Statement of Facts — US v. Jaafar

Record facts

U.S. District Court for the Eastern District of Virginia, Alexandria Division · No. 1:20-cr-00185-CMH · Doc. 36 · 2020-08-25 · Docket on CourtListener

Full text

RLED
IN OPEN COURT
NB2 52020
IN THE UNITED STATES DISTRICT COURT FOR THE"
EASTERN DISTRICT OF VIRGINIA
ALEXANDRIA DIVISION
CLERK, U.S,DiSTR!CT COURT
ALEXANDRIA. VIRGINIA
UNITED STATES OF AMERICA
V.
TARIKJAAFAR,
Defendant.
Case No. l:20-cr-00185-CMH
STATEMENT OF FACTS
The United States and the defendant, TARIK JAAFAR (hereinafter referred to as the 'the
defendant"), agree that had this matter proceeded to trial, the United States would have proven
the following facts beyond a reasonable doubt with admissible and cre dible evidence:
1. 
The defendant and his wife, and coconspirator, MONIKA MAGDALENA
JAWORSKA, 
resided in Ashbum, Virginia, within the Eastern District of Virginia.
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2. 
From on or about April 7,2020, to on or about June 20,2020, in the Eastern District
of Virginia and elsewhere, the defendant did knowingly and willful|y conspire and agree with
MONIKA MAGDALENA JAWORSKA to commit bank fraud, contrary to Title 18, United Sates
Code, Section 1344, and to defraud the United States Small Busii^ess Administration, all in
violation of Title 18, United Sates Code, Section 371.
3. 
The object of the conspiracy was for the defendant and JAWORSKA to unlawfully
obtain money from:
a. financial institutions by submitting materially false app
by the federal Paycheck Protection Program, and
ications for loans financed
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b. from the United States Small Business Administration by submitting materially
false applications for loans financed by the federal Economic Injury Disaster Loan
program.
The Pa\>check Protection Pro&-am 
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4. 
The Coronavirus Aid, Relief, and Economic Security ("CARES") Act is a federal
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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 C0VID-I9
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,
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Congress authorized over $300 billion in additional PPP funding.
5. 
In order to obtain a PPP loan, a qualifying business must submit a PPP loan
application, which is signed by an authorized representative of th^ 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; an^ (b) number of employees.
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This information is used to determine whether the applicant is eligible for a PPP loan and, if so,
to calculate the amount of money the small business is eligible to receive. In addition, businesses
applying for a PPP loan must provide documentation showing their pavroll expenses.
6. 
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 Small Business
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Administration ("SBA"). Data from the application, including infoipation about the borrower,
the total amount of the loan, and the listed number of employees, is |ransmitted by the lender to
the SBA in the course of processing the loan. 
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7. 
PPP loan proceeds must be used by the business for certain permissible expenses—
payroll costs, interest on mortgages, rent, and utilities. The PPP allojvs the interest and principal
on the PPP loan to be entirely forgiven if the business spends the loaii proceeds on these expense
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.
The Economic Initwv Disaster Loan Prosram
8. 
The Economic Injury Disaster Loan ("EIDL") program is a SBA program that
provides low-interest financing to small businesses, renters, and hom(!Owners in regions affected
by declared disasters.
9. 
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The CARES Act also authorizes the SBA to provide E
eligible small businesses experiencing substantial financial disruption due to the COVID-19
pandemic. In addition, the CARES Act authorized the SBA to issue advances of up to $10,000 to
small businesses within three days of applying for an EIDL. The amount of the advance is
determined by the number of employees die applicant certifies having^ Ihe advances do not have
to be repaid. An advance can be made before a loan is accepted or deplined.
10. 
In order to obtain an EIDL and advance, a qualifying business must submit an
application to the SBA and provide information about its operations, such as the number of
employees, gross revenues for tlie 12-month period preceding the disaster, and cost of goods sold
in the 12-month period preceding the disaster. In the case of EIDLs for COVED-19 relief, the 12-
DLs of up to $2 million to
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month period was that preceding January 31,2020. The applicant must also certify that all of the
information in the application is true and correct to the best of the applicant's knowledge.
11. 
EEDL applications are submitted directly to the SB A and processed by die agency
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with support from a government contractor, Rapid Finance. The amount of the loan, if the
application is approved, is determined based, in part, on the information provided by the
application about employment, revenue, and cost of goods, as described above. Any funds issued
under an EIDL or advance are issued directly by the SBA. EIDL funds can be used for payroll
expenses, sick leave, production costs, and business obligations, such as debts, rent, and mortgage
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payments. If the applicant also obtains a loan under the PPP, the EIDL funds cannot be used for
the same piupose as the PPP funds.
The Defendant's and Monika Jaworska 's Businesses
12. 
The defendant and JAWORSKA registered the following four business entities in
Virginia: Blue Pekrl, LLC; Global Capital Financing, LLC; Washington Capital Group, LLC; and
Visla Capital, LLC (collectively referred to as 'the co-conspirators' foirr businesses").
a. Blue Pearl, LLC, was formed on July 29, 2011, by JAAFAR. The entity's
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registration lapsed in June 2017. The business was reinstated on April 27,2020.
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b. Global Capital Financing, LLC, was formed on March 2|1,2010, by JAAFAR. On
more than one occasion, the entity's registration lapsed md 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. Washington Capital Group, LLC, was formed on October 27, 2013, by JAAFAR.
Throughout the history of the registration of the entity, the registered
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agent oscillated between JAAFAR and JAWORSljCA. Most recently, the
registered agent was changed to JAAFAR on Septembjer 17,2018.
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d. Visla Capital, LLC, was formed in Virginia on November 20, 2012, by
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JAWORSKA. On more than one occasion, the entity's registration lapsed and was
reinstated. It was most recently reinstated on April 27,2020.
The PPP Loan ApDlications
13. 
In furtherance of the object of the conspiracy, from April 13,2020, to May 6,2020,
the defendant and JAWORSKA submitted eighteen fraudulent PPP loim applications in the names
of the co-conspirators' four businesses to twelve iSnancial institutions, as defined by Title 18,
United States Code, Section 20, and located in the Eastern District of Virginia and elsewhere.
14. 
The PPP loan applications contained the following materially false representations:
a. The loan applications stated the co-conspirators' four businesses employed
individuals when in fact the businesses had no employ(jes.
b. The loan applications listed average monthly payroll (unounts when in fact there
was no payroll because there were no employees.
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c. The loan applications falsely listed business addresses.'
d. The defendant and JAWAORSKA falsely certified on the loan applications that the
businesses were in operation on February 15,2020, and had employees for whom
they paid salaries and payroll taxes or paid independent contractors, knowing that
in fact the businesses conducted virtually no commerce
payroll taxes.
e. The defendant and JAWORSKA falsely certified on the loan applications that the
funds would be used to retain workers and maintain jpayroll or make mortgage
and paid no salaries and no
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interest payments, lease payments, and utility payments, as specified under the
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Paycheck Protection Program rules, knowing that the funds were not going to be
used as required. 
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f. The loan applications included certification that the application and information
provided in all supporting documents were true and accurate. The defendant and
JAWORSKA submitted Forms 941, known as "Employer's Quarterly Federal Tax
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Return", and payroll records as supporting documents to the loan applications.
These documents were false in that the defendant and JAWORSKA claimed taxes
were filed with the IRS and salaries were paid to emp oyees knowing that in fact
no taxes were filed and there was no payroll.
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15. 
In furtherance of the object of the conspiracy, JAWORjSKA submitted fourteen of
the PPP loan applications in her name, which she signed, and the defendant submitted four of the
PPP loan applications in his name, which he signed. TTie eighteeij PPP loans sought totaled
$6,640,200. Of the loans sought, four PPP loans, from three lendem, were disbursed totaling
$ 1,438,500. Despite some of the funds being fi-ozen, cash was withdrawn fi'om the loan proceeds
and the defendant and JAWORSKA transferred some of the loan proceeds to other financial
institutions. Eventually, all the PPP loan proceeds were able to be frozen by the financial
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institutions, with the exception of $30,000.00 withdrawn in casll by the defendant. The
outstanding $30,000.00 was subsequently recovered by the Government upon the defendant's
arrest.
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The EIDL Loan ApDlications
16. 
In furtherance of the object of the conspiracy, from April 7,2020, to April 15,2020,
JAWORSKA submitted two EIDL loan applications, one in the name of Visla Capital, LLC, and
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one in the name of Washington Capital Group, LLC, containing matejiaily false statements to the
SBA. These loans sought funds that neither the defendant, JAWORSKA, nor the two business
entities listed on the applications were entitled to receive. The false material statements included:
a. The loan applications falsely listed business addresses.
b. The loan applications listed the number of individuals employed by the businesses
when in fact there were no employees.
c. The loan applications falsely listed gross revenue for the 12 months prior to the
COVID-19 pandemic when in fact the businesses produced no revenue during that
time.
17. 
In furtherance of the object of the conspiracy, in the Eastern District of Virginia
and elsewhere, the following acts, among others, were committed:
PPP Loans
a. On or about April 13,2020, JAWORSKA applied for a PPP loan, totaling $334,600,
jfrom Harvest Small Business Finance, LLC, ("Harvest") in the name of
Washington Capital Group, LLC, which contained materially felse statements.
b. One or about April 14, 2020, JAWORSKA caused Ha^est to send via ACH the
PPP loan proceeds to a Capital One B^ 
account ending in x3990 ("Capital One
Account 3990") held in the name of Washington Capital Group, LLC. The
defendant had sole signatory authority over the Capital One Account 3990.
c. On or about May 15,2020, JAWORSKA opened an United Bank account ending
in x4777 ("United Bank Account 4777") held in the name of Visla Capital, LLC,
with a $100 deposit. She had sole signatory on the account.
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d. On or about May 18, 2020, the defendant wired $88,322 from the Capital One
Account 3990 to United Bank Account 4777. 
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e. On or about April 22,2020, JAWORSKA applied for a PPP loan, totaling $253,700,
from IncredibleBank in the name of Visla Capital, LLC, which contained materially
felse statements. The funds were deposited in an IncredibleBank account ending
in x6664 ("Incredible Account 6664").
f. On or about May 6,2020, the defendant and JAWORSKA wired $82,781 from the
Incredible Account 6664 to a Capital One account ending in x3987 ("Capital One
Account 3987") held in the name of Visla Capital, LLC.
g. On or about May 7,2020, the defendant and JAWORSKA wired $88,862 from the
IncredibleBank Account 6664 to tiie Capital One Account 3987.
h. On or about May 8,2020, the defendant and JAWORSKA wired $81,132 from the
IncredibleBank Account 6664 to the Capital One Account 3987,
i. On or about May 12,2020, the defendant withdrew $5,000 in cash from the Capital
One Account 3987. 
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j. On or about May 16, 2020, the defendant withdrew |$25,000 in cash from the
Capital One Account 3987.
k. On or about May 18,2020, the defendant transferred $93,814 from the Capital One
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Account 3987 to United Bank Account 3777. 
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1. On or about April 23, 2020, the defendant applied for a PPP loan from Sonabank
totaling $405,200, in the name of Global Capital Financpg, LLC, which contained
materially false statements. The funds were disbursed via cashier's check.
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m. On or about May 8, 2020, the defendant deposited the cashier's check from
Sonabank into a M&T bank account ending in x3777 (JM&T Account 3777") held
in the name of Global Capital Financing, LLC. The defendant had sole signatory
authority over the M&T Account 3777.
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n. On or about May 5,2020, JAWORSKA applied for a loan from Sonabank totaling
$445,000, in the name of Blue Pearl, LLC, which Icontained materially false
statements. The funds were disbursed via cashier's check,
o. On or about May 5, 2020, the defendant opened a Cap ital One account ending in
I  x7189 ("Capital One Account 7189") in the name of Blue Pearl, LLC. The
defendant opened Capital One Account 7189 with $250 and had sole signatory
authority over Capital One Account 7189.
p. On or about May 8,2020, the defendant deposited the cashier's check for $445,000
from Sonabank into the Capital One Account 7189.
EIDL Loans
q. On or about April 7, 2020, the defendant and JAWORiSKA applied for an EIDL
loan from the SBA in the name of Washington Capital Group, LLC, which
contained materially false statements,
r. The defendant and JAWORSKA directed that the $jl 0,000 EIDL advance be
deposited into the Capital One Account 3990. As a ijesult, on or about May 5,
2020, the EIDL advance was deposited in the Capital One Account 3990.
Conclusion
18. 
From in or about April 2020 to on or about June 20,2020, in the Eastern District of
Virginia and elsewhere, the defendant, TARIK JAAFAR, and his wife and co-conspirator
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MONIKA MAGDALENA JAWORSKA did knowingly and willfully conspire with each other to
commit bank firaud, contrary to Title IS, United States Code, Section 1344; that is, the defendant
knowingly and intentionally conspired with JAWORSKA to execute a scheme and artifice to
defi*aud multiple financial institution which included. Harvest Small Business Finance, LLC,
IncredibleBank, and Sonabank, financial institutions under the meaning of Title 18, United States
Code, Section 20, and to obtain moneys, funds, credits, assets, securitie s, and other property, under
the custody and control of those financial mstitutions by means of materially false and fraudulent
pretenses, representations, and promises, and JAFAARdid knowinglyjand willfully conspire with
JAWORSKA to defiaud the United States Small Business Administration and to impair, obstruct,
and defeat the lawful administration the BIDL program and in the distribution of EIDL loans by
deceitful or dishonest means, all in violation of Title 18, United States
19. 
This statement of facts includes those facts necessary to
Code, Section 37 L
support the plea agreement
between the defendant and the United States. It does not include eac h and every fact known to
the defendant or to tlie United States, and it is not intended to be a fujl enumeration of all of the
facts surrounding the defendant's case. 
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20. 
The actions of the defendant, as recounted above, were in all respects knowing,
willful and deliberate, and were not committed by mistake, accident, or other Innocent reason.
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Respectfully submitted, |
G. Zachary Terwilliger
United States Attorney
Date: August 14,2020
By:
Kimberly Shartar
William Fitzpatrick
Assistant United States Attorneys
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After consulting with my attomey and pursuant to the plea agreement entered into this day
between the defendant, TARIK JAAFAR, and the United States, I he reby stipulate that the above
Statement of Facts is true and accurate, and that had the matter proceeded to trial, the United States
would have proved the same beyond a reasonable doubt.
TARIK JAAFAR
I am defendant's attomey. I have carefully reviewed the above Statement of Facts with
him. To my knowledge, his decision to stipulate to these facts is an informed and voluntary one.
David Dischley, Esq.
Attomey for TARIK JAAFAR
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