Plea Agreement — United States v. Joshua Daniel Pennington (Eastern District of Kentucky)

Summary

A Plea Agreement filed December 10, 2024 as Doc 3 in United States of America versus Joshua Daniel Pennington, Criminal Action No. 6:24-CR-083-CHB, in the United States District Court for the Eastern District of Kentucky, Southern Division at London. Pennington will plead guilty to Count I of the Information, Conspiracy to Commit Money Laundering under 18 U.S.C. § 1956(h). The admitted facts state that Nicole Marcelle Pennington made false statements on PPP and EIDL applications, that $1,090,398.35 in SBA proceeds was deposited into accounts both could access, and that the two laundered over $1,000,000. The parties recommend a base offense level of 8 and restitution to the SBA, Square Capital and Cross River Bank, and Pennington agrees to pay $30,000 before sentencing, to be deposited in the registry.

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

Cite this document

“Plea Agreement — United States v. Joshua Daniel Pennington (Eastern District of Kentucky).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/3-plea-agreement-as-to-joshua-daniel-pennington-cc-cor-usp-jcp-1066ca3dbb/, SHA-256 ce47b2c1f770c5bb63874cc2ec8c28909d24746c0208e11b9a34f683f3ae7e6d.

Full text

Case: 6:24-cr-00083-CHB-HAI Doc #: 3 Filed: 12/10/24 Page: 1 of 10 - Page
ID#: 6

Eastern District of Kentucky
FILED .
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF KENTUCKY DEC 10 2024
SOUTHERN DIVISION AT LEXINGTON
LONDON Robert R. Carr
CLERK U.S. DISTRICT COURT
CRIMINAL ACTION NO. 6:24-CR-083-CHB

UNITED STATES OF AMERICA PLAINTIFF

v. PLEA AGREEMENT

JOSHUA DANIEL PENNINGTON DEFENDANT

I. Pursuunt to Federal Rule ofCrlminul Procedure 1l(c), lhe Defendant will enter

a guilty plea to Count I of the Information, charging a violation of 18 U,S,C, § 1956(h),

Conspiracy to Commit Money Laundering.

2. The essential elements of Count I, 18 U.S.C, § 1956(h) are:

(a) That two or more people agreed to try to accomplish a common and
unlawful plan to:

a. Conduct monetary transactions by, through, or to a financial institution,
of property derived from specified unlawlltl activity (that is, wire fraud
in violation of 18 U.S.C. § 1343) in im amount greater than $10,000
and in a 1natmer affecting h1terstate cormnerce.

(b) The Defendant knew about the plan's unlawful purpose and willfully
joined in it.

3. As to Count I, the United States could 1,rove the following facts that establish

the essential elements of the offense beyond a rna.sonable doubt, and the Defendant adtilits

these facts:
Case: 6:24-cr-00083-CHB-HAI Doc #: 3 Filed: 12/10/24 Page: 2 of 10 - Page
ID#: 7

(a) At all relevant times, Joshua Daniel Pennington operated out of the
Eastern District of Kentucky and elsewhere, ,Joshua Daniel Pennington
was married to Nicole Marcelle Pennington,

(b) Nicole Marcelle Pennington made materially false statements on
applications for Small Business Administration;s Payment Protection
Program (PPP) loans and Economic Injury Disaster loans (EIDLs). Six of
these loan applications were funded for a total of$3,000 in EIDL advances,
$150,000 in EIDLs, and $937,498.35 in PPP loans, Between May 4, 2020
and May 18, 2021, $1,090,398.35 in fraudulently obtained SBA proce1::ds
were deposited hito bank accounts in which Joshua Daniel Pennington
and Nicole Marcelle Pennington had access,

(c) After receiving the loan proceeds, Nicole Marcelle Pennington and Joshua
Daniel Pennington engaged in a series of monetary transactions using the
criminally derived proceeds to benefit themselves, Between May 2020 to
June 10, 2021, Joshua Daniel Pennington and Nicole Marcelle
Pennington laundered over $1,000,000 in ·critl1inally derived funds,
Specifically, J9shua Daniel Pennington and Nicole Marcelle Pennington
engaged in transactions using the criminally derived proceeds in amounts
greater than $ I0,000 by withdrawing cash, trnnsferring 111oney between
bank accounts, purchasing automobiles and motorcycles, paying off
mortgages and other loans, renovating their kitchen, paying for plastic
surgery, and purchasing a Viking River Cruise Trip,

(d) After June 10, 2021, ,Joshua Daniel Pennington continued to engage in
monetary transactions ovet· $10,000 using criminally derived SBA funds,

4. The statutory punishment for Count I is imprisonment for not more than 10

years, a fine of not more than the greater of$2SO,OOO or twice the value of the fonds involved

in the transactions, and a term of supervised release of not more than three years. A

mandatory special assessment of $100 applies, and the Defendant will pay this assessment to

the U.S. District Court Clerk at the time of the entry of the plea.
Case: 6:24-cr-00083-CHB-HAI Doc #: 3 Filed: 12/10/24 Page: 3 of 10 - Page
ID#: 8

5. Pursuant to Rule 1l(c)(l)(B), the United States and the Defendant recommend

the following sentencing guidelines calculations, and they may object to or argue in favor

of other calculations. This recommendation does not bind the Court.

(a) United States Sentencing Guidelines (U.S.S.G.), November I, 2023,
• manual, will determine the Defe11dant's guidelines range.

(b) Pursuant to U.S.S.G. § 1B1.3; the Defendant's relevant conduct includes
all monetilry transactions over $10,000 of criminally derived property from
May 2020 to November 2023.

(d) Pursuant to U.S.S.G. §§ 2Sl.l(a)(2) and 2B1.l(b)(l)(H), increase the
offense level by 14 for a loss amount in excess of$SSO,OOO.

(e) Pursuant to U.S.S.G. § 2S1.l(b)(2), increase the offense level by I level
for a conviction under 18 U.S.C. § 1957,

(J:) Pursuant to U.S.S.G. § 3El. 1 and unless the Defendant commits tmother
crime, obstructs justice, or violates a court order, decrease the offense
level by 2 levels for the Defendant's acceptance of responsibility. If the
offense level determined prior to this 2-level decrease is level 16 or greater,
the United States will move at sentencing to decrease the offense level by
I additional level based on the Defendant's timely notice of intent to plead
guilty.

(g) Pursuant to U.S.S.G. § 4Cl.1, the parties agree that if the Defendant has
zero criminal history points, the offense level shot1ld be decreased by two
points because he would be an eligible zero-point offender.

(h) Pursuant to U.S.S.G. § SEl.1, the Defendant shall pay restitution in a total
amount hot less than the sum of the amounts set forth as follows:

I. $3,000 for the EIDL advance, $149,900 for the principal balance,
and interest through the date cif entry of this pleil agreement to the
SBA for EIDL No. 3300738057;
Case: 6:24-cr-00083-CHB-HAI Doc #: 3 Filed: 12/10/24 Page: 4 of 10 - Page
ID#: 9

2. $145,833.34 l'epresenting the principal balance, $7,291.67 for the
lender processing fee, and interest through the date ofentt·y of this
plea agreement to Square Capital for PPP loan No. 6209747307;

3. $208,333.00 for the principal balance and interest through the date
of entry of the plea agreement to Cross River Bank for PPP loan
No. 3148787800;

4. $416,666.67 for the principal balance and inter<::st through the date
of entry of the plea agreement to the Cross River Bank for PPP
loan No. 2196138005;

5. $145,833.34 for the principal balance, $7,291.67 for the lender
processing fee, and interest through the date of entry of this plea
agreement to Square Capital for PPP loan No. 7594168600; and

6. $20,832 for. the principal balance and $2,500 for the le11der
processing fee to the Prestamos CDFI for PPP loan No.
4886878904.

6. The Defendant reserves his dght to request a mitigating role adjustment under

U.S.S.G. § 3B1.2.

7. No agreement exists about the Defendant's criminal histol'y category pursuant to

U.S.S.G. Chapter 4.

8, The Defendant will not file a motion for a decrease in the offense level based

on a departure motion pursuant to U.S.S.G. Chapter 5, Parts Hor K.

9. The Defendant waives the right to appeal the guilty plea and conviction. The

Defendant waives the l'ight to appeal any determination made by the Court at sentencing

with the following two exceptions: (a) that the Defendant may appeal the Court's ruling

regarding the applicability ofU.S.S.G, § 3B1.2, the mitigating role adjustment, and (b) that

the Defendant may appeal any aspect of the sentence if the length of the term of
Case: 6:24-cr-00083-CHB-HAI Doc #: 3 Filed: 12/10/24 Page: 5 of 10 - Page
ID#: 10

imprisonment exceeds the advisory sentencing guidelines range as determined by the Court

at sentencing. Except for claims of ineffective assistance of counsel, the Defendant also

waives the right to attack collaterally the guilty plea, conviction, m1d sentence.

I 0. The Defendant consents to the forfeiture to the United States, by administrntive

or judicial proceedings, of all right, title, and interest in the property listed in the forfeiture

allegation ofthe Information. The Defendant agrees that this property is subject lo forfeiture

because a nexus exists between the property and the offense to which he is pleading guilty,

as set forth in the forfeiture allegation of the Information. The Defendant also consents to

the imposition of a forfeiture money judgment in the amount of $1,090,398.35, which

represents the atnount of proceeds that the Defendant obtained as a result of the offense lo

which he is pleading guilty and/or the value of property involved therein, and which amount

shall be offset by the net proceeds realized from the sale or disposition of any directly

forfeited properly.

11. The Defendant consents to the entry of a Preliminary Order of Forfeiture,

pmsuant to Federal Rule of Criminal Procedure 32.2, and agrees take any steps necessary

to assist the government in effectuating the surrender and forfeiture of the assets identified

herein, including but not limited to executing any documents necessary for the surrender

and transfer of title to the United States. The Defendant agrees not to file a claim or petition

seeking remission or otherwise contesting the fol'feiture of the assets identified herein in

any administrative or judicial proceeding, or to assist any other person or entity with doing

so, and agrees to withdraw, and het'eby withdraws, any such claim m· petition that he/she
Case: 6:24-cr-00083-CHB-HAI Doc #: 3 Filed: 12/10/24 Page: 6 of 10 - Page
ID#: 11

already has submitted. If the Defendant fails to smrender and forfeit the assets identified for

forfeiture herein !Jnd/or fails to pay in full the forfeiture money judgment, he consents to the

forfeitme of any other property of his up to the amount of the value of the assets identified

for forfeiture and/or up to the amount of the forfeiture money judgment, pursuant to 21

U.S.C. § 853(p); and further agrees thatthe conditions of21 U.S.C. § 853(p)(l)(A)-(E) have

been met. The Defendant voluntarily and knowingly waives iill provisions in Rule 32.2

pertaining to notice and/or the timing of forfeiture orders. The Defendant also waives

his/her right, if any, to a jury trial on forfeiture and all constitutional, legal, 01• equitable

defenses to the forfeiture. The Defendant agrees that this forfeiture is separate and distinct

from any restitution, fine, or penalty ordered by the Court and shall survive bankruptcy.

12. The Defendant abandons any interest in, and consents to the official use,

destruction, or other disposition of, any item obtained by any law enforcement agency

during the course of the investigation, unless an item is specifically provided fo1· in anQthet

p1·ovision of this Agreement. The Defendant also waives any notice of a proceeding to

iniplement the on1cial use, destruction, 01· other disposition of any item abandoned under

this paragruph.

13. The Defendant agrees to pay restitution in the amounts and to the victims set

forth in Paragraph S(h) of this Agreement, pursua11t to 18 U.S.C. § 3663(a)(3). The

Defendant agrees that the restitution amount may it1clude restitution for all losses caused by

the Defendant's criminal conduct or through the coli'nnission of the offense of conviction,
Case: 6:24-cr-00083-CHB-HAI Doc #: 3 Filed: 12/10/24 Page: 7 of 10 - Page
ID#: 12

even if such losses resulted from crimes not charged or adtnitted by Defendant in the factual

basis.

14. The Defendant agrees to cooperate fully with the United States Attorney's

omce by making a fult and complete financial disclosure. Within 30 clays of pleading

guilty, the Defendant agtees to complete, sign, and return to the United States Attorney's

Office a financial disclosure statement or affidavit disclosing all assets in which the

Defendant has any interest or over which the Defendant exercises control, directly or

it1directly, including those held by a spouse, nominee, or other third party, and disclosing

any transfer of assets that has taken place within three years preceding the entry of this plea

agreement. Upon request, the Defendant agrees to provide the United States Attorney's

Office with records verifying his/hel' financial information or with any releases required to

obtain such records, with such releases being valid for a period extending 90 days from the

date of sentencing. The Defendant will submit to an examination, which may be taken under

oath 1111d may include a polygraph examination. Prior to sentencing, the Defendant agrees

to notify the United States Altorney's Office and obtain its consent before transfenfog,

encumbering, or disposing of any interest in properly with a value exceeding $ I ,000.00

owned or controlled directly or indirectly, individually or jointly, by the Defendant,

including any interest held or owned under any name, including !rusts, partnerships, and

corporations. If the Defendant is ever incarcerated in connection with this case, the

Defendant will participate in the Bureau of Prisons Inmate Financial Responsibility

Prog1•11111, regardless of whether the Court specifically directs participation or imposes a
Case: 6:24-cr-00083-CHB-HAI Doc #: 3 Filed: 12/10/24 Page: 8 of 10 - Page
ID#: 13

schedule of payments. The Defendant agrees to notify the United States Attorney's Office

of any material changes in his/her economic circumstances, as described in 18 U.S.C. §

3664(k), which occur prior to sentencing, within seven days of the event giving rise to the

changed ch·cumstances. If the Defendant fails to comply with any of the provisions of this

paragl'aph, the United States, in its discretion, may refrain from moving the. Court pursuant

to U.S.S.G. § 3EI. l(b) to reduce the offense level by one additional level, and may argue

that the Defendant should not receive a two-level reduction for acceptance ofresponsibility

under U.S.S.G. § 3El.l(a).

15. The Defendant understands and ag1·ees that, pursuant to 18 U.S.C. § 3613,

whatever monetary penalties are Imposed by the Court will be due and payable immediately

and subject to immediate enforcement by the United States. If the Court imposes a schedule

of payments, the Defendant agrees that it is merely a minimum schedule of payments and

not the only method, nor a limitation on the methods, available to the United States to

enforce the judgment. The Defendant waives any requirement for demand of payment on

any fine, restitution, or assessment imposed by the Court and agrees that any unpaid

obligations will be.submitted to the United States Treasury for offset. The Defendant waives

any defense or objection to any action to enforce the collection of financial obligations to

be imposed in connection with this prosecution, including, bi1t not limited to, collection

procedures authorized by the Federal Debt Collection Prnoedures Act, 28 U.S.C. § 3001, et

seq., 18 U.S.C. § 3664, or 181).S.C. § 3613. The Defendant expressly authorizes the United

States to obtain the Defendant's credit reports at any time. The Defendant authorizes the
Case: 6:24-cr-00083-CHB-HAI Doc #: 3 Filed: 12/10/24 Page: 9 of 10 - Page
ID#: 14

U.S. District Court to release funds posted as security for the Defendant's appearance bond

in this case, if any, to be applied to satisfy the Defendant's financial obligations contained

in the judgment of the Court. The Defendant authorizes the United States Attorney's Office

to inspect and copy all financial documents and information held by the U.S. Prnbation

Office.

I6. By no later than ten days prior to sentencing, the Defendant agrees to pay

$30,000, by certified check or money orde1· made payable to the "Clei'I{, U,S, District

Court," to be deposited h1to the Court registry until the date of sentencing ai1d, thereafter, to

be applied to satisfy the tfom1cial obligations of the Defendant, pursuant to the judgment of

the Court.
17. If the Defendant violates any part of this Agreement, the United States may

void this Agreement and seek an indictment for any violations of federal laws, and the

Defendant waives any right to challenge the initiation of additional federal charges.

18. This document contains the complete and only Plea Agreement between the

United States Attorney fot· the Eastern District of Kentucky and the Defendant. The United

States has not made any other promises to the Defendant.

19. This Agreement does not bind the United States Altomey's Oftices in other

districts, or any other federal, state, or local prosecuting authol'ities.

20. The Defendant and the Defendant's attorney acknowledge that the Defendant

understands this Agreement, that the Defenda11t's attorney has fully explained this
Case: 6:24-cr-00083-CHB-HAI Doc #: 3 Filed: 12/10/24 Page: 10 of 10 - Page
ID#: 15

Agreement to the Defendant, and that the Defendant's entry into this Agreement is

voluntary.

CARLTON S, SHIER, IV
UNITED STATES ATTORNEY

Date: I 2- /S / 20'2Lj By:
Brittany Dm .1 Pirio
Assistant Un t d States Attorney

Defendant

File and source

File: 3-plea-agreement-as-to-joshua-daniel-pennington-cc-cor-usp-jcp.pdf
Size: 209,932 bytes
SHA-256: ce47b2c1f770c5bb63874cc2ec8c28909d24746c0208e11b9a34f683f3ae7e6d
Our copy: 3-plea-agreement-as-to-joshua-daniel-pennington-cc-cor-usp-jcp.pdf
Original: No public link identified.