Plea Agreement — United States v. Tammy Dodge (District of New Hampshire)

Summary

A Plea Agreement filed January 30, 2024 as Document 3 in United States of America versus Tammy Dodge, Case 1:24-cr-00002-PB-AJ, in the United States District Court for the District of New Hampshire. Tammy Dodge agrees to waive indictment and plead guilty to an Information charging Bank Fraud under 18 U.S.C. § 1344. The stipulated facts state that Tammy Dodge and David Dodge applied for approximately 20 PPP loans and 8 EIDLs, with an actual loss amount of $219,323.34 and an intended loss of approximately $2.5 million, including a $35,833 PPP loan from Cross River Bank for Teacher Tammy. Under Rule 11(c)(1)(C) the parties agree that a sentence of not more than 15 months' imprisonment is appropriate and that the defendant is jointly and severally liable for $219,323.34 in restitution.

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Case 1:24-cr-00002-PB-AJ Document 3 Filed 01/30/24 Page 1 of 15
FILED - USDC -NH
2024 JAN 30 AM8:51

UNITED STATES DISTRICT COURT
DISTRICT OF NEW HAMPSHIRE

UNITED STATES OF AMERICA )
)
v. ) No. 24-cr-02-PB-AJ-02/02
)
TAMMY DODGE )

PLEA AGREEMENT

Pursuant to Rule 1l(c)(l)(B) and (C) of the Federal Rules of Criminal Procedure, the

United States of America by its attorney, Jane E. Young, United States Attorney for the District

of New Hampshire, and the defendant, Tammy Dodge, and the defendant's attorney, Vikas Dhar,

Esquire, enter into the following Plea Agreement:

1. The Plea and The Offense.

The defendant agrees to waive her right to have this matter presented to a grand jury and

plead guilty to an Information charging her with Bank Fraud, in violation of 18 U.S.C. § 1344.

In exchange for the defendant's guilty plea, the United States agrees to the sentencing

stipulations identified in Section 6 of this agreement.

2. The Statute and Elements of the Offense.

Title 18, United States Code, Section 1344 provides, in pertinent part:

Whoever knowingly executes, or attempts to execute, a scheme or artifice-

(1) to defraud a financial institution; or

(2) to obtain any of the moneys, funds, credits, assets, securities, or other property
owned by, or under the custody or control of, a financial institution, by means of
false or fraudulent pretenses, representations, or promises;

shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.

The defendant understands that the offense has the following elements, each of which the

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Case 1:24-cr-00002-PB-AJ Document 3 Filed 01/30/24 Page 2 of 15

United States would be required to prove beyond a reasonable doubt at trial:

First, that there was a scheme as substantially charged in the information to defraud a
financial institution;

Second, that the defendant knowingly and willfully participated in this scheme with the
intent to defraud; and

Third, that the financial institution was federally insured or was a federal reserve bank or
a member of the federal reserve system.

Pattern Criminal Jury Instructionsfor the District Courts ofthe First Circuit, District ofMaine
Internet Site Edition, 2023 Revisions, Instruction 4.18.1344, available at
httDs://www.ined.uscourts.gov/sites/med/files/crpiilinks.pdf

3. Offense Conduct.

The defendant stipulates and agrees that if this case proceeded to trial, the government

would introduce evidence of the following facts, which would prove the elements of the offense

beyond a reasonable doubt:

Bay First Bank, Cross River Bank, and Northeast Bank were financial institutions as

defined by 18 U.S.C. § 20, the deposits of which were insured by the Federal Deposit Insurance

Corporation. Funding Circle and Lendio were non-bank lenders located outside of New

Hampshire. The United States Small Business Administration (“SBA”) is an executive- branch

agency of the United States government that provides support to entrepreneurs and small

businesses. The State of New Hampshire, through the Governor’s Office for Emergency Relief

and Recovery(“GOFERR”), and the Commonwealth of Massachusetts, through the

Massachusetts Growth Capital Corporation (“MGCC”), similarly support entrepreneurs and

small businesses.

The defendant and her co-defendant, David Dodge, were a married couple and residents

of Derry, New Hampshire. They owned or controlled multiple purported corporate entities with

business addresses or operations in New Hampshire and Massachusetts. These entities were

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Case 1:24-cr-00002-PB-AJ Document 3 Filed 01/30/24 Page 3 of 15

Optimized Operations, Teacher Tammy (a/k/a Teacher Tammy’s), Consulting Services (a/k/a

Business Consulting Services), and Business Done Right (together, the “Companies”). The

Companies served no business purpose and did not have any actual operations.

In or around March 2020, the Coronavirus Aid, Relief, and Economic Security

(“CARES”) Act was enacted to provide emergency financial assistance to the millions of

Americans suffering adverse economic effects caused by the COVID-19 pandemic. The CARES

Act established several new temporary programs and expanded existing programs, including

programs created or administered by the SBA.

One source of relief provided by the CARES Act was the authorization of forgivable

loans to small businesses for job retention and certain other expenses, through a program referred

to as the Paycheck Protection Program (“PPP”).

To obtain a PPP loan, the authorized representative of a business was required to state the

business’s average monthly payroll expenses and number of employees. These figures were used

to calculate the amount of money the small business was eligible to receive under the PPP.

A participating lender would then process the PPP loan application. If the PPP loan

application was approved, the participating lender funded the PPP loan using its own monies,

which were fully guaranteed by the SBA.

Bay First Bank, Cross River Bank, Northeast Bank, Funding Circle, and Lendio

(together, the “PPP Lenders”) participated in the PPP as lenders to small businesses.

The Economic Injury Disaster Loan (“EIDL”) program was another source of financial

assistance provided by the CARES Act. It provided low-interest financing to small businesses,

renters, and homeowners in regions affected by declared disasters. The EIDL program was

administered by the SBA.

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Case 1:24-cr-00002-PB-AJ Document 3 Filed 01/30/24 Page 4 of 15

The CARES Act authorized the SBA to provide EIDLs to eligible small businesses

experiencing substantial financial disruptions due to the COVID-19 pandemic.

To obtain an EIDL, a qualifying business was required to apply to the SBA and provide

information about its operations, such as the number of employees and the entity’s gross

business revenues and cost of goods sold in the 12 months prior to January 31,2020. The

amount of the loan, if approved, was determined based, in part, on the information provided

concerning the number of employees, gross revenue, and cost of goods.

Any funds issued under an EIDL or EIDG were issued directly by the SBA. EIDL funds

could be used for payroll expenses, sick leave, production costs, and business obligations, such

as debts, rent, and mortgage payments.

In addition, GOFERR and the MGCC awarded pandemic relief grants to eligible small

businesses.

Between on or about March 31, 2020, and continuing through on or about March 7, 2021,

the defendant and David Dodge participated in a scheme to defraud the PPP Lenders, SBA, State

of New Hampshire, and Commonwealth of Massachusetts. They submitted dozens of

applications for PPP loans, EIDLs, and state pandemic relief grants that provided false

information about the Companies’ existence, payroll, and earnings. To help create the

impression that Consulting Services was a real company, David Dodge also used the Social

Security Number of John Doe, a minor known to the defendant and David Dodge, to apply for an

Employer Identification Number from the Internal Revenue Service.

As charged in Count 2 of the Information, on or about January 25, 2021, the defendant

submitted a $35,833 PPP loan application to Cross River Bank for Teacher Tammy. She

submitted false supporting documents in connection with this application. For example, she

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Case 1:24-cr-00002-PB-AJ Document 3 Filed 01/30/24 Page 5 of 15

provided a doctored check and February 2020 bank statement for a TD Bank account ending

-5299. The check and bank statement appeared to be for an account in the name of Teacher

Tammy. However, the account was actually under the defendant’s own name and did not even

exist until June 2020.

The defendant also provided Cross River Bank tax documents that were purportedly filed

with the Internal Revenue Service. Among them were an IRS Form 940 for 2019 claiming

payroll of$132,000 in 2019. The document was purportedly signed on March 1,2020.

However, the defendant did not obtain the Employer Identification Number for such a filing until

the end of March 2020. The Internal Revenue Service certified that no such tax filing was ever

submitted.

Cross River Bank relied on these documents and representations in awarding the

defendant the $35,833 PPP loan.

In total, the defendant and David Dodge applied for approximately 20 PPP loans and 8

ElDLs. David Dodge also applied for two grants from GOFERR and the MGCC.

Across all applications, the actual loss amount was $219,323.34, and the intended loss

amount was approximately $2.5 million. The defendant and David Dodge used some of the

fraudulently-obtained funds to purchase jewelry.

4. Penalties. Special Assessment and Restitution.

The defendant understands that the penalties for the offense are:

A. A maximum prison term of 30 years (18 U.S.C. § 1344);

B. A maximum fine of $1 million (18 U.S.C. § 1344);

C. A term of supervised release of not more than five years(18 U.S.C. §§
3583(b)(1); 3559(a)(2)). The defendant understands that the defendant’s
failure to comply with any of the conditions of supervised release may
result in revocation of supervised release, requiring the defendant to serve

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Case 1:24-cr-00002-PB-AJ Document 3 Filed 01/30/24 Page 6 of 15

in prison all or part of the term of supervised release, with no credit for
time already spent on supervised release; and

D. A mandatory special assessment of $100, $100 for each count of conviction, at or
before the time of sentencing (18 U.S.C. § 3013(a)(2)(A)); and

E. In addition to the other penalties provided by law, the Court may order the
defendant to pay restitution to the victim(s) ofthe offense (18 U.S.C. § 3663 or §
3663A).

To facilitate the payment and collection of any restitution that may be ordered, the
defendant agrees that, upon request, she will provide the United States with a
financial disclosure statement and supporting financial documentation.

The defendant further agrees that, if restitution is ordered, it shall be due and
payable immediately after the judgment is entered and is subject to immediate
enforcement, in full, by the United States. If the Court imposes a schedule of
payments, the defendant agrees that the schedule of payments is a schedule of the
minimum payment due, and that the payment schedule does not prohibit or limit
the methods by which the United States may immediately enforce the judgment in
full, including, but not limited to, the Treasury Offset Program.

5. Sentencing and Application of the Sentencing Guidelines.

The defendant understands that the Sentencing Reform Act of 1984 applies in this case

and that the Court is required to consider the United States Sentencing Guidelines as advisory

guidelines. The defendant further understands that she has no right to withdraw from this Plea

Agreement if the applicable advisory guideline range or her sentence is other than she

anticipated.

The defendant also understands that the United States and the United States Probation

Office shall:

A. Advise the Court of any additional, relevant facts that are presently known
or may subsequently come to their attention;

B. Respond to questions from the Court;

C. Correct any inaccuracies in the pre-sentence report;

D. Respond to any statements made by her or her counsel to a probation

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Case 1:24-cr-00002-PB-AJ Document 3 Filed 01/30/24 Page 7 of 15

officer or to the Court.

The defendant understands that the United States and the Probation Office may address

the Court with respect to an appropriate sentence to be imposed in this case.

The defendant acknowledges that any estimate of the probable sentence or the probable

sentencing range under the advisory Sentencing Guidelines that she may have received from any

source is only a prediction and not a promise as to the actual sentencing range under the advisory

Sentencing Guidelines that the Court will adopt.

6. Sentencing Stipulations and Agreements.

Pursuant to Fed. R. Crim. 11(c)(1)(C), the United States and the defendant stipulate and

agree to the following:

(a) A sentence of not more than 15 months’ imprisonment is an appropriate

disposition of this case; and

(b) The defendant is jointly and severally liable for $219,323.34 in restitution,

of which $105,252 is payable to Cross River Bank, $20,833 is payable to

Funding Circle, $33,238.34 is payable to the State of New Hampshire, and

$60,000 is payable to the Commonwealth of Massachusetts.

The parties intend the above stipulations to be “binding” under Fed. R. Crim. P.

11(c)(1)(C). By using the word binding the parties mean that ifthe Court will not accept the plea

agreement under Fed. R. Crim. P. 1 1(c)(3)(A), the plea agreement is null and void and the

defendant will be allowed the opportunity to withdraw her guilty plea.

Pursuant to Fed. R. Crim. 1 1 (c)(1)(B), the United States and the defendant stipulate and

agree to the following:

(a) In the event the defendant and David Dodge are both sentenced to terms of

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Case 1:24-cr-00002-PB-AJ Document 3 Filed 01/30/24 Page 8 of 15

imprisonment, the United States will not oppose the defendants serving

their sentences consecutive to one another.

The defendant understands that the Court is not bound by this provision and understands

that if the Court does not accept this agreement, such rejection by the Court will not be a basis

for the defendant to withdraw her guilty plea

The parties are free to make recommendations with respect to the terms of imprisonment,

fines, conditions of probation or supervised release, and any other penalties, requirements, and

conditions of sentencing as each party may deem lawful and appropriate, unless such

recommendations are inconsistent with the terms of this Plea Agreement.

7. Acceptance of Responsibility.

The United States agrees that it will not oppose an appropriate reduction in the

defendant's adjusted offense level, under the advisory Sentencing Guidelines, based upon the

defendant’s apparent prompt recognition and affirmative acceptance of personal responsibility

for the offense. The United States, however, may oppose any adjustment for acceptance of

responsibility if the defendant:

A. Fails to admit a complete factual basis for the plea at the time she is
sentenced or at any other time;

B. Challenges the United States’ offer of proof at any time after the plea is
entered;

C. Denies involvement in the offense;

D. Gives conflicting statements about that involvement or is untruthful with
the Court, the United States or the Probation Office;

E. Fails to give complete and accurate information about her financial status
to the Probation Office;

F. Obstructs or attempts to obstruct justice, prior to sentencing;
Case 1:24-cr-00002-PB-AJ Document 3 Filed 01/30/24 Page 9 of 15

G. Has engaged in conduct prior to signing this Plea Agreement which
reasonably could be viewed as obstruction or an attempt to obstruct
justice, and has failed to fully disclose such conduct to the United States
prior to signing this Plea Agreement;

H. Fails to appear in court as required;

After signing this Plea Agreement, engages in additional criminal conduct;
or

J. Attempts to withdraw her guilty plea.

The defendant understands and agrees that she may not withdraw her guilty plea if, for

any of the reasons listed above, the United States does not recommend that she receive a

reduction in her sentence for acceptance of responsibility.

The defendant also understands and agrees that the Court is not required to reduce the

offense level if it finds that she has not accepted responsibility.

If the defendant’s offense level is sixteen or greater, and she has assisted the United

States in the investigation or prosecution of her own misconduct by timely notifying the United

States of her intention to enter a plea of guilty, thereby permitting the United States to avoid

preparing for trial and permitting the United States and the Court to allocate their resources

efficiently, the United States will move, at or before sentencing, to decrease the defendant’s base

offense level by an additional one level pursuant to U.S.S.G. § 3E1.1(b).

8. Waiver of Trial Rights and Consequences of Plea.

The defendant understands that she has the right to be represented by an attorney at every

stage of the proceeding and, if necessary, one will be appointed to represent her. The defendant

also understands that she has the right:

A. To plead not guilty or to maintain that plea if it has already been made;

B. To be tried by a jury and, at that trial, to the assistance of counsel;

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Case 1:24-cr-00002-PB-AJ Document 3 Filed 01/30/24 Page 10 of 15

c. To confront and cross-examine witnesses;

D. Not to be compelled to provide testimony that may incriminate her; and

E. To compulsory process for the attendance of witnesses to testify in her
defense.

The defendant understands and agrees that by pleading guilty she waives and gives up the

foregoing rights and that upon the Court’s acceptance of her guilty plea, she will not be entitled

to a trial.

The defendant understands that if she pleads guilty, the Court may ask her questions

about the offense, and if she answers those questions falsely under oath, on the record, and in the

presence of counsel, her answers will be used against her in a prosecution for perjury or making

false statements.

9. Acknowledgment of Guilt: Voluntariness of Plea.

The defendant understands and acknowledges that she:

A. Is entering into this Plea Agreement and is pleading guilty freely and voluntarily
because she is guilty;

B. Is entering into this Plea Agreement without reliance upon any promise or benefit
of any kind except as set forth in this Plea Agreement or revealed to the Court;

C. Is entering into this Plea Agreement without threats, force, intimidation, or
coercion;

D. Understands the nature of the offense to which she is pleading guilty, including
the penalties provided by law; and

E. Is completely satisfied with the representation and advice received from her
undersigned attorney.

10. Scope of Agreement.

The defendant acknowledges and understands that this Plea Agreement binds only the

undersigned parties and cannot bind any other non-party federal, state or local authority. The

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Case 1:24-cr-00002-PB-AJ Document 3 Filed 01/30/24 Page 11 of 15

defendant also acknowledges that no representations have been made to her about any civil or

administrative consequences that may result from her guilty plea. The defendant understands

such matters are solely within the discretion of the specific non-party government agency

involved. The defendant further acknowledges that this Plea Agreement has been reached

without regard to any civil tax matters that may be pending or which may arise involving the

defendant.

11. Collateral Consequences.

The defendant understands that as a consequence of her guilty plea she will be

adjudicated guilty and may thereby be deprived of certain federal benefits and certain rights,

such as the right to vote, to hold public office, to serve on a jury, or to possess firearms.

The defendant understands that, if she is not a citizen of the United States, her guilty plea

to the charged offense will likely result in her being subject to immigration proceedings and

removed from the United States by making her deportable, excludable, or inadmissible. The

defendant also understands that if she is a naturalized citizen, her guilty plea may result in ending

her naturalization, which would likely subject her to immigration proceedings and possible

removal from the United States. The defendant understands that the immigration consequences

of this plea will be imposed in a separate proceeding before the immigration authorities. The

defendant wants and agrees to plead guilty to the charged offense regardless of any immigration

consequences of this plea, even if this plea will cause her removal from the United States. The

defendant understands that she is bound by her guilty plea regardless of any immigration

consequences of the plea. Accordingly, the defendant waives any and all challenges to her guilty

plea and to her sentence based on any immigration consequences and agrees not to seek to

withdraw her guilty plea, or to file a direct appeal or any kind of collateral attack challenging her

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Case 1:24-cr-00002-PB-AJ Document 3 Filed 01/30/24 Page 12 of 15

guilty plea, conviction, or sentence, based on any immigration consequences of her guilty plea.

12. Satisfaction of Federal Criminal Liability: Breach.

The defendant’s guilty plea, if accepted by the Court, will satisfy her federal criminal

liability in the District of New Hampshire arising from her participation in the conduct that forms

the basis of the Information in this case.

The defendant understands and agrees that, if after entering this Agreement, she fails

specifically to perform or fulfill completely each one of her obligations under this Agreement,

fails to appear for sentencing, or engages in any criminal activity prior to sentencing, she will

have breached this Agreement.

If the United States, in its sole discretion, and acting in good faith, determines that the

defendant committed or attempted to commit any further crimes, failed to appear for sentencing.

or has otherwise violated any provision of this Agreement,the United States will be released

from its obligations under this Agreement, including, but not limited to, any agreement it made

to dismiss charges, forbear prosecution of other crimes, or recommend a specific sentence or a

sentence within a specified range. The defendant also understands that she may not use her

breach of this Agreement as a reason to withdraw her guilty plea or as a basis to be released from

her guilty plea.

13. Waivers.

A. Appeal.

The defendant understands that she has the right to challenge her guilty plea and/or

sentence on direct appeal. By entering into this Plea Agreement the defendant knowingly and

voluntarily waives her right to challenge on direct appeal:

Her guilty plea and any other aspect of her conviction, including, but not
limited to, adverse rulings on pretrial suppression motion(s) or any other

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Case 1:24-cr-00002-PB-AJ Document 3 Filed 01/30/24 Page 13 of 15

adverse disposition of pretrial motions or issues; or claims challenging the
constitutionality of the statute of conviction; and

2. The sentence imposed by the Court if it is consistent with the stipulations
specified in Section 6 of this agreement.

The defendant’s waiver of her rights does not operate to waive an appeal based upon new

legal principles enunciated in Supreme Court or First Circuit case law after the date of this Plea

Agreement that have retroactive effect; or on the ground of ineffective assistance of counsel.

B. Collateral Review

The defendant understands that she may have the right to challenge her guilty plea and/or

sentence on collateral review, e.g., a motion pursuant to 28 U.S.C. §§ 2241 or 2255. By

entering into this Plea Agreement, the defendant knowingly and voluntarily waives her right to

collaterally challenge:

Her guilty plea, except as provided below, and any other aspect of her
conviction, including, but not limited to, adverse rulings on pretrial
suppression motion(s) or any other adverse disposition of pretrial motions
or issues, or claims challenging the constitutionality of the statute of
conviction; and

2. The sentence imposed by the Court if it is consistent with the stipulations
specified in Section 6 of this agreement.

The defendant’s waiver of her right to collateral review does not operate to waive a

collateral challenge to her guilty plea on the ground that it was involuntary or unknowing, or on

the ground of ineffective assistance of counsel. The defendant’s waiver of her right to collateral

review also does not operate to waive a collateral challenge based on new legal principles

enunciated by in Supreme Court or First Circuit case law decided after the date of this Plea

Agreement that have retroactive effect.

C. Freedom of Information and Privacy Acts

The defendant hereby waives all rights, whether asserted directly or through a

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Case 1:24-cr-00002-PB-AJ Document 3 Filed 01/30/24 Page 14 of 15

representative, to request or receive from any department or agency of the United States any

records pertaining to the investigation or prosecution of the case(s) underlying this Plea

Agreement, including without limitation any records that may be sought under the Freedom of

Information Act, 5 U.S.C. §552, or the Privacy Act of 1974, 5 U.S.C. §522a.

D. Appeal by the Government

Nothing in this Plea Agreement shall operate to waive the rights or obligations of the

Government pursuant 18 U.S.C. § 3742(b) to pursue an appeal as authorized by law.

14. No Other Promises.

The defendant acknowledges that no other promises, agreements, or conditions have been

entered into other than those set forth in this Plea Agreement or revealed to the Court, and none

will be entered into unless set forth in writing, signed by all parties, and submitted to the Court.

15. Final Binding Agreement.

None of the terms of this Plea Agreement shall be binding on the United States until this

Plea Agreement is signed by the defendant and the defendant’s attorney and until it is signed by

the United States Attorney for the District of New Hampshire, or an Assistant United States

Attorney.

16. Agreement Provisions Not Severable.

The United States and the defendant understand and agree that if any provision of this

Plea Agreement is deemed invalid or unenforceable, then the entire Plea Agreement is null and

void and no part of it may be enforced.

JANE E. YOUNG

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Case 1:24-cr-00002-PB-AJ Document 3 Filed 01/30/24 Page 15 of 15

JANE E. YOUNG
United Stnics Attorney

Date: 1 By:
Alexander S. Cbcn
Assiajwt United States Ationicy
MA Bar Association S69S458
53 Ptciuiml Sl,4th Floor
Concord, NH 03301
Alexander.chco@U5doj.gov

The dcrendoiir,Tammy Podge,certifies that she has read this ]5-pagc Plea Agreement
and Hint she hilly understands and accepts its tintns.

Date; 2k ti
2:
iJcftmdanl

I have read ami explained this 15-page Plea Agreement to the derendaot, and she has
advised me tliat she undcrstatids and accepts its temu.

PhU:: JdJ^hiL
'nSqulrc
Attorney for Tammy DodgC

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