Court filing

Notice of Maximum Penalties, Elements of Offenses, Personalization of Elements and Factual Basis — United States v. Desmond Dondre Williams (M.D. Fla.)

Filed February 2, 2023 in U.S. v. Desmond Williams; one of 5 filings from this case.

Record facts

Court	U.S. District Court, Middle District of Florida
Filed	2023-02-02

U.S. District Court, Middle District of Florida · No. 3:22-cr-00134-HLA-MCR · Doc. 25 · 2023-02-02 · Docket on CourtListener

Full text

Case 3:22-cr-00134-HLA-MCR Document 25 _ Filed 02/02/23 Page 1 of 9 PagelD 62

FILED IN OPEN COURT
JACKSONVILLE, FLORIDA

UNITED STATES DISTRICT COURT 2 2| 13
MIDDLE DISTRICT OF FLORIDA :
JACKSONVILLE DIVISION Ue BREET CuLRE
MIDDLE DISTRICT OF FLORIDA

UNITED STATES OF AMERICA

V. CASE NO. 3:22-cr-134-HLA-MCR

DESMOND DONDRE WILLIAMS

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 offenses
charged in Counts One through Three of the Indictment. Count One of the
Indictment charges the defendant with conspiracy to commit wire fraud, in violation
of 18 U.S.C. § 1349. Count One carries a maximum sentence of up to twenty years
of imprisonment, a fine of $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 3:22-cr-00134-HLA-MCR Document 25 _ Filed 02/02/23 Page 2 of 9 PagelD 63

Counts Two and Three of the Indictment charge the defendant with wire
fraud, in violation of 18 U.S.C. §§ 1343 and 2. Counts Two and Three carry a
maximum sentence of up to twenty years of imprisonment, a fine of $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.

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. At this time, the United States will be seeking
restitution in this case in the sum of $39,327.

Further, the violation charged in Counts One through Three 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, including but not limited to the sum of $39,327, representing the amount
of proceeds the defendant obtained as a result of the offenses charged in Counts One

through Three of the Indictment.
Case 3:22-cr-00134-HLA-MCR Document 25 Filed 02/02/23 Page 3 of 9 PagelD 64

Count One

B. ELEMENTS OF THE OFFENSES

The essential elements of a violation of 18 U.S.C. § 1349, conspiracy to

commit wire fraud, are as follows:

First:

Second:

Two or more persons, in some way or manner, agreed to try to
accomplish a common and unlawful plan to commit wire fraud,
as charged in the Indictment;

the defendant knew the unlawful purpose of the plan and
willfully joined in it.

Counts Two and Three

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

follows:

First:

Second:

Third:

Fourth:

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;

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

the defendant acted with intent to defraud; and
the defendant transmitted, or caused to be transmitted, by wire

some communication in interstate commerce to help carry out
the scheme to defraud.
Case 3:22-cr-00134-HLA-MCR Document 25 _ Filed 02/02/23 Page 4 of 9 PagelD 65

C. PERSONALIZATION OF ELEMENTS

Count One: Conspiracy to Commit Wire Fraud

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 June 2021, in the
Middle District of Florida, and elsewhere, that you, along with other individuals,
agreed to try to accomplish a common and unlawful plan, that is, to commit wire
fraud as charged in Count One of the Indictment?

2. Do you admit that you knew the unlawful purpose of the plan and
willfully joined in it?

Count Two: Wire Fraud

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 June 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?

ce 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
Case 3:22-cr-00134-HLA-MCR Document 25 Filed 02/02/23 Page 5 of 9 PagelD 66

Application Form, a SBA Form 2483, for Tastebudz in the amount of $16,386, on
April 14, 2021, to a third party processor, Womply?

Count Three: Wire Fraud

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

>. 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, for Tastebudz in the amount of $22,941, on

April 17, 2021, to a third party processor, Womply?

D. FACTUAL BASIS
In May 2021, Homeland Security Investigations Special Agent (SA) Kraich
began investigating two Small Business Administration (SBA) Paycheck Protection

Program (PPP) loan applications for a business, Tastebudz, associated with

Desmond Dondre Williams (Williams). SA Kraich determined that on April 4, 2021,
Case 3:22-cr-00134-HLA-MCR Document 25 Filed 02/02/23 Page 6 of 9 PagelD 67

Womply, a third party processor for PPP loan applications, received Williams’
signed PPP loan application, that is, a SBA Form 2483 - Borrower Application
Form, for Tastebudz. On April 17, 2021, Womply, received Williams’ second signed
PPP loan application, that is, a SBA Form 2483 — Borrower Application Form,
signed by Williams for Tastebudz. Accompanying each PPP loan application was a
IRS Form 1040, Schedule C, “Profit or Loss From Business” (Form 1040) for
Tastebudz. SA Kraich determined that the business, Tastebudz, did not exist. He
further determined that the Form 1040 contained among other materially false
statements that Williams materially participated in 2020 in this non-existent
business, Tastebudz generated gross income of $78,655, and incurred multiple
business and wage expenditures. Both fraudulent PPP loan applications and
accompanying fraudulent Form 1040 were sent from Florida to one of Womply’s
computers servers / data centers in Virginia or Oregon.

Womply forwarded Williams’ first PPP loan application and accompanying
Form 1040 to Fountainhead, a SBA Participating Lender authorized by the SBA to
lend funds for approved PPP loan applications. Fountainhead submitted the PPP
loan application and accompanying Form 1040 to the SBA. In reliance on the
materially false statements contained in Williams’ PPP loan application and
accompanying Form 1040 for Tastebudz, the SBA approved the PPP loan
application. Borrowing off a line of credit from the Federal Reserve, on April 28,

2021, Fountainhead funded the PPP loan for Tastebudz and deposited into
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Williams’ personal bank account $16,386.00, in PPP loan proceeds via an ACH
deposit.

Womply forwarded Williams’ second PPP loan application and
accompanying Form 1040 to Benworth Capital, a SBA Participating Lender
authorized by the SBA to lend funds for approved PPP loan applications. Benworth
Capital submitted the PPP loan application and accompanying Form 1040 to the
SBA. In reliance on the materially false statements contained in Williams’ PPP loan
application and accompanying Form 1040 for Tastebudz, the SBA approved the PPP
loan application. Borrowing off a line of credit from the Federal Reserve, on May 26,
2021, Benworth Capital funded the PPP loan for Tastebudz and deposited into
Williams’ personal bank account $22,941.00, in PPP loan proceeds via an ACH

deposit.
Case 3:22-cr-00134-HLA-MCR Document 25 Filed 02/02/23 Page 8 of 9 PagelD 69

On August 4, 2022, SA Kraich and HSI Task Force Officer O’Keefe met
Williams for an interview at a gas station in Live Oak, Florida. During a voluntary
interview Williams stated in substance and among other things that he obtained PPP
loans. A female named “Diamond” whom he only knew through the internet on
Facebook helped him obtain the two PPP loans. The money was deposited into his

bank account. He didn’t own a business called “Tastebudz.”

Respectfully submitted,

ROGER B. HANDBERG
United States Attorney

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 3:22-cr-00134-HLA-MCR Document 25 _ Filed 02/02/23 Page 9 of 9 PagelD 70

U.S. v. Desmond Dondre Williams Case No. 3:22-cr-134-HLA-MCR

CERTIFICATE OF SERVICE

I hereby certify that on February 2", 2023, I filed the foregoing with the Clerk
of the Court in open court and previously delivered a true and correct copy to the

following:

Lisa Call, Esquire
Counsel for the Defendant.

Vows Chae)