Indictment — United States v. Desmond Dondre Williams

Record facts

U.S. District Court, Middle District of Florida · No. 3:22-cr-00134-HLA-MCR · Doc. 1 · 2022-10-13 · Docket on CourtListener

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Case 3:22-cr-00134-HLA-MCR Document1 Filed 10/13/22 Page1of11PagelD 1
FILED

UNITED STATES DISTRICT COUR! OCT 13 PH 12: 43
MIDDLE DISTRICT OF FLORIDA gax, us pisteicy cour

MIDDLE DISTRICT
JACKSONVILLE DIVISION JACKSONVIL rl ora

UNITED STATES OF AMERICA

" CASE NO. 3: ad-er -134- HLA-C

DESMOND DONDRE WILLIAMS 18 U.S.C. § 1349
18 U.S.C. §§ 1343 and 2

INDICTMENT

The Grand Jury charges:

COUNT ONE
(CONSPIRACY TO COMMIT WIRE FRAUD)

A. Introduction

At all times relevant to this Indictment:

t. Womply is a nationwide technology company that assisted
businesses in accessing the Small Business Administration Paycheck Protection
Program.

vm Womply utilized computer servers / data centers in Virginia and
Oregon, as part of conducting nationwide business operations.

The Small Business Administration

3: 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.
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4. 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

5. 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).

6. 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
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business operations, and that they intended to use loan proceeds only for the
authorized purposes.

7. 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.

B. The Conspiracy

8. Beginning on an unknown date, but not later than in or about April
2021, and continuing through and including in or about June 2021, in the Middle
District of Florida, and elsewhere, the defendant,
DESMOND DONDRE WILLIAMS,
did knowingly and willfully combine, conspire, confederate, and agree with others,
both known and unknown to the Grand Jury, to execute and attempt to execute a
scheme and artifice to defraud, and to obtain money and property by means of

materially false and fraudulent pretenses, representations, and promises, by
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transmitting and causing to be transmitted by means of wire communications in
interstate and foreign commerce, writings, signs, visual pictures, and sounds, for the
purpose of executing the scheme and artifice to defraud, in violation of 18 U.S.C.

§ 1343.

C. Manner and Means of the Conspiracy

9. The manner and means by which the conspirators carried out the
conspiracy and scheme and artifice to defraud included, among other things, the
following:

a. It was part of the conspiracy that Williams and his
conspirator communicated about how Williams could apply for PPP loans to
which he was not entitled;

b. It was further a part of the conspiracy that Williams provided
his conspirator with his name, date of birth, and Social Security number for
purposes of applying for PPP loans to which he was not entitled;

CG It was further a part of the conspiracy that a fraudulent IRS
Form 1040, Schedule C, “Profit or Loss From Business” was created for purposes
of applying for two PPP loans to which Williams was not entitled;

d. It was further a part of the conspiracy that when creating the
fraudulent IRS Form 1040, Schedule C, “Profit or Loss From Business” it listed

Williams as “Personal Chef”;
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é, It was further a part of the conspiracy that when creating the
fraudulent IRS Form 1040, Schedule C, “Profit or Loss From Business” it listed
Williams as materially participating in the operation of his business during 2020;

f, It was further a part of the conspiracy that when creating the
fraudulent IRS Form 1040, Schedule C, “Profit or Loss From Business” it listed
Williams as having Gross income for his business of $78,655;

g. It was further a part of the conspiracy that when creating the
fraudulent IRS Form 1040, Schedule C, “Profit or Loss From Business” it listed
Williams as having $1,022 in advertising expenses;

h. It was further a part of the conspiracy that when creating the
fraudulent IRS Form 1040, Schedule C, “Profit or Loss From Business” it listed
Williams as having $15,560 in supply expenses;

2 It was further a part of the conspiracy that when creating the
fraudulent IRS Form 1040, Schedule C, “Profit or Loss From Business” it listed
Williams as having $4,578 in travel expenses;

7, It was further a part of the conspiracy that when creating the
fraudulent IRS Form 1040, Schedule C, “Profit or Loss From Business” it listed

Williams as having $1,620 in utilities expenses;
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k. It was further a part of the conspiracy that, in order to induce
the SBA and SBA Participating Lenders to fund PPP loans for the non-existent
business “Tastebudz”, false and fraudulent loan applications that included
multiple materially false and fraudulent representations and pretenses, were
submitted on-line for purposes of applying for two PPP loans to which Williams
was not entitled;

LL It was further a part of the conspiracy that Williams and his
conspirator would and did cause two SBA Participating Lenders to send
fraudulently-obtained PPP loan proceeds via wire transfers to a bank account
controlled by Williams;

m. It was further a part of the conspiracy that Williams would
and did retain fraud proceeds for his personal enrichment; and

n. It was further a part of the conspiracy that Williams and his
conspirator 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.

All in violation of 18 U.S.C. § 1349.
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COUNTS TWO AND THREE

A. Introduction

10. Part A of Count One of this Indictment is realleged and

incorporated by reference, as if fully set forth herein.

B. Scheme and Artifice

11. Beginning on an unknown date, but not later than in or about April
2021, and continuing through and including in or about June 2021, in the Middle
District of Florida, and elsewhere, the defendant,
DESMOND DONDRE WILLIAMS,
knowingly, willfully, and with intent to defraud, did devise and intend to devise
and participate in, a scheme and artifice, to obtain money and property by

means of materially false and fraudulent pretenses, representations, and promises.

C. Manner and Means
12. Part C of Count One of this Indictment is realleged and incorporated by

reference, as if fully set forth herein.
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D. Wire Communications
13. Onor about the dates set forth below in each count, in the Middle
District of Florida, and elsewhere, for the purpose of executing the aforesaid scheme
and artifice, and attempting to do so, the defendant,
DESMOND DONDRE WILLIAMS,
did knowingly transmit and cause to be transmitted by means of wire in interstate

commerce the following:

Count | Date On-line Electronic Submission of
Submitted PPP Loan Application

TWO | April 14, 2021 | PPP Borrower Application Form for Tastebudz
dated April 14, 2021, in the amount of $16,386,
submitted to Womply

THREE | April 17, 2021 | PPP Borrower Application Form for Tastebudz
dated April 17, 2021, in the amount of $22,941,
submitted to Womply

All in violation of 18 U.S.C. §§ 1343 and 2.

FORFEITURE

Is The allegations contained in Counts One through Three 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).
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eA Upon conviction of a violation of 18 U.S.C. § 1343, in violation of
18 U.S.C. § 1349, and/or 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, the sum
of $39,327, which represents the proceeds of the offenses.

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;

é. has been placed beyond the jurisdiction of the court;

d. has been substantially diminished in value; or

€. has been commingled with other property which cannot be

divided without difficulty,
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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

oreperson

ROGER B. HANDBERG
United States Attorney

KEVIN C. FREIN
Assistant United States Attorney

“FRANK M. TALBOT
Assistant United States Attorney
Chief, Jacksonville Division

10
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FORM OBD-34
10/11/22 Revised No.

UNITED STATES DISTRICT COURT
Middle District of Florida
Jacksonville Division

THE UNITED STATES OF AMERICA

vs.

DESMOND DONDRE WILLIAMS

INDICTMENT

Violations: CT 1: 18 U.S.C. § 1349
CTs 2-3: 18 U.S.C. §§ 1343 and 2

Filed in open court this isin day

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