Indictment — United States v. Tomeka Glenn and Kevin Davis

Record facts

U.S. District Court for the District of Maryland · No. 1:23-cr-00027-RDB · Doc. 23 · 2023-01-25 · Docket on CourtListener

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Case 1:23-cr-00027-RDB Document 23 Filed 01/25/23 Page1of9

PAR: 2022R00689

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MARYLAND

UNITED STATES OF AMERICA "
*
v. * CRIMINAL NO, = 23-¢-27-RDB
*
TOMEKA GLENN and sd (Wire Fraud Conspiracy, 18
KEVIN DAVIS, i U.S.C. § 1349; Forfeiture, 18
* U.S.C. § 981(a)(1)(©), 21 U.S.C.
Defendants. * § 853(p), 28 U.S.C. § 2461(c))
*
*
INDICTMENT

COUNT ONE — WIRE FRAUD CONSPIRACY

Background

The Grand Jury for the District of Maryland charges that:

At all times material to the Indictment:

Ls Defendant TOMEKA GLENN (“GLENN”) and KEVIN DAVIS (“DAVIS”)
were residents of Baltimore County, Maryland.

ae First Electronic Bank, Eastern Savings Bank, and Cross River Bank were financial
institutions headquartered in Salt Lake City, Utah; Cockeysville, Maryland; and Fort Lee, New
Jersey, respectively, which were participating lenders in the U.S. Small Business Administration
(“SBA”) Paycheck Protection Program (“PPP”).

3. Fundbox, which was headquartered in San Francisco, California, was authorized to
receive online applications for loans in connection with the PPP. Fundbox received online PPP
applications for participating lenders, including First Electronic Bank.

The Paycheck Protection Program

4, The PPP was a COVID-19 pandemic relief program administered by the SBA that

provided forgivable loans to small businesses for job retention and certain other expenses. The
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PPP permitted participating third-party lenders to approve and disburse SBA-backed PPP loans to
cover payroll, fixed debts, utilities, rent/mortgage, accounts payable and other bills incurred by
qualifying businesses during, and resulting from, the COVID-19 pandemic. PPP loans were fully
guaranteed by the SBA.

5. To obtain a PPP loan, a qualifying business had to submit a PPP loan application,
which was signed by an authorized representative of the business. The PPP loan application
required the business (through its authorized representative) to acknowledge the program rules and
make certain affirmative certifications to be eligible to obtain the PPP loan, including that the
business was in operation and either had employees for whom it paid salaries and payroll taxes or
paid independent contractors. A business applying for a PPP loan was required to provide
documentation showing its payroll expenses and substantiating that the borrowing business was in
operation before or on February 15, 2020, such as filed federal income tax documents.

6. PPP loan applications were electronically submitted or caused to be submitted by
the borrower and received through SBA servers located outside of the District of Maryland. Once
approved, the business received the PPP loan proceeds via an electronic funds transfer from the
third-party lender to a financial account under the control of the business.

7. The proceeds of a PPP loan could be used for certain specified items, such as payroll
costs, costs related to the continuation of group health care benefits, or mortgage interest payments.
The proceeds of a PPP loan were not permitted to be used by the borrowers to purchase consumer
goods, automobiles, personal residences, clothing, jewelry, to pay the borrower’s personal federal
income taxes, or to fund the borrower’s ordinary day-to-day living expenses unrelated to the

specified authorized expenses.
Case 1:23-cr-00027-RDB Document 23 Filed 01/25/23. Page 3of9

Economic Injury Disaster Loan

8. An Economic Injury Disaster Loan (“EIDL”) was an SBA-administered loan
designed for a small business suffering substantial economic injury due to a declared disaster. It
was designed so businesses could meet necessary financial obligations. The amount of the loan
offered as well as the advance amount were determined by the SBA based on the information
provided on the loan application. In or about March 2020, the SBA declared a disaster due to
COVID-19, thus making EIDL loans available nationwide.

9. In order to obtain an EIDL, a small business submitted an electronic EIDL
application (SBA Form 5) directly to SBA via its website, covid19relief:sba.gov. The EIDL
application was certified by an authorized representative of the business. The EIDL application
required the business, through its authorized representative, to acknowledge the program rules and
to make certain certifications in order to be eligible for the EIDL loan.

10. The authorized representative also submitted Combined Annual Operating
Expenses for the 12 months prior to January 31, 2020 as well as Gross Revenues and Costs of
Goods Sold for that same period. Loans were calculated based on 6 months of Gross Revenues
minus Cost of Goods Sold. Applicants could also receive a Disaster Loan Emergency Advance
Grant up to $10,000 calculated as a $1,000 grant per employee up to a maximum of $10,000.

11. An EIDL application was processed by the SBA. If an EIDL application was
approved, the SBA directly funded the loan through a deposit to a bank account of the business
borrower.

12. EIDL proceeds were required to be used by the business on certain permissible
expenses—fixed debts including rent and utilities, payroll, accounts payable and other bills

resulting from the pandemic. The EIDL program lent the money at a fixed annual percentage rate.

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The Conspiracy and the Scheme to Defraud

13. Beginning in or around June 2020 and continuing through in or around August
2021, in the District of Maryland and elsewhere, the defendants,

TOMEKA GLENN and
KEVIN DAVIS,

knowingly and willfully, conspired with each other, and with others known and unknown to the
Grand Jury, to knowingly and willfully execute and attempt to execute a scheme and artifice to
defraud the SBA, Fundbox, First Electronic Bank, Eastern Savings Bank, and Cross River Bank,
and to obtain and attempt to obtain money by means of materially false and fraudulent pretenses,
representations, and promises, and for the purpose of executing and attempting to execute the
scheme to defraud, did knowingly and willfully transmit and cause to be transmitted by means of
wire communications, in interstate and foreign commerce, writings, signs, signals, pictures, and
sounds (the “scheme to defraud”), in violation of 18 U.S.C. § 1343.

The Object of the Scheme to Defraud

14. It was the object of the conspiracy and scheme to defraud for GLENN and DAVIS
to personally enrich themselves by fraudulently obtaining and attempting to obtain EIDLs, PPP
loans and money for their own personal use and benefit, and for the personal benefit and use of
their associates.

Manner and Means of the Scheme to Defraud

IS; It was part of the conspiracy and scheme to defraud that on or about June 13, 2017,
DAVIS incorporated a business in the State of Maryland called For Keepsake Investment Realty
LLC (“For Keepsake Investment Realty”). DAVIS was listed as the business’s Registered Agent.

16. It was a further part of the conspiracy and scheme to defraud that on or about June

16, 2017, DAVIS opened an account at Bank of America (“BoA”), a financial institution insured
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by the Federal Deposit Insurance Corporation (“FDIC”), and doing business throughout the United
States, with an account number ending in 3093 (the “3093 Account”) for For Keepsake Investment
Realty. DAVIS was the sole signatory on the account.

17. It was a further part of the conspiracy and scheme to defraud that on or about
September 12, 2019, GLENN incorporated a business in the State of Maryland called Epoxy By
S.H.E. LLC (“Epoxy By S.H.E.”). GLENN was listed as the business’s Registered Agent.

18. It was a further part of the conspiracy and scheme to defraud that on or about
February 23, 2021, GLENN opened an account at BB&T, a financial institution insured by the
FDIC and doing business throughout the United States, with an account number in 9989 (the “9989
account”) for Epoxy By S.H.E. GLENN was the sole signatory on the account.

19. It was a further part of the conspiracy and scheme to defraud that on or about
December 17, 2019, GLENN incorporated a business in the State of Maryland called K’Dons
Vanity Décor LLC (“K’Dons”). GLENN was listed as the business’s Registered Agent.

20. ‘It was a further part of the conspiracy and scheme to defraud that on or about
December 17, 2019, GLENN opened two accounts at BoA, one with an account number ending
in 7688 (the “7688 Account”) and one with an account number ending in 8483 (the “8483
Account”) for K’Dons. GLENN was the sole signatory on the accounts.

21. It was a further part of the conspiracy and scheme to defraud that on or about
September 7, 2020, GLENN incorporated a business in the State of Maryland called TD
Innovative Consulting LLC (“TD Innovative”). GLENN was listed as the business’s Registered
Agent.

22. It wasa further part of the conspiracy and scheme to defraud that on or about August

8, 2020, GLENN opened two accounts at BoA, one with an account number ending in 1439 (the

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“1439 Account”) and one with an account number ending in 1442 (the “1442 Account”) for TD
Innovative. GLENN was the sole signatory on the accounts.

23. It was a further part of the conspiracy and scheme to defraud that GLENN and
DAVIS used For Keepsake Investment Realty, Epoxy By S.H.E., TD Innovative, and K’Dons for
the purpose of applying for COVID-19 related benefits, such as PPP loans and EIDLs.

24. It was a further part of the scheme to defraud that when GLENN and DAVIS
applied for EIDL and PPP loans, GLENN and DAVIS caused interstate wire communications,
including from Maryland to other states.

25. — It was further part of the conspiracy and scheme to defraud that, in order to obtain
PPP benefits, GLENN and DAVIS made and caused to be made materially false and fraudulent
pretenses, representations, and promises to Fundbox, First Electronic Bank, Eastern Savings Bank,
and Cross River Bank, including false representations regarding the number of employees of
purported businesses, average monthly payroll of purported businesses, and whether—within the
last five years—GLENN and DAVIS had been convicted of any felony or placed on any form of
parole or probation.

20. It was a further part of the conspiracy and scheme to defraud that, in order to obtain
PPP benefits, GLENN and DAVIS caused to be submitted fictitious tax forms to Fundbox, First
Electronic Bank, Eastern Savings Bank, and Cross River Bank which had never been filed with
the Internal Revenue Service (IRS).

27. It was further part of the conspiracy and scheme to defraud that, in order to obtain
PPP benefits, GLENN and DAVIS caused to be submitted fictitious bank statements to Eastern

Savings Bank and Cross River Bank.
Case 1:23-cr-00027-RDB Document 23 Filed 01/25/23. Page 7 of9

28. It was further part of the conspiracy and scheme to defraud that GLENN and
DAVIS made and caused to be made materially false and fraudulent pretenses, representations,
and promises in order to obtain EIDLs, including falsely representing the gross revenues and
employees of purported businesses, and falsely representing whether GLENN or DAVIS had
within the last five years been convicted of any felony or placed on any form of parole or probation.

29. It was a further part of the conspiracy and scheme to defraud that GLENN and
DAVIS engaged and attempted to engage in financial transactions in accounts at various financial
institutions that received fraudulent PPP and EIDL funds, including the 3093 Account, the 7688
Account, the 8483 Account, the 1439 Account, the 1442 Account, and the 9989 Account.

30. It was a further part of the conspiracy and scheme to defraud that GLENN and
DAVIS falsely promised to spend PPP funds on allowable expenses such as payroll, business rent
and business utilities when they intended to spend the funds on personal expenses, such as the
purchase of various luxury goods, travel to various resorts, and other personal expenses.

31. It was a further part of the conspiracy and scheme to defraud that GLENN and
DAVIS obtained and attempted to obtain more than $800,000 in the aggregate through materially

false and fraudulent pretenses, representations, and promises in the PPP and EIDL applications.

18 U.S.C. § 1349
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FORFEITURE ALLEGATION

The Grand Jury for the District of Maryland further finds that:

1. Pursuant to Federal Rule of Criminal Procedure 32.2, notice is hereby given to the
defendants that the United States will seek forfeiture as part of any sentence in accordance with 18
U.S.C. § 981(a)(1)(C), 21 U.S.C. § 853(p), and 28 U.S.C. § 2461(c), as a result of the defendants’
conviction under the offense in Count One of this Indictment.

Wire Fraud Forfeiture

2. Upon conviction under the offense in Count One of the Indictment, the defendants,

TOMEKA GLENN and
KEVIN DAVIS,

shall forfeit to the United States, pursuant to 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c),
any property, real or personal, which constitutes or is derived from proceeds traceable to the
scheme to defraud, including money judgments in the amount each defendant obtained.

Substitute Assets

a If any of the property described above, as a result of any act or omission of the

defendants, any of the property described above as being subject to forfeiture:

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

é. has been commingled with other property which cannot be divided
without difficulty,
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the United States shall be entitled to forfeiture of substitute property pursuant to 21 U.S.C.
§ 853(p), as incorporated by 28 U.S.C. § 2461(c).
18 U.S.C. § 981(a)(1)(C)

21 U.S.C. § 853(p)
28 U.S.C. § 2461(c)

Erek L. Barron
United States Attorney

A TRUE BILL

SIGNATURE REDACTED

Foreperson

Date: | 25 ZOL $

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