Arthur Cornwall and Sean Williams — Information

Summary

An Information filed by the United States Attorney in the U.S. District Court for the Eastern District of New York against Arthur Cornwall and Sean Williams, citing Title 18, United States Code, §§ 981(a)(1)(C) and 1349. It describes Cornwall as a New York City Transit Authority signal maintainer and Williams as a New York State Unified Court System court officer who together operated entities including ACornwall Family Industries, Inc., NYC Corporation X, 4th Quarter Realty, Inc. and SL Steele, Inc. The Information alleges that between about May 1, 2020 and July 31, 2020 they obtained PPP and EIDL loan proceeds by fraud and used them to discharge personal debts and make purchases. It alleges that on or about November 27, 2020 Williams used approximately $33,000 to buy cryptocurrency, and charges conspiracy to commit wire fraud.

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Captured: 2026-09-25
Source site: www-justice-gov

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Full text

MRM:BTK
F. #2021R00760

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK
---------------------------X

UNITED STATES OF AMERICA INFORMATION

- against - Cr. No.
(T. 18, U.S.C., §§ 981(a)(1)(C), 1349 and
ARTHUR CORNWALL and 3551 et seq.; T. 21, U.S.C., § 853(p);
SEAN WILLIAMS, T. 28, U.S.C., § 2461(c))

Defendants.

---------------------------X

THE UNITED STATES ATTORNEY CHARGES:

INTRODUCTION

At all times relevant to this Information, unless otherwise indicated:

The COVID-19 Pandemic in the United States

1. In or about December 2019, a novel coronavirus, SARS-CoV-2 (the

“coronavirus”) caused outbreaks of the coronavirus disease COVID-19 that spread globally. On

or about January 31, 2020, the Secretary of Health and Human Services declared a national

public health emergency under 42 U.S.C. § 247d as a result of the spread of COVID-19 to and

within the United States. On or about March 11, 2020, the Director-General of the World

Health Organization characterized COVID-19 as a pandemic. On or about March 13, 2020, the

President of the United States issued Proclamation 9994 declaring a national emergency

beginning on March 1, 2020, as a result of the rapid spread of COVID-19 within the United

States.
2

The Paycheck Protection Program

2. On or about March 27, 2020, the President signed into law the

Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was a

federal law designed to provide emergency financial assistance to the millions of Americans who

were suffering the economic effects caused by the COVID-19 pandemic. One source of relief

provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to

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

the Paycheck Protection Program (“PPP”). In or around April 2020, Congress authorized over

$300 billion in additional PPP funding.

3. To obtain a PPP loan, qualifying businesses were required to submit a PPP

loan application, which was signed by an authorized representative of the business. The PPP

loan application required recipient businesses, through an authorized representative, to

acknowledge the program rules and make certain affirmative certifications to establish eligibility

for the PPP loan. For example, in the PPP loan application, recipient businesses, through an

authorized representative, were required to state, among other things, their average monthly

payroll expenses and number of employees. These figures were used to calculate the amount of

money the businesses were eligible to receive under the PPP. The recipient businesses were

also required to provide documentation supporting the information contained in the PPP loan

application.

4. PPP loan proceeds were required to be used by the recipient businesses on

certain permissible expenses, to wit: payroll costs, interest on mortgages, rent and utilities. The

PPP allowed the interest and principal on a PPP loan to be entirely forgiven if the recipient
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businesses spent the loan proceeds on these expense items within a designated period of time

after receiving the proceeds and used a certain percentage for payroll costs.

5. The PPP was overseen by the Small Business Administration (“SBA”),

which had authority over all PPP loans. Individual PPP loans, however, were issued and

approved by private lenders, who received and processed PPP loan applications and supporting

documentation and, following SBA approval, made loans using the lenders’ own funds.

The Economic Injury Disaster Loan Program

6. The Economic Injury Disaster Loan (“EIDL”) program was also overseen

by the SBA and was designed to provide long-term, low-interest loans for small businesses

affected by various natural and economic disasters. The CARES Act provided funding for

EIDL loans for businesses affected by the COVID-19 pandemic. In contrast to the PPP, EIDL

loan amounts were determined based on the recipient businesses’ historical revenue and

disbursed directly by the SBA.

The Defendants and Their Fraud Scheme

7. The defendant ARTHUR CORNWALL was employed by the New York

City Transit Authority as a signal maintainer and resided in West Babylon, New York.

8. The defendant SEAN WILLIAMS was employed by the New York State

Unified Court System as a Court Officer and resided in Valley Stream, New York.

9. The defendants ARTHUR CORNWALL and SEAN WILLIAMS operated

several corporate entities, including ACornwall Family Industries, Inc., NYC Corporation X, 4th

Quarter Realty, Inc. and SL Steele, Inc. (collectively, the “Subject Entities”), through which they

committed the fraud described herein at various places, including in West Babylon, New York

and Valley Stream, New York.
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10. On or about and between May 1, 2020 and July 31, 2020, both dates being

approximate and inclusive, the defendants ARTHUR CORNWALL and SEAN WILLIAMS,

together with others, engaged in a scheme to defraud the SBA and Financial Institution #1, an

entity the identity of which is known to the United States, which was one of the financial

institutions that administered the PPP and EIDL programs, of federal COVID-19 emergency-

relief funds meant for distressed small businesses. It was a part of the scheme to defraud that

CORNWALL and WILLIAMS, together with others, caused to be submitted, at least six online

loan applications to obtain funds through the PPP and EIDL programs for the Subject Entities.

It was further a part of the scheme to defraud that these loan applications and certain supporting

documentation contained materially false and fraudulent information, including, but not limited

to, the identity of the individual applying for the loan; the Subject Entities’ number of

employees, revenue, payroll costs; and the intended use of the loan proceeds, all of which was

specifically designed to mislead the SBA and Financial Institution #1 into disbursing various

loans, which they did.

11. In total, on or about and between May 1, 2020 and July 31, 2020, both

dates being approximate and inclusive, as a result of this fraudulent scheme, the SBA and

Financial Institution #1 wire-transferred sums totaling more than $770,000 in PPP and EIDL

loans for the Subject Entities to bank accounts that the defendants ARTHUR CORNWALL and

SEAN WILLIAMS accessed at bank branches in the Eastern District of New York and

elsewhere.

12. Shortly after receiving these fraudulently obtained loan proceeds, the

defendants ARTHUR CORNWALL and SEAN WILLIAMS utilized the proceeds to enrich

themselves, including by discharging personal debts and making extravagant purchases. For
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example, on or about May 27, 2020, CORNWALL used more than $31,000 of the fraudulent

loan proceeds to pay personal credit card debts. And on or about November 27, 2020,

WILLIAMS used approximately $33,000 in fraudulent loan proceeds to purchase

cryptocurrency.

CONSPIRACY TO COMMIT WIRE FRAUD

13. The allegations contained in paragraphs one through twelve are realleged

and incorporated as if fully set forth in this paragraph.

14. On or about and between May 1, 2020 and July 31, 2020, both dates being

approximate and inclusive, within the Eastern District of New York and elsewhere, the

defendants ARTHUR CORNWALL and SEAN WILLIAMS, together with others, did

knowingly and intentionally conspire to devise a scheme and artifice to defraud the SBA and

Financial Institution #1, which administered the PPP and EIDL programs, of federal COVID-19

emergency relief funds meant for distressed small businesses, and to obtain money and property

from the SBA and Financial Institution #1 by means of one or more materially false and

fraudulent pretenses, representations and promises, and for the purpose of executing such scheme

and artifice, to transmit and cause to be transmitted by means of wire communication in

interstate and foreign commerce, writings, signs, signals, pictures and sounds, contrary to Title

18, United States Code, Sections 1343.

(Title 18, United States Code, Sections 1349 and 3551 et seq.)

CRIMINAL FORFEITURE ALLEGATION

15. The United States hereby gives notice to the defendants that, upon their

conviction of the offense charged herein, the government will seek forfeiture in accordance with

Title 18, United States Code, Section 981(a)(1)(C) and Title 28, United States Code, Section
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2461(c), which require any person convicted of such offense to forfeit any property, real or

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

such offense.

16. If any of the above-described forfeitable property, as a result of any act or

omission of the defendants:

(a) cannot be located upon the exercise of due diligence;

(b) has been transferred or sold to, or deposited with, a third party;

(d) has been substantially diminished in value; or

(e) has been commingled with other property which cannot be divided

without difficulty;

it is the intent of the United States, pursuant to Title 21, United States Code, Section 853(p), as

incorporated by 18 U.S.C. § 982(b)(1), to seek forfeiture of any other property of the defendants

up to the value of the forfeitable property described in this forfeiture allegation.

(Title 18, United States Code, Section 981(a)(1)(C); Title 21, United States Code,

Section 853(p); Title 28, United States Code, Section 2461(c))

BREON PEACE
UNITED STATES ATTORNEY
EASTERN DISTRICT OF NEW YORK
F.#: 2021R00760
FORM DBD-34 No.
JUN. 85
UNITED STATES DISTRICT COURT

EASTERN District of NEW YORK

CRIMINAL DIVISION

THE UNITED STATES OF AMERICA

vs.

ARTHUR CORNWALL and SEAN WILLIAMS,

Defendants.

INFORMATION

(T. 18, U.S.C., §§ 981(a)(1)(C), 1349 and 3551 et seq.; T. 21, U.S.C.,
§ 853(p); T. 28, U.S.C., § 2461(c))

Filed in open court this _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ day,

of _ _ _ _ _ _ _ _ _ _ _ _ A.D. 20 _ _ _ _ _
_______________________________________
Clerk

Bail, $ _ _ _ _ _ _ _ _ _ _ _
_________________________________

Bradley T. King, Assistant U.S. Attorney (631) 715-7875

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