Bill of Information — USA v. Santemore (Dkt. 1, E.D. La.)

Summary

A Bill of Information for felony false statements and theft of government funds, Document 1 in United States v. Santemore, No. 2:22-cr-00038-JCZ-MBN, in the United States District Court for the Eastern District of Louisiana, filed March 3, 2022. Count I is headed False Statements and begins with background paragraphs alleging that Santemore was employed by Amtrak and was the registered agent and sole beneficial owner of Anna Mae Construction, LLC, followed by sections on the Small Business Administration and the CARES Act. A later passage alleges receipt of unemployment benefits through the Louisiana Workforce Commission in an amount greater than $1,000.00, in violation of Title 18, United States Code, Section 641. A Notice of Forfeiture follows.

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Cite this document

“Bill of Information — USA v. Santemore (Dkt. 1, E.D. La.).” Original at ecf.laed.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bill-of-information-usa-v-santemore-dkt-1-e-d-la-eb8dd51563/, SHA-256 321ae7f74a02fdac7ad954da424bc9eb8cf51db878b64db08445cc19c9a69310.

Full text

Case 2:22-cr-00038-JCZ-MBN Document 1 Filed 03/03/22 Page 1 of 8

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF LOUISIANA

BILL OF INFORMATION FOR
FELONY
FALSE STATEMENTS AND F'T OF GOVERNMENT FUNDS

UNITED STATES OF AMERICA
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STACY V. SANTEMORE, SR.
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The United States Attorney charges that:

COUNT I
(18 U.S.C. $ 1001 - False Statements)

A. AT ALL TIMES MA TERIAL HEREIN

The Defendant, Relevant Enttties. And Relevant Accounts

1. The defendant, STACY V. SANTEMORE, SR. ("SANTEMORE"), was a

resident of Orleans Parish, Louisiana, within the Eastern District of Louisiana.

2. SANTEMORE was employed by the National Railroad Passenger Corporation,

doing business as Amtrak ("Amtrak"), which Congress created as a private, for-profit Government

corporation, pursuant to the passage of the Rail Passenger Service Act of 1970, to operate a

nationwide system of passenger rail transportation.

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Case 2:22-cr-00038-JCZ-MBN Document 1 Filed 03/03/22 Page 2 of 8

3. Anna Mae Construction, LLC ("Anna Mae Construction") was a Louisiana

corporation formed in or around May 12,2020. Anna Mae Construction purportedly operated as

a construction business. SANTEMORE was the registered agent and sole beneficial owner of

Anna Mae Construction

The Small Business Administration

4. The United States Small Business Administration ("SBA") was an executive-branch

agency of the United States government that provided support to entrepreneurs and small

businesses. The mission of the SBA was 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.

5. As part of its efforts, the SBA provided business loans through banks, credit unions,

and other lenders. Those loans had govemment backed guarantees.

The CARES Act

6. The Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was a

federal law enacted in or about March 2020. The CARES Act provided emergency financial

assistance to the millions of Americans suffering the economic effects of the COVID-I9 pandemic.

One source of relief provided by the CARES Act was the authorizationof forgivable loans to small

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

Paycheck Protection Program ("PPP").

7. The PPP was overseen by the SBA, which had authority over all PPP loans.

Individual PPP loans, however, were issued by approved private lenders, who received and

processed PPP loan applications and supporting documentation and, following SBA approval,

made loans using the lenders' own funds.

2
Case 2:22-cr-00038-JCZ-MBN Document 1 Filed 03/03/22 Page 3 of 8

8. To obtain a PPP loan, a qualiffing business had to submit a PPP loan application

(SBA From 2483) signed by a, authorized representative of the business. The PPP loan application

required the business, through its authorized representative, to acknowledge the program rules and

to make affirmative certifications under the penalty of law to be eligible for the PPP loan. For

example, in the PPP loan application, the business, through its authorized representative, had to

affirm that it was in operation on February 15,2020, and it had to state its average monthly payroll

expenses and number of employees. In addition, businesses had to provide documentation showing

their payroll expenses, as part of the PPP loan application process. These figures were used to

calculate the amount of money the small business was eligible to receive under the PPP.

9. Once a qualifuing business completed a PPP application, a participating lender

processed the application. If a PPP loan was approved, the participating lender funded the PPP

loan using its own monies, which the SBA guaranteed. In the course of processing the PPP loan,

the lender transmitted data from the loan application to the SBA, including information about the

borrower, the total amount of the loan, and the identified number of employees.

10. Proceeds from a PPP loan were legally required to be used only for certain

permissible business expenses, including payroll costs, mortgage interest, rent, and utilities. Under

the applicable PPP rules and guidance. The interest and principal on the PPP loan was eligible for

forgiveness, if the business spent the loan proceeds on permissible items within a designated period

of time and used a certain portion of the loan toward payroll expenses.

B. THE OFFENSE:

On or about July 11, 2020, in the Eastern District of Louisiana and elsewhere, the

defendant, SANTEMORE, did knowingly and willfully make a materially false, fictitious, and

fraudulent statement and representation in a matter within the jurisdiction of the United States

3
Case 2:22-cr-00038-JCZ-MBN Document 1 Filed 03/03/22 Page 4 of 8

Small Business Administration (SBA), an agency withing the executive branch of the United

States, in that the defendant represented that Anna Mae Construction, which he owned, was

eligible for a Paycheck Protection Program (PPP) loan; however in truth and in fact, the defendant

knew that the SBA Form 2483 Paycheck Protection Program Borrower Application Form signed

by the defendant contained false information, including the statement that Anna Mae Construction

was in operation on February 15,2020,leading to the defendant's receipt of a PPP loan in the

amount of $89,583 on or about July 14, 2020.

All in violation of Title 18, United States Code, Section 1001 .

COUNT 2
(18 U.S.C. $ 641 - Theft of Government Funds)

A. AT ALL TIMES MATERIAL HEREIN:

The allegations contained in Paragraph A of Count 1 are hereby re-alleged and incorporated

as though fully set forth herein.

CARES Act Funded Unemployment Insurance Prosram

l. Unemployment Insurance (UI) is a state-federal program that provides monetary

benefits to eligible lawful workers. Although State Workforce Agencies ("SWAs") administer

their respective UI programs, they must do so in accordance with federal laws and regulations. UI

payments ("benefits") are intended to provide temporary financial assistance to lawful workers

who are unemployed through no fault of their own. Each state sets its own additional requirements

for eligibility, benefit amounts, and length of time benefits can be paid. Generally, UI weekly

benefit amounts are based on a percentage ofyour earnings over a base period.

2. In the State of Louisiana, the Louisiana Workforce Commission (LWC)
administers the UI program.

4
Case 2:22-cr-00038-JCZ-MBN Document 1 Filed 03/03/22 Page 5 of 8

3. On March 13, 2020, the President declared the ongoing COVID-l9 pandemic of

sufficient severity and magnitude to warrant an emergency declaration for all states, tribes,

territories, and the District of Columbia pursuant to section 501 (b) of the Robert T. Stafford

Disaster Relief and Emergency Assistance Act,42 U.S.C. 512l-5207 (the "Stafford Act").

4. On March 18,2020, the President signed the Families First Coronavirus Response

Act ("FFCRA") into law. The FFCRA provides additional flexibility for state UI agencies and

additional administrative funding to respond to the COVID-19 pandemic. The CARES Act was

signed into law on March 27,2020.I1 expanded states' ability to provide U[ for many workers

impacted by COVID-19, including for workers who are not ordinarily eligible for UI benefits. The

CARES Act provided for three new UI programs: Pandemic Unemployment Assistance ("PUA");

Federal Pandemic Unemployment Compensation ("FPUC"); and Pandemic Emergency

Unemployment Compensation ("PEUC"). LWC administered the payments of state-federal funds

under the three new UI programs for Louisiana claimants.

5. In Louisiana, a UI claim can be filed online on the LWC website. When an

individual files a UI claim, the LWC automatically maintains certain information regarding the

filing of the claim. This information includes the date and time the claim was submitted, the name

of the person for whom the claim was filed, and the IP address of the computer, or ISP account,

that was used to file the claim.

6. UI claimants must answer various questions to establish their eligibility for UI

benefits. Claimants must provide their name, Social Security Number, and mailing address. The

claimants must also identifu a qualiffing occupational status and/or COVID-19 related reason for

being out of work.

5
Case 2:22-cr-00038-JCZ-MBN Document 1 Filed 03/03/22 Page 6 of 8

7. After LWC accepts a UI claim, LWC typically deposits UI funds every two weeks

in one of three ways selected by the claimant, e.g. Electronic Bill Payment ("EBP") debit card,

direct deposit to the claimant checking or saving account, or physical check to be mailed via U.S.

Mail.

8. When receiving regular UI benefits, claimants must complete a recertif,rcation every

two weeks, under penalty of perjury, that they remain unemployed or otherwise eligible to receive

UI benefits. In addition, any wages eamed by the claimant must be reported during this
recertification process.

B. THE OFFENSE:

From on or about April 3, 2020, through March 13,2021, in Eastem District of Louisiana

and elsewhere, the defendant, SANTEMORE, did knowingly and willfully steal, purloin and

knowingly convert to his own use or the use of another, and willfully and knowingly did receive,

conceal and retain stolen property of the United States in amount greater than $1,000.00 by

receiving unemployment benefits through the Louisiana Workforce Commission, such benefits

being subsidized by the federal CARES Act, to which he knew he was not entitled as the defendant

was fully employed by Amtrak during the time he received unemployment benefits.

All in violation of Title 18, United States Code, Section 641.

NOTICE OF FORFEITURE

1. The allegations of Counts I and 2 of this Bill of Information are incorporated by

reference as though set forth fully herein for the purpose of alleging forfeiture to the United States.

2. As a result of the offense alleged in Count l, the defendant, STACY V.

SANTEMORE, SR., shall forfeit to the United States pursuant to Title 18, United States Code,

6
Case 2:22-cr-00038-JCZ-MBN Document 1 Filed 03/03/22 Page 7 of 8

Section 982(a), any property, real or personal, involved in said offense, and any property traceable

to such property.

3. As a result of the offense alleged in Count 2, the defendant, STACY V.

SANTEMORE, SR., shall forfeit to the United States pursuant to Title 18, United States Code,

Section 98l(a)(l)(C), and Title 28, United States Code, Section 2461(c), any property real or

personal which constitutes or is derived from proceeds traceable to said offense.

4. If any of the above-described property, as a result of any act or omission of the
defendant:

a. cannot be located upon the exercise ofdue diligence;

b. has been transferred or sold to, or deposited with, a third person;

c. has been placed beyond the jurisdiction of the Court;

d. has been substantially diminished in value; or

e. has been commingled with other property which cannot be subdivided

without difficulty;

the United States shall seek a money judgment and, pursuant to Title 21, United States Code,

Section 853(p), forfeiture of any other property of the defendant up to the value of said property.

DUANE A. EVANS
LINITED STATES ATTORNEY
\

EDW J. RIVERA
Assistant United States Attorney
New Orleans, Louisiana
March 3,2022

7
Case 2:22-cr-00038-JCZ-MBN Document 1 Filed 03/03/22 Page 8 of 8

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