Criminal Information — United States v. Chynna Savath

Record facts

U.S. District Court, District of Massachusetts · No. 1:21-cr-10269-RGS · Doc. 1 · 2021-09-13 · Docket on CourtListener

Full text

Case 1:21-cr-10269-RGS Document1 Filed 09/13/21 Page 1 of 7
IN CLERKS OFFICE

UNITED STATES DISTRICT COURT 727} SFP 13 AM 9: 31
DISTRICT OF MASSACHUSETTS

UNITED STATES OF AMERICA Criminal No.

Violations:
V.

Counts One and Two: Wire Fraud
(18 U.S.C. § 1343)

CHYNNA SAVATH,

Defendant Forfeiture Allegation:
(18 U.S.C. § 981(a)(1)(C) and

28 U.S.C. § 2461)

Nee Nee Ne Ne Se Se Se Oe Se Ce

INFORMATION

At all times relevant to this Information:

General Allegations

le The defendant, CHYNNA SAVATH (“SAVATH”), was a resident of
Woonsocket, Rhode Island. SAVATH was the president and owner of Thai Body Work and
Deep Tissue, LLC. (“Thai Body Work”).

2. Thai Body Work was a business located at 13-25 Main Street, Suite 6B, Franklin,
MA 02038.

3. The Small Business Administration (“SBA”) was an executive-branch agency of
the United States government that provided support to entrepreneurs and small businesses. The
mission of the SBA was to maintain and strengthen the nation’s economy by enabling the
establishment and viability of small businesses and by assisting in the economic recovery of
communities after disasters. As part of this effort, the SBA enabled and provided for loans
through banks, credit unions, and other lenders. These loans have government-backed

guarantees.
Case 1:21-cr-10269-RGS Document1 Filed 09/13/21 Page 2 of 7

4. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a
federal law enacted in March 2020 and designed to provide emergency financial assistance to the
millions of Americans who were suffering the economic effects caused by the COVID-19
pandemic. One source of relief provided by the CARES Act was the Paycheck Protection
Program (“PPP”), which was a loan designed to provide a direct incentive for small businesses to
keep their workers on the payroll.

5. The PPP application process required applicants to submit a loan application
through an SBA-approved financial entity. The application was required to contain information
about the purpose of the loan, average monthly payroll, number of employees, and background
of the business and its owner, including questions relating to criminal history. Applicants were
also required to make good faith certifications, including that they intend to use loan proceeds
only for authorized purposes and they were not engaged in any illegal activity.

6. The PPP loan proceeds were required to be used on certain permissible expenses,
including payroll costs, mortgage interest, rent, and utilities. Under the program, the SBA would
forgive all or part of loans if all employees were kept on the payroll for eight weeks and
borrowers submit documentation confirming that the loan proceeds were used for payroll, rent,
mortgage interest, or utilities.

7. Another related response to the COVID-19 outbreak was an expansion of an
existing disaster-related program—the Economic Injury Disaster Loan (“EIDL”)—to provide for
loan assistance, including advances of up to $10,000, for small businesses and other eligible
entities for loans up to $2 million. The EIDL proceeds could be used to pay fixed debts, payroll,

accounts payable, and other bills that would have been paid had the disaster not occurred;
Case 1:21-cr-10269-RGS Document1 Filed 09/13/21 Page 3 of 7

however such loan proceeds were not intended to replace lost sales or profits or for expansion of
a business.

8. Unlike other types of SBA-guaranteed loans, EIDL funds were issued directly
from the United States Treasury and applicants applied through the SBA via an online portal and
application. The EIDL application process, which also used certain outside contractors for
system support, collected information concerning the business and the business owner.

Scheme to Defraud

9. Since in or around 2015, SAVATH owned and operated Thai Body Work, which
purported to be a legitimate massage parlor. In fact, employees at Thai Body Work engaged in
commercial sex acts with customers. SAVATH was aware that commercial sex acts were being
provided by employees to customers at Thai Body Work and she derived financial support from
those commercial sex acts by collecting a portion of the proceeds that customers paid when they
received commercial sex services.

10. Beginning on or around July 1, 2020, and continuing until at least on or around
July 27, 2020, in the District of Massachusetts, SAVATH devised a scheme to defraud and to
obtain EIDL and PPP funds by means of materially false and fraudulent pretenses,
representations, promises, and omissions. In particular, SAVATH submitted EIDL and PPP
applications that falsely certified that Thai Body Work was not engaged in any illegal activity.

11. On or about July 1, 2020, SAVATH submitted electronic EIDL and PPP
applications for Thai Body Work. In the EIDL application, SAVATH certified,

“Applicant is not engaged in any illegal activity (as defined by Federal guidelines).” The

SBA defined “illegal activity” as “illegal activity under federal, state, or local law.” In
Case 1:21-cr-10269-RGS Document1 Filed 09/13/21 Page 4 of 7

the PPP application, SAVATH certified, “The Applicant is not engaged in any activity
that is illegal under federal, state, or local law.”

12. SAVATH received a total of $29,646 from the EIDL program and the PPP
loan program: $4,746 from the PPP loan program on or about July 2, 2020 and $24,900

under the EIDL program on or about July 27, 2020.
Case 1:21-cr-10269-RGS Document1 Filed 09/13/21 Page 5 of 7

COUNTS ONE AND TWO
Wire Fraud
(18 U.S.C. § 1343)

The United States Attorney charges:

13. The Grand Jury re-alleges and incorporates by reference paragraphs 1-12 of this
Indictment.

14. From on or about July 1, 2020 through on or about July 27, 2020, in the District
of Massachusetts, the defendant,

CHYNNA SAVATH,

having devised and intending to devise a scheme and artifice to defraud, and for obtaining money
and property by means of materially false and fraudulent pretenses, representations, and
promises, did transmit and cause to be transmitted by means of wire communications in

interstate and foreign commerce, writings, signs, signals, pictures, and sounds for the purpose of

executing the scheme to defraud, as set forth below:

Count | Approximate Date | Description
1 July 1, 2020 The EIDL Application electronically submitted by Chynna Savath,
and routed interstate through the SBA’s servers outside of
Massachusetts.
2 July 1, 2020 The PPP Loan Application electronically submitted by Chynna
Savath, and routed interstate through routed interstate through the
SBA’s servers outside of Massachusetts.

All in violation of Title 18, United State Code, Section 1343.
Case 1:21-cr-10269-RGS Document1 Filed 09/13/21 Page 6 of 7

FORFEITURE ALLEGATION
(18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c))

The United States Attorney further alleges:
15. | Upon conviction of one or more of the offenses in violation of Title 18, United
States Code, Section 1343, set forth in Counts One and Two, the defendant,
CHYNNA SAVATH,
shall forfeit to the United States, pursuant to Title 18, United States Code, Section 981(a)(1)(C),
and Title 28, United States Code, Section 2461(c), any property, real or personal, which
constitutes or is derived from proceeds traceable to the offenses. The property to be forfeited
includes, but is not limited to, the following assets:
a. $29,646, to be entered in the form of a forfeiture money judgment.

16. If any of the property described in Paragraph 15, above, as being forfeitable
pursuant to Title 18, United States Code, Section 981(a)(1)(C), and Title 28, United States Code,
Section 2461(c), as a result of any act or omission of the defendant --

a. cannot be located upon the exercise of due diligence;

b. has been transferred or sold to, or deposited with, a third party;
c. has been placed beyond the jurisdiction of the Court;

d. has been substantially diminished in value; or

e. has been commingled with other property which cannot be divided without
difficulty;

it is the intention of the United States, pursuant to Title 28, United States Code, Section 2461(c),
incorporating Title 21, United States Code, Section 853(p), to seek forfeiture of any other

property of the defendant up to the value of the property described in Paragraph 15 above.
Case 1:21-cr-10269-RGS Document1 Filed 09/13/21 Page 7 of 7

All pursuant to Title 18, United States Code, Section 981(a)(1)(C), and Title 28, United

States Code, Section 2461(c).

NATHANIEL R. MENDELL
Acting United States Attorney

/s/ Elysa QO. Wan

ELYSA Q. WAN

Assistant United States Attorney
ALYSSA TOCHKA

LUKE GOLDWORM

Special Assistant United States Attorneys

File and source

File

gov.uscourts.mad.237962.1.0.pdf

Size

433,362 bytes

SHA-256

f84c8d5dbcbd7634668f10f44ebefe7d4a3fb8320dd2af7dc4c998a2622a44dc

Our copy

gov.uscourts.mad.237962.1.0.pdf

Original

PACER (login required)