Indictment — United States v. Nelly Ogechi Idowu (Eastern District of Virginia)

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An indictment returned in open court on June 12, 2023 in United States v. Nelly Ogechi Idowu, Case 4:23-cr-00047-AWA-RJK, in the U.S. District Court for the Eastern District of Virginia, Newport News Division. It states that Idowu was an Airman First Class serving at Langley Air Force Base and applied for PPP loans through Fountainhead SBF, LLC and Capital Plus Financial, LLC, each claiming $102,350.00 in 2020 gross income as an independent contractor. The indictment states Idowu answered no to the question on pending felony charges although indicted on or about August 26, 2020 in the District of Utah, and received $41,666.00 in PPP proceeds. Counts One and Two charge wire fraud under 18 U.S.C. §§ 1343 and 2, and Count Three false statements under 18 U.S.C. §§ 1014 and 2.

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Case 4:23-cr-00047-AWA-RJK Document1 Filed 06/12/23. Page 1 E
IN OPEN CCURT

JUN 1 2 2023

IN THE UNITED STATES DISTRICT COURT FOR THE

CLERK, U.S. DIS
EASTERN DISTRICT OF VIRGINIA A He Dk tly COURT

Newport News Division

UNITED STATES OF AMERICA

; CRIMINAL NO. 4:23-cr4 +
18 U.S.C. §§ 1343 and 2
Wire Fraud

(Counts 1—2)

NELLY OGECHI IDOWU,

Defendant.

18 U.S.C. §§ 1014 and 2
False Statements
(Count 3)

18 U.S.C. § 981(a)(1)(C); 28 U.S.C.
§ 2461(c)
Asset Forfeiture

INDICTMENT

June 2023 Term — at Newport News, Virginia
THE GRAND JURY CHARGES THAT:

GENERAL ALLEGATIONS

At all relevant times:

hi, NELLY OGECHI IDOWU, the defendant herein (hereinafter “IDOWU”), resided
in Hampton, Virginia, in the Eastern District of Virginia.

Be IDOWU was an Airman First Class (E-3) in the United States Air Force, serving at
Langley Air Force Base (“LAFB”) in Hampton.

3. Fountainhead SBF, LLC (“Fountainhead”) is a commercial lender and a mortgage
lending business (as defined under 18 U.S.C. § 27), based in Lake Mary, Florida, whose activities
affect interstate commerce.

4, Capital Plus Financial, LLC (“Capital Plus’’) is a community development financial

institution (CDFI) based in Bedford, Texas.
Case 4:23-cr-00047-AWA-RJK Document1 Filed 06/12/23 Page 2 of 11 PagelD# 2

5. U.S. Bank National Association (“U.S. Bank”) is a financial institution (as defined
under 18 U.S.C. § 1956) headquartered in Minneapolis, Minnesota, which operates in and the
activities of which affect interstate commerce.

6. The United States Small Business Administration (“SBA”) is an executive-branch
agency of the United States government, based in Washington, D.C., that provides support to
entrepreneurs and small businesses. The mission of the SBA is 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 enables
and provides for loans through banks, credit unions, and other lenders. These loans have
government-backed guarantees.

7. In March 2020, the United States was in the midst of the coronavirus (“COVID-
19”) pandemic, which resulted in the shutdown of numerous businesses and caused millions of
American workers to be out of work. On March 12, 2020, the President declared a national
emergency under Section 501 of the Robert T. Stafford Disaster Relief and Emergency Assistance
Act, 42 U.S.C. §§ 5121 et seq. (‘Stafford Act”). As of April 18, 2020, the President had declared
that a major disaster exists in all States and territories under Section 401 of the Stafford Act.

8. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was signed
into law on March 27, 2020, which established several new temporary programs and provided for
the expansion of others to address the COVID-19 pandemic.

9. One of these new programs was the authorization of up to $349 billion in United
States taxpayer funds in forgivable loans to small businesses, through a program referred to as the
Paycheck Protection Program (“PPP”). In or about April 2020, Congress authorized over $300

billion in United States taxpayer funds in additional PPP funding.
Case 4:23-cr-00047-AWA-RJK Documenti1 Filed 06/12/23 Page 3 of 11 PagelD# 3

10. PPP loans were designed to provide a direct incentive for small businesses to keep
their workers on the payroll. Under this program, the SBA will 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.

11. ‘In order to obtain a PPP loan, a qualifying business was required to submit a PPP
loan application signed by an authorized representative of the business. The PPP loan application
required the small business (through its authorized representative) to acknowledge the program
rules and make certain affirmative certifications in order to be eligible to obtain the PPP loan. In
the PPP loan application, the applicant was required to state, among other things, its gross income
amount, which was used to calculate the amount of money the small business was eligible to
receive under the PPP. In addition, the applicant was required to provide documentation showing
its payroll expenses. Permissible forms of documentation included federal tax filings.

12. PPP applications were processed, in the first instance, by a participating, SBA-
approved lender. They were then transmitted, for further review, to the SBA to assess the
applicant’s eligibility. Ifa PPP loan application was approved, the participating lender would fund
the PPP loan using its own monies.

13. PPP loan proceeds were required to be used by the business on specific permissible
expenses: payroll costs; interest on mortgages; rent; and utilities. The PPP allowed the interest
and principal on the PPP loan to be entirely forgiven if the business spent the loan proceeds on
these permissible expenses within a designated period of time (usually eight weeks of receiving
the proceeds).

14. The applicant for a PPP loan was required to “certify that the information provided
in this application and the information provided in all supporting documents and forms is true and

accurate in all material respects.” The applicant was also required to certify that he or she
Case 4:23-cr-00047-AWA-RJK Documenti1 Filed 06/12/23 Page 4 of 11 PagelD# 4

“underst[ood] that knowingly making a false statement to obtain a guaranteed loan from SBA is
punishable under the law,” and that, “if the funds are knowingly used for unauthorized purposes,
the federal government may hold [the applicant] legally liable, such as for charges of fraud.”

A. First PPP Application

15. | Onor about April 29, 2021, IDOWU electronically applied for a PPP loan through
Fountainhead (loan number ending 8905), requesting $20,833.00 in loan proceeds. IDOWU stated
in her PPP application that she was an independent contractor under the company name of “Nelly
Idowu,” based at her home address of ** Eagle Loop, Hampton, Virginia 23665, which is part of
the LAFB base housing complex. [DOWU further stated that she opened this business on January
1, 2018, and that the loan proceeds would be used for payroll costs.

16. IDOWU falsely claimed that she had earned $102,350.00 in gross income as an
independent contractor in tax year 2020. IDOWU provided her personal social security number
(“SSN”), email address, and phone number on the application.

17. | Question 5 of the PPP Borrower Application Form asked, “Is the Applicant (if an
individual) or any owner of the Applicant presently incarcerated or, for any felony, presently
subject to an indictment, criminal information, arraignment, or other means by which formal
criminal charges are brought in any jurisdiction?” IDOWU responded “NO” to this question and
electronically signed her initials, verifying the accuracy of her response. In fact, however, IDOWU
had been indicted on or about August 26, 2020, in the United States District Court for the District
of Utah, with one count of Conspiracy to Launder Money, in violation of 18 U.S.C. § 1956(h), and
two counts of Money Laundering, in violation of 18 U.S.C. § 1957. IDOWU made her initial
appearance on those charges on November 10, 2020. She was still subject to said indictment when

she submitted the PPP loan application.
Case 4:23-cr-00047-AWA-RJK Documenti1 Filed 06/12/23. Page 5 of 11 PagelD# 5

18. | IDOWU electronically signed this PPP application on or about April 29, 2021,
attesting that the information provided was true and accurate and that she understood the criminal
penalties associated with providing false statements to the SBA.

19. On or about May 1, 2021, IDOWU’s PPP loan application for $20,833.00 was
approved. That same day, IDOWU electronically signed and submitted a promissory note and
loan agreement, which she was required to complete in order to receive the PPP loan proceeds.

20. Onor about May 7, 2021, IDOWU received a $20,833.00 electronic deposit from
Fountainhead for the awarded PPP funding into her personal checking account with U.S. Bank
(last four digits 2566). IDOWU has maintained that personal bank account since at least March 5,
2019.

B. Second PPP Application

21. Onor about May 12, 2021, IDOWU submitted a second-draw PPP loan application
through Capital Plus (loan number ending 9000), requesting another $20,833.00 in loan proceeds
for the same business entity. IDOWU again provided her SSN, personal phone number, and email
address on the application.

22. IDOWU also falsely claimed on the second application that she had earned
$102,350.00 in gross income as an independent contractor during tax year 2020.

23. Question 4 of the PPP Second Draw Borrower Application Form asked, “Is the
Applicant (if an individual) or any owner of the Applicant presently incarcerated or, for any felony,
presently subject to an indictment, criminal information, arraignment, or other means by which
formal criminal charges are brought in any jurisdiction?” [DOWU again responded “NO” to this
question and electronically signed her initials, verifying the accuracy of her response. In fact, she

was still subject to the pending indictment in Utah.
Case 4:23-cr-00047-AWA-RJK Documenti1 Filed 06/12/23 Page 6 of 11 PagelD# 6

24. IDOWU electronically signed this second PPP application on or about May 12,
2021, attesting that the information provided was true and accurate and that she understood the
criminal penalties associated with providing false statements to the SBA.

25. | Onor about May 17, 2021, IDOWU’s second PPP loan application for $20,833.00
was approved.

26. On or about June 10, 2021, IDOWU electronically signed and submitted a
promissory note and loan agreement, which she was required to complete in order to receive the
second-draw PPP loan proceeds.

27. On or about June 28, 2021, IDOWU received a $20,833.00 electronic deposit from
Capital Plus for the awarded second-draw PPP funding into her personal checking account with
U.S. Bank (last four digits 2566).

SCHEME AND ARTIFICE

28. From in or about at least April 2021, to at least in or about June 2021, in the Eastern
District of Virginia and elsewhere, NELLY OGECHI IDOWU, the defendant herein, devised and
intended to devise a scheme and artifice to defraud, and to obtain money by means of materially
false and fraudulent pretenses, representations, promises, and omissions.

29. It was part of the scheme and artifice that the defendant sought to fraudulently
obtain disaster-related benefits in the form of two PPP loans.

30. It was further part of the scheme and artifice that the defendant submitted two
applications under the PPP program that contained false statements, misrepresentations, and
omissions related to the defendant’s income and criminal record.

31. Jt was further part of the scheme and artifice that the defendant falsely attested on

the aforementioned loan applications that the information presented was true and accurate.
Case 4:23-cr-00047-AWA-RJK Documenti1 Filed 06/12/23 Page 7 of 11 PagelD# 7

32. It was further part of the scheme and artifice that the defendant submitted
promissory notes and loan agreements to receive PPP loan proceeds from Fountainhead and
Capital Plus.

33. It was further part of the scheme and artifice that the defendant received $41,666.00
in PPP loan proceeds into her personal checking account.

34. It was further a part of the scheme and artifice that the defendant caused the
transmission of information by wire between the Eastern District of Virginia and locations outside

of the Commonwealth of Virginia.
Case 4:23-cr-00047-AWA-RJK Documenti1 Filed 06/12/23 Page 8 of 11 PagelD# 8

COUNTS ONE AND TWO
(Wire Fraud)

THE GRAND JURY CHARGES THAT:

1. The factual allegations contained above are incorporated herein by reference as if
set out in full.
2. On or about the dates and in connection with the transactions described below,

NELLY OGECHI IDOWU, the defendant herein, aided and abetted by others known and
unknown, having devised and intended to devise a scheme and artifice to defraud and for obtaining
money and property by means of materially false, fraudulent, and fictitious pretenses,
representations, and promises, as described in paragraphs 28 to 34 above and incorporated herein
by reference, and, for the purpose of executing the aforesaid scheme and artifice, in the Eastern
District of Virginia and elsewhere, did knowingly and willfully transmit and cause to be
transmitted by means of wire communication in interstate commerce, the following certain signs,
signals, and sounds: to wit, the following PPP promissory note/loan agreement and PPP loan
application to/from/through a location within the Eastern District of Virginia to/from/through a
location outside of the Commonwealth of Virginia. These violations occurred in relation to, and
involved benefits authorized, transported, transmitted, transferred, disbursed, or paid in connection

with, a presidentially declared major disaster or emergency—namely, the COVID-19 pandemic.

Count Date Description of Wire Transmission
(on or about)
IDOWU electronically submitted a promissory note and PPP loan
1 5/1/2021 | agreement to Fountainhead for independent contractor “Nelly Idowu”

(loan number ending 8905).

IDOWU electronically submitted a second-draw PPP loan application
2 5/12/2021 | through Capital Plus for independent contractor “Nelly Idowu” (loan
number ending 9000).

(In violation of Title 18, United States Code, Sections 1343 and 2.)
Case 4:23-cr-00047-AWA-RJK Document1 Filed 06/12/23 Page 9 of 11 PagelD# 9

COUNT THREE
(False Statements)

THE GRAND JURY FURTHER CHARGES THAT:

1, The factual allegations contained above are incorporated herein by reference as if
set out in full.
2. On or about the dates and in connection with the loan application set forth below,

in the Eastern District of Virginia and elsewhere, NELLY OGECHI IDOWU, the defendant herein,

aided and abetted by others known and unknown, knowingly made false statements and reports

for the purpose of influencing a mortgage lending business, in connection with an application,

advance, discount, purchase, purchase agreement, repurchase agreement, commitment, and loan,

as follows:

Date

Count (on or about)

False Statements

3 4/29/2021

IDOWU claimed on her application for a PPP loan from
Fountainhead that she had earned $102,350.00 in gross income
as an independent contractor in tax year 2020 and that she was
not subject to a felony indictment in any jurisdiction, when in
truth and in fact, as IDOWU well knew, she had earned
substantially less than that amount—if anything—working as an
independent contractor in tax year 2020, and she was subject to
a felony indictment in the U.S. District Court for the District of
Utah.

(In violation of Title 18, United States Code, Sections 1014 and 2.)
Case 4:23-cr-00047-AWA-RJK Documenti1 Filed 06/12/23. Page 10o0f11PagelD#10 .

FORFEITURE

THE GRAND JURY FURTHER FINDS PROBABLE CAUSE THAT:

1. The defendant, if convicted of either of the violations alleged in Counts 1 and 2 of
this Indictment, shall forfeit to the United States, as part of sentencing pursuant to Federal Rule of
Criminal Procedure 32.2, any property, real or personal, which constitutes or is derived from
proceeds traceable to the violation.

2. If any property that is subject to forfeiture above is not available, it is the intention
of the United States to seek an order forfeiting substitute assets pursuant to Title 21, United States

Code, Section 853(p) and Federal Rule of Criminal Procedure 32.2(e.).

(In accordance with Title 18, United States Code, Sections 981(a)(1)(C), and Title 28, United
States Code, Section 2461(c).)

10
* Case 4:23-cr-00047-AWA-RJK Document 1

UNITED STATES v. NELLY OGECHI IDOWU

JESSICA D. ABER

(/\ x ATTORNEY
L

Alyson C. Yates

Special Assistant United States Attorney
United States Attorney’s Office

721 Lakefront Commons, Suite 300
Newport News, Virginia 23606

Phone: (757) 591-4000

Fax: (757) 591-0866

Email: alyson.yates@usdoj.gov

11

Filed 06/12/23 Page 11 of 11 PagelD# 11

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