Factual Basis for Guilty Plea — US v. Morgan (E.D. La.)

Record facts

U.S. District Court for the Eastern District of Louisiana · No. 2:23-cr-00047-DJP-EJD · Doc. 55 · 2024-05-28 · Docket on CourtListener

Full text

I]NITED STATES DISTRICT COURT
EASTERN DISTRICT OF LOUISIANA
UNITED STATES OF AMERICA
DONDRE MORGAN
a.ka. ttDret'
CRIMINAL NO. 23-47
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SECTION: "P"
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v
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FACTUAL BASIS
Should this matter have gone to trial, the Government would have proved through the
introduction of reliable testimony and admissible tangible exhibits, including documentary
evidence, the following to support the allegations charged by the Government in Count 3 of the
Indictment now pending against the defendant, DONDRE MORGAN ("MORGAI["), charging
him with Making False Statements to Federal Agents in violation of Title 18, United States Code,
Section l00l(a)(2).
Introduction
The Govemment would establish that the case against MORGAN developed as a result of
a referral from the Pandemic Response Accountability Committee ("PRAC") on October 18,2021,
regarding possible fraudulent Paycheck Protection Program loans ("PPP"). Investigators
determined there were at least 110 PPP sole proprietor loan applications in and around the
Thibodeaux area and they all had the same invoice to Shelita White from the "Natural Hair Afro,
LLC, Houma, LA 70360" and federal tax forms ("Schedule C") with the same business and
amounts.
I
AUSAilT
Defendan.Dlvl
Defense Counsel Phrn
Case 2:23-cr-00047-DJP-EJD     Document 55     Filed 05/28/24     Page 1 of 6

The investigation revealed that MORGAN's girlfriend, Shamae Every ("Every"), created
a fictitious business called "Natural Hair Afro, LLC, Houma,LA 70360" and used this fictitious
business name on nearly all of the fraudulent PPP loan applications. Every charged $45.00 to
$120.00 from the individuals she recruited to prepare and submit the fraudulent PPP application.
Every primarily used Cash App to receive the initial payments. Every then charged $3,500.00
once the loans were funded. Every received these funds into her Current account, her Cash App
account, or into MORGAN's Current account.
Individual A's PPP Loan
On March 15,202l,Individual A, responded to a Facebook posting of Every's and, as a
result, activated and established Current account ending xxxx. That same day, Every completed
Individual A's PPP loan application and submitted it to the Blueacom portal. The loan application
contained a fraudulent invoice and Schedule C in the name of Individual A. As a result of opening
the Current account, Current card ending xxxx was mailed via the USPS from Nashville, TN to
Individual A at C*** Solar Trlr Park, Thibodaux, LA 70301.
On March 21,2021, Blueacorn submitted Individual A's PPP loan applicationto the SBA's
designated financial institution, Capital Plus, and, on March 23,2\zl,Individual A's PPP loan
application was approved. On March 23,202l,Individual A activated Current card ending xxxx.
On March 25, 202l,Individual A's PPP final loan documents were electronically signed via
DocuSign. On April l, 2021, Capital Plus deposited $20,832.00 into Individual A's Current
account ending xxxx and then Individual A sent MORGAN $3,500.00 from the proceeds of the
PPP loan.
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Defense Qounsel_1fur4
Case 2:23-cr-00047-DJP-EJD     Document 55     Filed 05/28/24     Page 2 of 6

Individual B's PPP Loan
On March 18, 202l,Individual B, responded to a Facebook posting of Every's and, as a
result, activated and established Current account ending xxxx. That same day, Current mailed
Individual B's Current card ending xxxx via the USPS from Nashville, TN to *:t't Mall Circle Apt.
**, Houma, LA70364. The next day, Every submitted Individual B's PPP loan application to the
Blueacom portal containing a fraudulent invoice and Schedule C in the name of Individual B.
Then on March 20, 2021, Blueacorn submitted Individual B's PPP loan application to the SBA's
designated financial institution, Capital Plus. On March 23,2021,Individual B's PPP loan
application was approved by Capital Plus. On March 26, 2021, Individual B's final loan
documents were electronically signed via DocuSign and, on Apil2,202l, Individual B activated
her Current card ending xxxx.
On April 2,2021, Capital Plus deposited $20,832.00 into Individual B's Current account
ending xxxx as a result of the submission of the fraudulent PPP application. That same day,
Individual B sent MORGAII $2,000.00 and sent Every $1,500.00 via Cash App from the proceeds
of the fraudulent PPP loan.
MORGAN's PPP Applications
On March 12, 2021, MORGAT\I started a PPP application indicating he was a sole
proprietorship for beautician services. The loan application contained a fraudulent invoice and
Schedule C in the name of MORGAN.
On April 15,2021, MORGAN submitted a second PPP application to the Blueacom portal
listing his sole proprietor business address as 9851 Meadowglen Lane, Houston, Texas. The loan
application contained a fraudulent Schedule C in the name of MORGAN. On April 29,2021,
MORGAN's final loan documents were electronically signed via DocuSign and, on May 12,2021,
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AUSA UTT
DefendantDfi
Defense Counsel ftlw
Case 2:23-cr-00047-DJP-EJD     Document 55     Filed 05/28/24     Page 3 of 6

MORGAN received $20,365.00 to his PayPal account. Approximately $8,000.00 of these funds
were subsequently transferred to Every's PayPal account.
The loss attributable to MORGAN is $55,945.33.
The False Statements
On April 7,2022, special agents with the U.S. Department of Veterans Affairs, Office of
Inspector General, Criminal Investigations Division ("VA OIG") interviewed MORGAN in the
Houma area. MORGAII stated that he didn't own his own business or run a barbershop.
MORGAN denied making over $100,000 running a business. MORGAN denied applying for a
loan and denied receiving any loan money. MORGAI\ stated the last time he filed incomes taxes
was in 2019. MORGAN denied knowing Every and denied living with her. MORGAN also
denied knowing other members of Every's family including her mother Sherita and her sister
Sharnice. When asked about the Chevy Silverado, MORGAN indicated it was his truck.
MORGAN stated it was registered to his mother. MORGAN denied that his truck was registered
to Every. MORGAI\I stated he did not have a bank account or debit card. MORGAN indicated
that he had an account with Woodforest, which is a bank affrliated with Walmart, when he worked
for Walmart. MORGAI\ also denied have a Current account or card. MORGAN denied
knowledge of the individuals who deposited money into his Current account.
The Govemment would introduce the following additional evidence to prove that the
statements made to the special agents with the VA OIG on April 7, 2022, were materially false.
The Govemment would establish that Every obtained a Texas driver's license with the address
9851 Meadowglen Lane Apartment l16, Houston,TX77042 on February 2,2021. MORGAN
was issued a Texas identification card on this same date at this same address. In addition, VA OIG
agents interviewed relatives of Every who identified MORGAN as Every's former boyfriend and
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Defense Counsel Rfurn
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Case 2:23-cr-00047-DJP-EJD     Document 55     Filed 05/28/24     Page 4 of 6

they would establish that Every lived with MORGAN in Houston, Texas. Furthermore, the
Government would introduce evidence that the Chevy Silverado truck was in fact registered in
Texas to Every and that MORGAII's mother lived in Louisiana. The Government would also
establish that MORGAN helped Every with her PPP loan scam, had a Current account, and
received his own PPP loan.
Limited Nature of Factual Basis and Conclusion
This proffer of evidence is not intended to constitute a complete statement of all facts
known by MORGAN and/or the Government. Rather, it is a minimum statement of facts intended
to prove the necessary factual predicate for his guilty plea. The limited purpose of this proffer is
to demonstrate that there exists a sufticient legal basis for the plea ofguilty to the charged offense
by MORGAN.
The above facts come from an investigation conducted by, and would be proven at trial by
credible testimony from, inter alia,YA OIG Special Agents, the victims, other law enforcement
officers, and computer forensic examiners from VA OIG, as well as from admissible tangible
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Defense Counsel ftb.\
Case 2:23-cr-00047-DJP-EJD     Document 55     Filed 05/28/24     Page 5 of 6

evidence in the custody of VA OIG. Lastly, the Govemment would establish that the VA is part
of the executive branch of the Government of the United States.
READ AND APPROVED:
5
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MARY
THERINE
(Date)
Assistant United States Attorney
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,
M. KLEBBA
ate)
Assistant United States Attomey
5- 7N LY
ANNALISAMIRON
Counsel for Defendant
(Date)
DONDRE MORGAN
Defendant
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5 2r/ty
(Date)
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Case 2:23-cr-00047-DJP-EJD     Document 55     Filed 05/28/24     Page 6 of 6

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