Factual Resume — United States v. Dinesh Sah (Northern District of Texas)

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A Factual Resume filed February 16, 2021 as Document 31 in United States of America versus Dinesh Sah, No. 3:20-CR-484-S, in the United States District Court for the Northern District of Texas, Dallas Division, supporting Sah's plea of guilty to Counts One and Seven of the indictment. Count One charges wire fraud under 18 U.S.C. § 1343 and Count Seven a monetary transaction under 18 U.S.C. § 1957. In the stipulated facts Sah admits submitting false PPP loan applications for entities Sah created and controlled, with false payroll figures, bank statements and IRS tax forms. One example is a May 26, 2020 application for $1,972,800 for Horizon 5 Lakes LLC, purportedly having 71 employees.

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IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF TEXAS

DALLAS DIVISION
UNITED STATES OF AMERICA
v. NO. 3:20-CR-484-S
DINESH SAH

FACTUAL RESUME

In support of Dinesh Sah’s plea of guilty to the offense in Counts One and Seven

of the indictment, Sah, the defendant, Reed Prospere, the defendant’s attorney, and the

United States of America (the government) stipulate and agree to the following:

ELEMENTS OF THE OFFENSE

To prove the offense alleged in Count One of the indictment, charging a violation

of 18 U.S.C. § 1343, that is, Wire Fraud, the government must prove each of the

following elements beyond a reasonable doubt:!

NY

First.

Second.

Third.

Fourth.

That the defendant knowingly devised or intended to devise a
scheme to defraud as described in the indictment;

That the scheme to defraud employed false material representations,
pretenses, and promises;

That the defendant transmitted or caused to be transmitted by means
of wire communications, in interstate commerce, any writing, sign,
signal, picture, or sound for the purpose of executing the scheme;
and

That the defendant acted with a specific intent to defraud.

' Fifth Circuit Pattern Jury Instruction 2.57 (5th Cir, 2019).

Factual Resume—Page |
To prove the offense alleged in Count Seven of the indictment, charging a
violation of 18 U.S.C. § 1957, that is, Engaging In Monetary Transactions in Property
Derived From Specified Unlawful Activity, the government must prove each of the

following elements beyond a reasonable doubt:?

First. That the defendant knowingly engaged or attempted to engage in a
monetary transaction;

Second. That the monetary transaction was of a value greater than $10,000;

Third. That the monetary transaction involved criminally derived property;

Fourth, That criminally derived property was derived from specified
unlawful activity;

Fifth. That the defendant knew that the monetary transaction involved
criminally derived property; and

Sixth, That the monetary transaction took place within the United States.
STIPULATED FACTS
1. Beginning in or about April 2020 and continuing through in or about

August 2020, in the Northern District of Texas, and elsewhere, defendant Dinesh Sah,
knowingly and with intent to defraud, devised and intended to devise a scheme and
artifice to defraud the SBA, Lender 1, Lender 2, Lender 3, Lender 4, Lender 5, Lender 6,
Lender 7, Lender 8, Company 1, and Company 2 (all entities known to the defendant and
the grand jury) to obtain money by means of materially false and fraudulent pretenses,
representations, and promises. For the purpose of executing or attempting to execute

such scheme and artifice, Sah knowingly transmitted or caused the transmission by

* Fifth Circuit Pattern Jury Instruction 2.77 (Sth Cir, 2019).

Factual Resume—Page 2
Case 3:20-cr-00484-S Document31 Filed 02/16/21 Page3of10 PagelD 97

means of wire communications in interstate commerce, certain writings, signs, signals,
pictures, and sounds, in violation of 18 U.S.C. § 1343. Moreover, on or about July 13,
2020, in the Northern District of Texas, Sah, knowing that the funds involved represented
the proceeds of some form of unlawful activity, engaged in a monetary transaction, in and
affecting interstate commerce, in criminally derived property of a value greater than
$10,000, which property, in fact, was derived from specified unlawful activity, namely,
wire fraud and bank fraud, in violation of 18 U.S.C. §§ 1343 and 1344(2).

2. As part of the wire fraud scheme, Sah submitted false and fraudulent loan
applications to multiple lending institutions for forgivable loans under the Paycheck
Protection Program (PPP), part of the Coronavirus Aid, Relief, and Economic Security
(CARES) Act enacted in or around March 2020. Sah admits that, using the names of
entities that Sah created and controlled, Sah made materially false representations on the
PPP loan applications, making it appear that the entities had been operating in the prior
year and as of February 2020. Further, the applications included false information about
the entities’ average monthly payroll expenses and number of employees. Sah also
admits that on some of the loan applications, he designated himself as the entities’
authorized representative or applicant, while on other loan applications, he falsely listed
another person (identified as Persons 1, 2, 3, 4, and 5 in the indictment) as the entities’
authorized representatives, without the knowledge of such individuals and without
authority to use their identifying information on the applications. Sah knew that the facts
contained in the applications were false and that these facts were material to the lenders

in approving the PPP loans at the time he submitted the fraudulent applications.

Factual Resume—Page 3
S

Filed 02/16/21 PagelD 98

Case 3:20-cr-00484-S Document 31 Page 4 of 10

3. Additionally, Sah admits that in support of the fraudulent loan applications,
he created and submitted false bank account statements, purportedly from accounts held
in the names of each entity, that made it appear that the entities had paid monthly payroll
to their purported employees and other expenses. Sah further admits that he created and
submitted false Internal Revenue Service (IRS) tax forms, purportedly filed in the names
of the entities applying for PPP funds, that contained misrepresentations about the
number of employees of each entity and payroll taxes or independent contractors the
entities had paid in the prior year, when, in fact, the purported tax forms showing that
wages were paid to employees had never been filed with the IRS.

4, As a further part of the scheme to defraud, Sah admits that he made
additional false statements in the PPP applications, which he knew were false when he
made them, including that the loan funds would be used to pay payroll and other
permissible expenses when, in fact, Sah intended to divert the proceeds for his personal
benefit.

5, Sah admits that he submitted the following false and fraudulent PPP loan
applications to the following various lending institutions, which approved the

applications and funded the loans:

Name of Approx.

ame of t Business Amount Lender ppprex Status

PP Entity Sought
2017
; Cleveland . May 18,

Person 3 Springfield $1,987,500 Lender 1 7020 Funded
LLC
Quadrant May 18,

Person 4 Clover LLP $1,184,000 Lender 1 7020 Funded

Factual Resume—Page 4
Case 3:20-cr-00484-S Document31 Filed 02/16/21 Page6of10 PagelD 100
Unilaxy Tune 13

c. | Person 2 International $1,896,872 | Lender 7 une ts Rejected

2020
LLC
. Lender 8/ May 13, .
d. | SAH Symbiont LLC | $1,182,500 Company 2 7020 Rejected
7. With respect to the fraudulent loan application Sah submitted to Lender 3,

Sah admits that, on or about May 26, 2020, from Sah’s residence in Coppell, Texas, in

the Northern District of Texas, Sah submitted an application for a PPP loan in the amount

of $1,972,800 for borrower Horizon 5 Lakes LLC, purportedly having 71 employees and

average monthly payroll expenses of $789,121.

8.

Sah admits that he made false statements in the Lender 3 PPP Application,

which he knew were false when he made them. For example, Sah falsely represented that

the funds sought through the Lender 3 PPP Application would be used to pay payroll and

other permissible business expenses when, in fact, Sah intended to divert the proceeds for

personal benefit. Sah also falsely represented that Horizon 5 Lakes LLC was in operation

on February 15, 2020, and had paid salaries and payroll taxes or paid independent

contractors, when, in fact, the purported tax forms showing that wages were paid to

employees had never been filed with the IRS

9,

Sah further admits that he submitted false and fraudulent documents and

information in the Lender 3 PPP Application. These false documents included various

false IRS tax forms, purportedly filed in the name of Horizon 5 Lakes LLC; and false

bank statements, purportedly from accounts at J.P. Morgan Chase in the name of Horizon

5 Lakes LLC.

Factual Resume—Page 6
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10. Sah admits that, in reliance upon his materially false statements in the
Lender 3 PPP Application, Lender 3 approved and funded the PPP loan. On or about
June 5, 2020, Sah, for the purpose of executing and attempting to execute the aforesaid
scheme and artifice to defraud, and to obtain money by means of materially false and
fraudulent pretenses, representations, and promises, knowingly caused an interstate wire
transmission of loan proceeds, namely, Lender 3 wired approximately $1,509,406 to an
account ending in -0121 at J.P. Morgan Chase held in the name of Convergenz
Entertainment LLC, for which Sah was the sole signer. Sah admits that Lender 3 was a
financial-services company in California, and that the loan proceeds were wired from
California to the J.P. Morgan Chase account located in the Northern District of Texas.

11. Sah admits that, after he received PPP funds from Lender 1, Lender 2,
Lender 3, Lender 4, and Lender 5, as described above, he engaged in various monetary
transactions using the fraudulently obtained proceeds for various personal expenses,
including to purchase the homes/real property, vehicles, and other property identified as
subject to forfeiture in the indictment and in paragraph 8 of the Plea Agreement, entitled
“Forfeiture of Property.” Sah also used the proceeds for interstate and international
money transfers.

12. Sah knew the funds involved in these transactions represented the proceeds
of unlawful activity, namely, loan proceeds he obtained through the fraudulent
applications described above. Sah admits that one such transaction occurred on or about

July 13, 2020, in the Northern District of Texas, when Sah made an interstate transfer of

Factual Resume—Page 7
Case 3:20-cr-00484-S Document31 Filed 02/16/21 Page8of10 PagelD 102

$2,000,000 from J.P. Morgan Chase bank account ending in -2642 in the name of
Unilaxy International LLC to an account at Technology Credit Union for Person 5.
13. Sah further admits that he deposited, transferred, or caused the deposit of

the unlawfully obtained loan proceeds into multiple bank accounts that Sah controlled,

including accounts at:

A. J.P. Morgan Chase, ending in (a) -0206, -4456, -9688, -5588, -7970, -8854, and
8694, maintained in the name of Dinesh Sah; (b) -0259 and -2642 maintained in
the name of Unilaxy International LLC; (c) -5913 and -6708 maintained in the
name of Horizon 5 Lakes LLC; (d) -7047 and -9935 maintained in the name of
Relief Without Borders LLC; (e) -7802 and -0121 maintained in the name of
Convergenz Entertainment LLC; (f) -2501 and -9715 maintained in the name of
Symbiont LLC; (g) -5779 and -5102 maintained in the name of Panin LLC; (h) -
6921 and -1252 maintained in the name of Gysin Group LLC; (i) -9980 and -7773
maintained in the name of Quadrant Clover LLC; (j) -4321 maintained in the name
of Symbiont LLC d/b/a Symbiont Retailers;

B. Bank of America, ending in (a) -5041 and -4437 maintained in the name of Dinesh
Sah; (b) -2798 and -3028 maintained in the name of Unilaxy Advisors LLC;

C. Comerica, ending in (a) -0854 maintained in the name of Symbiont Capital LLC;
(b) -7885 maintained in the name of Dinesh Sah; (c) -0839 maintained in the name
of Unilaxy International LLC; (d) -0847 maintained in the name of Horizon 5

Lakes LLC; (e) -7836 and -7968 maintained in the name of Anju Babbar;

Factual Resume—Page 8
Case 3:20-cr-00484-S Document31 Filed 02/16/21 Page9o0f10 PagelD 103

D. Merrill Lynch brokerage account ending in -7Q11 maintained in the name of

Dinesh Sah.

E. Citibank, ending in -0583 and -0591 maintained in the name of Dinesh Sah; and
F. Technology Credit Union, ending in -7530 maintained in the name of

ChargeEdge, Inc.

14. | The defendant agrees that the defendant committed all the essential
elements of the offenses. This factual resume is not intended to be a complete accounting
of all the facts and events related to the offenses charged in this case. The limited
purpose of this statement of facts is to demonstrate that a factual basis exists to support
the defendant’s guilty plea to Counts One and Seven of the indictment.

AGREED TO AND STIPULATED on this12th day of February , 2021.

PRERAK SHAH
ACTING UNITED STATES ATTORNEY

DANIEL S. KAHN

ACTING CHIEF

FRAUD SECTION, CRIMINAL DIVISION
U.S. DEPARTMENT OF JUSTICE

SAH ANNA G. KAMINSKA
Defendant Assistant Deputy Chief
— a New York Bar No. 4202958

‘ 7 U.S. Department of Justice
} [ 1400 New York Avenue, N.W.
Washington, D.C. 20530

REED PROSPERE ° (202) 355-5715
Attorney for Defendant Anna.Kaminska@usdoj.gov

Factual Resume—Page 9
Case 3:20-cr-00484-S Document 31

Factual Resume—Page 10

Filed 02/16/21 Page10o0f10 PagelD 104

KATHERINE MILLER

Section Chief

Texas Bar No. 00789107

ERICA HILLIARD

Assistant United States Attorney
Mississippi Bar No. 104244

1100 Commerce Street, Suite 300
Dallas, Texas 75242

(214) 659-8647
Katherine.Miller@usdoj.gov


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