, Section 853(p), as incorporated by Title 28, United States Code, Section 2461(c).
19 All pursuant to Title 18, United States Code, Section 981(a)(1)(C), Title 28, United States Code,
20 Section 2461(c), and Federal Rule of Criminal Procedure 32.2.
21
22 DATED: May 29, 2024 ISMAIL J. RAMSEY
United States Attorney
23
24
SARAH E. GRISWOLD
25 Assistant United States Attorney
26
27
28
INFORMATION 9
AO 257 (Rev. 6/78) Case 5:24-cr-00292-PCP Document 1 Filed 05/29/24 Page 10 of 10
DEFENDANT INFORMATION RELATIVE TO A CRIMINAL ACTION - IN U.S. DISTRICT COURT
BY: COMPLAINT INFORMATION INDICTMENT Name of District Court, and/or Judge/Magistrate Location
SUPERSEDING NORTHERN DISTRICT OF CALIFORNIA
OFFENSE CHARGED
SAN JOSE DIVISION
Petty
Minor DEFENDANT - U.S
Misde-
meanor
Felony
DISTRICT COURT NUMBER
PENALTY:
CR 24-00292-PCP
DEFENDANT
PROCEEDING IS NOT IN CUSTODY
Has not been arrested, pending outcome this proceeding.
Name of Complaintant Agency, or Person (& Title, if any) 1) If not detained give date any prior
summons was served on above charges
person is awaiting trial in another Federal or State Court, 2) Is a Fugitive
give name of court
3) Is on Bail or Release from (show District)
this person/proceeding is transferred from another district
per (circle one) FRCrp 20, 21, or 40. Show District
IS IN CUSTODY
4) On this charge
this is a reprosecution of
}
charges previously dismissed 5) On another conviction
which were dismissed on motion SHOW Federal State
}
of: DOCKET NO.
6) Awaiting trial on other charges
U.S. ATTORNEY DEFENSE
If answer to (6) is "Yes", show name of institution
this prosecution relates to a
}
Yes If "Yes"
pending case involving this same Has detainer
give date
defendant MAGISTRATE been filed? No filed
}
CASE NO.
DATE OF Month/Day/Year
prior proceedings or appearance(s)
before U.S. Magistrate regarding this ARREST
defendant were recorded under Or... if Arresting Agency & Warrant were not
Name and Office of Person DATE TRANSFERRED Month/Day/Year
Furnishing Information on this form TO U.S. CUSTODY
U.S. Attorney Other U.S. Agency
Name of Assistant U.S. This report amends AO 257 previously submitted
Attorney (if assigned)
ADDITIONAL INFORMATION OR COMMENTS
PROCESS:
SUMMONS NO PROCESS* WARRANT Bail Amount:
If Summons, complete following:
Arraignment Initial Appearance * Where defendant previously apprehended on complaint, no new summons or
warrant needed, since Magistrate has scheduled arraignment
Defendant Address:
Date/Time: Before Judge:
Comments:
File and source
- File
- gov.uscourts.cand.430212.1.0.pdf
- Size
- 1,795,898 bytes
- SHA-256
- 97526e612fbb701f1eee3c572d1823e6495ed91fe95f15fb98b903c857b3f88f
- Our copy
- gov.uscourts.cand.430212.1.0.pdf
- Original
- PACER (login required)