Plea Agreement — United States v. Dara Buck, a.k.a. Dara Butler

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Case 4:22-cr-00065-RSB-CLR Document 30 Filed 07/14/22 Page 1 of 16

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF GEORGIA

SAVANNAH DIVISION

)

UNITED STATES OF AMERICA )
)

v. ) CR: 422-

)

DARA BUCK, )
A.K.A. DARA BUTLER )

PLEA AGREEMENT

Defendant Dara Buck, represented by her counsel Peter McCoy and Jim May,
and the United States of America, represented by Assistant United States Attorneys
Patrick J. Schwedler and Jonathan A. Porter, have reached a plea agreement in this
case, The terms and conditions of that agreement are as follows.
1. Guilty Plea

Defendant, having been advised of the right to be charged by Indictment,
agrees to waive that night and enter a plea of guilty to Count One of the Information,
which charges a violation of 18 U.S.C, § 371, Conspiracy.
2. Klements and Factual Basis

The elements neceasary to prove the offense charged in Count One are (1) that
two or more persons in some way agreed to try to accomplish a shared and unlawful
plan; (2) the Defendant knew the unlawful purpose of the plan and willfully joined in
it; (3) during the conapiracy, one of the conspirators knowingly engaged in at least

one overt act aa described in the Information; and (4) the overt act was committed at


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or about the time alleged and with the purpose of carrying out or accomplishing some
ubject of the conspiracy,

Defendant agrees that she is, in fact, guilty of Count One. She agrees to the
accuracy of the following facts, which satisfy each of the offense’s required elements:

Beginning no later than August 2017 and continuing through at least May
2021, in Liberty County, within the Southern District of Georgia, and elsewhere,
Defendant, aided and abetted by others, did knowingly and willfully combine,
conspire, confederate, and agree with al least one other person to commut the
following offenses against the United States, that is:

fa} wire fraud, that is to devise and intend to deviae a scheme and artifice
to defraud and to obtain money and property by means of false and fraudulent
pretenses, representations and promises, and for the purpose of cxceuting the scheme
and artifice and ta obtain money and property, caused te be transmitted wires and
signals in interstate and foreign commerce, namely interstate communications ta be
made over the internet, in furtherance of the scheme and artifice to defraud. in
violation of 18 U.S.C. § 1843: and

(b} to devise a scheme and artifice to defraud the United States
Department of Education (the "Department”}, specifically ita student aid programs,
of money by means of false and fraudulent promises, vepresentatiuns, and pretenses,
in violation of 20 U.S.C § 1007 (a).

The object of the conspiracy was for Defendant and her co-conspirators to

unjustly enrich themsclves by submitting fraudulent Paycheck Protection Program

Nw


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(“PPP”) applications to financial institutions, with knowledge that. PPP loans were
guaranteed by the Small Business Administration (‘SBA‘), to unlawfully induce the
SBA and PPP lenders to dispense money and funds to co-conspiratara to which they
were not entitled, and who, in turn. would pay a fee tu the Defendant: and to unjustly
enrich themselves by submitting to the Department false documents in an effort tu
wronglully discharge student loans under false pretenses.

In turtherance of this scheme, and to effect the objects thereof, the following
acts relating to PPP fraud were committed in furtherance of che conspiracy:

lt was part of the conspiracy that Defendant filed fraudulent online PPP loan
applications to lenders Incated outside of the State of Georgia on hehalf of several
businesses that she purportedly owned. For each of these businesses, Defendant.
falsely represented that the respective business had approximately $100,000 in 2019
gross income and a monthly payroll of approximately $8,333.30. Defendant did go in
order to receive PPP loans of approximately $20,833.00 each, which represents the
maximum PPP loan available for a business that employs a single employee.
Defendant secured more than $100,000 in fraudulent loana on behalf of her purported
businesses.

{i was alao part of the conspiracy (hat Defendant, and other co-conspirators,
knewn and unknown, filled out fraudulent PPP loan applications for other
individuals and businesses in exchange for a fee. Defendant and her co-conspirators
utilized cellular devices, email, and the internet to create these fraudulent PPP

applications. Co-cenapiratars would send personal identifying information and

0


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banking information to Defendant. Defendant, in turn, would use the Internet to
submit PPP loan applications to lenders located outside of the State of Georgia using
this information.

Similar tu Defendant’s personal fraudulent PPP applications, the fraudulent
PPP applications she and her co-conspirators did for third parties also falsely claimed
the applicant had a 2019 gross income of approximately $100,000 and a monthly
payroll of approximately $8,.833.00—with the goal of securing each client a
$20,883.00 PPP loan, Also similar to Defendant's personal upplications, Defendant
created fictitious tax documents that included ginned up financial numbers for the
apphcants and supplied them to PPP tenders in support of the loan request.

In reliance on false representations made in PPP applications created by
Defendant in conjunction with her co-conspirators, hanks headquartered outside the
State of Georgia, by means of wire commuuication, deposited millions of dollars inte
co-conspirators’ bank accounts resulting from this scheme.

In exchange for Defendant completing a fraudulent PPP application,
Defendant's co-conspirators paid Defendant a fee ranging from $500 to $1000 per PPP
application, Co-conspiratars transmitted this to Defendant via CashApp. Zelle. or by
cash transactions.

Between in or around December 2020 through in or around May 2021,
Defendant, in the Southern District of Georgia and elsewhere, caused to be submitted

more than 150 fraudulent PPP applications on hehalf of herself and co-conspirators,

OP


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which resulted in more than $3,500,000 being disbursed from banks to members af
the conspiracy,

One such instance occurred on or about February 9. 2021, in the Southern
District of Georgia, and elsewhere, wherain Defendant, aided and abetted by others,
for the purpose of executing the scheme and artifice described above, and attempting
to do so, caused to he transmitted in interstate commerce, by means of a wire
communication, certain signs, signals, and sounds: that is, Defendant and Co-
conspirator | caused to be transmitted a fraudulent electronic PPP application and
supporting fictious Schedule C tax document from the Southern Distriet of Georgia
to Bank 1 in Utah, which caused Bank J to deposit $20,834 into Co-congpirator J's
account at Bank 2, and in exchange, Ca-cunypirator 1 paid Defendant $500,

Relating to Defendant's fraud of the Department relating to student loans,
pursuant to Title IV of the Higher Education Act of 1966 ("Title IV"), as amended. the
Department oversees federal financial aid programs that provide financial assistance
to qualifying applicants seeking higher education. Under Title IV, student loan
berrowers with a total and permanent disability (’TPD”) qualify to have the follawing
loans discharged: Wilham D. Ford Direct Loan Program, Fedeval Family Education
Loan Program, and Federal Perkins Loan Program (collectively, “Federal Student
Loans’),

To qualify for 4 TPD based discharge, an applicant had to electronically submit
an application to Nelnet, a third-party contractor and servicer acting on behalf of the

Department. A TPD discharge applicant could make a TPD showing by providing

an


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Nelnet with supporting documentation from three sources during the timeframe of
the conspiracy: (1) the U.S. Department of Veterans Affairs (VA); (2) the Social
Security Administration; or (3) a physician's certification. With respect to the VA, an
applicant wae eligible for a TPI) Federal Student Loan discharge if the veteran had
received a determination that the veteran had a service-connected disability that is
100% disabling and/ar the veteran had a determination that. the veteran was totally
disubled based an an individual unemployahility rating.

In furtherance of this scheme, and to effect the objects thereof, the following
acts relating to TPD applications to fraudulently discharge Federal Student Loans
were committed in furtherance of the conspiracy:

Defendant and co-conspirators, known and unknown, submitted fraudulent
TPD applications to discharge Federal Student Loans un behalf of Defendant and
others, For each, Defendant submitted TPD discharge applications that falsely
vlaimed the applicant was a qualifying disabled veteran. To support the application,
Defendant created fictitious letters that purported to come from the VA that claimed
the applicant had a 100% disability rating

Between in or around August 2017 through in or around March 2021,
Defendant, while in the Southern District of Georgia, caused ta be submitted more
than a dozen fraudulent TPD applications on hehalf of herself and co-conapiratare, in
an effort to discharge more than $1,000,000 in Fedcoral Student Loans. Defendant
was paid a fee of approximately $350 to $500 for each fraudulent TPD application she

submitted,

5

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One such instance occurred on or about November 18, 2018, wherein
Defendant submitted, or caused to ba submitted, an application seeking to discharge
Co-conspirator 2's federal student loans on the basis that he was unemployable due
fo a service-connected disability. In support of Co-conspirator 2's application,
Defendant submitted a fictitious letter that purported to come from the VA claiming
that Ca-Conspirator 2 had a 10% service-connected disability. Ca-conspirator 2 ig
not a veteran and is not disabled. In reliance on Defendant's falue representations,
Co-conspirator 2 had approximately $17,108 in federal student loans discharged,

All dane in violation of Title 18, United States Code, Section 371,

3, Possible Sentence

Defendant's guilty plea will subject hey to the following maximum possible
sentence: 5 years’ imprisonment, 3 years’ supervised release, a $250,000 fine, such
restitution as may be ordered by the Court, and forfeiture of all forteitable assets. The
Court additionally must impose a $100 special assessment per count of conviction.

4. No Promised Sentence

No one haa promised Defendant that the Court will impose any particular
sentence or 4 sentence within any particular range. The Court is not bound by any
estimate of sentence given or recommendations made by Defendant's counsel, the
government, the U.S. Probation Office, or anyone alse. The Court may impose 4
sentence up to the atatutory maximum. Defendant will not be allowed to withdraw
her plea of guilty if she receives a more severe sentence than she expects

A. Court's Use of Sentoncing Guidelines


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The Court is obligated to use the United Statea Sentencing Guidelines to
calculate the applicable guideline range for Defendant's offense. The Sentencing
Guidelines are advisory; the Court is not required to impose a sentence within the
range those Guidelines suggest. The Court will consider that range, possible
departures under the Sentencing Guidelines, and other sentencing factors under 18
U.S.C. § 3563(a), in determining the Defendant's sentence. The Sentencing
Guidelines are based on all of Defendant’s relevant conduct, pursuant to U.S.S.G. §
1B1.3, net just the conduct underlying the particular Count ar Counts to which

Defendant ia pleading guilty.

G. Agreements Regarding Sentencing Guidelines
a. Use of Information

Nothing in this agreement precludes the government from providing full and
accurate information to the Court and U.S. Probation Office for use in calculating the
applicable Sentencing Guidelines range. Any incriminating information provided by
the defendant during her cooperation will not be used in determining the applicable
Guidelines range, pursuant to Section 1B1.8 of the Sentencing Guidelines,

bh, Acceptance of Responsibility

If the Court determines that Defendant qualifies for an adjustment under
U.S.5.G. § 31, 1(a), and the offense level prior to operation of § 3E1 l(a) is 16 or
greater, the government will move for an additional one-level reduction in offense
level pursuant to Section 3E.1.1(b) based on Defendant's timely notification of her

intention to enter a guilty plea,

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c. Amounts of Loss

The government and Defendant agree to recommend to the U.S. Probation
Office and the Court. at sentencing that the amount of PPP-related loss attributable
to Defendant, for purposes of Section 2B1,1 of the Sentencing Guidelines, is more
than $3,500,000 but not more than $9,500,000.

The government and Defendant agree to recommend to the U.S. Probation
Office and the Court at sentencing that the amount of atudent loan-related loss
attributable to Defendant, for purposes of Section 2B1.1 of the Sentencing Guidelines,
is mure than $550,000 but. not more than $1,500,000.

d. Sophisticated Means

The government and Defendant agree to recommend to the U.S. Probation
Office and the Court at sentencing that, for the purposes of Section 2B1.1 of the
Santencing Guidelines, Defendant's conduct relating to both PPP fraud and atudent
loan fraud involved sophisticated means.

a. Leader and Organizer

The government and Defendant agree to recommend to the U.S, Probation
Office and the Court at sentencing that, for purposes of Section 3B1.1 of the
Sentencing Guidelines, Defendant was an organizer and leader of a criminal activity
that involved five or more participants.

7, Cooperation

a. Complete and ‘Truthful Cooperation Required

: in
De


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Defendant must provide full, complete, candid, and truthful cooperation in the
investigation and prosecution of the offenses charged in her Information and any
related offenses, Defendant shall fully and truthfully disclose her knowledge of thoac
offenses and whall fully and truthfully answer any question put to her by law
enforcement officers about those offenses.

This agreement does not require Defendant to “make a case” against any
particular person, Her benefits under this agreement are conditioned only on her
cooperation and truthfulness, not on the outeome of any trial, grand jury, ar other
proceeding,

h Motion for Reduction in Sentence Based on Cooperation

The government, in its sole discretion, will decide whether Defendant's
cooperation qualifies as “substantial assistance” pursuant to U.S.S.G, § 5K1.2 or Fed.
R. Crim. P. 35 and thereby warrants the filing of a motion for downward departure
or reduction in Defendant’s sentence. [f such a motion is filed, the Court, in its sole
discretion, will decide whether, and to what extent, Defendant's sentence should be
reduced. The Court 1s not required to accept any recommendation by the government

that the Defendant’s sentence be reduced,

é. Financial Obligations and Agreements
A. Restitution

The amount of restitution ordered by the Court shall include restitution for the
full loss caused by Defendant's total criminal conduct. Restitution is nut limited to

the specific counts to which Defendant is pleading guilty, Any restitution judgment

Li}

DB


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is intended to and will survive Defendant, notwithstanding the abatement of any
undertying criminal conviction,

b. Special Assessment

Defendant agrees to pay a special assessment in the amount of $100, payable
to the Clerk of the United States District Court, which shall be due immediately at
the time of sentencing.

@ Release of Appearance Bond

Defendant authorizes the Clerk of the United States District, Court to release
the funds posted aa security for an appearance bond in this case to be applied to
satisfy any of the financial obligations imposed by judgment of the Court in this case.

d, Required Financial Disclosures

By the date that Defendant enters a guilty plea, Defendant shall complete a
financial disclosure form listing all her assets and financial interests, whether held
directly or indirectly, solely or jointly, in her name or in the name of another.
Defendant shall sign the financial diselosure form under penalty of perjury and
provide that form to the Financial Litigation Unit of the United States Attorney's
Office and to the United States Probation Office. Defendant authorizes the United
States to obtain credit reports on Defendant and to share the contents of those reports
with the Court and the United States Prabation Office. Defendant alsa authorizes
the United States Attorney's Office to inspect and copy all financial documents and
information held by the United States Probation Office.

a. Financial Examination

i]


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Defendant will submit to an examination under oath on the issue of her
financial disclosures and assets if deemed necessary by the United States. Such
examination will occur not later than 30 days after the entry of Defendant's guilty
plea.

Defendant certifies that she has made no transfer of assets in conlemplations
of this prosecution for the purpose of evading or defeating financial obligations
created by this Agreement or that may be imposed upon her by the Court at
sentencing. Defendant promises that she will make no such transfers in the future.

g, Material Change in Circumstances

Defendant agrees to notify the United States of any material change in
circumstances, as described in 18 U.S.C. § 3664(k), that occurs prior to sentencing in
this case. Such notification will be made within seven days of the event giving rise
to the changed circumstances, and in no event later than the date of sentencing.

h. Enforcement,

Any payment schedule imposed by the Court is without prejudice to the United
States to take all actions and remedies available to it to callect the full amount of the
financial obligations imposed by the judgment of the Caurt in this case. Defendant
understands and agrees that the financial! obligations imposed by the judgment of the
Court in this case will be placed on the Treasury Offset Program so that any federal
payment that Defendant receives may be offset. and applied to the judgment debt

without regard to or affecting any payment schedule imposed by the Court.


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a. Waiver of Appeal

Defendant entirely waives her mght to a direct appeal of her conviction and
sentence on any ground (including any argument that the statute to which the
defendant is pleading guilty is unconstitutional or that the admitted conduct does not
fall within the scope of the statute). The only exceptions are that the Nefendant may
file a direct appeal of her sentence if (1) the court enters a sentence above the
statutory Maximuni, (2) the court enters a sentence above the advisory Sentencing
Guidelines range found to apply by the court at sentencing: or (3) the Government
appeals the sentence. Absent those exceptions, Defendant explicitly and irrevocably
instructs her attorney not to file an appeal.

b. Waiver of Collateral Attack

Defendant entirely waives her right to collaterally attack her convietion and
sentence on any ground and by any method, including but not limited to a 28 U.S.C
§ 2255 motion. The only exception is that Defendant may collaterally attack her
conviction and sentenve based on a claim of ineffective assistance of counsel.

c. FOLA and Privacy Act Waiver

Defendant waives all rights, whether asserted directly or through a
representative, io request ov receive from any department or agency of the United
States any record pertaining to the investigation or prosecution of this case under the

authority of the Freedom of Information Act, 5 U.S.C. § 552, or the Privacy Act of

1974, 5 U.S.C. § 552a, and all subsequent amendments thereto.

13

De


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Rwe 11(f of the Federal Rules of Criminal Procedure and Rule 410 of the
Federal Rules of Evidence ordinarily limit the admissibility of statements made by a
defendant during the course of plea discussions or plea proceedings. Defendant
knowingly and voluntarily waives the protections of these rules. If Defendant fails
to plead guilty, or her plea of guilty is later withdrawn, all of Defendant’s statements
in connection with this plea, and any leads derived therefrom, shall be admissible for
any and all purposes.

10, Defendant's Rights

Defendant has the right to be represented by counsel, and if necessary have
the court appuint counsel, at trial and at every other critical stage of the proceeding,
Defendant possesses a number of rights which she will waive by pleading guilty,
including: the right ta plead not guilty, or having already so pleaded, to persist in
that plea; the right to a jury trial; and the right at trial to confront and cross-examine
adverse witnesses. to be protected from compelled self-inerimination, to testify and
present evidence, and to compel the attendance of witnesses.

ll. Satisfaction with Counsel

Defendant has had the benefit of legal counsel in negotiating this agreement.
Defendant believes that her attorney has represented her faithfully, skillfully, and
diligently, and she is completely satisfied with the legal advice given and the work
performed by her attorney.

12. Breach of Plea Agreement

14


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If Defendant fails to plead guilty, withdraws or attempts to withdraw her
guilty plea, commits any new criminal conduct following the execution of this
agreement, or otherwise breaches this agreement, the government ia released from
all of its agreements regarding Defendant’s sentence, including any agreements
regarding the calculation of Defendant's advisory Sentencing Guidelines. In addition,
the government may declure the plea agreement null and void, reinstate any counts
that may have been dismissed purauant to the plea agreement, and/or file new
charges against Defendant that might otherwise be barred by this plea agreement.
Defendant waives any statute-of-limitations or speedy trial defense to prosecutions
reinstated or commenced under this paragraph.

13. entire Agreement

This agreement contains the entire agreement between the government and

Defendant.

DAVID H. ESTES
UNITED STATES ATTORNEY

5/9/90 Vo Vom
Date Patricia Rhodes

Assistant United States Attorney
Chief, Criminal Division

Date Patrick J, Schwedler

Geargia Bar No. 8123812
Assistant Linited States Attorney
S-\-2ote ay
¢ mulher
Date Jonathan A. Porter
Georgia Bar No. 725457
Assistant United States Attorney


Case 4:22-cr-00065-RSB-CLR Document 30 Filed 07/14/22 Page 16 of 16

I have read and carefully reviewed this agreement with my attorney. I
understand each provision of this agreement, and I voluntarily agree to it. I hereby

stipulate that the factual basis set out therein is true and accurate in every respect.

4 9-92 (ne Pese

Date Dara Buck, Defendant

I have fully explained to Defendant all of her rights, and I have carefully
reviewed each and every part of this agreement with him. I believe that she fully and
completely understands it, and that her decision to enter into this agreement is an

informed, intelligent, and voluntary one

S-'3-a2 \ x

Date Peter McCoy, Defendagiiorney

Uf ~4-2022
Date

Jim May, Defendfnt’s Attorney

17

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