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Crim Txsd Unknown Us V Jase Depaul Gautreaux Docx Complaint - Us V Jase Depaul Gautreaux

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An AO 91 criminal complaint in United States of America v. Jase DePaul Gautreaux in the U.S. District Court for the Southern District of Texas, with a U.S. Postal Inspector's affidavit sworn June 22, 2020. The complaint charges violations of 18 U.S.C. § 1014, 18 U.S.C. § 1343, 18 U.S.C. § 1344 and 18 U.S.C. § 1957 in Harris County from April 2020 to the present. The affidavit alleges that he submitted Paycheck Protection Program applications in another person's name for businesses that did not exist or with which he had no association, including a $1,626,250 application to Bank 1 for ENI Marketing Inc. It concludes that he submitted at least eight false PPP applications seeking over $13 million and obtained more than $1.7 million on two approved loans. The affiant also asks the court to seal the complaint papers.

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AO 91 (Rev. 11/11) Criminal Complaint

UNITED STATES DISTRICT COURT

for the

Southern District of Texas

United States of America )
Vv. )
Jase DePaul Gautreaux, a/k/a Jase Dixon, a/k/a ) Coes Ti
LeMarcus Dixon, a/k/a Jase Wingate
)
: )
Defendant(s)
CRIMINAL COMPLAINT
I, the complainant in this case, state that the following is true to the best of my knowledge and belief.
On or about the date(s) of April 2020 to the present in the county of __ Harris _ inthe
Southern District of Texas , the defendant(s) violated:
Code Section Offense Description
18 U.S.C. § 1014 False Statements to Financial Institution
18 U.S.C. § 1343 Wire Fraud
18 U.S.C. § 1344 Bank Fraud
18 U.S.C. § 1957 Engaging in Prohibited Monetary Transactions

This criminal complaint is based on these facts:

See attached affidavit of probable cause

@M Continued on the attached sheet.

iplainant 's signature

Postal Inspector Kyle Shadowens, USPIS

Printed name and title

Sworn to before me telephonically.

Date:

Judge ’s signature

City and state: - Houston, Texas Magistrate Judge Christina Bryan

Printed name and title
AFFIDAVIT IN SUPPORT OF AN APPLICATION FOR A CRIMINAL COMPLAINT

I, U.S. Postal Inspector Kyle Shadowens, being first duly sworn, state:

INTRODUCTION

1. I make this affidavit in support of a criminal complaint establishing probable cause
for the arrest of Jase DePaul GAUTREAUX, also known as Jase Dixon, for committing the
following offenses in the Southern District of Texas between April 2020 and the present:

a. 18U.S.C. § 1014, False Statements to a Financial Institution;

b. 18 U.S.C. § 1343, Wire Fraud;

c. 18 U.S.C. § 1344, Bank Fraud; and

d. 18 U.S.C. § 1957, Engaging in Prohibited Monetary Transactions.

eA As described below, there is probable cause to believe that GAUTREAUX
committed the above-listed offenses in connection with a bank and wire fraud scheme targeting
the Paycheck Protection Program, a program created to address the economic fallout of the
COVID-19 pandemic by providing forgivable loans to small businesses.

AGENT BACKGROUND

a I am employed as a federal law enforcement officer by the United States Postal
Inspection Service. I have been employed as a federal law enforcement officer since 2013 and am
assigned to the Financial Crimes/Mail Fraud team in the Houston Division of the United States
Postal Inspection Service. I am responsible for conducting and have conducted many
investigations into fraud, identity theft, and related “white collar” types of offenses. I have been
licensed as an attorney by the State Bar of Texas since 2010 and am a Certified Fraud Examiner.

I have received training in numerous Postal crimes, but primarily those involving “identity theft”,
“white collar”, mail fraud, wire fraud, and bank fraud related offenses. I am authorized to obtain
and execute Federal Arrest and Search Warrants.

4. The information presented in this affidavit is based on my own personal
investigation and the investigation of other law enforcement officers, which was communicated to
me orally or via written communication. The facts set forth do not constitute all that has been
learned in the course of the investigation but only enough to establish that probable cause exists
for the issuance of a complaint and arrest warrant for GAUTREAUX.

OVERVIEW OF THE SCHEME AND THE PAYCHECK PROTECTION PROGRAM

Overview of 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
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, up
to $310 billion in additional PPP funding was authorized by Congress.

6. The PPP allows qualifying small businesses and other organizations to reccive
loans with a maturity of 2 years and an interest rate of 1%. PPP loan proceeds must be used by
businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest
and principal to be forgiven if businesses spend the proceeds on these expenses within a set period
of time and uses a certain portion of the PPP loan funds towards payroll expenses. The amount of

PPP funds a business may receive is determined by the number of employees employed by the

i)
_ business and their average payroll costs for a period of eight weeks. Businesses applying for a

PPP loan must provide documentation showing their payroll expenses.

7. The PPP is overseen by the Small Business Administration (“SBA”). Individual
PPP loans, however, are issued by private approved lenders (most commonly, banks and credit
unions), who receive and process PPP applications and supporting documentation, and then make
loans using their own funds. To date, over 4,900 lending institutions have participated in the PPP.

Background of GAUTREAUX and Overview of the Scheme

8. GAUTREAUxX is a resident of Houston, Texas. Open-source research indicates
that he is a funeral director at Wingate Funeral Home, which operates from a storefront on Almeda
Road.

o. GAUTREAUX has been arrested numerous times in Texas under the names Jase
GAUTREAUX, Jase Dixon, and other aliases). GAUTREAUX’s criminal history includes
convictions for fraud, forgery, and theft.

10. | Between April 2020 and the present, GAUTREAUX submitted several materially
false loan applications to financial institutions in order to wrongfully obtain funds from the PPP
program. On all but one of these loans, GAUTREAUX falsely presented himself as an individual
named Joshua Prado (often spelled as Joshua Pedro). GAUTREAUX further claimed to be
submitting the applications on behalf of businesses that either: (a) did not exist; or (b) with which
GAUTREAUX had no association. Further, on one additional PPP loan application,
GAUTREAUX applied for money on behalf of a funeral home with which he was affiliated.
However, on this application, GAUTREAUX misrepresented his criminal history, the size of the
company, and the company’s payroll in order to obtain money that would not have been provided

had GAUTREAUX been truthful.
Relevant Financial Institutions and Related Entities

11. Bank 1 is a federally insured financial institution. Bank 1 is an approved SBA
lender and has participated as a lender in the PPP. Bank 1 received a PPP loan application on
behalf of “ENI Marketing Inc.”

12. Bank 2 is a federally insured financial institution. Bank 2 is an SBA Nationwide
Preferred Small Business Lender and has participated as a lender in the PPP. Bank 2 received a
PPP loan application on behalf of “ENI Operation Co”.

13. Bank 3 is a federally insured financial institution at which GAUTREAUX held a
personal checking account.

14. Bank 4 is a federally insured financial institution at which GAUTREAUX held a
business account for Wingate Funeral Service Group. Bank 4 is also an approved SBA lender and
has participated as a lender in the PPP. Bank 4 received a PPP loan application on behalf of
“Wingate Funeral Service Group.”

15. Banks 5 through 8 are federally insured financial institutions.

16. Companies | and 2 are brokers in the business of helping borrowers find lenders to
support their specific funding needs.

17. Companies 3 and 4 are approved SBA lenders and have participated as lenders in
the PPP.

The PPP Loan Application to Bank 1

Background Relating to the Application
18. According to information received by Bank 1, on April 29, 2020, a PPP loan

application was submitted to Bank 1 on behalf of “ENI Marketing Inc.” in Houston, Texas (“Bank
1 PPP Application”). This application requested a PPP loan of $1,626,250. Bank 1 approved the
loan and disbursed the funds, but the majority of the money was later returned to Bank 1.

19. Based on information obtained by the SBA, it appears that Bank 1 received the
Bank 1 PPP Application and supporting documents through Company 1.

20. | The Bank 1 PPP Application identifies the 100% owner of ENI Marketing Inc. as
Joshua Pedro, and it provides an address of 8700 Woodway 167, Houston, TX 77063.

False and Suspicious Statements on the Bank 1 Application

21, Investigation has revealed that numerous statements on the Bank 1 PPP Application
appear to be false and suspicious.

22. According to Texas Secretary of State records, ENI Marketing Inc. is a foreign for-
profit corporation. It does not currently have the right to do business in the State of Texas. A
search on the Texas Comptroller of Public Accounts website revealed that ENI Marketing Inc. was
registered as a business in Texas in 1999. It has since forfeited its right to do business in the state.
It is a subsidiary of Eni S.p.A, a global oil and gas conglomerate headquartered in Rome, Italy.
Eni S.p.A. operates in North America through a subsidiary called ENI US Operating Co. Inc. Eni
S.p.A. employs over 30,000 people worldwide and is not a qualifying small business for the
purposes of the PPP.

23, The Bank 1 PPP Application provides a business contact phone number of 713-
539-2435. This is a Sprint cellular phone number. Records received from the wireless provider
reveal that 713-539-2435 is registered to Jase GAUTREAUX.

24. On or about May 27, 2020, investigators spoke with legal counsel for ENI US
Operating Co. Inc. Counsel stated that 713-539-2435 has no known affiliation with any ENI-

related entity.
25. Further, 713-539-2435 is listed as a contact number for an account at Bank 4 in the
name of “Jase DePaul Gautreaux DBA Wingate Funeral Service Group.” In several recorded
conversations with Bank 4, GAUTREAUxX identified himself and gave his phone number as 713-
539-2435. The most recent of these conversations occurred on May 29, 2020.

ws The Bank 1 PPP Application provides an email address of
metroh5300@gmail.com. This is a free Gmail account. It is not an Eni-affiliated business account,
as those accounts generally bear a suffix of eni.com.

rs Although the Bank 1 PPP Application lists ENI Marketing Inc.’s owner as “Joshua
Pedro,” the driver license and social security card submitted along with the application package
belong to Joshua Prado. Thus, it appears that the name of the putative business owner is misspelled
throughout the application.

28. Legal counsel for ENI US Operating Co. Inc. said that the only entity named ENI
Marketing of which he is aware is a holding company with no employees and no payroll expenses.
Counsel also confirmed that this entity has not applied for a PPP loan.

29, Counsel for ENI US Operating Co. Inc. further stated that Joshua Prado has no
known affiliation with any Eni-related entity. Prado is not the owner of any Eni-related entity.

30. The Bank 1 PPP Application lists the address of ENI Marketing Inc. as 8700
Woodway Dr #167, Houston, TX 77063. This is not an address associated with any Eni-related
entity. Rather, it corresponds to a residential apartment in an apartment complex. ENI US
Operating Co. Inc. has a true business address of 1200 Smith Street, Suite 1700, Houston, Texas
77002.

31. Surveillance indicates that the address of 8700 Woodway, Apartment 167, is

GAUTREAUX’s residence. In June 2020, agents saw GAUTREAUX enter apartment 167.
Further, federal agents identified a vehicle registered to GAUTREAUX at this address, and they
have seen GAUTREAUX enter and leave the apartment complex multiple times.

32. | The Bank 1 PPP Application lists the average monthly payroll for ENI Marketing
Inc. as $650,500 and identifies the total number of employees as 10. Again, ENI Marketing Inc.
is not an active company in the State of Texas. As in-house counsel explained, ENI Marketing
Inc. has no employees and thus no payroll and has not applied for a PPP loan.

33. | The supporting documents submitted in furtherance of the Bank 1 PPP Application
also bear indications of fraud. For instance, the applicant provided the first page of a bank
statement for an account at Bank 3, putatively in the name of “ENI PETRO” with an address at
8700 Woodway Dr 167, Houston, Texas 77063. A Bank 3 representative stated that this document
was false and that Bank 3 does not hold a business account for an entity called ENI Petro. The
member number on the document belongs to a personal account held by Jase GAUTREAUX.

34. Along with the Bank 1 PPP Application, the applicant also provided a voided check
on which the account holder was listed as “‘ENI, Houston Texas 77021.” The account number on
the check belongs to the same Bank 3 account in GAUTREAUX’s name that was utilized to create

the forged bank statement.

35. Further, the PPP loan applicant transmitted to Bank 1 an IRS Form 940, which is
an employer’s annual federal unemployment tax return. The Form 940 listed ENI Marketing’s
unemployment tax as $35,934.28 before zero adjustments, yet incorrectly reports the tax after
adjustments as $1,256,240.33.

36. On or about May 4, 2020, a loan officer at Bank 1 emailed
metroh5300@gmail.com—the email address listed on the PPP loan application—to request copies

of ENI Marketing Inc.’s articles of incorporation and business license. A response that same day
from metroh5300@gmail.com included a photograph of a document that bears multiple hallmarks
of forgery. Although the sender of the email wrote that the document was “our article of
incorporation,” it in fact bears the title “Certificate of Filing.” This document states that “ENI
Corporation” has filed a certificate of formation to operate as a limited liability company in Texas.
Again, the entity named in the Bank 1 PPP Application is ENI Marketing Inc., not ENI
Corporation. Additionally, the document lists a file number, but when investigators ran this file
number in the relevant Texas state database, it returned no results. The document also claimed to
be dated and effective in 1999, but it bears the name and signature of the current Texas Secretary
of State, not the person who occupied that position in 1999. Further, the size and style of font used
for the entity name, the dates, and the file number do not match the rest of the document.

37. | Onor about May 6, 2020, a Bank 1 loan officer emailed metrohS300@gmail.com
to ask for tax forms for all employees making over $100,000 per year. The user of the email
account responded, “Nobody makes over 100k!” This statement is inconsistent with the
representation about payroll made in the Bank 1 PPP Application. As mentioned above, in that
document, the applicant listed the average monthly payroll expenses of ENI Marketing Inc. to be
$650,500 for 10 employees. This equates to average pay of $65,050 per employee each month, or
average annual pay of $780,600 for each employee.

Disbursement and Use of the PPP Loan Funds from Bank I

38. On or about May 8, 2020, GAUTREAUX’s Bank 3 account received a deposit of

$1,626,250 for a PPP loan originating at Bank 1. This Bank 3 account is the same account tied to

the forged bank statement and check, discussed above.
39. On or about May 11, 2020, approximately $700,000 was moved from
GAUTREAUX’s Bank 3 account into the Bank 4 account in the name of “Jase DePaul Gautreaux
DBA Wingate Funeral Service Group.”

40. Subsequent to receiving the $700,000 transfer, GAUTREAUX’s account at Bank
4 was frozen. In a recorded phone call, a Bank 4 representative asked GAUTREAUX to explain
the origin of the $700,000 deposit. GAU'TREAUX stated it “was a loan.” He then elaborated that
“the loan came from my partner. We’ve got another business, so we pulled the money from that
account and put it into the Wingate account.”. GAUTREAUX was then asked to provide his
business partner’s name. He responded “‘yeah, goddamn,” and then said he would call back with
additional information about the $700,000 deposit. GAUTREAUX never provided any further
details about the deposit to Bank 4.

41. Additionally, around the same time, a check for $284,800 was written on
GAUTREAUX’s Bank 3 account and sent to a vehicle dealer in New York for the purchase of two
hearses and two limousines. The seller of the vehicles advised that the buyer was Jase
GAUTREAUX, who utilized the phone number 713-539-2435. Although GAUTREAUX sent the
check, the sale was never completed, and the check was not deposited.

42. Ultimately, the PPP loan deposit was reversed, and most of the $1,626,250 was
returned to Bank 1.

The PPP Loan Application to Bank 2

Background Relating to the Application
43. According to information received by Bank 2, on or about April 27, 2020, a PPP
loan application was submitted to Bank 2 on behalf of “ENI Operation Co” in Houston, Texas

(“Bank 2 PPP Application”). This application requested a PPP loan of $2,068,200.
44. _ Based on information obtained by the SBA, it appears that Bank 2 received the
Bank 2 PPP Application and supporting documents through Company 2.

45. | The Bank 2 PPP Application lists Josh Prado as the 100% owner of ENI Operation
Co, and it provides a business address of 8700 Woodway 167, Houston, TX 77063.

False and Suspicious Statements on the Bank 2 PPP Application

46. Investigation has revealed that the ENI Operation Co PPP loan application is
riddled with an array of statements that appear to be false and suspicious. Many of these are
identified below.

47. A business records search revealed that ENI Operation Co is not the legal name of
any business entity in the State of Texas. The tax identification number on the Bank 2 PPP
Application corresponds to ENI Petroleum US LLC, a subsidiary of Eni S.p.A. As mentioned in
paragraph 13, above, Eni S.p.A. is an Italian oil and gas conglomerate that employs over 30,000
people across the globe.

48. The Bank 2 PPP Application provides 281-932-0305 as the contact phone number
for ENI Operation Co. This is a Sprint cell phone number registered to Jase Dixon at 8700
Woodway Dr, Houston, TX 77063. Jase Dixon is known to be an alias of GAUTREAUX.

49. Counsel for ENI US Operating Co. Inc. stated that this phone number has no known
affiliation with any ENI-related entity.

50. The loan application lists the address of ENI Operation Co as 8700 Woodway 167,
Houston, TX 77063. As discussed above, this is the address of a residential apartment and is not
associated with any Eni-related entity.

51. As noted above, surveillance indicates that the address of 8700 Woodway,

Apartment 167, appears to be GAUTREAUX’s residence.
52. | As mentioned previously, the Bank 2 PPP Application identifies Josh Prado as the
owner of ENI Operation Co. Counsel for ENI US Operating Co. Inc. further explained that Joshua
Prado has no known affiliation with any Eni-related entity. Prado is not the owner of an Eni-
related entity.

53. The application lists an email address of dunvaletx@gmail.com. This is a free
Gmail account. It is not an Eni-affiliated business account, as those accounts generally bear a
suffix of eni.com.

54. The Bank 2 PPP Application lists the average monthly payroll for ENI Operation
Co as $827,280 and identifies the total number of employees as 27. Again, ENI Operation Co
does not exist. In-house counsel explained that ENI US Operating Co. Inc. has over 200 employees
in the United States and that the $827,280 amount does not correspond to the known payroll
expenses of any Eni-affiliated entity.

ki Further, it appears that falsified supporting documentation was provided to
Company 2 and Bank 2 in connection with the Bank 2 PPP Application.

56. As one example, on or about April 27, 2020, the applicant provided a Company 2
employee a 2019 IRS Form 941, which is an employer’s quarterly federal tax return. This form
is incomplete, inconsistent, and appears fraudulent. For instance, the form does not indicate the
quarter of 2019 to which it purportedly pertains. On May 11, 2020, a credit officer at Bank 2 noted
that the calculations in this form are “wholly inconsistent” with a business of the purported size of
ENI Operation Co.

57. That same day, the applicant also sent a Company 2 employee an IRS Form 940,
which is an employer’s annual federal unemployment tax return. The Form 940 was in the name

of ENI, not ENI Operation Co, and appeared to list an incorrect number for ENI’s unemployment
tax liability. The credit officer from Bank 2 noted that the Employer Identification Number
(“EIN”), which is listed on both the Forms 940 and 941, “...belongs to ENI Petroleum US LLC
which is a US Based subsidiary an Italian Energy company ENI. ENI has 31,321 employees across
the globe. Our applicant doesn’t own it.”

58. Both the Form 940 and 941 appear to be signed in the name of “Joshua Pedro.”
This is inconsistent with the name on the Bank 2 PPP Application and the Texas driver license
submitted therewith, which is Joshua Prado.

59. Bank 2 provided investigators a “Corporation Certificate of Authority” dated April
28, 2020, certifying that ENI Operation Co is duly organized in the state of Texas and that the
Board of Directors had authorized “Joshua Pedro”—not Joshua Prado as reported on the Bank 2
PPP Application—to sign all promissory notes, agreements and other documents. This document
was electronically signed by Joshua Pedro. An audit trail supporting this document reflects that
the document was viewed and signed through the dunvaletx@gmail.com email address associated
with Bank 2 PPP Application.

60. On May 29, 2020, an email was sent from the dunvaletx@gmail.com address to a

Bank 2 employee, claiming that “We have 39 employees all based here in the USA.” This is

inconsistent with the Bank 2 PPP Application, which stated that ENI Operation Co had 27
employees. Further, in this email, the user of the email account reiterated that the entity’s business
address is “8700 Woodway Dr Suite 167.”
Phone Call Between Bank 2 and the Loan Applicant
61. On May 29, 2020, a Bank 2 employee spoke on the telephone with the PPP loan
applicant, who investigators believe was GAUTREAUX. The PPP loan applicant called Bank 2

from 713-539-2435 which, as discussed above, is registered to GAUTREAUX. Investigators have
reviewed a recording of this call and have identified several statements by the loan applicant that
appear to be false and suspicious.

62. Early in the call, the caller stated to the Bank 2 employee that he “can always be
reached on” 713-539-2435. He also explained that “the 281-932 number should have been coming
over to this line.” Investigators believe that the 281-932 number is 281-932-0305, which was
listed as the phone number for ENI Operation Co on the Bank 2 PPP Application.

63. Later in the call, the caller said that “the 281-932 number is the company’s main
line” and “‘the 713 number is my personal line with the company.” He further explained that “these
are both company phones.” As mentioned above, neither of these phone numbers is affiliated with
any ENI-related entity. 281-932-0305 is a cell phone registered to Jase Dixon; 713-539-2435 is a
cell phone in the name of Jase GAUTREAUX.

64. When asked to state his name, the caller said, “my first name is Joshua and my last
name is Pedro.” He thereafter claimed that his last name was Prado. As discussed above, the Bank
2 PPP Application listed the owner of ENI Operation Co as Josh Prado, but on documents relating
to both PPP loan applications discussed in this affidavit, the applicant alternated between the last

names Prado and Pedro.

65. The caller also provided a tax identification number that did not match the number
listed on the Bank 2 PPP Application.

66. The caller reiterated that he was the 100% owner of the company in question. He
further stated that he owned no other companies, although the two PPP loan applications discussed
herein reference two companies with differing names, numbers of employees, and payroll

expenses, both putatively owned by the same person.
67. The caller also claimed that he had not applied for any other PPP loans. In fact,
investigation has revealed that the applicant submitted several PPP loan applications, including
those discussed in this affidavit.

68. Additionally, the caller stated that he had no felony or misdemeanor convictions,
although GAUTREAUX does in fact have a criminal history in the State of Texas.

69. ‘The caller also stated that he wanted to change the account receiving the loan funds
to a bank account from Bank 5. He then provided a routing number, account number, and account
name of “ENI.” Subsequent to this call, the applicant emailed a purported Bank 5 bank statement
bearing the customer name “ENI” to a Bank 2 employee. In a subsequent communication with
law enforcement, a Bank 5 representative confirmed that this bank statement was forged.

70. The Bank 2 employee asked the caller to explain why the Bank 2 PPP Application
stated that ENI Operation Co had 27 employees, while the subsequent email to Bank 2, discussed
in paragraph 56, claimed 39 employees. The caller asserted that “initially I didn’t add in the ones
that were mobile.” He then said, “that should have been a correction, but I would hate for five or
six extra employees to throw a whole application off.”

71. Bank 2 ultimately declined to fund the loan requested in the Bank 2 PPP
Application.

Additional Applications Using Joshua Prado’s Personal Information

72. Inaddition to the loans discussed above, GAUTREAUX appears to have initiated
applications for at least five other PPP loans in which he used Joshua Prado’s name and claimed
to be submitting on behalf of an Eni-related entity. All of these loans utilized the
dunvaletx@gmail.com account listed on the Bank 2 PPP Application. Investigators do not

currently have evidence that any of these loans were funded. The additional loans are:
Lender/Broker Date of application or | Dollar amount
earliest communication

Bank 6 4/28/20 $4,910,187.00

Bank 7 5/31/20 $1,511,387.50

Company 3 5/31/20 Unknown

Bank 8 5/31/20 $1,511,387.50

Company 4 5/31/20 $1,511,387.50

The PPP Loan Application to Bank 4

73. Additionally, GAUTREAUX sought and received a PPP loan on behalf of Wingate
Funeral Home (“Wingate”) for $130,800 from Bank 4 (“Bank 4 PPP Application”). Although
Wingate is an actual entity, the loan application GAUTREAUX submitted contains multiple
material false statements.

74. First, GAUTREAUxX certified that he had no disqualifying felonies, but in fact, he
has several felony convictions, any one of which would prohibit him from obtaining a PPP loan.

Ts Second, GAUTREAUX listed Wingate’s total number of employees as 10.
Records from the Texas Workforce Commission indicate no employment records for Wingate.

76. Third, GAUTREAUxX stated that Wingate was established in December 2018, but
records from the Texas Comptroller’s office show that Wingate was not registered to do business
until November 21, 2019.

77. Finally, a tax form submitted in support of the application stated that Wingate paid
$869,500 in wages in 2019. But records indicate that it would not have been possible for Wingate
to pay such a high amount in wages in 2019. A second supporting document lists Wingate’s

employees and their hourly rate. Based on that document, Wingate has five employees who earn
wages ranging from $37 to $180 per hour. [fall five of these employees were working at the listed
rate, it would take them 1967 hours to earn $869,500 in pay. But from the date of Wingate’s
founding on November 21, there were only 41 days—or 984 hours—left in 2019. So even if all
five employees worked every single hour from the date the business opened until the end of the
year, they would still get only halfway to the claimed $869,500 wage amount. Thus, the wages
listed in the application appear to be false.

CONCLUSION

78. In total, evidence indicates that GAUTREAUX submitted at least eight false PPP
applications, seeking to fraudulently obtain over $13 million from the SBA. While most of these
loans were denied, GAUTREAUX was able to get two of them approved by lenders, thereby
fraudulently obtaining more than $1.7 million. For all but one of these loans, evidence indicates
that GAUTREAUX misappropriated the identity of another person.

79. Based on the foregoing, I submit that there is probable cause that, between April
2020 and the present, GAUTREAUX committed the crimes identified in paragraphs 1.a. through
1.d. Therefore, I request that a criminal complaint be issued, along with a warrant for

GAUTREAUX’s arrest.

REQUEST FOR SEALING

80. I further request that the Court order that all papers in support of this complaint,
including the affidavit and arrest warrant, be sealed until further order of the Court. These
documents discuss an ongoing criminal investigation that is neither public nor known to all of the
targets of the investigation. Accordingly, there is good cause to seal these documents because their
premature disclosure may give targets an opportunity to flee/continue flight from prosecution,

destroy or tamper with evidence, change patterns of behavior, notify confederates, or otherwise

16
seriously jeopardize the investigation.

Wihts
Lf ———
OG _

Kyle Shadowens
United States Postal Inspector

Subscribed and sworn pursuant to Fed. R. Crim. P. 4.1 and 41(d)(3) on June 22, 2020.

THE HONORABLE CHRISTINA BRYANT
UNITED STATES MAGISTRATE JUDGE

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