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/
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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.
2
Case 2:21-cr-00520-JNP Document 47 Filed 10/19/22 PageID.357 Page 3 of 12
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:
5
Case 2:21-cr-00520-JNP Document 47 Filed 10/19/22 PageID.360 Page 6 of 12
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.
9
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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).
11
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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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