Factual Proffer — United States v. Philossaint (Southern District of Florida)

Summary

A factual proffer in the criminal case of the United States of America against defendant Philossaint, Case No. 9:22-cr-80144-RS, U.S. District Court for the Southern District of Florida, entered on the docket 02/15/2023 as Document 204-54. The United States Attorney's Office and the defendant agree that the statement of facts provides a factual basis for the defendant's plea of guilty. The proffer states that Philossaint assisted conspirators in submitting PPP loan and EIDL applications for businesses and prepared loan forgiveness applications. It describes Unfold and Royal Elite Trans, LLC as examples and wire transfers through Tollinchi Law's IOTA account. It ends with signature blocks for the United States Attorney and the defendant.

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

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“Factual Proffer — United States v. Philossaint (Southern District of Florida).” Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/204-att54-69a0009d77/, SHA-256 d16610ec2198bd626e885bfb4faaf4c3a49cdf30880b60c4379a96be7abcc783.

Full text

Case 9:22-cr-80144-RS Document 204-54 Entered on FLSD Docket 02/15/2023 Page 1 of 9
' case 9'.22-ct-80144-RS Document 94 Entered on FLSD Dockel tLl!412022 Paqe I of I

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA

CASE NO. 22-CR.80 I 44-SM ITH,/MAYNARD(s)

UNITED STATES OF AMERICA

JOFF STENN \7ROY PHILOSSAINT,

Defendant.

FACTUAL PROFFER

The United States Attornds Office for the Southem District of Florida ("this Office") and

the defentlant, Joff Stenn \Uroy Philossaing agree that the following statement of facs is accurate

and provides a facrual basis for the defendzrnt's plea ofguilty. All 6cts were true at all times relevant

to the offense conduct unless a more specific date or time is specified. The defendant understands

that the government may present e'r,idence at 6lnrrc procccdings that his criminal conduct was more

extensive than is describetl in this proffer.

1. Paragraphs 1-9 ofthe General Ailegations ofthe Superseding Indictment accurarely

describe the Palroll Protection Program ("PPP") and the Economic Injury Disaster Loan ("EIDL')

progtam. They are incorporated into this statement of facs as if fully set fonh herein.

General Summary of Offerue Conduct

2. Beginning no Iater than in or around May orJune 2020 and conrinuing through no

earlier than in or aiound June 2021, Plrilosaint xsisted numerous conspimtors to submit

ftaud,lent applications for PPP loans and EIDts on behalf of businesses <.rwnctl antl concolled by

the conspirators, At first, Philossaint carried out this scheme while working for Company 1, which
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was operated by Conspirator l. Later, Philossaint began working for himself and carrying out the

same scheme.

3. Philossaint prepared loan applicarions for the conspirator business owners and

caused the applications rc be sent to his conspirators to digitally sign and elecuonicatly submit to

various financial instiotions arrd the Small Business Adnrinistmtion ("SBA"). The applications

contained material misrepresenhtions about the businesses, such as substantial oversatemenrs of

the businesses' gross revenucs! rurrrber of cmployees, and avcrage monthly payroll. Based on these

fraudulent applications, various priwate financial institutions and SBA loaned money, generally

hundreds of thousancls of dollars, to the conspirators' businesses. Philossaint later prepared

applications on behalf of the conspirator businesses for forgiveness of the PPP loans. These

applications falsely stated that the businesses had met the preconditions of loan forgiveness by using

the loans to pay payroll and/or for other permissible expenses.

4. Aniorrratic Dam Processing, Inc. ("ADP") provided papoll and other sen,ices to

businesses. Conspirator 1 and,/or Philossaint operred ADP accounts on behalfoftheir conspirators,

widr themselves (Conspirator I or Philossaint) as the accounr adminisrators. They caused ADP to

make palnnents pnrportedly for payroll to individuals with dre loan proceeds, although tlrese

individuals either did not work fbr the loan recipienm or were nor entitled to payroll in the amounts

paid. Philossaint attempted to obtain antl use ADP records to support the applications tbr loan

forgi, .eness.

5. Brianna Monique Gayle had previously worked for ADP. During the conspiracy, she

worked as an assistant to Philossaint. Records obrainecl ftour ADP showcd that Gayle, while working
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for Philossaint, conLrcted ADP on multiple occasions benveen May 2021 and April 2022. Cayle

contacted ADP to manage pa1'roll accounts enrolled by EIVC, such as adding ot renoving accounts.

6. Gayle also contacted ADP to reaieve payroll documents and W-2's for d.re payroll

accounr. Cayle called ADP on January 26, 2027, and conferenced Philossaint into tl're cal[. They

stated that their entire client Iist should have been ternrinated as going out ofbusiuess and therefore

should ha.,e received W-Z's for 2021. Gayle continued to make calls to ADP on behalf of the

companies enrolled by EIVC to obtain W-Z's.

7. Shortly after the conspirator business owners received their loan proceeds, they paid

either Conspirator 1 or Philossaint a fee of approximately 10% of the value of the loans. In many

cases, the fee u,as paid to shell companies that Philossaint controlled, which did no true business, or

inaccurate notations were made on ihe checks or other instruments of payment. These payments

were nrade from aud to financial irutinrtions, that is, banks the deposits of which were insured by

the Federal Deposit lnsurance Corporation.

8. Philossaint assiited codefendants and conspiraton to apply for ftaudt eirt loans and

applied for such loans himself. f1le corrspirators applied on behalf of', Gayle, applying as a sole

proprietor; Cinda Foundation Inc; DDZ Family Enterprises LLC; Ferro's Entertainment and

Production LLC; JREAM Vision TV LLC; One Solution Group LLC; Royal Elite tans, LLC;

Sunrise City Construction DevelopmentLLC; Untbld Perception, LLC; and other businesses. Based

on tlese applications, Ienden and SBA paid at least $2,020,328.17 ' in loans to which the

cotxpitators were not enticled. The conspirators lvho received these loans paid Philossaint

approxirnately 1096 of rhe valuc of the loans.

l
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9. The {raudulent PPP loan and EIDL applications involved in the scheme wete

submitted electronically to servers located outside Florida. Philossaint, Tollinchi, Rene, Gayle,

Shazier, Johnson, and most of rhe other coDspirators resided and worked in the Soudrern District

of Florit{a and submitted their applications ftom this district.

Unlold Perception, LLC

10. The applications for PPP loans subruiced by Unf<.,[d Perception, LLC are a
rcpresentatiye example of rlre scherne and conspiracy. Unf,rld was a Florida lirired liability

company. It was organized on May 28, 2019. Rene was the sole managing mernber. Unfold's

principal place ofbusiness was in West Palm Beach, Florida.

1 1. On June 18, 2020, Unfold applied for a PPP loan- The loan application was digitally

signed by RelLe. The application was electronically trrnsmitted to Celtic Bank's servers, which were

located in Utah. The application stated that Unfold had three employees and average monthly

payroll of$32,781.66. For the twelve montlx preceding this app)ication, records of Unfold's bank

account reveal that the company had gross rwenue of approximately $ 10,000 and no payroll. A copy

of an IRS Form 941 (Enrpl-ryer's Quarterly Tax Rentrns) was submitted wirh the application. This

fonn appeared to corroborate the pal.roll figure on the application. However, Unfold did not sutrrnit

the fornr to the IRS. Based on this application, on June 2L,2020, Celtic Bank trar.rsferred a PPP

Ioan to Unfold's Wells Fargo bnnk accounr in the anrorrnt of $81,954-

lZ. Trust Alliance Enterprises Inc. ("Trust") was a Florida corporation. It was

incorporated on ]une 15, 2020. Conspirator 1 was the sole officer. On June 25, ZOZO, Rene signed

a check.from the Unfold bank account made out to Trusr in the amount of $ 10,654-02.

+
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13. On June 30, 2020, eightdays after Unfold received its PPP loan, a payroll account
was created at ADP for Unfold. Conspirator 1 rvas the primary contact. From July through

December 2020, using proceeds ofthe PPP loan, Unfold paid $49,172.24 in paymens purportedty

for payroll via ADP, including $29,999.97 to Rene.

14, On February 22,2021,Un{old applied for n second PPP loan. The application rvas
electronically transmitted to Celtic Bank's sewers, which were located in Utah. The application

statcd drat Unfold had thrce ernployees and average monthly payroll ot $12,781. For dTc twelve

months preceding tiris application, Unfold had gross revenu€ of approximately $24,000 (not

including PPP and EIDL funds) and payroll of approximately $2,300 (not including the ADP

payments). A copy ofthe same IRS Form 941 that had accompanied Unfold's previous application,

which had not been sr.lbnrined to tlre IRS, was submirred rvith the new application. Based on this

application, on February 23, 2021, Celtic Bank tansferred a PPP loan to Unfold's Wells Fargo bank

account in the arnount of$81,952,

15. Dad Morrey lnvestment Group, LLC and Elite lnterrratiolral Vehture Capital, I-LC

(.EIVC) rvere Florida limited liability companies, They were botlr organized on July 6, 2020.

Plrilossaint was the President of Dad Mouey- Dad Money was EIVC's sole managing member. The

companies principai places of business were two different sr.rites in the same office building in

Hallandale Beach, Florida.

16. On March 5, 2021, Rene signed a check from the Uniold ri/ells Fargo bank account
made ouc to EIVC in the amount of $5j97-somcwhat less than 1096 of the amounr of Unfold's

second PPP loan. In t[re menro linc of thc check was wrirten the word "accor.rnting."

5
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l?. On May 6, 2021, Unfold opened a new ADP accounr Philossaint was the only

authorized firm representative listecl on the account. From May through August, 2021, using

proceeds of the PPP loan, Unfold paid $49,194.05 in payments purportedly for ;:ayroll via ADP,

including $30,044.28 to Rene. The lasc payment was made on August 25, 2021.

18. On August 6, 2021, Rene sent Philossaint a voice recording over \UhatsApp. She
stated that she wls "wondering when is the last date ofthe payroll so *rac way I can call them so they

can pause it. Please ler me know.' On August t8, 2021, Renc wrotc to Philossaint by VhatsApp,

"Please inform me ofwhen the date payrotl ends. I beliwe it has been six montlrs." [-aw enforcement

agents subsequendy recovered these messages fiom Philossaint's phone.

19. On May 24, 2O?,7, Unfold applied for forgiveness of its 6rst PPP loan. The

application claimed that Unfold had three employees at the time ofthe application and that Unfold

had spent $49,1?2.24 of the loan on payroll expenses. As a result of Unfold's applicadon, the loan

was forgiven.

ZO. On September 8, 2021, Unfold applied for forgiveness of its second PPP loan. The
application claimed that Unfold had three employees at the time of the application anci that Ulrfold

hed spent $49,761.07 of the loan on payroll expenses. As a result of Unlbld's application, dre loan

was forgiven,

Royal Elite Trans

77. Royal Elite Trans, LLC was a Florida limited liability company. Philossaint was the

sole managing member. Its principal place of business changed several times, but was always in

Miarni-Dade or Broward County, Florida. Philossaint was the only signatory on Royal Elite Trans's

bank accounts-
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22. On April l, 2020, Royal EIie Trans applied for an EIDL. The application was

electronically transmitted to the servers of the Small Business Administration ("SBA"), which were

located outside of Florida. The application required Royal Elite Trans to describe its "detatled

business activity." The application listed "Limosine [sicl & Transportation." SBA initially declinetl

the application, but Philossainr requested recorrsideration ofthat decision and ther.r adnrinistratively

appealed it, and the loan w:s granted On December 16, Z0Zl, Philossaint ele*ronically signed a

Loan Audrorization and Agreement \yidr SBA. The agrecment irrcluded the requirement that

'lb]orrowet will use a[[ the proceeds of this Loan solely as working capital to alleviate economic

injury caused by disaster occuming in the month oflanuary 31, Z0ZO and continuing thereatter."

On December 21, 2021, SBA transferred an EIDL to Royal Elite Trans' Bank of America checking

account in the amotlnt of $289,400. Philossaint is the on\' signatory on this accottttt.

23, Royal Elite Trans had not strffered econonric iujury in 2020. Royal Elite Trans's bank

rec<.,rtls indirate that the courpany's gross revenue increascd frour $136,766.93 in 2019 to

$231,7 55.07 in 2020 (excluding PPP and EIDL funds). The record^s conhtin no indications drat

Royal Elite Trans operated a limousine or similar ransportation husiness and no inriications rhnt

Royal Elite Trans paid any signilicant business expenses.

74. An attorney's lnrerest on Trust Account ("IOTA') is an interest bearing trust account

used by members ofthe Florida Bar to hold nominal or short term fr]nds in trust for a client or thirtl

party when ir would not be feasible to earn income on the 6.rnds for the client or third parry. The

incorue on the IOTA account benefits chariurble causes llesignated by the Florida Bar. Tollinchi

Law, PA was a Florida corporatiou engagcd in dre practicc of [aw. The sole officcr was Mariel

7
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Tollinchi. Tollinchi was an attorney and was in a romantic relationship with P[rilossaint. Tollinchi

[-aw maintained an IOTA accotnrt at Chase Bank.

75. On December 22, 2021, two checks were writteu {rom dre Royal Elite Trans account,

one to Tollinchi l-aw for $34,000 and the other to Tollinchi personally for $6,573.63. On January 5,

2072, $26,J71.30 was wired from Royal Elite Trans' Bank ofAnerica checking account to Tollinchi

Law's IOTA account. On ]anuary 6, 2022, Tollirchi law rvired the sarme sum, $26,371.30, from the

sirme accolult to an account in thc Domilrican Republic. Tbe notation associated with the wire read,

"Joff Philossaint rcal estate purchase." On January 20,2A21-, tlre same Royal Elite Tratrs accounr

rvired $190,000.00 to the same Tollinchi Larv IOTA account. On January 25,7022, Toliinchi Law

wired $200,000 from irs IOTA account to an flccounc in the Dominican Republic. The notation

associated with the wire included Joff Philossailrt's name and the words, "Real estate." Royal Elite

Trans's banl< records contain r1o indiaation that its business involvell real estate nansactions before

it obtained the EIDL.

26. Before the EIDLwas deposited into Royal Elite Trans' Bank ofAmerica account, the

balance in the account was $2,039.50- Benveen tlre tirne of the deposit of the EIDL and the wire of

January 20, 2022, the account received approximately $11,650 io deposits. Therefore, Royal Elite

Trans could not have transferred the fuuds to Tollinchi described above without the EIDL.

tJ
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Financial Institutions

27. Wells Fargo, Bank ofAmerica, and Chase Bank were ftnancial institutions, that is,

banks the deposis of which were imuted by rhe Federal Deposit Insurance Corporation.

JUAN ANTONIO GONZALEZ
UNITED STATES ATTORNEY

Date'
t lt hr.* Bv, tu&ot
j

MARC OSBORNE
ASSISTANT UNITED SIATES ATTORNEY

Date,
4ulyz* IAN GO
ATTORN R DEFENDANT

L)ate: tl u4/ tu
lode SidNn wnoY PHILossAINT
DEFENDANT

C6r fled to b€ a true
correct coov ot the and
doc umonl on file
AnS.li E. Nobt e, Clerk
u.s. Bistrict Cou rt
Soulhern District_ ol
Florida
By

Date NO l5 IfrY uty Cterh

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