Indictment for Wire Fraud — United States v. Cedrick Kelly (Middle District of Louisiana)

Summary

An indictment for wire fraud and notice of forfeiture in United States of America v. Cedrick Kelly, Criminal No. 26-00094-SDD-EWD, in the U.S. District Court for the Middle District of Louisiana, followed by a criminal cover sheet. The grand jury charges that Kelly, beginning in or around April 25, 2021, devised a scheme to defraud the United States, through the SBA and Lender 1, by filing a false and fraudulent Paycheck Protection Program application. It alleges that a 2019 Schedule C 1040 Tax Form submitted with the application falsely represented more than $99,000 in gross receipts and sales, and that Lender 1 funded the loan with $20,833. The wire is an ACH transfer of $20,833 on or about May 7, 2021, charged under Title 18, United States Code, Section 1343. The forfeiture notice cites Title 18, United States Code, Sections 981(a)(1)(C) and 982(a)(1).

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UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF LOUISIANA

INDICTMENT FOR WIRE FRAUD AND NOTICE OF FORFEITURE

UNITED STATES OF AMERICA CRIMINAL NO. 26-00094-SDD-EWD

versus 18 U.S.C. § 1343
: 18 U.S.C. § 981(a)(1)(C)
18 U.S.C. § 982(a)(1)

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

THE GRAND JURY CHARGES:

At all times relevant to this Indictment:

1. Defendant, CEDRICK KELLY (KELLY), was a resident of Denham Springs,
Louisiana, within the Middle District of Louisiana.

2. Lender 1 was a financial institution based in Florida.

3. US Consumer Bank lwas a financial institution domiciled in Utah. KELLY

maintained an account ending in 2185.

COVID-19 Disaster-Relief Programs

4. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was a
federal law enacted in or around March of 2020 and designed to provide emergency financial
assistance to millions of Americans who were suffering the economic effects of the COVID-
19 pandemic, which was a Presidentially declared disaster. The CARES Act provided relief

to small businesses through the Paycheck Protection Program (PPP).

USA Sealed Group
USPO
USM
Paycheck Protection Program

5, The Paycheck Protection Program (PPP) was administered by the Small
Business Administration (SBA) and provided forgivable loans to small businesses for job
retention and certain other expenses. The 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.

6. 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, 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, such as filed federal income tax documents.

4 PPP loan applications were electronically submitted or caused to be submitted
by the borrower to a third-party SBA-approved lender, like Lender 1. 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.

8. The proceeds of a PPP loan were to 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 borrower

to purchase consumer goods, automobiles, personal residences, clothing, or 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.

The Scheme to Defraud

9, Beginning in or around April 25, 2021, and continuing until at least June 2021,
in the Middle District of Louisiana and elsewhere, the defendant, KELLY, devised and
intended to devise, a scheme and artifice to defraud the United States, through the SBA and
Lender 1, by filing a false and fraudulent application for pandemic-related funds.

Purpose of the Scheme

10. The purpose of the scheme was for the defendant to unjustly enrich himself by
obtaining pandemic-related funds by means of materially false and fraudulent pretenses,
representations and promises.

Manner and Means

11. In furtherance of the scheme, KELLY filed a false and fraudulent PPP
application. In his application, he made false representations and submitted fraudulent and
misleading documents intended to bolster his application. KELLY overstated his gross
income.

12. Specifically, KELLY filed the following PPP application, which contained the
false representations described below and others: PPP Loan #3978878907, which was filed on
April 25, 2021 with Lender 1.

13. Insupport of his fraudulent PPP application, KELLY submitted fraudulent and

misleading documents, including a fictious 2019 Schedule C 1040 Tax Form, which falsely
represented that his business had more than $99,000 in gross receipts and sales for the year.
As KELLY knew at the time, those representations were not true.

14. Based on KELLY’S false representations and the fraudulent supporting
material Lender 1 approved and funded his PPP loan, wiring $20,833 to KELLY’S bank
account ending in 2820.

WIRE

15. On or about May 7, 2021, in the Middle District of Louisiana and elsewhere,
for the purpose of executing and attempting to execute the aforementioned scheme and artifice
to defraud, CEDRICK KELLY, the defendant herein, did cause to be transmitted in interstate
commerce the following wire communications, among others: ACH transfer of $20,833 from
Lender 1, located in Florida, to bank account controlled by Kelly in Middle District of
Louisiana.

The above is a violation of Title 18, United States Code, Section 1343.

NOTICE OF FORFEITURE

16. The allegations contained in Paragraphs 1-15 of this Indictment are hereby re-
alleged and incorporated by reference for the purpose of alleging forfeitures pursuant to Title
18, United States Code, Sections 981(a)(1)(C) and 982(a)(1), and Title 28, United States Code,
Section 2461(c).

17. Upon conviction, CEDRICK KELLY, defendant herein, 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), all property, real or personal that constitutes or is derived
from proceeds traceable to the offense, including but not limited to a sum of money equal to

the amount of the proceeds of the offense.

18. If any of the property described above, 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;
0; 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 intent of the United States to seek a forfeiture money judgment and, pursuant 21

U.S.C. § 853(p) as incorporated by 28 U.S.C. § 2461(c), to seek forfeiture of any other

property of the defendant up to the value of the forfeitable property described above.

UNITED STATES OF AMERICA, BY
KURT WALL
UNITED STATES ATTORNEY
MIDDLE DISTRICT OF LOUISIANA

A TRUE BILL

REDACTED
PER PRIVACY ACT

GRAND JURY FOREPERSON

ELLISON C. TRAVIS
ASSISTANT UNITED STATES ATTORNEY
MIDDLE DISTRICT OF LOUISIANA

Aus 10.1010

DATE
Criminal Cover Sheet U.S. District Court

Place of Offense:

city; Denham Springs, LA

County/Parish: Livingston

*Investigating Agency:

*Agent: Virginia Brandt

USAO-MDLA

Defendant Information:

Defendant Name: CEDRICK KELLY

Matter to be sealed: [V]ves [No

Related Case Information:

Superseding [| Docket Number _
Same Defendant [| New Defendant

Magistrate Case Number:
Search Warrant Case No.:
R 20/ R 40 from District of:
Any Other Related Cases:

Alias:

Address:

DOB: SS / Alien#:

U.S. Attorney Information:

AUSA: Ellison Travis

Sex: Race: Nationality:

Bar #: LBN 19189

Location Status:

Arrest Date:

List language and/or dialect:

[ Already in Federal Custody as of
[| Already in State Custody
[| On Pretrial Release

U.S.C. Citations:

Total # of Counts: 1

Mandatory Minimum Charged?

[| Yes No

Petty/
Code Description of Offense Charged Count(s) Misdemeanor/
Felony
18:1343 Wire fraud 1 F

(May be continued on second sheet)

Date: 08/20/2026 Signature of AUSA: gee CC 7


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