Affidavit in Support of Criminal Complaint — US v. Jaafar

Summary

An affidavit in support of a criminal complaint and arrest warrants, Criminal No. 1:20-mj-167 (JFA), filed under seal in the U.S. District Court for the Eastern District of Virginia, Alexandria Division, and sworn by SBA Office of Inspector General Special Agent Lee Bacon on June 19, 2020. It alleges that Tarik Jaafar and Monika Magdalena Jaworska conspired to commit wire fraud, in violation of Title 18, United States Code, Section 1349, by submitting eighteen PPP loan applications to twelve financial institutions in the names of four businesses, supported by IRS Forms 941 that the affidavit says were never filed. The affidavit states that four applications were approved and $1,438,500 was disbursed. It also alleges that Jaafar bought one-way tickets to Poland.

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IN THE UNITED STATES DISTRICT COURT FOR THE

EASTERN DISTRICT OF VIRGINIA

Alexandria Division

UNITED STATES OF AMERICA
)







)


V.

                        )           Criminal No. 1:20-mj-167 (JFA)






)
MONIKA MAGDALENA JAWORSKA



)
and





)
TARIK JAAFAR
)
Filed Under Seal





            )
Pursuant to Local Rule 49(B)

Defendants.


)




AFFIDAVIT IN SUPPORT OF CRIMINAL COMPLAINT AND ARREST WARRANTS

I, Lee Bacon, being first duly sworn, hereby affirm and state:

INTRODUCTION

1.
I  am  currently  employed  as  a  Special  Agent/Criminal  Investigator  for  the  U.S.  Small

Business Administration (“SBA”), Office of Inspector General (“OIG”), Washington, DC.  I have

been a Special Agent with the SBA-OIG for approximately 20 years and 1 month.  I graduated

from Indiana University with a Bachelor's Degree in Criminal Justice in 1992.  I graduated from

Florida State University with a Master's Degree in Criminology in 1997.  In 2000, I completed the

12-week Federal Basic Criminal Investigator Training Program at the Federal Law Enforcement

Training  Center  in  Glynco,  Georgia.  In  2001,  I  completed  the  four  week  Inspector  General

Academy training program in Glynco, Georgia.  As a Special Agent with the SBA-OIG, I have

conducted  numerous  white-collar  fraud  investigations  to  include  loan  fraud,  mortgage  fraud,

contract fraud, false statements, and theft of government property.  I am the SBA OIG case agent

assigned to the investigation of TARIK JAAFAR and MONIKA MAGDALENA JAWORSKA.
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2.
I am assigned to this investigation and have participated in it since the case was initiated.

My involvement has included interviewing witnesses, and reviewing financial and other records

provided to me by financial institutions and other entities.

3.
This affidavit is submitted for the limited purpose of establishing probable cause.  The

facts in this affidavit are based on my investigation, personal observations, training, and

experience, as well as information provided to me by others, including investigators, law

enforcement officers, and third parties.  Because this affidavit is limited in purpose, I am not

including all facts known to law enforcement concerning this investigation.

PURPOSE OF AFFIDAVIT

4.      This affidavit is submitted in support of a criminal complaint charging from in or about

April 2020 to in or about May 2020 in the Eastern District of Virginia and elsewhere,  defendants

TARIK  JAAFAR  and  MONIKA  MAGDALENA  JAWORSKA  knowingly  and  intentionally

conspired and agreed with each other to commit wire fraud, contrary to Title 18, United States

Code, Section 1343, by knowingly devising and intending to devise a scheme and artifice to

defraud and to obtain money and property by means of materially false and fraudulent pretenses,

representations, and promises, and by concealment of material facts, and to transmit and cause to

be transmitted interstate wire communications in furtherance of the conspiracy, in violation of

Title 18, United States Code, Section 1349.

STATEMENT OF FACTS SUPPORTING PROBABLE CAUSE

The Paycheck Protection Program

5.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law

enacted in or around March 2020 and designed to provide emergency financial assistance to the

millions of Americans who are suffering the economic effects caused by the COVID-19
3


pandemic.  One source of relief provided by the CARES Act was the authorization of up to $349

billion in forgivable loans to small businesses for job retention and certain other expenses,

through a program referred to as the Paycheck Protection Program (“PPP”).  In or around April

2020, Congress authorized over $300 billion in additional PPP funding.

6.
In order to obtain a PPP loan, a qualifying business must submit a PPP loan application,

which is signed by an authorized representative of the business.  The PPP loan application

requires the business (through its authorized representative) to acknowledge the program rules

and make certain affirmative certifications in order to be eligible to obtain the PPP loan.  In the

PPP loan application, the small business (through its authorized representative) must state,

among other things, its: (a) average monthly payroll expenses; and (b) number of employees.

These figures are used to calculate the amount of money the small business is eligible to receive

under the PPP.  In addition, businesses applying for a PPP loan must provide documentation

showing their payroll expenses.

7.
A PPP loan application must be processed by a participating financial institution (the

lender).  If a PPP loan application is approved, the participating financial institution funds the

PPP loan using its own monies, which are 100% guaranteed by the SBA.  Data from the

application, including information about the borrower, the total amount of the loan, and the listed

number of employees, is transmitted by the lender to the SBA in the course of processing the

loan.

8.
PPP loan proceeds must be used by the business for certain permissible expenses—

payroll costs, interest on mortgages, rent, and utilities.  The PPP allows the interest and principal

on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense
4


items within a designated period of time (usually eight weeks of receiving the proceeds) and uses

a certain percentage of the PPP loan proceeds on payroll expenses.

Tarik Jaafar, Monika Jaworska and Related Entities

9.
TARIK JAAFAR (“JAAFAR”) and MONIKA MAGDALENA JAWORSKA

(“JAWORSKA”) are married to each other and are both naturalized citizens of the United States.

According to information obtained in the investigation from the Virginia Department of Motor

Vehicles, JAAFAR resides at 14828 Potomac Branch Drive, Woodbridge, Virginia 22191, and

JAWORSKA resides at 22695 Lamoreaux Landing Square, Ashburn, Virginia 20148.  Both

locations are within the Eastern District of Virginia.

10.
Commonwealth of Virginia records reflect that JAAFAR and/or JAWORSKA registered

at least four business entities in Virginia: Blue Pearl, LLC; Global Capital Financing, LLC;

Washington Capital Group, LLC; and Visla Capital LLC (collectively referred to as “the four

businesses”).

a.  According to Secretary of State Records, Blue Pearl, LLC, was formed on

July 29, 2011, by JAAFAR. The entity’s registration lapsed in June 2017.

The business was reinstated on April 27, 2020.

b.  According to Secretary of State Records, Global Capital Financing, LLC,

was formed on March 24, 2010, by JAAFAR. On more than one occasion,

the entity’s registration lapsed and was reinstated. It was most recently

reinstated on February 26, 2020 and on April 26, 2020, the registered agent

was changed from JAWORSKA to JAAFAR.

c.  According to Secretary of State Records, Washington Capital Group, was

formed on October 27, 2013, by JAAFAR. Throughout the history of the
5


registration of the entity, the registered agent oscillated between JAAFAR

and JAWORSKA.  Most recently, the registered agent was changed to

JAAFAR on September 17, 2018.

d.  According to Secretary of State Records, Visla Capital, LLC, was formed in

Virginia on November 20, 2012, by JAWORSKA. On more than one

occasion, the entity’s registration lapsed and was reinstated. It was most

recently reinstated on April 27, 2020.

11.
Loan applications submitted by JAAFAR and/or JAWORSKA list the address of Blue

Pearl, LLC, as 1765 Greensboro Station Place, McLean, Virginia 22102, located within the

Eastern District of Virginia.  A law enforcement officer working on this investigation visited the

location.  Blue Pearl, LLC, was not listed on any building directory.  The location was a shared

office space in which various businesses and individuals can rent space.  The company which

manages the shared office space confirmed that Blue Pearl, LLC, JAAFAR nor JAWORKSA did

not rent space at the location.

12.
Loan applications submitted by JAAFAR and/or JAWORSKA list the address of Global

Capital Financing, LLC, as 8300 Greensboro Drive, McLean, Virginia 22102, located within the

Eastern District of Virginia.  A law enforcement officer working on this investigation visited the

location.  Global Capital Financing, LLC, was not listed on any building directory.  The location

was a shared office space in which various businesses and individuals can rent space to work.

The company which manages the shared office space confirmed that Global Capital Financing,

LLC., JAAFAR nor JAWORKSA did not rent space at the location.
6


PPP Loan Applications Submitted by Jaafar and Jaworska

13.
Between April 13, 2020 and May 6, 2020, JAAFAR and JAWORSKA submitted

eighteen PPP loan applications containing materially false statements to twelve financial

institutions. The financial institutions’ records reflect that all the PPP loan applications and

supporting documentation were submitted online.  In addition, financial institutions wired funds

and sent email communications to JAAFAR and/or JAWORSKA.  As a result, JAWORSKA and

JAAFAR caused interstate wire communications to be sent in furtherance of the conspiracy.

14.
 Specifically, JAWORSKA applied for fourteen loans and JAAFAR applied for four.

JAAFAR and JAWORSKA submitted all of the PPP loan applications in the names of the four

businesses.

15.
 All eighteen of the loan applications submitted by JAAFAR and JAWORSKA included

material misrepresentations in that they lied to the financial institutions regarding the four

businesses’ 2019 and/or 2020 wage and federal payroll tax information.  This information was

material to the financial institutions’ decisions about whether the loan applications met the PPP

criteria and how much of a loan the businesses were eligible to receive.  Specifically, in support

of all eighteen loan applications JAAFAR and JAWORSKA provided the financial institutions

false and fraudulent Internal Revenue Service (“IRS”) Forms 941, known as “Employer’s

Quarterly Federal Tax Return.”   The applications were false and fraudulent in that JAAFAR and

JAWORSKA claimed that the IRS Forms 941 had been filed with the IRS for each of the four

businesses for periods covering tax years 2019 and/or 2020.  However, the IRS has searched its

records for the four businesses, including using their specific employer identification numbers

(“EINs”), and the IRS has no records of any filed IRS Forms 941 or filed Federal Income Tax

Returns for any part of 2019 or 2020 for any of the four businesses.
7


16.
Based on the material misrepresentations contained in the loan applications regarding the

IRS Forms 941, four of the eighteen PPP loan applications were approved.  And $1,438,500 was

disbursed to the four businesses from three different financial institutions.  Of the $1,438,500

disbursed, a portion of the funds have subsequently been frozen.

Fraudulent PPP Loan Application to Lender 1 for Blue Pearl, LLC

17.
According to records provided by Lender 1, on or about May 5, 2020, JAWORSKA

submitted an online loan application package in support of a $445,000 PPP loan for Blue Pearl,

LLC, with the EIN 45-3364868.  Included with the application package was a copy of

JAWORSKA’s driver’s license.

18.
Lender 1 provided the government with SBA Form 2483, Paycheck Protection Program

Borrower Application Form, that was submitted with the loan package and bearing the electronic

signature of JAWORSKA.  On the application, JAWORSKA listed her email address as

monikabluepearl@gmail.com and her title as President.  To support the loan amount, the

application represented that Blue Pearl, LLC, had an average monthly payroll of $177,965.21

which supported 23 employees.  Purported payroll records and filed Forms 941 were submitted

to support the loan application.  JAWORSKA also certified that Blue Pearl, LLC, “was in

operation on February 15, 2020 and has employees for whom it paid salaries and payroll taxes or

paid independent contractors.”  However, the evidence obtained in the investigation

demonstrates that this certification was false because the purported filed IRS documents

provided to Lender 1 were falsified, as the IRS has no record of them ever being filed.

Therefore, the loan application included materially false statements.
8


19.
Based on the documentation provided by JAWORSKA, Lender 1 approved the $445,000

PPP loan to Blue Pearl, LLC, on May 7, 2020.  The loan was disbursed in the form of a cashier’s

check.

20.
On May 8, 2020, JAAFAR deposited the cashier’s check in a Blue Pearl, LLC, account at

Capital One located in McLean, Virginia, within the Eastern District of Virginia. A photograph

of JAAFAR depositing the check was obtained from Capital One in the course of the

investigation. JAAFAR had sole signatory on the Blue Pearl, LLC account. The account was

opened by JAAFAR on May 5, 2020 with a $250 deposit.

Fraudulent PPP Loan Application to Lender 1 for Global Capital Financing, LLC

21.
According to records provided by Lender 1, on or about April 23, 2020, JAAFAR

submitted an online loan application package in support of a $405,200 PPP loan for Global

Capital Financing, LLC, with EIN 27-4241749.  Included with the application package was a

copy of JAAFAR’s driver’s license.

22.
Lender 1 provided the government with SBA Form 2483 that was submitted with the loan

package and bearing the electronic signature of JAAFAR.  On the application, JAAFAR listed

his email address as tarik@globalcapitalfinance.com and his title as President.  To support the

loan amount, the application represented that Global Capital Financing, LLC, had an average

monthly payroll of $162,042.05 which supported 21 employees.  Purported payroll records and

filed Forms 941 were submitted to support the loan application.  JAAFAR also certified that

Global Capital Financing, LLC, “was in operation on February 15, 2020 and has employees for

whom it paid salaries and payroll taxes or paid independent contractors.”   However, the

evidence obtained in the investigation demonstrates that this certification was false because the
9


purported filed IRS documents provided to Lender 1 were falsified, as the IRS has no record of

them ever being filed. Therefore, the loan application included materially false statements.

23.
Based on the documentation provided by JAAFAR, Lender 1 approved the $405,200 PPP

loan to Global Capital Financing, LLC, on April 28, 2020.  The loan was disbursed in the form

of a cashier’s check.

24.
On May 8, 2020, JAAFAR deposited the cashier’s check in a Global Capital Financing,

LLC account at M&T Bank in Washington, D.C.

Fraudulent PPP Loan Application Submitted to Lender 2 for Visla Capital, LLC

25.
According to records provided by Lender 2, on or about April 22, 2020, JAWORSKA

submitted an online loan application package in support of a $253,700 PPP loan for Visla Capital

with the EIN 46-3033040.  Included with the application package was a copy of JAWORSKA’s

driver’s license.

26.
Lender 2 provided the government with SBA Form 2483 that was submitted with the loan

package and bearing the electronic signature of JAWORSKA.  On the application, JAWORSKA

listed her email address as vislacapital2012@hotmail.com and her title as President. To support

the loan amount, the application represented that Visla Capital had an average monthly payroll of

$101,500 which supported 14 employees.  Purported payroll records and filed Forms 941 were

submitted to support the loan application.  JAWORSKA also certified that Visla Capital “was in

operation on February 15, 2020 and has employees for whom it paid salaries and payroll taxes or

paid independent contractors.”  However, the evidence obtained in the investigation

demonstrates that this certification was false because the purported filed IRS documents

provided to Lender 2 were falsified, as the IRS has no record of them ever being filed.

Therefore, the loan application included materially false statements.
10


27.
Based on the documentation provided by JAWORSKA, Lender 2 approved the $253,000

PPP loan to Visla Capital on May 4, 2020.  The loan was disbursed in the form of a deposit in a

Visla Capital account with Lender 2.

28.
After the loan was disbursed, through three separate transactions, approximately

$252,500 of the loan proceeds were wire transferred to a Capital One account in the name Visla

Capital for which JAAFAR had sole signatory authority.  JAAFAR was captured on video

withdrawing $30,000 in cash, during two separate transactions in May 2020, from the account at

Capital One located in Arlington, Virginia, within the Eastern District of Virginia.

Fraudulent PPP Loan Application Submitted to Lender 3 for Blue Pearl, LLC

29.
According to records provided by Lender 3, on or about April 25, 2020, JAWORSKA

submitted an online application package in support of a $423,047 PPP loan for Blue Pearl, LLC,

and submitted it to Lender 3.  Included with the application package was a copy of

JAWORSKA’s driver’s license

30.
Lender 3 provided the government with SBA Form 2483 which was submitted with the

loan package and bearing the electronic signature of JAWORSKA.  On the application,

JAWORSKA listed her email address as monikabluepearl@gmail.com and her title as President.

To support the loan amount, the application represented that the Blue Pearl, LLC, had an average

monthly payroll of $169,219 and 23 employees.  Purported payroll records and filed Forms 941

were submitted to support the loan application.  JAWORSKA also certified that Blue Pearl, LLC

“was in operation on February 15, 2020 and has employees for whom it paid salaries and payroll

taxes or paid independent contractors.”   However, the evidence obtained in the investigation

demonstrates that this certification was false because the purported filed IRS documents
11


provided to Lender 3 were falsified, as the IRS has no record of them ever being filed. Therefore,

the loan application included materially false statements.

31.
After Lender 3 approved the loan, JAWORSKA and JAAFAR appeared at a different

branch of Lender 3, located in Leesburg, Virginia, within the Eastern District of Virginia, on

May 4, 2020, and requested a cashier’s check be made out to a third party.  The branch declined

to provide the check and contacted the office of Lender 3 that approved the loan.  Upon further

review of the application, Lender 3 canceled the loan.

32.
On May 5, 2020, and May 6, 2020, JAWORSKA called Lender 3 on the telephone and

requested information as to why the loan was canceled.  JAAFAR participated on the call that

occurred on May 5, 2020.

Planned Flight from the United States

33.
On May 19, 2020, another law enforcement officer visited the home addresses of record

for JAAFAR and JAWORSKA.  No one answered the door at either location; however, the law

enforcement officer could tell that people were present at 22695 Lamoreaux Landing Square,

Ashburn, Virginia 20148. The law enforcement officer left his card at the location.  Later that

day, an attorney called the law enforcement officer stating that he represented JAAFAR.

Counsel for the United States informed counsel for JAAFAR that JAAFAR was a target of the

investigation and had several follow-up conversations with JAAFAR’s counsel, the most recent

occurring on June 16, 2020.  On June 17, 2020, JAAFAR purchased one-way tickets for himself

and JAWORSKA to fly from New York to Poland on June 20, 2020.  There is no reason to

believe that JAAFAR’s counsel has any knowledge of JAAFAR’s intent to leave the country.
John F.
Anderson

Digitally signed by John
F. Anderson
Date: 2020.06.19 16:06:09
-04'00'


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