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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/, SHA-256 39a2733b7d1d78067aedd2dd8f28353e19204e6b5a0e16c379da5f922118ca2e.

Full text

       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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Case 1:22-cr-00208-TFM-B Document 1 Filed 10/26/22 Page 6 of 6                    PageID #: 6




               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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