Indictment — United States v. Dedric Rolando Clinton, Jr.
Summary
A sealed indictment filed October 26, 2022 in United States v. Dedric Rolando Clinton, Jr., Case 1:22-cr-00208-TFM-B, in the U.S. District Court for the Southern District of Alabama. Count One charges wire fraud under Title 18, United States Code, Section 1343 and 2, alleging that from on or about March 1, 2021 through on or about April 20, 2021 Clinton submitted a false PPP loan application to Capital Plus Financial, LLC and the SBA claiming a business in operation since January 19, 2019. The indictment states that the application led Capital Plus to make electronic transfers into Clinton's account. The forfeiture notice seeks a money judgment of at least $20,832.00.
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“Indictment — United States v. Dedric Rolando Clinton, Jr.”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/1-sealed-indictment-as-to-dedric-rolando-clinton-jr-1-count-bd38b0d288/
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Case 1:22-cr-00208-TFM-B Document 1 Filed 10/26/22 Page 1 of 6 PageID #: 1
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VIOLATION: 18 USC § 2
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18 USC § 1343
DEDRIC ROLANDO CLINTON, JR. jc
FORFEITURENOTICE
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INDICTMENT
THE GRAND JURY CHARGES:
Introduction
At all times material to this Indictment:
1. The Small Business Administration (“SBA”) was created in 1953 as an independent
agency of the executive branch of the federal government to aid, counsel, assist, and protect the
interests of small businessand to maintain and strengthen the overall economy of the United States.
The SBA maintained and strengthenedthe nation’s economy by, among other activities, enabling
the establishmentand viability of small business and by assisting in the economic recover of
communities after disasters. In executing its mission, the SBA provides direct loans to small
businessesand those affectedby disasters.
2. On March 13, 2020, the President of the United States declared a national
emergency concerning the COVID-19 pandemic (Proclamation 9994), and the declaration was
further extended on February 18, 2022.
3. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security
(“CARES”) Act was enactedto provide emergencyfinancial assistanceto the millions of
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Americans suffering adverse economic consequencescaused by the COVID-19 pandemic. The
CARES Act established several new temporary programs and provided for expansion of others,
including programs created and administered by the SBA.
4. As a part of this effort, the SBA enabledand provided for loans through banks,
credit unions, and other lenders. These loans had government-backed guarantees. One source of
relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans
to small businessesfor job retention and certain other expensesthrough a program referred to as
the Paycheck Protection Program (“PPP“). Congress has since increased the authorization amount
for PPP loans to over $813 billion. The PPP required that small businesses much have been in
operation on or before February 15, 2020, maintained employees,and realized monthly payroll
costs.
5. To obtain a PPP loan, a qualifying business must submit a PPP loan application,
which is signed by an authorized representativeof the business. The PPP loan application requires
that the business (through its authorized representative) 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 small business(through its authorized representative)must state, among other
things, its: (a) averagemonthly payroll expenses,and (b) number of employees. These figures are
usedto calculate the amount of money the small business is eligible to receive under the PPP. In
addition, businessesapplying for a PPP loan must provide documentation showing their payroll
expenses.
6. A PPP loan application must be processedby an SBA-authorized participating
lender. If a PPP loan application is approved, the participating lender funds the PPP loan using its
own monies, which are 100% guaranteedby the SBA. Data from the application, including
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information about the borrower, the total amount of the loan, and the listed number of employees,
is transmitted by the lender to the SBA while processing the loan.
7. PPP loan proceeds must be used by the business on certain permissible expenses
such as payroll costs, mortgageinterest,rent, and utilities. The PPP allows the interest and
principal on the PPP loan to be entirely forgiven if the business spendsthe loan proceeds on these
expenseswithin a designatedperiod of time after receiving the proceeds and usesa certain amount
of the PPP loan proceeds on payroll expenses.
8. Capital Plus Financial, LLC (“Capital Plus”) is an approved PPP lender. Capital
Plus is headquartered in Bedford, Texas, and is a financial institution as defined by 18 U.S.C. i
20
9. In conjunction with the SBA, Capital Plus works jointly with a technology partner
whose website and internal PPP platform are hosted by Amazon Web Services, which furnishes
information technology infrastructure and computer servers located in the State of Oregon which
were used to ingest DEDRIC ROLANDO CLINTON, JR.’s PPP application.
10. Upon receiptandprocessing
of DEDRIC ROLANDO CLINTON, JR.’s PPP
application, the SBA createda loan numberwhich was, in turn, transmittedfrom SBA serversin
Sterling, Virginia to Capital Plus.
11. At all times material to this Indictment, the defendant, DEDRIC ROLANDO
CLINTON, JR., wasin the SouthernDistrict of Alabama.
COUNT ONE
Wire Fraud
Title 18, United States Code, Section 1343
12. The factual allegations of paragraphs 1 through 11 of this Indictment are re-alleged
as though fully set forth herein.
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13. From on or about March 1, 2021, and continuing through on or about April 20,
2021, the exact datesbeing unknown, within the Southern District of Alabama, and elsewhere,the
defendant,
DEDRICROLANDOCLINTON,JR.,
devised and intended to devise a scheme and artifice to defraud the United States,Capital Plus, the
SBA, and others, and to obtain money and property belonging to the United States, Capital Plus,
the SBA, and others, by meansof materially false and fraudulent pretenses,representations,and
promIses.
Purpose of the Schemeand Artifice
14. It was part of the schemeand artifice that the defendant, DEDRIC ROLANDO
CLINTON, JR., would and did submit and causeto be submitted, a false and fraudulent PPP loan
application to Capital Plus and the SBA to obtain money for his personal use.
15. It was further a part of the schemeand artifice that the defendant,DEDRIC
ROLANDO CLINTON, JR., would and did falsely representon his PPPloan application that he
owned a business which had been in operation since January 19, 2019, and had gross annual
revenuesof $ 100,000.
16. It was further a part of the schemeand artifice that the defendant,DEDRIC
ROLANDO CLINTON, JR., would and did cause Capital Plus to make electronic transfers of
$20)832 into his financial account sent from outside the Stateof Alabama to a financial institution
account in the defendant’s name within the Southern District of Alabama as a result of the false
and fraudulent PPP loan application submitted by DEDRIC ROLANDO CLINTON, JR..
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The Wire Communication
17. On or about April 20, 2021, in the Southern District of Alabama, and elsewhere,
the defendant,
DEDRICROLANDOCLINTON,JR.,
for the purpose of executing the above-described scheme and artifice, and attempting to do so, did
cause to be transmitted in interstate commerce, by means of a wire communication, certain signs
and signals, that is, the defendant, DEDRIC ROLANDO CLINTON, JR., caused an interstate
wire communication when a false and fraudulent PPP loan application was submitted to Capital
Plus andthe SBA.
All in violation of Title 18, United StatesCode, Section 1343 and 2.
FORFEITURE NOTICE
Upon conviction of the violation of Title 18, United States Code, Section 1343 charged in
Count One, the defendant,DEDRIC ROLANDO CLINTON, JR., shall forfeit to the United
States pursuant to Title 18, United States Code, Sections 981 (a)(1)(C) and Title 28, United States
Code, Section 2461(c), all property constituting or derived from proceedstraceableto said
violation, including but not limited to the following:
MONEY JUDGMENT: A sum of money in United StatesCurrency of at least
$20,832.00 that the defendant obtained as a result of the offense charged in Count
One
If, as a result of any act or omission of the defendant, any property subject to forfeiture:
a. cannot be located upon the exercise of due diligence;
b. has been transferred or sold to, or deposited with, a third person;
c. has been placed beyond the jurisdiction of the Court;
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d. has been substantially diminished in value; or
e. has been comingled with other property which cannot be subdivided without
difficulty;
the United Statesintends, pursuant to Title 21, United StatesCode, Section 853(p), as incorporated
by Title 28, United StatesCode,Section2461(c),to seekforfeiture of any other propertyof said
defendantup to the value of the forfeitable property .
A TRUEBILL
FOREMAN UNITED STATESGRAND JURY
SOUTHERNDISTRICTOF ALABAMA
SEANP. COSTELLO
UNITED STATESATTORNEY
AssistantUnited StatesAttorney
AssistantUnited StatesAttorney
Jay,.?,A$1t“
United StatesAttorney
Chief, Criminal Division OCTOBER 2022
SEALED
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