Factual Proffer — United States v. Ernest Bernard Gonder, Jr.

Record facts

U.S. District Court, Southern District of Florida · No. 0:24-cr-60003-KMW · Doc. 11 · 2024-03-07 · Docket on CourtListener

Full text

UNITED STATES DISTRICT COURT
SOUTHERN DISTY CT OF FLOD
A
CA SE N0. 24-CR-60003-W V L1AM S
UNITED STATES OF AM EIUCA ,
ERNEST BERNARD GONDER JR.,
Defendant.
/
FACTUAL PROFFER
Had the United States proceeded to trial, the Govem m ent would have proven
beyond a reasonable doubt that 9om in or arotmd April 1, 2021, through in or arotmd
July 22, 2021, in Broward and Palm Beach Counties, in the Southem  District of Florida,
and elsewhere, the defendant, ERNEST BERNARD GONDER JR., did knowingly, and
with the intent to degaud, devise, and intend to devise, a schem e and artifice to deâaud,
and to obtain money and property by means of m aterially false and gaudulent pretepses,
representations, and promises, knowing that the pretenses, representations, and promises
were false and âaudulent when made, and, for the pum ose of executing the schem e and
artitice, did u owingly transmit and cause to be transmitted, by means of wire
comm unication in interstate com merce, certain writings, sir s, signals, pictures, and
sounds, in Wolation of Title 18, Unhed States Code, Section 1343.
As alleged, it was the purpose of the schem e and artifice for the defendant to
Hnlawflzlly enrich herself by, among other things: (a) submitting and causing the
submission of a false and fraudulent application for a Paycheck Protection Program (PPP)
loan made available through the Small Business Administration (SBA) to provide relief
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Case 0:24-cr-60003-KMW   Document 11   Entered on FLSD Docket 03/07/2024   Page 1 of 4

forsthe economic effects caused by the COV1D-19 pandemic; and (b) submitting and
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causing the sublnission of a false and âaudulent application for forgiveness of a PPP
loan.
The manner and means by which the defendant sought to accomplish the pup ose
of the jcheme and artifice included, among others, the following: ERNEST BERNARD
GONDER .TR. subpitted and caused the submijsion of materially false and fraudulent
applicatipns for PPP loans frop the SBA through Cross River Bnnk based in Fort Lee,
New Jersey, on behalf of himself as a Limited Liability Corporation (LLC), which PPP
applications included m aterially false and âaudulent inform ation as to the borrower's
average m onthly payroll and number of employees, among other things.
ERNEST BERNARD GONDER JR. subm itted and caused the submission of
m aterially false and fraudulent inform ation and doolm entation in support of his
applications for the PPP loans, including a falsified 2020 lnternal Revenue Service
KtElmployer's Quarterly Federal Tax Rehmf' Form 941, among other things. As a result
of false and gaudulent PPP loan applications subm itted as part of this scheme, ERNEST
BERNARD GONDER JR. caused Cross River Bar)k to approve PPP loan number
, 
*
4533458705 for ERNEST BERNARD GONDER JR. and to disbtlrse approxim ately
$106,540.00 to ERNEST BERNARD GONDER JR. at his JP Morgan Chase Bank
account number ending in 3725 in the name of EBG PROPERTIES, LLC. rfhereafter, in
furtherance of the scheme and artifice, ERNEST BERNARD GONDER JR. subm itted
and caused the subm ission of materially false and gaudulent application inform ation to
Cross River Bank to cause and attempt to cause the forgiveness of PPP loan 4533458705
to ERNEST BERNARD GONDER JR. to which he was not entitled.
M oreover, as a result of an additional false and fraudulent PPP loan application
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uhmitted as part of this scheme, ERNEST BERNARD GONDER JR. caused Cross
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River Bank to approve PPP loan number 7423158701 for ERNEST BERNARD
GONDER JR., and to disburse approtmately $61,210.00 to ER'NEST BERNARD
GONDER JR. at his JP M organ Chase Bank account number ending in 0759 in the nam e
of TllE IM PACT CENTER OF BROW ARD COUNTY, INC. A s before, EIW EST
BERNARD GONDER JR. submitted and caused thesubm ission of m aterially false and
gaudulent application information to Cross River Bnnk to cause and attempt to cause the
forgiveness of PPP loan 7423158701 to ERNEST BERNARD GONDER JR., to which
he was not entitled. Thereafter, ERNEST BERNARD GONDER JR. used the proceeds
of the scheme and artifice to enrich him self.
Specifcally, in support of his srst application, ERNEST bERNARD GONDER
.TR. stated that his business, EBG PROPERTIES, LLC., was established in 2018 and that
his average monthly payroll was $42,616.00 âom 2020, stating that the purpose of his
loan was to pay payroll costs, utilities, and covered supplier costs. Along with llis
application, ERNEST BERNARD GONDER JR. submitted a 2020 IR.S Form  941 for
Qum ers 1-4 that purported to document $143,240 in wages and 11 employees in Q1,
$121,502 in wages and 11 employees in Q2, $123,325 in wages and 11 employees in Q3,
and $123,325 in wages and 11employees in Q4. However, according to a tax remm
transcript for tax year 2020, neither any taxes nor any Form 941 's were filed with the IR.S
for this business.
A second loan application was also subm itted by ERNEST BERNARD GONDER
.TR. In support of this application, ERNEST BERNARD GONDER JR. stated that his
second business, 'IIIE IM PACT CENTER 0F BROW ARD COUNTY m C., was
established in 2009, and that his average monthly par oll was $24,484.00 9om 2020,
Case 0:24-cr-60003-KMW   Document 11   Entered on FLSD Docket 03/07/2024   Page 3 of 4

' staling that the purpose of his loan was to pay pap oll costs, rent/mortgage Interest,
utilities, and covered supplier costs. Along with his application, BRNEST BERNARD
GONDER JR. submitted a 2020 IRS Form 941 for Quarters 1-4 that purported to
document $73,452 in wages and 4 employees in Q1, $66,828 in wages and 4 employees
in Q2, $73,108 in wages and 4 employees in Q3, and $73,108 in wages and 4 employees
in Q4. However, according to a tax retum kanscript for tax year 2020, neither any taxes
nor any Form 941'j w ere liled with the IR.S for this business.
Bank records were obtained which did not support the business incom e claimed.
M oreover, records indicated that there was a clear attempt 9om  ERNEST BERNARD
GONDER .TR. to m ake it appear as if there was payroll by writing checks to fam ily
m embers with the m dmo line Ktpayroll.'' However, records also çonfirmed that the
corresponding <çpayroll'' am otmts were imm ediately paid back to GONDER. Both loans
were ultimately forgiven and the government suffered an actzal loss of $168,248.41.
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Date:
M ARKENR  LAPOINTE
UM TED STATES ATTORNEY
By: 
G
M ARC S. ANTON
ASSISTANT U. S. ATTORN EY
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By:
NHCHAEL COHEN,ESQ.
ATTORNEY F0R 
FE ANT
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By:
ST B 
ARD G NDER JR.
DEFENDANT
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