Indictment — United States v. Rafael Martinez (Dkt. 18, S.D.N.Y.)

Summary

An Indictment, Document 18 filed May 2, 2022 in United States of America v. Rafael Martinez, Case 1:22-cr-00251-LJL, in the U.S. District Court for the Southern District of New York. Count One (Wire Fraud) charges that from in or about April 2020 through at least in or about February 2022, Martinez used false and fraudulent pretenses to obtain SBA approval for MBE Capital Partners, LLC to be a non-bank lender through the Paycheck Protection Program. Count Two (Making False Statements to the SBA), Count Three (Bank Fraud), Count Four (Making False Statements to a Bank) and Count Five (Aggravated Identity Theft) cite 15 U.S.C. § 645(a) and 18 U.S.C. §§ 1344, 1014 and 1028A. Forfeiture allegations follow, and the foreperson's name appears with that of United States Attorney Damian Williams.

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Full text

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
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UNITED STATES OF AMERICA
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INDICTMENT
RAFAEL MARTINEZ ,
22 Cr .
Defendant .
x22 CRIM 25
COUNT ONE
(Wire Fraud)
The Grand Jury charges :
1 .
From in or about April 2020 through at least in or
about February 2022 , in the Southern District of New York and
elsewhere , RAFAEL MARTINEZ , the defendant , willfully and
knowingly , having devised and intending to devise a scheme and
artifice to defraud , and for obtaining money and property by
means of false and fraudulent pretenses , representations , and
promises , transmitted and caused to be transmitted by means of
wire , radio , and television communication in interstate and
foreign commerce , writings , signs , signals , pictures , and
sounds , for the purpose of executing such scheme and artifice ,
which affected a financial institution , to wit , MARTINEZ used
false and fraudulent pretenses , representations , and documents
to fraudulently obtain the approval of the United States Small
Business Administration (the "SBA" ) for his company , MBE Capital
Partners , LLC ("MBE" ) , to be a non-bank lender through the
Case 1:22-cr-00251-LJL     Document 18     Filed 05/02/22     Page 1 of 7

Paycheck Protection Program (the " PPP" ) , and then MARTINEZ used
that approval to obtain millions of dollars in capital to issue
PPP loans and earn lender fees .
(Title 18 , United States Code , Sections 1343 and 2 . )
COUNT TWO
(Making False Statements to the SBA)
The Grand Jury further charges :
2 .
From at least in or about April 2020 through at least
in or about February 2022 , in the Southern District of New York
and elsewhere , RAFAEL MARTINEZ , the defendant , knowingly and
willfully made a false statement , knowing such statement to be
false , for the purpose of obtaining a loan , and extens i on
thereof by renewal , deferment of action , and otherwise , and the
acceptance , re l ease , and substitution of security therefor , for
himself and an appl icant , influencing in any way the action of
the SBA, and obtaining money , property , and anything of value ,
under Chapter 14 of Title 15 of the United States Code , to wit ,
MARTINEZ made false statements to the SBA regarding , among other
things , the audited financial statements o f MBE , for the purpose
of obtaining the approval of the SBA for MBE to be a non- bank
lender through the PPP .
(Title 15 , United States Code , Sections 645(a) , and Title 18 ,
United States Code , Section 2 . )
2
Case 1:22-cr-00251-LJL     Document 18     Filed 05/02/22     Page 2 of 7

COUNT THREE
(Bank Fraud)
The Grand Jury further charges :
3 .
From at least in or about April 2020 through at least
in or about September 2021 , in the Southern District of New York
and elsewhere , RAFAEL MARTINEZ , the defendant , willfully and
knowingly executed , and attempted to execute , a scheme and
artifice to defraud a financial institution , the deposits of
which were insured by the Federal Deposit Insurance Corporation
(" FDIC" ) , and to obtain moneys , funds , credits , assets ,
securities , and other property owned by , and under the custody
and control of , such financial institution , by means of false
and fraudu l ent pretenses , representations and promises , to wit ,
MARTINEZ engaged in a scheme to obtain a Government - guaranteed
loan for MBE through the PPP from an FDIC- insured bank by means
of false and fraudulent pretenses , representations , and
documents .
(Title 18 , United States Code , Sections 1344 and 2 . )
COUNT FOUR
(Making False Statements to a Bank)
The Grand Jury fu r ther charges :
4 .
From at least in or about April 2020 through at least
in or about September 2021 , in the Southern District of New York
and elsewhere , RAFAEL MART I NEZ , the defendant , knowingly made
false statements and reports , and willfully overvalued land ,
3
Case 1:22-cr-00251-LJL     Document 18     Filed 05/02/22     Page 3 of 7

property , and security , for the purpose of influencing the
actions of a financial institution , the accounts of which were
insured by the FDIC , in connection with an appl i cation , advance ,
discount , purchase , purchase agreement , repurchase agreement ,
commitment , loan , and insurance agreement and application for
insurance and a guarantee , and charge and extension of any of
the same , by renewal , deferment of action and otherwise , and the
acceptance , release , and substitution of security therefor , to
wit , MARTINEZ made false statements to an FDIC- insured bank
regarding , among other things , the number of employees of MBE
and the wages paid to MBE employees , for the purpose of
obtaining a Government - guaranteed loan for MBE through the PPP .
(Title 18 , United States Code , Sections 1014 and 2 . )
COUNT FIVE
(Aggravated Identity Theft)
The Grand Jury further charges :
5.
From at least in or about April 2020 through at least
in or about September 2021 , RAFAEL MARTINEZ , the defendant ,
knowingly did transfer , possess , and use , without lawful
authority , a means of identification of another person , during
and in relation to a felony violation enumerated in Title 18 ,
United States Code , Section 1028A(c) , to wit , MARTINEZ used the
name and identity of another person , specifically , a tax
preparer , in connection with the submission of a fraudulent loan
application and supporting documentation to at least one
4
Case 1:22-cr-00251-LJL     Document 18     Filed 05/02/22     Page 4 of 7

financial institution during and in relation to the bank fraud
and false statement charges in Counts Three and Four of this
Indictment .
(Title 18 , United States Code , Sections 1028A(a ) (1) ,
(b)
&
( c) ( 4 ) - ( 5) , and 2 . )
FORFEITURE ALLEGATIONS
6 .
As the result of committing the offenses charged in
Counts One , Three , and Four of this Indictment , RAFAEL MARTINEZ ,
the defendant , shall forfeit to the United States , pursuant to
Title 18 , United States Code , Section 982 (a) (2) (A) , any and all
property constituting , or derived from , proceeds obtained
directly or indirectly , as a result of the commission of said
offenses , including but not limited to a sum of money in United
States currency representing the amount of proceeds traceable to
the commission of said offenses .
Substitute Assets Provision
7 .
If any of the above - described forfeitable property , 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 person ;
c .
has been placed beyond the jurisdiction of the
Court ;
d .
has been substantially diminished in value ; or
5
Case 1:22-cr-00251-LJL     Document 18     Filed 05/02/22     Page 5 of 7

e .
has been commingled with other property which
cannot be subdivided without difficulty ;
it is the intent of the United States , pursuant to Title 21 ,
United States Code , Section 853(p) , and Title 28 , United States
Code , Section 2461 , to seek forfeiture of any other property of
the defendant up to the value of the forfeitable property
described above .
(Title 18 , United States Code , Section 982 ;
Title 21 , United States Code , Section 853 ; and
Title 28 , United States Code , Section 2461 . )
FOREPERSON
DAMIAN WILLIAMS
United States Attorney
6
Case 1:22-cr-00251-LJL     Document 18     Filed 05/02/22     Page 6 of 7

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
UNITED STATES OF AMERICA
v .
RAFAEL MARTINEZ,
Defendant.
INDICTMENT
22 Cr .
(15 U.S.C . § 645(a) ; 18 U. S . C. §§ 1014 ,
1028A, 1343 , and 1344 . )
DAMIAN WILLIAMS
United States Attorney
Foreperson
Case 1:22-cr-00251-LJL     Document 18     Filed 05/02/22     Page 7 of 7

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