4. ln order to be eligible to receive such a PPP loan, individtlals had to report and

Summary

A criminal Information in United States of America v. Leonel Rivero, Case 1:21-cr-20160-KMW, filed as Document 1 in the U.S. District Court for the Southern District of Florida on March 16, 2021. The United States Attorney charges one count of wire fraud under 18 U.S.C. § 1343, alleging that Rivero, principal of Rivero Tax Group Inc., submitted Paycheck Protection Program loan applications with false income and expense information through a California loan processor. The Information states that the applications sought approximately $2,334,064 and that approximately $975,582 was received. It seeks forfeiture of $975,582.00 and lists substitute property including funds on deposit at Wells Fargo and approximately $773,600.00 in currency seized from the defendant's residence. The nine-page filing includes a certificate of trial attorney, a penalty sheet and a waiver of indictment form.

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Full text

Case 1:21-cr-20160-KMW Document1 Entered on FLSD Docket 03/16/2021) Rage.l ofgA nc

Mar 16, 2021

ANGELA E. NOBLE
CLERK U.S. DIST. CT.
$.D. OF FLA. - MIAMI

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA

21-20160-CR-UNGARO/REID
CASE NO.

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

UNITED STATES OF AMERICA
v.
LEONEL RIVERO,

Defendant.

INFORMATION

The United States Attorney charges that:

GENERAL ALLEGATIONS

At all times relevant to this Information:

I. Defendant LEONEL RIVERO was a resident of Miami-Dade County, Florida.
RIVERO was the principal and registered agent of Rivero Tax Group Inc., a Florida corporation
registered on or about May 2, 2016. Rivero Tax Group was a tax preparation business.

2. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was a federal
law enacted in March 2020. to provide financial assistance to Americans suffering economic harm
from the COVID-19 pandemic. One source of relief provided through the CARES Act was the
authorization of forgivable loans to businesses for job retention and certain other expenses, through
a program called the Paycheck Protection Program (PPP).

3. Among the types of businesses eligible for a PPP loan were individuals who

operated under a “sole proprietorship” business structure. Such individuals were eligible to receive
Case 1:21-cr-20160-KMW Document1 Entered on FLSD Docket 03/16/2021 Page 2 of 9

a maximum PPP loan of up to $20,833 to cover lost compensation or income from the sole
proprietorship.

4, In order to be eligible to receive such a PPP loan, individuals had to report and
document their income and expenses from the sole proprietorship, as typically reported to the
Internal Revenue Service (IRS) on Form 1040, Schedule C, for a given tax year.

5. The CARES Act required PPP loan applications to be processed by a participating
lender. If a PPP loan application was approved, the participating lender would fund the PPP loan
using its own monies, which were guaranteed by the Small Business Administration (SBA). Data
from the application, including information about the borrower, the total amount of the loan, and
the listed number of employees, were transmitted by the lender to the SBA in the course of
processing the loan.

6. SBA Loan Processor | was a financial-technology company based in California.
SBA Loan Processor | participated in the PPP by, among other things, acting as a service provider
for small businesses and certain lenders. Small businesses seeking a PPP loan could apply through
SBA Loan Processor 1, which would review the PPP loan applications. If a PPP loan application
received was approved for funding, a partner financial institution disbursed the loan funds to the
applicant. Under the PPP, the SBA agreed to guarantee loans provided by participant lenders
under certain conditions.

7. Wells Fargo Bank, N.A. (Wells Fargo) was a federally insured financial institution
based in South Dakota.

8. Rivero Tax Group Inc. maintained bank accounts at Wells Fargo in Miami, Florida.
Case 1:21-cr-20160-KMW Document1 Entered on FLSD Docket 03/16/2021 Page 3 of 9

Wire Fraud
(18 U.S.C. § 1343)

From in or around May 2020, through in or around June 2020, in Miami-Dade County, in

the Southern District of Florida, and elsewhere, the defendant,
LEONEL RIVERO,

did knowingly, and with intent to defraud, devise and intend to devise a scheme and artifice to
defraud and to obtain money and property by means of materially false and fraudulent pretenses,
representations, and promises, knowing that the pretenses, representations, and promises were
false and fraudulent when made, and for the purpose of executing such scheme and artifice to
defraud, did knowingly transmit and cause to be transmitted by means of wire communications in
interstate and foreign commerce, certain writings, signs, signals, pictures, and sounds.

PURPOSE OF THE SCHEME AND ARTIFICE

It was the purpose of the scheme and artifice for the defendant and his accomplices to
unjustly enrich themselves by submitting false and fraudulent PPP loan applications to SBA Loan
Processor 1—which contained false income and expense information—and then use the

subsequent loan proceeds for their own personal benefit.

MANNER AND MEANS OF THE SCHEME AND ARTIFICE

The manner and means by which the defendant, LEONEL RIVERO, sought to
accomplish the scheme and artifice to defraud included, among others, the following:

9. LEONEL RIVERO submitted to SBA Loan Processor 1 approximately 118 PPP
loan applications on behalf of himself and his accomplices. Combined, the 118 PPP loan
applications sought approximately $2,334,064 in PPP loan funds.

10. On each PPP loan application, LEONEL RIVERO falsely stated the named

3
Case 1:21-cr-20160-KMW Document1 Entered on FLSD Docket 03/16/2021 Page 4 of 9

applicant's prior-year income and expenses. In support, RIVERO repeatedly submitted false and
fraudulent IRS forms, which purported to document income and expenses from the named
applicant's sole proprietorship.

11. LEONEL RIVERO and his accomplices received approximately $975,582 in PPP
loan funds as a result of the false and fraudulent PPP loan applications RIVERO submitted.

USE OF THE WIRES

On or about May 15, 2020, the defendant, for the purpose of executing the aforesaid scheme
and artifice to defraud and to obtain money and property by means of materially false and
fraudulent pretenses, representations, and promises, knowing that the pretenses, representations,
and promises were false and fraudulent when made, did knowingly transmit and cause to be
transmitted by means of wire communications in interstate and foreign commerce, certain writings,
signs, Signals, pictures and sounds, that is, an electronic application from South Florida, to SBA
Loan Processor 1, in California, fora PPP loan in the name of LEONEL RIVERO, in violation
of Title 18, United States Code, Sections 1343 and 2.

FORFEITURE
(18 U.S.C. § 981(a)(1)(C))

1. The allegations of this Information are hereby re-alleged and by this reference fully
incorporated herein for the purpose of alleging forfeiture to the United States of certain property
in which the defendant, LEONEL RIVERO. has an interest.

2. Upon conviction of a violation of Title 18, United States Code, Section 1343. as
alleged in this Information, the defendant shall forfeit to the United States any property, real or

personal. which constitutes or is derived from proceeds traceable to such offense, pursuant to Title

18, United States Code, Section 981(a)(1)(C).
Case 1:21-cr-20160-KMW Document1 Entered on FLSD Docket 03/16/2021 Page 5 of 9

3. The property subject to forfeiture as a result of the alleged offense includes, but is
not limited to, the following: a sum of $975,582.00 in U.S. currency. which sum represents the
value of the property subject to forfeiture and which may be sought as a forfeiture money
judgment; and

4, If any of the property subject to forfeiture, 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:
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 shall be entitled to forfeiture of substitute property under the provisions of Title
21, United States Code, Section 853(p). which substitute property includes but is not limited to,
the following:
a. $197,611.01 formerly on deposit in account number 6079717002 at Wells Fargo
Bank, N.A., held in the name of Rivero Tax Group, Inc.; and
b. approximately $773.600.00 in U.S. currency seized from the defendant's residence

on or about September 28, 2020.
Case 1:21-cr-20160-KMW Document1 Entered on FLSD Docket 03/16/2021 Page 6 of 9

All pursuant to Title 18, United States Code, Section 981(a)(1)(C), and the procedures set
forth at Title 21, United States Code. Section 853 as incorporated by Title 28, United States Code,

Section 2461(c).

WhnwWGF fy.

ARIANA FAJARDO ORSHAN
UNITED STATES ATTORNEY

CHRISTOPHER B. BROWNE
ASSISTANT UNITED STATES ATTORNEY

Zo

2/DANIEL KAHN
ACTING CHIEF, FRAUD SECTION
U.S. DEPARTMENT OF JUSTICE

Cyt

DELLA SENTILLES
TRIAL ATTORNEY, FRAUD SECTION
U.S. DEPARTMENT OF JUSTICE

Case 1:21-cr-20160-KMW Document1 Entered on FLSD Docket 03/16/2021 Page 7 of 9

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA

UNITED STATES OF AMERICA CASE NO.
Vv.
LEONEL RIVERO, CERTIFICATE OF TRIAL ATTORNEY*
Superseding Case Information:
Defendant. j
Court Division: (Select One) New defendant(s) Yes No
an Miami Key West Number of new defendants
FTL WPB __ FTP Total number of counts
1. | have carefully considered the allegations of the indictment, the number of defendants, the number of
probable witnesses and the legal complexities of the Indictment/Information attached hereto.
2. I am aware that the information supplied on this statement will be relied upon by the Judges of this
Court in setting their calendars and scheduling criminal trials under the mandate of the Speedy Trial
Act, Title 28 U.S.C. Section 3161.
3. Interpreter: (Yes or No) No
List language and/or dialect
4. This case will take __Q__ days for the parties to try.
5. Please check appropriate category and type of offense listed below:
{Check only one} (Check only one}
I 0 to 5 days ‘ Petty
0 6 to 10 days Minor
ll 11 to 20 days Misdem.
IV 21 to 60 days Felony ‘
Vv 61 days and over
6. Has this case previously been filed in this District Court? (YesorNo) No
If yes: Judge Case No.
(Attach copy of dispositive order)
Has a complaint been filed in this matter? (Yes or No) No
If yes: Magistrate Case No.

Related miscellaneous numbers:
Defendant(s) in federal custody as of
Defendant(s) in state custody as of
Rule 20 from the District of

Is this

a potential death penalty case? (Yes or No) No

Does this case originate from a matter pending in the Central Region of the U.S. Attorney’s Office

prior to August 9, 2013 (Mag. Judge Alicia O. Valle)? Yes No_/
Does this case originate from a matter pending in the Northern Region of the U.S. Attorney's Office
prior to August 8, 2014 (Mag. Judge Shaniek Maynard)? Yes No_/
Does this case originate from a matter pending in the Central Region of the U.S. Attorney's Office
prior to October 3, 2019 (Mag. Judge Jared Strauss)? > Yes No_¥

i

CHRISTOPHER B. BROWNE
ASSISTANT UNITED STATES ATTORNEY

*Penalty Sheet(s) attached FL Bar No. 91337 REV 65.2020
Case 1:21-cr-20160-KMW Document1 Entered on FLSD Docket 03/16/2021 Page 8 of 9

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA

PENALTY SHEET

Defendant's Name: LEONEL RIVERO

Case No:

Count #: |

Wire Fraud

Title 18, United States Code. Section 1343

*Max. Penalty: ‘Twenty (20) years’ imprisonment

*Refers only to possible term of incarceration, does not include possible fines, restitution,
special assessments, parole terms, or forfeitures that may be applicable.
Case 1:21-cr-20160-KMW Document1 Entered on FLSD Docket 03/16/2021 Page 9 of 9

AO 455 (Rev. 01/09) Waiver of an Indictment

UNITED STATES DISTRICT COURT

for the
Southern District of Florida

United States of America
Vv.
Leonel Rivero,

Case No.

Defendant
WAIVER OF AN INDICTMENT

| understand that | have been accused of one or more offenses punishable by imprisonment for more than one
year. | was advised in open court of my rights and the nature of the proposed charges against me.

After receiving this advice, | waive my right to prosecution by indictment and consent to prosecution by
information.

Date:

Defendant's signature

Signature of defendant's attorney

Michael Mirer, Esq.

Printed name of defendant’s attorney

Judge's signature

Judge's printed name and title

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