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Second Superseding Indictment — United States v. Allison Marie Baver (District of Utah)

Summary

A Second Superseding Indictment in United States of America v. Allison Marie Baver and Allison Baver Entertainment, LLC, Case No. 2:21-cr-00520, in the United States District Court, District of Utah, filed October 19, 2022 as Document 47. The caption lists Counts 1-8 under 18 U.S.C. § 1014, Count 9 under 18 U.S.C. § 1957 and Count 10 under 18 U.S.C. § 401(3) (Contempt). Count 10 alleges that a subpoena duces tecum authorized by the grand jury was served on ABE on or about May 6, 2022, that motions to quash were denied on June 14 and June 28, 2022, and that beginning on or about July 1, 2022 the defendants willfully and knowingly disobeyed those orders by failing to respond to the subpoena. The forfeiture notice lists $9,538,720.95 and a $150,000 investment.

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“Second Superseding Indictment — United States v. Allison Marie Baver (District of Utah).” Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/47-5d52faf607/, SHA-256 a0ad1b07142f418da5afdf4c0867772190c3288c009958140ab20460919e2559.

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Case 2:21-cr-00520-JNP Document 47 Filed 10/19/22 PageID.355 Page 1 of 12




TRINA A. HIGGINS, United States Attorney (#7349)
AARON B. CLARK, Assistant United States Attorney (#15404)
JENNIFERK. MUYSKENS, Assistant United States Attorney (DC#475353)
CY H. CASTLE, Assistant United States Attorney (#4808)
Attorneys for the United States of America
Office of the United States Attorney
111 South Main Street, Suite 1800
Salt Lake City, Utah 84111-2176
Telephone: (801) 524-5682



                        IN THE UNITED STATES DISTRICT COURT
                                  DISTRICT OF UTAH


 UNITED STATES OF AMERICA,                       Case No. 2:21-cr-00520 "!~

          Plaintiff,                             SECOND SUPERSEDING
                                                 INDICTMENT
          vs.
                                                 Counts 1-8: 18 U.S.C. § 1014 (False
 ALLISON MARIE BAVER, and                        Statements Designed to Influence a Bank)
 ALLISON BAVER ENTERTAINMENT,
 LLC,                                            Count 9: 18 U.S.C. § 1957 (Money
                                                 Laundering)
          Defendants.
                                                 Count 10: 18 U.S.C. § 401(3) (Contempt)

                                                 Judge Jill N. Parrish


     The Grand Jury Charges:

                                      Background

     At all times relevant to this Indictment:

     1.         Defendant ALLISON MARIE BAVER ("BAVER") was a resident of Utah.
 Case 2:21-cr-00520-JNP Document 47 Filed 10/19/22 PageID.356 Page 2 of 12




       2.      ALLISON BAVER ENTERTAINMENT, LLC ("ABE") was registered with

the Utah Division of Corporations on October 9, 2019. BAVER is listed as the owner and

registered agent for ABE.

       3.     Northeast Bank is a financial institution headquartered in Portland, ME, the

accounts of which are insured by the Federal Deposit Insurance Corporation ("FDIC").

       4.     Meridian Bank is a financial institution headquartered in Paoli, PA, the

accounts of which are insured by the FDIC.

       5.     Lendio, Inc. ("Lendio"), offers clearinghouse services for small businesses

seeking various types of financing. The company, headquartered in Lehi, UT, allows its

small business customers to submit loan applications that Lendio screens and submits to

matched lenders.

       6.     The United States Small Business Administration ("SBA") is an executive-

branch agency of the United States federal government that provides support to

entrepreneurs and small businesses. The mission of the SBA is to maintain and strengthen

the nation's economy by enabling the establishment and viability of small businesses and

by assisting in the economic recovery of communities after disasters. As part of this effort,

the SBA enables and provides for loans through banks, credit unions, and other lenders.

These loans have government backed guarantees.

       7.     In addition to traditional SBA funding programs, the CARES Act, which was

signed into law in March 2020, established several new temporary programs and provided

for the expansion of others to address the COVID-19 outbreak.



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       8.     One of these new programs is the SBA Paycheck Protection Program (PPP),

which is a loan designed to provide a direct incentive for small businesses to keep their

workers on the payroll. Under this program, the SBA will forgive all or part of loans if all

employees were kept on the payroll for eight weeks and borrowers submit documentation

confirming that the loan proceeds were used for payroll, rent, mortgage interest, or utilities.

       9.     Payroll, as defined by the PPP, excludes compensation of an individual

employee in excess of an annual salary of$100,000, prorated as necessary.

       10.    Interested applicants apply through an existing SBA lender or any other

participating federally insured financial institution. Program requirements include that the

borrower business was in operation on February 15, 2020, and either had employees for

whom the business paid salaries and payroll taxes or paid independent contractors as

reported on a Form 1099-MISC.

       11.    The PPP application process reqmres applicants to submit a Borrower

Application Form through an SBA-approved financial entity. The application contains

information as to the purpose of the loan, average monthly payroll, number of employees

and background of the business and its owner.


                                       Counts 1-8
                                    18 U.S.C. § 1014
                     (False Statement Designed to Influence a Bank)

      12.     On or about April 13, 2020, defendant BAVER, on behalf of ABE, completed

a PPP loan application through Lendio. Lendio thereafter submitted the application to




                                              3
Case 2:21-cr-00520-JNP Document 47 Filed 10/19/22 PageID.358 Page 4 of 12




Northeast Banlc In this application, defendants BAVER and ABE made or caused to be

made one or more of the following false statements:

              a. ABE's average monthly payroll was $4,000,000; when, in fact, ABE had

                 no average monthly payroll; and

              b. ABE had 100 employees; when, in fact, ABE had no employees.

       13.    On or about April 14, 2020, defendant BAVER, on behalf of ABE, completed

a PPP loan application through Lendio. Lendio thereafter submitted the application to

Northeast Bank. In this application, defendants BAVER and ABE made or caused to be

made one or more of the following false statements:

              a. ABE's average monthly payroll was $4,000,000; when, in fact, ABE had

                 no average monthly payroll; and

             b. ABE had 105 employees; when, in fact, ABE had no employees.

       14.   On or about April 16, 2020, defendant BAVER, on behalf of ABE, completed

a PPP loan application through Lendio. Lendio thereafter submitted the application to

Northeast Bank. In this application, defendants BAVER and ABE made or caused to be

made one or more of the following false statements:

             a. ABE's average monthly payroll was $4,000,000; when, in fact, ABE had

                 no average monthly payroll; and

             b. ABE had 105 employees; when, in fact, ABE had no employees.

      15.    On or about April 23, 2020, defendant BAVER, on behalf of ABE, completed

a PPP loan application through Lendio. Lendio thereafter submitted the application to



                                           4
Case 2:21-cr-00520-JNP Document 47 Filed 10/19/22 PageID.359 Page 5 of 12




Northeast Banlc In this application, defendants BAVER and ABE made or caused to be

made one or more of the following false statements:

              a. ABE's average monthly payroll was $4,000,000; when, in fact, ABE had

                 no average monthly payroll; and

              b. ABE had 430 employees; when, in fact, ABE had no employees.

       16.    On or about April 24, 2020, defendant BAVER, on behalf of ABE, completed

and submitted a PPP loan application to Meridian Bank. In this application, defendants

BAVER and ABE made or caused to be made one or more of the following false statements:

              a. ABE's average monthly payroll was $4,769,583; when, in fact, ABE had

                 no average monthly payroll; and

              b. ABE had 430 employees; when, in fact, ABE had no employees.

       17.    On or about April 25, 2020, defendant BAVER, on behalf of ABE, completed

and submitted a PPP loan application to Meridian Bank. In this application, defendants

BAVER and ABE made or caused to be made one or more of the following false statements:

              a. ABE's average monthly payroll was $4,770,583; when, in fact, ABE had

                 no average monthly payroll; and

             b. ABE had 430 employees; when, in fact, ABE had no employees.

       18.   On or about April 25, 2020, defendant BAVER, on behalf of ABE, completed

a PPP loan application through Lendio. Lendio thereafter submitted the application to

Northeast Banlc In this application, defendants BAVER and ABE made or caused to be

made one or more of the following false statements:



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                 a. ABE's average monthly payroll was $4,770,583; when, in fact, ABE had

                    no average monthly payroll; and

                 b. ABE had 430 employees; when, in fact, ABE had no employees.

        19.      On or about April 26, 2020, defendant BAVER on behalf of ABE, completed

a PPP loan application through Lendio. Lendio thereafter submitted the application to

Northeast Bank. In this application, defendants BAVER and ABE made or caused to be

made one or more of the following false statements:

                 a. ABE's average monthly payroll was $4,770,583; when, in fact, ABE had

                    no average monthly payroll; and

                 b. ABE had 430 employees; when, in fact, ABE had no employees.

        20.      On or about the dates listed below, in the District of Utah and elsewhere,

    ALLISON MARIE BAVER and ALLISON BAVER ENTERTAINMENT, LLC,

defendants herein, did knowingly make the false statements listed below for the purpose of

influencing the actions of banking institutions, the deposits of which were then insured by

the FDIC, in connection with PPP loan applications for $10,000,000:

 Count          Date            Bank                        False Statements

    1         4/13/2020 Northeast Bank        a.    ABE's average monthly payroll was
                                              $4,000,000; when, in fact, ABE had no
                                              average monthly payroll;

                                              b.     ABE had 100 employees; when, m
                                              fact, ABE had no employees;

   2          4/14/2020 Northeast Bank        a.    ABE's average monthly payroll was
                                              $4,000,000; when, in fact, ABE had no
                                              average monthly payroll;


                                               6
Case 2:21-cr-00520-JNP Document 47 Filed 10/19/22 PageID.361 Page 7 of 12




 Count      Date          Bank                  False Statements

                                    b.     ABE had 105 employees; when, m
                                    fact, ABE had no employees;

   3     4/16/2020 Northeast Bank   a.    ABE's average monthly payroll was
                                    $4,000,000; when, in fact, ABE had no
                                    average monthly payroll;

                                    b.     ABE had l 05 employees; when, m
                                    fact, ABE had no employees;

   4     4/23/2020 Northeast Bank   a.    ABE' s average monthly payroll was
                                    $4,000,000; when, in fact, ABE had no
                                    average monthly payroll;

                                    b.     ABE had 430 employees; when, m
                                    fact, ABE had no employees;

   5     4/24/2020 Meridian Bank    a.    ABE' s average monthly payroll was
                                    $4,769,583; when, in fact, ABE had no
                                    average monthly payroll;

                                    b.     ABE had 430 employees; when, m
                                    fact, ABE had no employees;

   6     4/25/2020 Meridian Bank    a.    ABE's average monthly payroll was
                                    $4,770,583; when, in fact, ABE had no
                                    average monthly payroll;

                                    b.     ABE had 430 employees; when, m
                                    fact, ABE had no employees;

  7      4/25/2020 Northeast Bank   a.    ABE's average monthly payroll was
                                    $4,770,583; when, in fact, ABE had no
                                    average monthly payroll;

                                    b.     ABE had 430 employees; when, m
                                    fact, ABE had no employees;

  8      4/26/2020 Northeast Bank   a.    ABE's average monthly payroll was
                                    $4,770,583; when, in fact, ABE had no
                                    average monthly payroll;
                                    7
Case 2:21-cr-00520-JNP Document 47 Filed 10/19/22 PageID.362 Page 8 of 12




  Count      Date             Bank                        False Statements


                                              b.     ABE had 430 employees; when, In
                                              fact, ABE had no employees;


All in violation of 18 U.S.C. § 1014.

                                          Count9
                                      18 U.S.C. § 1957
                                    (Money Laundering)

       21.    The factual allegations set forth above are incorporated by referenced and

realleged as though fully set forth herein.

       22.    On or about May 11, 2020, Meridian Bank funded a PPP loan to ABE for

$10,000,000, depositing the funds into ABE's Meridian Bank account ending in x2022.

       23.    On or about May 12, 2020, BAVER transferred $9,999,500 of those funds to

ABE's Meridian Bank account ending in x8439.

       24.    On or about July 23, 2020, BAVER transferred $150,000 of ABE's PPP loan

funds to Company X, from ABE's Meridian Bank account ending in x8439, for the purpose

of investing in a film entitled No Man of God.

      25.     On or about the date listed below, in the District of Utah and elsewhere,

    ALLISON MARIE BAVER and ALLISON BAVER ENTERTAINMENT, LLC,

defendants herein, did knowingly engage and attempt to engage in the following monetary

transaction by, through, and to a financial institution, affecting interstate or foreign

commerce, in criminally derived property of a value greater than $10,000.00, and such




                                              8
Case 2:21-cr-00520-JNP Document 47 Filed 10/19/22 PageID.363 Page 9 of 12




property was derived from the specified unlawful activity of False Statement to a Bank as

alleged above, in instances including but not limited to the count below:

  Count        Date                         Monetary Transaction
    9        7/23/2020 $150,000 transfer to Company X to invest in the film entitled No
                       Man of God, from ABE's Meridian Bank account ending in
                       x8439, for the purpose of investing in a movie

All in violation of 18 U.S.C. § 1957.

                                          Count/)D         iJt,
                                     18 U.S.C. § 401(3)
                                        (Contempt)

       26.     The factual allegations set forth above are incorporated by referenced and

realleged as though fully set forth herein.

       27.     On or about May 6, 2022, ABE was served with a subpoena duces tecum

authorized by the grand jury to produce certain documents. The subpoena called for

"[d]ocuments reflecting any bank account ( other than bank accounts held at Meridian

Bank) in the name of Allison Baver Entertainment, or controlled by Allison Baver

Entertainment, or used by Allison Baver Entertainment, during the time period from

October 2019 through December 2020." The subpoena required production of documents

by June 15, 2022.

       28.     On June 10, 2022, attorneys for ABE filed a motion to quash the grand jury

subpoena duces tecum directed to ABE, claiming it was "unreasonable and oppressive for

ABE." The motion was filed in the United States District Court for the District of Utah.

      29.      On June 14, 2022, Judge Ted Stewart denied the motion to quash.




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Case 2:21-cr-00520-JNP Document 47 Filed 10/19/22 PageID.364 Page 10 of 12




       30.    On June 22, 2022, BAVER filed a motion to intervene and motion to quash

the grand jury subpoena. Shortly thereafter, she amended her motions.

       31.    On June 28, 2022, Judge Stewart again denied BAVER's motions and

ordered ABE to comply with the subpoena by no later than June 30, 2022.

       32.    ABE did not comply with the subpoena on or before June 30, 2022, as

ordered by the court. Instead, on July 8, 2022, BAVER filed notice that ABE was appealing

Judge Stewart's decision to the United States Court of Appeals for the Tenth Circuit.

       33.    On August 30, 2022, the Tenth Circuit dismissed BAVER's appeal.

       34.    On September 14, 2022, Judge Stewart issued an Order to Show Cause why

ABE and BAVER should not be held in contempt. In the order, the court ordered a response

to the Order to Show Cause "on or before September 28, 2022."

       35.   As of October 19, 2022, neither ABE nor BAVER have filed a response to

the Order to Show Cause. Nor has ABE complied with the grand jury subpoena.

       36.   Beginning on or about July 1, 2022, in the District of Utah

    ALLISON MARIE BAVER and ALLISON BAVER ENTERTAINMENT, LLC,

Defendants herein, did willfully and knowingly disobey and resist one or more lawful

orders, decrees, and commands of the Honorable Ted Stewart of the United States District

Court for the District of Utah of which they had actual knowledge, namely, the June 14

and June 28, 2022, denials of ABE's and BAVER's motions to quash the grand jury

subpoena.

      37.    Specifically, ABE and BAVER directly and indirectly, individually and in

concert, violated one or more of these orders by failing to respond to the May 6, 2022,

                                           10
Case 2:21-cr-00520-JNP Document 47 Filed 10/19/22 PageID.365 Page 11 of 12



subpoena duces tecum authorized by the grand jury; in violation of the Court's orders and

Title 18, United States Code, Section 401(3) and Section 2.

                    NOTICE OF INTENT TO SEEK FORFEITURE

       Pursuant to 18 U.S.C. § 982(a)(2), upon conviction of any offense violating 18

U.S.C. § 1014, the defendants shall forfeit to the United States of America any property

constituting, or derived from, proceeds obtained directly or indirectly, as a result of the

scheme to defraud. The property to be forfeited includes, but is not limited to:

       •   $9,538,720.95;

       •   a money judgment equal to the value of any property not available for forfeiture

           as a result of any act or omission of the defendant(s) for one or more of the

           reasons listed in 21 U.S.C. § 853(p);

       •   substitute property as allowed by 18 U.S.C. § 982(b) and 21 U.S.C. § 853(p).

       Pursuantto 18 U.S.C. § 982(a)(l), upon conviction of any offense in violation of 18

U.S.C. § 1957, the defendants shall forfeit to the United States of America any property,

real or personal, involved in such violations, and any property traceable to such property.

The property to be forfeited includes, but is not limited to:

       •   $150,000 investment in film entitled No Man of God;

       •   a money judgment equal to the value of all property not available for forfeiture

           as a result of any act or omission of the defendant(s) for one or more of the

           reasons listed in 21 U.S.C. § 853(p); and

       •   substitute property as allowed by 18 U.S.C. § 982(b) and 21 U.S.C. § 853(p).



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GRAND JURY'S PROBABLE CAUSE FINDING REGARDING FORFEITURE

          The grand jury finds probable cause to believe that:

          l)      The defendants have committed the crimes specified in the above forfeiture

notice;

          2)      The $9,538,720.95 is constituted or derived from proceeds traceable to

making a false statement to a bank;

          3)      The $150,000 investment in film entitled No Man of God is involved in

money laundering or property traceable to property involved in money laundering; and

          4)      In the event of the defendants' conviction, such property would be subject

to forfeiture:

               a. $9,538,720.95; and

               b. $150,000 investment in film entitled No Man of God.

                                                    A TRUE BILL:




TRINA A. HIGGINS
United States Attorney




AARON B. CLARK
Assistant United States Attorney




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