that reported gross revenues of $103,674 and a tentative profit of $81 ,860. Lender 3 relied upon
Summary
A Stipulated Factual Basis in Support of Guilty Plea in United States of America v. Malaina Chapman, Case No. 24-20321-CR-RAR, in the United States District Court, Southern District of Florida, Document 37, entered March 14, 2025. It states that the government would have proved that the defendant participated in schemes to defraud COVID-19 relief programs, including the Paycheck Protection Program (PPP), Economic Injury and Disaster Loan (EIDL), and emergency rental assistance programs of the City of Miami and the State of Florida. It states that the defendant worked at the Small Business Administration as a disaster relief specialist in 2020 and 2021. It describes PPP loan applications to Lender 3 in the names of Upscale Credit Lounge and DA TRAP LLC, including a loan of $17,052.50 approved by Lender 3.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
- Date
- 2025-03-14
Cite this document
“that reported gross revenues of $103,674 and a tentative profit of $81 ,860. Lender 3 relied upon.”
Dated 2025-03-14. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-03-14-united-states-of-america-v-malaina-chapman-4642f1ef-1/
, SHA-256 4642f1efdc3bbee2c760e5fd2f490d3599cea5cf92e0b0f16c38f6327551439c.Full text
Case 1:24-cr-20321-RAR Document 37 Entered on FLSD Docket 03/14/2025 Page 1 of 3
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
Case No. 24-20321-CR-RAR
UNITED STATES OF AMERICA
vs.
MALAINA CHAPMAN,
Defendant.
-------------I
STIPULATED FACTUAL BASIS
IN SUPPORT OF GUILTY PLEA
MALAINA CHAPMAN (hereinafter referred to as the "Defendant") hereby
acknowledges that, had this case proceeded to trial , the United States would establish the following
facts beyond a reasonable doubt:
The government would have proved , and the Defendant agrees that she participated in
multiple schemes to defraud various Covid-19 relief programs including the Paycheck Protection
Program (PPP), Economic Injury and Disaster Loan (EIDL), the City of Miami Emergency Rental
Assistance Program and the State of Florida Emergency Rental Assistance program. The
government would have proved that she defrauded these programs by causing the submission of
false and fraudulent loan applications to the SBA and SBA-approved PPP Lenders and false
applications to the C ity of Miami and the State of Florida. The government would have proved
that she conspired with numerous individuals known and unknown to the grand jury, and
knowingly caused the submission of false documents in support of the numerous PPP loan
applications, some of which were in her own name and some of which were in the name of others .
The government wou ld have proved that the defendant worked at the Small Business
Administration (SBA) as a disaster relief specialist in 2020 and 2021 . On February I 0, 2021 , while
Case 1:24-cr-20321-RAR Document 37 Entered on FLSD Docket 03/14/2025 Page 2 of 3
still employed by the SBA, the defendant submitted a PPP loan application to Lender 3 in the
name of Upscale Credit Lounge. According to Sun biz, the defendant was listed as the Manager of
the corporation. In support of her application , the defendant submitted a tax year 2020 Schedule C
that reported gross revenues of $103,674 and a tentative profit of $81 ,860. Lender 3 relied upon
the representations in the defendant' s application and on February 11 , 2021 , approved a loan in
the amount of $17,052.50. Records were obtained pursuant to an Ex-Parte tax order and the actual
Schedule C fi led with the IRS in her 2020 tax returns showed she reported gross revenues of
$37,010 and tentative profit of negative $3464.
On February 19, 2021 , the defendant submitted, via interstate wire communication, a PPP
loan application with Lender 3 on behalf of DA TRAP LLC ("DA TRAP"). According to
SUNBIZ, the defendant was listed as the Manager of the company. In her application, she claimed
DA TRAP had four (4) employees and an average monthly payroll of$14, 19l. In support of her
application, the defendant submitted four (4) IRS Employers Quarterly Tax Return ("Form 941 "),
which purportedly documented the wages paid by DA TRAP. Lender 3 relied upon the
representations in the application and on February 26, 2021 , approved a loan in the amount of
$35 ,477.50. Records obtained pursuant to an Ex-Parte tax application for DA TRAP revealed that
the 941 's filed with the lender were not filed with the IRS at the time she filed her actual tax
returns. The government wou ld have proved that the defendant submitted and caused the
submission of false and fraudulent EIDL and other PPP loan applications in her own name other
than the two mentioned above .
The government would also have presented evidence that the defendant prepared PPP loan
applications and forgiveness applications for co-conspirators in return for the payment of
kickbacks. The defendant sent a March 11 , 2021 , email in which she stated "thank you for allowing
2
Case 1:24-cr-20321-RAR Document 37 Entered on FLSD Docket 03/14/2025 Page 3 of 3
The Upscale Resource to assist with your PPP application. Congratulations on being approved by
the SBA. Next steps would be to use the funds correctly so that the loan will be forgiven. We also
provide loan forgiveness ." The email further stated, "if you received a loan in the amount of
$20,833 your payment today will be $2083." Investigation has revealed that the defendant prepared
loan and forgiveness applications for numerous individuals and the government would have
introduced tax records for six (6) individuals that the defendant conspired with and in each instance
a false Schedule C was submitted to back up the false representations contained in the loan
applications. One of these six (6) individuals for whom the defendant submitted a loan application
was Individual 5 who was incarcerated at the time he applied for a PPP loan. The defendant
prepared a PPP loan application that stated that Individual 5 was not incarcerated at the time of the
application when in truth Individual 5 was incarcerated in the Dade County Jail and the defendant
knew this because he was the father of her child . The government also would have introduced text
messages in which the defendant communicated with the applicants she recruited into the scheme
in which she discussed taking various actions on their behalf and applying for forgiveness.
All of these events took place in Miami-Dade County, in the Southern District of Florida.
Date#J rd'\cibrtro~
l1riLAINA CHAPMAN
Defendant
~ /
Date•w)_z s
Attorney for MALAINA CHAPMAN
2{/;E£iffN ~✓
Assistant United States Attorney
3
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