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Indictment — United States v. David Christopher Lewis (Eastern District of Kentucky)

Summary

An indictment filed August 5, 2021 in United States v. David Christopher Lewis, Case 6:21-cr-00048-REW-HAI, in the U.S. District Court for the Eastern District of Kentucky. Count 1 charges wire fraud under 18 U.S.C. § 1343, alleging that Lewis submitted false payroll information and IRS Form 941s to First State Bank of the Southeast for PPP loans to Bubba Fest, LLC for $195,000 and Elite Artists Agency, LLC for $175,000. Counts 2 and 3 charge attempts to obstruct a grand jury investigation under 18 U.S.C. § 1512(c)(2): asking witness C.K. to sign a backdated employment contract, and submitting a sworn affidavit that the indictment states was false. The forfeiture allegation seeks a money judgment of $370,000.

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“Indictment — United States v. David Christopher Lewis (Eastern District of Kentucky).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/1-indictment-returned-in-open-court-as-to-david-christopher-le-25ca061c8b/, SHA-256 b51f77d4bc4b1309d8de00fd49b82808549f6f933ab91761cbf0acbd83b3efcf.

Full text

Case: 6:21-cr-00048-REW-HAI       Doc #: 1       Filed: 08/05/21   Page: 1 of 8 - Page ID#:
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                         UNITED STATES DISTRICT COURT
                         EASTERN DISTRICT OF KENTUCKY
                              SOUTHERN DIVISION
                                    LONDON                                      AT LEXINGTON
                                                                              fZOBERT R. CARR
                                                                         CLERI( U.S. DISTRICT COURT
UNITED STATES OF AMERICA


v.                                       INDICTMENT NO.            J. 1~lfi,, r-.etv
DAVID CHRISTOPHER LEWIS

                                      * * * * *

THE GRAND JURY CHARGES:

At all relevant times:

       1.     The United States Small Business Administration (SBA) was an executive-

branch agency of the United States government that provided support to entrepreneurs

and small businesses. The mission of the SBA was 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.

       2.     As part of this effort, the SBA enabled and provided for loans through

banks, credit unions and other lenders. These loans had government-backed guarantees.

In addition to traditional SBA funding programs, The CARES Act, which was signed into

law in March 2020, established several new temporary programs and provided for the

expansion of others to address the COVID-19 outbreak.

       3.     One of these new programs was the SBA Paycheck Protection Program

(PPP), which was a loan designed to provide a direct incentive for small businesses to
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keep their workers on the payroll. Under this program, the SBA would forgive all or part

of loans if all employees were kept on the payroll for eight weeks and borrowers

submitted documentation confirming that the loan proceeds were used for payroll, rent,

mortgage interest, or utilities. Interested applicants applied through an existing SBA

lender or any other participating federally insured financial institution.

       4.       The PPP application process required applicants to submit a Borrower

Application Form through an SBA-approved financial entity. The application contained

information as to the purpose of the loan, average monthly payroll, number of employees

and background of the business and its owner. First State Bank of the Southeast was a

federally insured financial institution approved by the SBA to process PPP loan

applications.

       5.       Applicants for a PPP loan were also required to make good faith

certifications, including that (1) economic uncertainties necessitated their loan requests

for continued business operations and that they intended to use loan proceeds only for the

authorized and not any duplicative purposes, (2) the information provided in the

application and all supporting documents was true and accurate, and that knowingly

making a false statement to obtain a loan from the SBA constituted a criminal offense,

and (3) the applicant understood that the lender would calculate the loan amount using

tax documents the applicant submitted, and that these tax documents were identical to

those submitted to the Internal Revenue Service.

       6.       DAVID CHRISTOPHER LEWIS was a resident of Harlan County,

Kentucky, in the Eastern District of Kentucky. LEWIS was the organizer and registered
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agent ofBubba Fest, LLC and Elite Artists Agency, LLC.

                                       COUNT 1
                             18 U.S.C. § 1343 - Wire Fraud

       7.      Paragraphs 1 through 6 are re-alleged and incorporated by reference as if

set forth fully herein.

       8.      Beginning on or about a date unknown, but not later than April 15, 2020,

and continuing through at least May 31, 2020, in the Eastern District of Kentucky and

elsewhere, the Defendant,

                            DAVID CHRISTOPHER LEWIS

aiding and abetting, and aided and abetted by, another person known to the grand jury,

devised and intended to devise a scheme to defraud and to obtain money and property by

means of materially false and fraudulent pretenses, representations, promises, and

concealment of material facts, which scheme is further described below.

                                  Purpose of the Scheme

       9.       It was a purpose of the scheme for DAVID CHRISTOPHER LEWIS to

unlawfully enrich himself and businesses he operated by submitting or causing to be

submitted false and fraudulent applications for PPP loans to the SBA.

                                   Manner and Means

       10.     It was a part of the scheme for DAVID CHRISTOPHER LEWIS to

submit or cause to be submitted to First State Bank of the Southeast and the SBA false

information about the total payroll costs and average monthly payroll of Elite Artists

Agency, LLC and Bubba Fest, LLC
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       11.    It was a part of the scheme for DAVID CHRISTOPHER LEWIS to

submit or cause to be submitted to First State Bank of the Southeast and the SBA

numerous false IRS Form 941s, Employer's Quarterly Federal Tax Return, for Elite

Artists Agency, LLC and Bubba Fest, LLC, when in truth and in fact neither of those

entities had filed IRS Form 941 s in calendar year 2019 or the first quarter of 2020, as

LEWIS represented or caused to be represented.

       12.    It was a part of the scheme for DAVID CHRISTOPHER LEWIS to cause

to be deposited into accounts he controlled at First State Bank of the Southeast the

proceeds of SBA loan number 42182474-00, made payable to Bubba Fest, LLC in the

amount of $195,000, and the proceeds of SBA loan number 42054574-05, made payable

to Elite Artists Agency, LLC in the amount of$175,000.

       13.    On or about May 8, 2020, in the Eastern District of Kentucky, and

elsewhere, the Defendant,

                               DAVID CHRISTOPHER LEWIS

for the purpose of executing the scheme described above, caused to be transmitted by

means of wire communication in interstate commerce the signals and sounds described

below, specifically, applications for loans under the PPP program on behalf ofBubba

Fest, LLC and Elite Artists Agency, LLC, which were sent by means of interstate wire

communication from First State Bank of the Southeast to the SBA.

All in violation of Title 18, United States Code, Section 1343.
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                                   COUNT2
         18 U.S.C. § 1512(c)(2)-Tampering With Documents or Proceedings


       14.     Paragraphs 1 through 13 are re-alleged and incorporated by reference as if

set forth fully herein.

       15.     On or about April 27, 2021, in the Eastern District of Kentucky, the

Defendant,

                           DAVID CHRISTOPHER LEWIS,

did corruptly attempt to obstruct, influence, and impede a Federal grand jury

investigation, an official proceeding, by asking witness C.K. to sign a backdated

employment contract for calendar year 2019 that stated that C.K. was employed by

Bubba Fest, LLC and was paid $1,200 per week, when in truth and in fact C.K. did not

work for Bubba Fest, LLC in 2019, all in violation of Title 18, United States Code,

Section 1512(c)(2).

                                   COUNT3
         18 U.S.C. § 1512(c)(2)-Tampering With Documents or Proceedings


       16.     Paragraphs 1 through 13 are re-alleged and incorporated by reference as if

set forth fully herein.

       17.     On or about July 2, 2021, in the Eastern District of Kentucky, the

Defendant,

                           DAVID CHRISTOPHER LEWIS,

did corruptly attempt to obstruct, influence, and impede a Federal grand jury

investigation, an official proceeding; specifically, in response to Federal grand jury
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subpoenas issued to Bubba Fest, LLC and Elite Artists Agency, LLC seeking certain

employment records, DAVID CHRISTOPHER LEWIS submitted a sworn affidavit

falsely stating that he had engaged a tax preparer in Harlan County, Kentucky to prepare

PPP loan applications for those businesses, that the tax preparer assured LEWIS that

everything in the PPP loan applications was accurate, and that the tax preparer had

custody of records responsive to the Federal grand jury subpoenas but refused to return

the records to LEWIS, all in violation of Title 18, United States Code, Section

1512(c)(2).

                            FORFEITURE ALLEGATION
                              18 U.S.C. § 982(a)(2)(A)
                               18 U.S.C. § 981(a)(l)(C)
                                 28 U.S.C. § 2461(c)

      In committing the felony offense alleged in Count 1 of this Indictment, punishable

by imprisonment for more than one year, DAVID CHRISTOPHER LEWIS shall forfeit

to the United States, pursuant to 18 U.S.C. § 982(a)(2)(A), 18 U.S.C. § 98l(a)(l)(C) and

28 U.S.C. § 246l(c), any property, real or personal, which constitutes or is derived from

proceeds traceable to the commission of wire fraud.

      The property to be forfeited includes, but is not limited to, the following:

              MONEY JUDGMENT:

              $370,000, representing the approximate amount of proceeds derived from
              the wire fraud scheme.

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

of DAVID CHRISTOPHER LEWIS:
              a. cannot be located upon the exercise of due diligence;
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              b. has been transfe1Ted 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

              e. has been commingled with other property which cannot be divided

                 without difficulty,

the United States of America shaJl be entitled to forfeiture of substitute property pursuant

to 21 U.S.C. § 853(p), as incorporated by 18 U .S.C. § 982(b)( l ) and 28 U.S.C. § 2461(c).




                                                    FOREPERSON




CARLTON S. SHIER, IV
ACTING UNITED STATES ATTORNEY
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                                    PENALTIES

COUNTS 1-3:       Not more than 20 years' imprisonment, a $250,000 fine or twice the
                  gross gain or loss, whichever is greater, and not more than 3 years of
                  supervised release.

PLUS:             Mandatory special assessment of $100 per count.

PLUS:             Restitution, if applicable.

PLUS:             Forfeiture, as alleged.


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