Plea Agreement — United States v. Knight (Dkt. 35, S.D. Ga.)

Summary

A plea agreement in United States of America v. Mack Devon Knight, CR 221-043, in the U.S. District Court for the Southern District of Georgia, Brunswick Division, filed March 25, 2022. Knight, represented by Scott G. Reddock, agrees with the United States, represented by Assistant United States Attorneys Jonathan A. Porter and Patrick J. Schwedler, to plead guilty to Counts One and Two of the Indictment, which charge violations of 18 U.S.C. § 1343. The agreement lists the elements of wire fraud and states that Knight agrees he is guilty and agrees to the accuracy of the factual basis that follows. It closes with defense counsel's statement that Knight's decision is informed, intelligent and voluntary.

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Case 2:21-cr-00043-LGW-BWC Document 35 Filed 03/25/22 Page 1 of 14

                    UNITED STATES DISTRICT COURT
                   SOUTHERN DISTRICT OF GEORGIA
                          BRUNSWICK DIVISION

 UNITED STATES OF AMERICA

                  v.                                 CR: 221-043

 MACK DEVON KNIGHT                     )

                            PLEA AGREEMENT

      Defendant Mack Devon Knight, represented by his counsel Scott G. Reddock,

and the United States of America, represented by Assistant United States Attorneys

Jonathan A. Porter and Patrick J. Schwedler, have reached a plea agreement in this

case. The terms and conditions of that agreement are as follows.

1.    Guilty Plea

      Defendant agrees to enter a plea of guilty to Counts One and Two of the

Indictment, which charge a violation of 18 U.S.C. § 1343.

2.    Elements and Factual Basis

      The elements necessary to prove the offenses charged in Counts One and Two

are that (1) the Defendant voluntarily and intentionally devised or participated in a

scheme to defraud another out of money; (2) the false pretenses, representations, or

promises were about a material fact; (8) the Defendant acted with the intent to

defraud; and (4) the Defendant transmitted or caused to be transmitted by wire some

communication in interstate commerce to help carry out the scheme to defraud.

Case 2:21-cr-00043-LGW-BWC Document 35 Filed 03/25/22 Page 2 of 14

Defendant agrees that he is, in fact, guilty of these offenses. He agrees to the
accuracy of the following facts, which satisfy each of the offense’s required elements:

Beginning in or about February 2021 and continuing until in or about March
2021, in the Southern District of Georgia, and elsewhere, the Defendant Mack Devon
Knight did knowingly devise and intend to devise a scheme and artifice to defraud
the United States government, and to obtain money and property, by means of
materially false and fraudulent pretenses, representations, and promises.

The object of the scheme for Knight was to unjustly enrich himself by obtaining
EIDL proceeds under false and fraudulent pretenses, including by making false
statements about his businesses’ gross revenues for the twelve-month period prior to
the date of the disaster.

It was part of the scheme that, on or about the dates set forth below, Knight
submitted, or caused to be submitted, multiple electronic applications for EIDLs from
the SBA at https://covid19relief.sba.gov/#/:

e On or about February 18, 2021, Knight submitted, or caused to be
submitted, an electronic application for an EIDL from the SBA (“‘EIDL
Application -3546”) on behalf of Knight’s Tax Services. In connection with
EIDL Application -3546, Knight falsely affirmed that the business had
$386,000 in gross revenues in the twelve months prior to January 31, 2020.

e Onor about March 12, 2021, Knight submitted, or caused to be submitted,
an electronic application for an EIDL from the SBA (“EIDL Application -

3480”) on behalf of Daddy Earl’s Kitchen. In connection with EIDL


Case 2:21-cr-00043-LGW-BWC Document 35 Filed 03/25/22 Page 3 of 14

Application -3480, Knight falsely affirmed that the business had $287,000
in gross revenues in the twelve months prior to January 31, 2020.

In furtherance of the scheme, Knight uploaded documents that Knight knew

to contain materially false, fictitious, and fraudulent statements with the intent to

deceive the SBA, to wit,

a bank document that had been altered to reflect that Knight’s Tax Services
had opened its account with “Bank 1” on February 2, 2019, when in fact, as
Knight then and there well knew, the transmitted bank document had been
altered and that Knight’s Tax Services’ account with Bank 1 was not opened
until 2021;

a tax document that falsely reflected business revenue and expenses of Daddy
Earl’s Kitchen for the year 2019, when in fact, as Knight then and there well
knew, Daddy Earl’s Kitchen had no business revenue in 2019 and was not
established until 2021; and

a schedule of liabilities that falsely reflected creditors of Daddy Earl’s Kitchen
such as claiming that it paid a food supply company $4,500 monthly, when in
fact, as Knight then and there well knew, Daddy Earl’s Kitchen had no
relationship with the food supply company and did no business with the food
supply company.

On or about March 8, 2021, in reliance on Knight’s false representations in

EIDL Application -3546 on behalf of Knight’s Tax Services, the SBA deposited


Case 2:21-cr-00043-LGW-BWC Document 35 Filed 03/25/22 Page 4 of 14

$149,900 into a bank account in Knight’s Tax Services’ name at “Bank 1” in the form

of an EIDL.
All in violation of Title 18, United States Code, Sections 1343.

3. Possible Sentence

Defendant’s guilty plea will subject him to the following maximum possible
sentence, for each of Counts One and Two: 20 years’ imprisonment, 3 years’
supervised release, a $500,000 fine, such restitution as may be ordered by the Court,
and forfeiture of all forfeitable assets. The Court additionally must impose a $100
special assessment per count of conviction.

4. No Promised Sentence

No one has promised Defendant that the Court will impose any particular
sentence or a sentence within any particular range. The Court is not bound by any
estimate of sentence given or recommendations made by Defendant’s counsel, the
government, the U.S. Probation Office, or anyone else. The Court may impose a
sentence up to the statutory maximum. Defendant will not be allowed to withdraw
his plea of guilty if he receives a more severe sentence than he expects.

5. Court’s Use of Sentencing Guidelines

The Court is obligated to use the United States Sentencing Guidelines to
calculate the applicable guideline range for Defendant’s offense. The Sentencing
Guidelines are advisory; the Court is not required to impose a sentence within the
range those Guidelines suggest. The Court will consider that range, possible

departures under the Sentencing Guidelines, and other sentencing factors under 18

i

Case 2:21-cr-00043-LGW-BWC Document 35 Filed 03/25/22 Page 5 of 14

U.S.C. § 3553(a), in determining the Defendant’s sentence. The Sentencing
Guidelines are based on all of Defendant’s relevant conduct, pursuant to U.S.S.G. §
1B1.3, not just the conduct underlying the particular Count or Counts to which

Defendant is pleading guilty.

6. Agreements Regarding Sentencing Guidelines
a. Use of Information

Nothing in this agreement precludes the government from providing full and
accurate information to the Court and U.S. Probation Office for use in calculating the
applicable Sentencing Guidelines range. Any incriminating information provided by
the defendant during his cooperation will not be used in determining the applicable
Guidelines range, pursuant to Section 1B1.8 of the Sentencing Guidelines.

b. Acceptance of Responsibility

If the Court determines that Defendant qualifies for an adjustment under
U.S.S.G. § 3E1.1(a), and the offense level prior to operation of § 3E1.1(a) is 16 or
greater, the government will move for an additional one-level reduction in offense
level pursuant to Section 3E1.1(b) based on Defendant’s timely notification of his
intention to enter a guilty plea.

c. Amount of Loss

The government and Defendant agree to recommend to the U.S. Probation
Office and the Court at sentencing that the amount of loss, for purposes of Section
2B1.1 of the Sentencing Guidelines, is more than $550,000 but not more than

$1,500,000.


Case 2:21-cr-00043-LGW-BWC Document 35 Filed 03/25/22 Page 6 of 14

d. Sophisticated Means

The government and Defendant agree to recommend to the U.S. Probation
Office and the Court at sentencing that, for purposes of Section 2B1.1(b)(10) of the
Sentencing Guidelines, the offense involved sophisticated means and the defendant
intentionally engaged in or caused the conduct constituting sophisticated means.

e. Low End of Guidelines Range

The government will recommend that Defendant be sentenced to the low end
of the advisory Guidelines range determined by the Court at sentencing.
7. Dismissal of Other Counts

At sentencing, the government will move to dismiss any other Counts of the
Indictment that remain pending against Defendant.
8. Forfeiture

a. Defendant agrees to forfeit his interest in any property constituting, or
derived from, any proceeds obtained, directly or indirectly, as a result of the offenses
to which he has agreed to plead guilty, and any property used, or intended to be used,
in any manner or part, to commit, or facilitate the commission of that offense,
specifically a 2016 Mercedes-Benz S-Class Sedan with VIN WDDUG8CB1GA206303
(collectively, the “Subject Property”).

b. Defendant states that he is the sole and rightful owner of the Subject
Property, that, to the best of his knowledge, no other person or entity has any interest
in the Subject Property, and that he has not transferred, conveyed, or encumbered

his interest in the Subject Property. Defendant waives and abandons all right, title,


Case 2:21-cr-00043-LGW-BWC Document 35 Filed 03/25/22 Page 7 of 14

and interest in the Subject Property. Defendant agrees to take all steps requested by
the government to facilitate transfer of title of the Subject Property to the
government. Defendant further agrees not to file any claim, answer, or petition for
remission or mitigation in any administrative or judicial proceeding pertaining to the
Subject Property. If any such document has already been filed, Defendant hereby
withdraws that filing.

c. Defendant agrees to hold the government and its agents and employees
harmless from any claims made in connection with the seizure, forfeiture, or disposal
of property connected to this case. Defendant further agrees to waive the
requirements of the Federal Rules of Criminal Procedure 32.2 and 48(a) regarding
notice of the forfeiture in the charging instrument, announcement of the forfeiture at
sentencing, and incorporation of the forfeiture in the judgment.

d. Defendant waives and abandons his interest in any other property that
may have been seized in connection with this case. Additionally, Defendant waives
any and all challenges on any grounds to the seizure, forfeiture, and disposal of any
property seized in connection with this case. Defendant specifically agrees to waive
any challenges arising under the Double Jeopardy Clause of the Fifth Amendment
and the Excessive Fines Clause of the Eighth Amendment.

9. Financial Obligations and Agreements
a. Restitution
The amount of restitution ordered by the Court shall include restitution for the

full loss caused by Defendant's total criminal conduct. Restitution is not limited to


Case 2:21-cr-00043-LGW-BWC Document 35 Filed 03/25/22 Page 8 of 14

the specific counts to which Defendant is pleading guilty. Any restitution judgment
is intended to and will survive Defendant, notwithstanding the abatement of any
underlying criminal conviction.

b. Special Assessment

Defendant agrees to pay a special assessment in the amount of $200, payable
to the Clerk of the United States District Court, which shall be due immediately at
the time of sentencing.

c. Release of Appearance Bond

Defendant authorizes the Clerk of the United States District Court to release
the funds posted as security for an appearance bond in this case to be applied to
satisfy any of the financial obligations including forfeiture imposed by judgment of
the Court in this case.

d. Required Financial Disclosures

By the date that Defendant enters a guilty plea, Defendant shall complete a
financial disclosure form listing all his assets and financial interests, whether held
directly or indirectly, solely or jointly, in his name or in the name of another.
Defendant shall sign the financial disclosure form under penalty of perjury and
provide that form to the Financial Litigation Unit of the United States Attorney’s
Office and to the United States Probation Office. Defendant authorizes the United
States to obtain credit reports on Defendant and to share the contents of those reports

with the Court and the United States Probation Office. Defendant also authorizes


Case 2:21-cr-00043-LGW-BWC Document 35 Filed 03/25/22 Page 9 of 14

the United States Attorney’s Office to inspect and copy all financial documents and
information held by the United States Probation Office.

e. Financial Examination

Defendant will submit to an examination under oath on the issue of his
financial disclosures and assets if deemed necessary by the United States. Such
examination will occur not later than 30 days after the entry of Defendant’s guilty
plea.

f. No Transfer of Assets

Defendant certifies that he has made no transfer of assets in contemplations
of this prosecution for the purpose of evading or defeating financial obligations or
forfeiture created by this Agreement or that may be imposed upon him by the Court
at sentencing. Defendant promises that he will make no such transfers in the future.

g. Material Change in Circumstances

Defendant agrees to notify the United States of any material change in
circumstances, as described in 18 U.S.C. § 3664(k), that occurs prior to sentencing in
this case. Such notification will be made within seven days of the event giving rise
to the changed circumstances, and in no event later than the date of sentencing.

h. Enforcement

Any payment schedule imposed by the Court is without prejudice to the United
States to take all actions and remedies available to it to collect the full amount of the
financial obligations imposed by the judgment of the Court in this case. Defendant

understands and agrees that the financial obligations and forfeiture imposed by the


Case 2:21-cr-00043-LGW-BWC Document 35 Filed 03/25/22 Page 10 of 14

judgment of the Court in this case will be placed on the Treasury Offset Program so
that any federal payment that Defendant receives may be offset and applied to the
judgment debt without regard to or affecting any payment schedule imposed by the
Court.
10. Waivers

a. Waiver of Appeal

Defendant entirely waives his right to a direct appeal of his conviction and
sentence on any ground (including any argument that the statute to which the
defendant is pleading guilty is unconstitutional or that the admitted conduct does not
fall within the scope of the statute). The only exceptions are that the Defendant may
file a direct appeal of his sentence if (1) the court enters a sentence above the statutory
maximum, (2) the court enters a sentence above the advisory Sentencing Guidelines
range found to apply by the court at sentencing; or (3) the Government appeals the
sentence. Absent those exceptions, Defendant explicitly and irrevocably instructs his
attorney not to file an appeal.

b. Waiver of Collateral Attack

Defendant entirely waives his right to collaterally attack his conviction and
sentence on any ground and by any method, including but not limited to a 28 U.S.C.
§ 2255 motion. The only exception is that Defendant may collaterally attack his

conviction and sentence based on a claim of ineffective assistance of counsel.

c. FOIA and Privacy Act Waiver

10


Case 2:21-cr-00043-LGW-BWC Document 35 Filed 03/25/22 Page 11 of 14

Defendant waives all rights, whether asserted directly or through a
representative, to request or receive from any department or agency of the United
States any record pertaining to the investigation or prosecution of this case under the
authority of the Freedom of Information Act, 5 U.S.C. § 552, or the Privacy Act of
1974, 5 U.S.C. § 552a, and all subsequent amendments thereto.

d. Fed. R. Crim. P. 11(f) and Fed. R. Evid. 410 Waiver

Rule 11(f) of the Federal Rules of Criminal Procedure and Rule 410 of the
Federal Rules of Evidence ordinarily limit the admissibility of statements made by a
defendant during the course of plea discussions or plea proceedings. Defendant
knowingly and voluntarily waives the protections of these rules. If Defendant fails
to plead guilty, or his plea of guilty is later withdrawn, all of Defendant’s statements
in connection with this plea, and any leads derived therefrom, shall be admissible for
any and all purposes.

11. Defendant’s Rights

Defendant has the right to be represented by counsel, and if necessary have
the court appoint counsel, at trial and at every other critical stage of the proceeding.
Defendant possesses a number of rights which he will waive by pleading guilty,
including: the right to plead not guilty, or having already so pleaded, to persist in
that plea; the right to a jury trial; and the right at trial to confront and cross-examine
adverse witnesses, to be protected from compelled self-incrimination, to testify and
present evidence, and to compel the attendance of witnesses.

12. Satisfaction with Counsel

11


Case 2:21-cr-00043-LGW-BWC Document 35 Filed 03/25/22 Page 12 of 14

Defendant has had the benefit of legal counsel in negotiating this agreement.
Defendant believes that his attorney has represented him faithfully, skillfully, and
diligently, and he is completely satisfied with the legal advice given and the work
performed by his attorney.

13. Breach of Plea Agreement

If Defendant fails to plead guilty, withdraws or attempts to withdraw his guilty
plea, commits any new criminal conduct following the execution of this agreement, or
otherwise breaches this agreement, the government is released from all of its
agreements regarding Defendant’s sentence, including any agreements regarding the
calculation of Defendant's advisory Sentencing Guidelines. In addition, the
government may declare the plea agreement null and void, reinstate any counts that
may have been dismissed pursuant to the plea agreement, and/or file new charges
against Defendant that might otherwise be barred by this plea agreement. Defendant
waives any statute-of-limitations or speedy trial defense to prosecutions reinstated

or commenced under this paragraph.

12


Case 2:21-cr-00043-LGW-BWC Document 35 Filed 03/25/22 Page 13 of 14

14. Entire Agreement

This agreement contains the entire agreement between the government and

Defendant.

DAVID H. ESTES

UNITED STATES ATTORNEY

Date “Shiga 1 iiche

Chief, Criminal Division

Date Jortathan A. Portex.”
Georgia Bar No. 725457
Assistant United States Attorney

hig. PL —

Date Patrick J. Schwedler
Georgia Bar No. 812312
Assistant United States Attorney

13

Case 2:21-cr-00043-LGW-BWC Document 35 Filed 03/25/22 Page 14 of 14

I have read and carefully reviewed this agreement with my attorney. I
understand each provision of this agreement, and I voluntarily agree to it. I hereby

stipulate that the factual basis set out therein is true and accurate in every respect.

QH-2D.

Date Mack Devon Knight) Defendant

I have fully explained to Defendant all of his rights, and I have carefully
reviewed each and every part of this agreement with him. I believe that he fully and
completely understands it, and that his decision to enter into this agreement is an

informed, intelligent, and voluntary one.

3/r§ re CoV

Date | Sept G. Reddock, Defendant’s Attorney

14

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