Indictment — U.S. v. C. Wade

Record facts

U.S. District Court, Southern District of Florida · No. 0:23-cr-60173-KMW · Doc. 3 · 2023-09-15 · Docket on CourtListener

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SEALED
UM TED STATES DISTRICT COIJRT
SOW HERN DISTRICT OF FLORIDA
case No. 23-60l73-CR-W - 1LL1AM S/PAB
18 U.S.C. j 1343
18 U.S.C. j 981(a)(1)(C)
UM TED STATES OF AM ERICA
VS.
CAROLYN DEM SE W ADE,
Defendant.
/
FILED BY 
AT 
D .G .
Sep 14, 2023
ANGH
 e, MM  K
Cœ RK u : oiemù-m
s. o. oF /tA. - FTI,
INDICTM EM
n e Grand Jury charges that:
GENERAL ALLEGAH ONS
At a11 times relevant to this Indictment:
The Small Business Administration
n e United States Small Business Adminiskation (1tSBA''I wms an cxecutive
branch agency of the United States govem ment that provided support to entreprenem s and small
businesses. n e mission of thc SBA was to maintain and skengthen the nation's economy by
enabling the establishment and viability of small businesses and by assisting in the economic
recovery of communities after disasters.
2. 
As part of this effort, the SBA enabled and provided loann through bnnks, credit
llnions, and other lenders. These loans had government-backed guarantces.
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The Paycheck Protection Program
The Coronavinzs Aid, Relietl and Economic Security ILQCAllES''I Act was a federal
law enacted in or arotmd M arch 2020, designed to provide em ergency financial assistance to the
m illions of Americans wh0 were suffering f'rom the econom ic effects caused by the COV1D-19
pandemic. One source of relief that the CARES Act provided was the Paycheck Protection
Program (çTPP''), which authorized forgivable loans to small businesses for job retention and
certain other expenses.
4. 
The SBA promulgated regulations concem ing eligibility for a PPP loan. To obtain
a PPP loan, a qualifying business was required to submit a PPP 1oan application, which was signed
by alz authorized representative of the business. The PPP loan applicaticm required the business
(tlzrough its authorized representative) to acknowledge theprogram nzles and make certain
aftinnative eertitk ations to be eligible to obtain the PPP loan, including that the business was in
operation on Febnzary 15, 2020, and either had employees for whom it paid salaries and payroll
taxes or paid independent contractors. Paym ents to independent contractors are typically reported
to the Internal Revenue Service (ûç1RS'') on a tçl7orm 1099-M1SC.'' ln the PPP loan application
(SBA Form 2483), the small business (through its authorized representative) was required to state,
among other things, its: (a) average monthly payroll expenses; and (b) nllmber of employees.
These figtzres were used to calculate the am ount of m oney the sm all business was eligible to
receive tmder the PPP.
ln addition, a business applying for a PPP loan was required to provide
docum entation showing its payroll expenses. This payroll information was m aterial to the
application because. pttrsuant to statutory requirem ents and implem enting regulationsp the amotmt
of the loan that typically could be approved was a ftmction of the applicant's historical payroll
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costs, consisting of compensation to its employees whose principal place of residence was the
United States, subject to certain exclusions.
Individuals who operated a business tmder a ttsole proprietorship'' business
structure were eligible for a PPP loan. To qualify for such a PPP loan, individuals had to report
and doctlment their incom e and expenses from  the sole proprietorship. Sole proprietorships
typically report their incom e and expenses yearly to the IRS on a GT onn 1040, Schedule C.'' A s
with other PPP loans, this information atld supporting documentation was used to calculate the
nm ount of m oney the individual was entitled to receive lm der the PPP.The m aximum PPP loan
amount for a sole proprietor with no employees was $20,833.
PPP loan applications were processed by participating lenders and third-party loan
processors. If a PPP loan application was approved, the participating lender funded the PPP loan
using its own m onies, including by electronic transfer through the Autom ated Clearing House
system . W hile it was the participating lender that issued the PPP loan, the loan was 100%
guaranteed by the SBA. Data from  the application, including infonnation about the borrower, the
total am otmt of the loan, and the listed ntlm ber of employees, was transmitted by the lender to the
SBA in the course of processing the loan.
8. 
After the lender ftmded the PPP loan
disbtlrsem ent details into the SBA E-Tran system , with servers located in Sterling, VA. The SBA'S
Denver Finance Center, located in Denver, Colorado, created payment files and authorized
to the borrower, the lender submitled
paym ents of the PPP processing fee to the lender through the Financial M anagement System  to
the Treasuly. The prim azy server for the Financial M anagement System was in Sterling, VA. The
PPP processing fee varied depending on the nm ount of the loan. Once created. the payment files
were then transm itted via wire to the U .S. Treasury disbursing office in Kansas City, M issouri,
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which, in turn, sent instructions for paym ent of ftmds to the Federal Reserve Bank Automated
Clearing House processing site in East Rutherford, New Jersey.
The proceeds of a PPP loan could be used only for certain specified item s, such as
payroll costs, costs related to the continuation of group health care benefits, or mortgage interest
paym ents for the business. The proceeds of a PPP 1oan were not permitted to be used by the
borrowers to pttrchase consumer goods, automobiles, personal residences, elothing, orjewelry, to
pay the borrower's personal federal income tu es, or to fund the borrower's ordinary day-to-day
living expenses unrelated to the specified authorized expenses.
The PPP allowed the interest and principal on the PPP loan to be entirely forgiven
if the borrower utilized 60% of the loan in the 24 weeks post-disbursem ent toward payroll costs
and utilized the remaining 40% on qualified expense items (e.g., mortgage, rent, and utilities).
Applying for PPP loan forgiveness was a separate process that required additional
affirmations that the applicant satisfied the eligibility for PPP loan forgiveness. W hatever portion
of the PPP 1oan was not forgiven was serviced as a loan.
The Defendant
12. 
Defendant CAROLYN DENISE W ADE was a resident of Broward County,
Florida.
Relevant Lender
Lender 1 was a participating
i
I
lender in the PPP that issued PPP loans.
Case 0:23-cr-60173-KMW   Document 3   Entered on FLSD Docket 09/15/2023   Page 4 of 10

COUNT 1
W ire Fraud
(18 U.S.C. j 1343)
The General Allegations section of this Indictm ent is re-alleged and incorporated
by reference as though fully set forth herein.
15. 
From in or around M ay 2021, through in or around August 2021, the exact dates
being tmknown to the Grand Jury, in Broward County, in the Southern District of Florida, and
elsewhere, the defendant,
CAROLYN DENISE W ADE,
did knowingly, and with the intent to defraud, devise, and intend to devise, a schem e and artifice
to defraud, and to obtain m oney and property by m eans of m aterially false and fraudulent
pretenses, representations, and promises, knowing that the pretenses, representations, and
prom ises were false and fraudulent when m ade, and, for the purpose of executing the schem e and
artitice, did knowingly transm it and cause to be transm itted, by means of wire communication in
interstate comm erce, certain writings, signs, signals, pictures, and sounds, in violation of Title 18,
United States Code, Section 1343.
PURPO SE OF THE SCH EM E AND ARTIFICE
lt was the purpose of the schem e and artifice for the defendant to unlawfully enrich
herself by, nmong other things: (a) submitting and causing the submission of a false and fraudulent
application for a PPP 1oan made available through the SBA to provide relief for the economic
effects caused by the COV1D-19 pandemic; (b) causing the disbursement of a PPP loan to herself
that she was not entitled to receive; and (e) submitting and causing the submission of a false and
fraudulent application for forgiveness of a PPP loan made to her.
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TH E SCH EM E AND ARTIFICE
The m anner and means by which the defendant sought to accomplish the purpose of the
schem e and artifice included, among others, the following:
CARO LYN DENISE W ADE subm itted and causedthe submission of am aterially
false and fraudulent application for a PPP loan from the SBA tlarough Lender 1 on behalf of herself
as a sole proprietor, which application included materially false and fraudulent inform ation as to
the borrower's total gross business income for the year 2019.
18. 
CARO LYN DENISE W ADE subm itted and caused the submission of m aterially
false and fraudulent documentation in support of an application for a PPP loan, including a falsified
lnternal Revenue Selvice tax fonu.
As a result of the false and fraudulent PPP loan application and inform ation and
documentation submitted as part of the scheme and artifice, CAROLYN DENISE W ADE caused
Lender 1 to disburseapproximately $20,833 in PPP loan proceedsto CAROLYN DENISE
W ADE.
In furtherance of the scheme and artifice, CAROLYN DENISE W ADE submitted
and caused the subm ission of a materially false and fraudulent application and information to
Lender 1 to cause the forgiveness of a PPP loan issued to CAROLYN DENISE W ADE.
CAROLYN DEM SE W ADE used the proceeds of the scheme and artifice to
enrich herself.
USE O F W IRES
On or June 7, 2021, CARO LYN DENISE W ADE, for the purpose of executing
the aforesaid scheme and artifice to defraud, and to obtain m oney and property by m eans of
m aterially false and fraudulent pretenses, representations, and prom ises, knowing that the
6
Case 0:23-cr-60173-KMW   Document 3   Entered on FLSD Docket 09/15/2023   Page 6 of 10

pretenses, representations, and prom ises were false and fraudulent when made, did knowingly
transm it and cause to be transmitted in interstate, by means of wire com munication, certain
writings, signs, signals, picttlres, and sotmds, that is, the disbursement of SBA loan number
6697269001 from Lender 1 in the approximate amount of $20,833 by Automated Clearing House
(ACH) transfer to USAA Classic Checking accotmt number ending in 3926.
In violation of Title 18, United States Code, Section 1343.
LRemainder ofpage Intentionally Blankj
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FORFEITURE ALLEGATIONS
The allegations of this Indictment are hereby re-alleged and by this reference fully
incorporated herein for the purpose of alleging forfeiture to the United States of America of certain
property in which the defendant, CAROLYN DEM SE W ADE, has an interest.
Upon conviction of a violation of Title 18, United States Code, Section 1343, as
alleged in this lndictment, the defendant shall forfeit to the United States any property, real or
personal, which constitutes or is derived from proceeds traceable to such offense, ptlrsuant to Title
18, United States Code, Section 981(a)(1)(C).
A1l pursuant to Title 18, United States Code, Section 981(a)(1)(C) and the procedures set
forth in Title 21, United States Code, Section 853, as incorporated by Title 28, United States Code,
Section 2461(c).
A TRUE BILL
IA
FOREP RS N
l
Jv- 
.
M ARKENZ LAPOINTE
UNITED S 
ES ATTORNEY
DA D A. SNIDE
ASSISTAN T UNITED STATES ATTORNEY
Case 0:23-cr-60173-KMW   Document 3   Entered on FLSD Docket 09/15/2023   Page 8 of 10

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
UNITED STATES OF AM ERICA
V .
CAROLYN DENISE W ADE,
/
Defendant.
Court Division (select one)
EEI M iami 
n Key West L FTP
E FTL 
L' W PB
1 do hereby certify that:
l . 
I have carefully considered the allegations of the indictm ent, the num ber of defendants, the number of probable
witnesses and the legal complexities of the lndictm cnW nformation attachcd hereto.
l am aware that the information supglied on this statement will be relied upon by the Judges of this Court in setting
their calendars and scheduling crimlnal trials under the mandate of the Speedy Trial Act, Title 28 U.S.C. j3l61.
CASE NO.:
CERTIFICATE OF TKIAT, ATTORNEY
Superseding Case lnformation:
New Defendantts) (Yes or No)
Num ber of New Defendants
Total number of counts
Interpreter: (Yes or No) No
List language and/or dialect:
3 days for the parties to try.
4. 
This case will take
Please check appropriate category and type of offense listed below:
(Check only one) 
(Check only one)
I 
E 0 to 5 days 
L Petty
11 n 6 to 10 days 
D M inor
ll1 L 11 to 20 days 
D M isdemeanor
IV L' 21 to 60 days 
Z Felony
V L' 61 days and over
his case been previously filed in this District Court? (Yes or No) NO
Has t
lf yes, Judge 
Case N o.
1
1 
Has a complaint been filed in this matter? (Yes or No) No
If yes, M agistrate Case No.
8. Does this case relate to a previously filed matter in this District Court? (Yes or No) NO
lf yes, Judge 
Case No.
9. Defendantts) in federal custody as of
l 0. Defendantts) in state custody as of
l l . Rule 20 from the 
District of
12. ls this a potential death penalty case? (Yes or No) NO
13. Does this case originate from a matter pending in the Northern Region of the U .S. Attorney's Office
prior to August 8, 2014 (M ag. Judge Shaniek Maynard? (Yes or No) No
14. Does this case originate from a matter pending in the Central Region of the U.S. Attorney's Office
prior to October 3, 2019 (M ag. Judge Jared Strauss? (Yes or No) No
15. Did this matter involve the participation of or consultation with now M agistrate Judge Eduardo 1. Sanchez
during his tenure at the U.S. Attorney's Office, which concluded on January 22, 2023? NO
/ 
.
By:
D AVI A . SN IDER
Assistant United States A ttorney
Court ID N o. 
A5502260
Case 0:23-cr-60173-KMW   Document 3   Entered on FLSD Docket 09/15/2023   Page 9 of 10

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
PENALTY SHEET
Defendant's Nam e: CAROLYN DENISE W ADE
Collnt #: 1
W ire Fraud
Title 18. United States Code, Section 1343
* M ax. Term  of Im prisonm ent: 20 years
* Mandatory Min. Term of lmprisonment (if applicable): n/a
* M ax. Supervised Release: 3 years
* M ax. Fine: $250,000
ARefers only to possible term  of incarceration, supervised release and lines. It does not include
restitution, special assessm ents, parole term s, or forfeitures that m ay be applicable.
Case 0:23-cr-60173-KMW   Document 3   Entered on FLSD Docket 09/15/2023   Page 10 of 10

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