Complaint — United States v. Dayja Nixon (Eastern District of Louisiana)

Summary

A civil complaint filed March 31, 2025, by the United States against Dayja Nixon in the U.S. District Court for the Eastern District of Louisiana, Case 2:25-cv-00620-BSL-KWR. It alleges that Nixon received a PPP loan of $20,832.00 on or about April 2, 2021, through Capital Plus Financial, LLC, supported by a claimed $101,305 in gross income and a bank statement purporting to be from "JRMartin Choice Bank" for "NATURAL HAIR AFRO, LLC," which the complaint says did not exist. The SBA made a guaranteed purchase payment of $21,187.00 on December 18, 2023, according to the complaint. It pleads unjust enrichment, payment by mistake, FIRREA and False Claims Act counts and asks for treble damages of $71,348.64 or single damages of $23,782.88, plus civil penalties. The signature block names Elizabeth A. Chickering.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“Complaint — United States v. Dayja Nixon (Eastern District of Louisiana).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/1-complaint-5f1087283d/, SHA-256 3edea15d3b7f6fc6048295a4a9661c29e85a314a8d06a56f750a1480eb25f306.

Full text

Case 2:25-cv-00620-BSL-KWR Document 1 Filed 03/31/25 Page 1 of 9

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF LOUISIANA

UNITED STATES OF AMERICA * CIVIL ACTION

v. * NO. 25-cv-00620

DAYJA NIXON * JUDGE

* MAG. JUDGE

COMPLAINT

NOW INTO COURT, through the undersigned Assistant United States Attorney, comes

plaintiff, the United States of America, and respectfully submits its complaint against defendant,

Dayja Nixon, and hereby alleges the following.

Parties, Jurisdiction, and Venue

Plaintiff is the United States of America proceeding in its sovereign capacity.

Defendant is Dayja Nixon, a Louisiana resident domiciled at 1300 Louise Street,

Thibodeaux, Louisiana 70301, at the time of events alleged below.

Jurisdiction is proper under 28 U.S.C. §§ 1331 and 1345.

Venue is proper under 28 U.S.C. § 1391(b) since Nixon is domiciled in the Eastern District

of Louisiana.

Page 1 of 9
Case 2:25-cv-00620-BSL-KWR Document 1 Filed 03/31/25 Page 2 of 9

Facts

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was a federal law

enacted in or around March 2020 and designed to provide emergency financial assistance to the

millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One

source of relief provided by the CARES Act was the authorization of forgivable loans to small

businesses for job retention and certain other expenses, through a program referred to as the

Paycheck Protection Program (PPP).

A PPP loan application was processed by a participating lender. If a PPP loan application

was approved, the participating lender funded the PPP loan using its own money. While it was the

participating lender that issued the PPP loan, the loan was 100% guaranteed by the United States

Small Business Administration (SBA). Data from the application, including information about the

borrower, the total amount of the loan, and the listed number of employees, was transmitted by the

lender to the SBA in the course of processing the loan and subsequent forgiveness process.

The application process to obtain a PPP loan required the eligible recipient to make the

following good-faith certifications and acknowledgments, among others:

a. That the applicant was eligible to receive a PPP loan under the rules in effect at

the time the application was submitted;

b. That the uncertainty of current economic conditions made the loan request

necessary to support the ongoing operations of the eligible recipient;

c. That the applicant was in operation on February 15, 2020, had not permanently

Page 2 of 9
Case 2:25-cv-00620-BSL-KWR Document 1 Filed 03/31/25 Page 3 of 9

closed, and was either an eligible self-employed individual, independent

contractor, or sole proprietorship with no employees, or had employees for

whom it paid salaries and payroll taxes or paid independent contractors, as

reported on Form(s) 1099-MISC;

d. That the funds would be used to retain workers and maintain payroll; or make

payments for mortgage interest, rent, utilities, or other covered costs under the

PPP Rules;

e. That if the funds were knowingly used for unauthorized purposes, the federal

government may find the individual legally liable for such charges as fraud;

f. That the information provided in the application and all supporting documents

and forms was true and accurate in all material respects;

g. That the applicant understood that knowingly making a false statement to obtain

a guaranteed loan from SBA is punishable under the law, including under 18

U.S.C. §§ 1001 and 3571 by imprisonment of not more than five years and/or

a fine of up to $250,000.00; under 15 U.S.C. § 645 by imprisonment of not

more than two years and/or a fine of not more than $5,000.00; and, if submitted

to a federally insured institution, under 18 U.S.C. § 1014 by imprisonment of

not more than 30 years and/or a fine of not more than $1,000,000.00; and

h. That the lender would confirm the eligible loan amount using the documents

submitted by the applicant.

Page 3 of 9
Case 2:25-cv-00620-BSL-KWR Document 1 Filed 03/31/25 Page 4 of 9

On or about April 2, 2021, Nixon received a PPP loan in the amount of $20,832.00 based

upon false and fraudulent records and statements in a claim for payment submitted to Capital Plus

Financial, LLC. In the PPP loan application, Nixon misrepresented her annual income and payroll

costs, which were used in calculating her eligible loan amount.

Further, Nixon knowingly used the PPP loan funds for unauthorized purposes.

10.

Nixon knowingly misrepresented her use of the funds on the application submitted for the

PPP loan. Based upon these false representations, on December 18, 2023, the SBA made a

guaranteed purchase payment to Capital Plus Financial, LLC of $21,187.00 for Neville’s PPP loan

of $20,832.00 and accrued interest at that time of $355.00. The SBA also paid $2,500 in processing

fees to Capital Plus Financial, LLC for the PPP loan disbursed to Nixon. Interest on Nixon’s PPP

loan has continued to accrue.

Causes of Action

Count I - Unjust Enrichment

11.

By obtaining from the United States funds to which she was not entitled, Nixon was

unjustly enriched, and the United States is entitled to damages in the total amount of $23,782.88,

plus post-judgment interest accruing on that amount.

Page 4 of 9
Case 2:25-cv-00620-BSL-KWR Document 1 Filed 03/31/25 Page 5 of 9

Count II - Payment by Mistake

12.

The United States, acting in reasonable reliance on the truthfulness of the statements

contained in Nixon’s PPP loan application, approved a PPP loan to which Nixon was not entitled.

13.

The United States, acting in reasonable reliance on the truthfulness of the statements

contained in Nixon’s PPP loan application, made a guaranteed purchase payment for Nixon’s PPP

loan when it was not eligible for forgiveness.

14.

Thus, the United States is entitled to recoup the amount of Nixon’s PPP loan in the total

amount of $23,782.88 plus post-judgment interest accruing on that amount.

Count III – Civil Penalty under FIRREA

15.

Section 951 of the Financial Institutions Reform, Recovery, and Enforcement Act

(FIRREA), codified at 12 U.S.C. § 1833a, provides that the Attorney General may recover civil

penalties of up to $1 million per violation (adjusted to $2,048,915) against persons who commit

specified violations as established by a preponderance of the evidence.

16.

The predicate violations identified in Section 951 that can form the basis for liability under

FIRREA include, among others: (a) knowingly or willfully making a materially false or fraudulent

statement affecting a federally insured financial institution (18 U.S.C. § 1001); (b) making a false

statement on a loan application to a financial institution, “the accounts of which are insured by the

Federal Deposit Insurance Corporation” (18 U.S.C. § 1014); and (c) knowingly making a false

Page 5 of 9
Case 2:25-cv-00620-BSL-KWR Document 1 Filed 03/31/25 Page 6 of 9

statement for the purpose of influencing a decision by the Administrator of the SBA or to obtain a

loan, money, or anything of value under the SBA’s 7(a) program, including the PPP (15 U.S.C.

§ 645(a)). See 12 U.S.C. § 1833a(c).

17.

Nixon unlawfully, willfully, and knowingly made false statements and certifications to

SBA Lenders and the SBA in violation of 15 U.S.C. § 645(a). Specifically, Nixon signed the PPP

loan agreements, thereby knowingly and falsely representing that she would “comply with all SBA

guidance” as it applied to the PPP loans. These statements were knowingly false and made for the

purpose of influencing the SBA to obtain PPP loan proceeds in violation of 15 U.S.C. § 645(a).

18.

Nixon is liable for civil penalties up to the maximum amount authorized under 12 U.S.C.

§ 1833a(b).

Count IV – Treble Damages and Civil Penalty under the False Claims Act

19.

The False Claims Act (FCA) provides, in pertinent part, that any person who: “knowingly

presents, or causes to be presented, a false or fraudulent claim for payment or approval;” or

“knowingly makes, uses, or causes to be made or used, a false record or statement material to a

false or fraudulent claim” is liable to the United States for three times the amount of damages

which the United States sustains, plus a civil penalty per violation. 31 U.S.C. § 3729(a)(1)(A)–

(B).

20.

Nixon knowingly caused a false or fraudulent claim for payment to be presented to the

SBA, and knowingly caused a false record or statement material to a false or fraudulent claim to

Page 6 of 9
Case 2:25-cv-00620-BSL-KWR Document 1 Filed 03/31/25 Page 7 of 9

be used, all in violation of the FCA, in the following specific ways.

a. On or around March 16, 2021, Nixon, or persons acting in conspiracy with her,

falsely claimed in an application for a PPP loan that Nixon was the sole

proprietor of a business that was founded in 2018 and in operation on February

15, 2020, when in fact Nixon was not an eligible self-employed individual or

employer in that line of business.

b. On or around March 16, 2021, Nixon, or persons acting in conspiracy with her,

falsely claimed that she had earned $101,305 in gross income from the business

from 2020 as reported on IRS Form 1040, Schedule C, Line 7, when in fact she

did not earn or report income in that amount.

c. On or around March 16, 2021, Nixon, or persons acting in conspiracy with her,

submitted a false and fraudulent Form 1040, Schedule C showing $101,305 in

gross income, when in fact she did not earn that amount, nor filed the Form

1040 with the IRS.

d. On or around March 16, 2021, Nixon, or persons acting in conspiracy with her,

submitted a false and fraudulent bank statement purporting to be from

“JRMartin Choice Bank” to Dayja Nixon for “NATURAL HAIR AFRO, LLC,”

when in fact no such bank, bank account, or business existed.

e. On or around March 16, 2021, Nixon, or persons acting in conspiracy with her,

further falsely claimed that the PPP loan funds would be used for authorized

expenditures under PPP rules (such as payroll, mortgage interest, rent, utilities,

and covered supplier costs), when in fact Nixon actually used the funds for

unauthorized expenditures.

Page 7 of 9
Case 2:25-cv-00620-BSL-KWR Document 1 Filed 03/31/25 Page 8 of 9

f. On or around March 16, 2021, Nixon, or persons acting in conspiracy with her,

certified that the information provided in her application and supporting

documentation was true and correct in all material respects, when in fact it was

false and fraudulent in the above-stated material respects, among others to be

shown at trial.

21.

Because of these false and fraudulent claims, records, and statements, the United States

(acting through the SBA), was financially damaged in the principal amount of the forgiven PPP

loan ($20,832.00), forgiven accrued interest through June 3, 2024 ($450.88), and the processing

fees SBA paid to Capital Plus Financial, LLC ($2,500), in the total amount of $23,782.88.

22.

The United States is further entitled to treble damages on this amount, plus a civil penalty

under the FCA. 31 U.S.C. § 3729(a)(1).

Prayer for Relief

WHEREFORE, the United States prays that its complaint be deemed sufficient and that,

after due proceedings, that there be judgment in its favor and against Neville awarding:

1) Treble damages in the total amount of $71,348.64 under the FCA (Count IV), or,

alternatively, single damages of $23,782.88 for unjust enrichment/payment by

mistake (Counts I and II);

2) A civil penalty of no less than $13,508 under the FCA (Count IV);

3) A civil penalty of no less than $23,782.88 under FIRREA (Count III);

4) Post-judgment interest; and

3) Any further relief the Court deems proper.

Page 8 of 9
Case 2:25-cv-00620-BSL-KWR Document 1 Filed 03/31/25 Page 9 of 9

Respectfully submitted,

MICHAEL M. SIMPSON
ACTING UNITED STATES ATTORNEY

Elizabeth A. Chickering
ELIZABETH A. CHICKERING
Assistant United States Attorney
LA Bar Roll No. 31099
U.S. Attorney’s Office (E.D. La.)
650 Poydras Street, Suite 1600
New Orleans, Louisiana 70130-7212
Telephone: (504) 680-3180
Email: Elizabeth.Chickering@usdoj.gov

The United States will send request for waiver of service to the following known addresses
for Dayja Nixon:

Ms. Dayja Nixon
1300 Louise Street
Thibodeaux, Louisiana 70301-4268

Page 9 of 9

File and source

File: 1-complaint.pdf
Size: 246,500 bytes
SHA-256: 3edea15d3b7f6fc6048295a4a9661c29e85a314a8d06a56f750a1480eb25f306
Our copy: 1-complaint.pdf
Original: No public link identified.