Sealed Complaint — United States v. Muge Ma (No. 1:20-cr-00407, S.D.N.Y.)
Summary
Sealed Complaint in United States of America v. Muge Ma, a/k/a "Hummer Mars," Case No. 1:20-cr-00407-RMB, in the U.S. District Court for the Southern District of New York, filed 05/20/20 as Document 1 before United States Magistrate Judge Kevin Nathaniel Fox (20 MAG 5202). FBI Special Agent William R. McKeen swears to six counts: Major Fraud Against the United States, Bank Fraud, Wire Fraud, Making False Statements to a Bank, Making False Statements, and Making False Statements to the SBA. The complaint alleges a scheme to obtain over $20 million in Government-guaranteed loans for New York International Capital LLC and Hurley Human Resources LLC through the Paycheck Protection Program and the Economic Injury Disaster Loan Program. It asks that an arrest warrant be issued, and the affidavit is signed s/William R. McKeen by KNF, USMJ.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Sealed Complaint — United States v. Muge Ma (No. 1:20-cr-00407, S.D.N.Y.).”
Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/complaint-no-1-20-cr-00407-dkt-1-s-d-n-y-e5d43567a5/
, SHA-256 1e4b8779d15ddcc8d887c0790e32c7afe3c52f94911bdc87b20e2b90feb62d41.Full text
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 1 of 24
Approved: ______________________________ ___
SAGAR K. RAVI
Assistant United States Attorney
Before: THE HONORABLE KEVIN NATHANIEL FOX
United States Magistrate Judge
20 MAG 5202
Southern District of New York
- - - - - - - - - - - - - - - - - -X SEALED COMPLAINT
:
UNITED STATES OF AMERICA : Violations of
: 15 U.S.C. § 645(a)
- v. - : and 18 §§ 1001,
: 1014, 1031, 1343,
MUGE MA, : and 1344
a/k/a “Hummer Mars,” :
: COUNTY OF OFFENSE:
Defendant. : NEW YORK
:
- - - - - - - - - - - - - - - - - -X
SOUTHERN DISTRICT OF NEW YORK, ss.:
WILLIAM R. MCKEEN, being duly sworn, deposes and says that
he is a Special Agent with the Federal Bureau of Investigation
(“FBI”), and charges as follows:
COUNT ONE
(Major Fraud Against the United States)
1. From at least in or about March 2020 through at least
on or about May 15, 2020, in the Southern District of New York
and elsewhere, MUGE MA, a/k/a “Hummer Mars,” the defendant,
willfully and knowingly executed, and attempted to execute, a
scheme and artifice with the intent to defraud the United
States, and to obtain money and property by means of false and
fraudulent pretenses, representations, and promises, in a grant,
contract, subcontract, subsidy, loan, guarantee, insurance, and
other form of Federal assistance, including through an economic
stimulus, recovery and rescue plan provided by the Government,
the value of which was $1,000,000 and more, to wit, MA engaged
in a scheme to obtain over $20 million in Government-guaranteed
loans by means of false and fraudulent pretenses,
representations, and documents for New York International
Capital LLC (“NYIC”) and Hurley Human Resources LLC (“Hurley”),
two companies owned and controlled by MA (collectively, the “Ma
Companies”), through two loan programs of the United States
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 2 of 24
Small Business Administration (the “SBA”) designed to provide
relief to small businesses during the novel coronavirus/COVID-19
pandemic, namely the Paycheck Protection Program (the “PPP”) and
the Economic Injury Disaster Loan (“EIDL”) Program.
(Title 18, United States Code, Sections 1031 and 2.)
COUNT TWO
(Bank Fraud)
2. From at least in or about March 2020 through at least
on or about May 15, 2020, in the Southern District of New York
and elsewhere, MUGE MA, a/k/a “Hummer Mars,” the defendant,
willfully and knowingly executed, and attempted to execute, a
scheme and artifice to defraud financial institutions, the
deposits of which were insured by the Federal Deposit Insurance
Corporation (“FDIC”), and to obtain moneys, funds, credits,
assets, securities, and other property owned by, and under the
custody and control of, such financial institutions, by means of
false and fraudulent pretenses, representations and promises, to
wit, MA engaged in a scheme to obtain over $20 million in
Government-guaranteed loans for the Ma Companies from FDIC-
insured banks through the PPP by means of false and fraudulent
pretenses, representations, and documents.
(Title 18, United States Code, Sections 1344 and 2.)
COUNT THREE
(Wire Fraud)
3. From at least in or about March 2020 through at least
on or about May 15, 2020, in the Southern District of New York
and elsewhere, MUGE MA, a/k/a “Hummer Mars,” the defendant,
having devised and intending to devise a scheme and artifice to
defraud, and for obtaining money and property by means of false
and fraudulent pretenses, representations, and promises,
knowingly transmitted and caused to be transmitted by means of
wire, radio, and television communication in interstate and
foreign commerce, writings, signs, signals, pictures, and
sounds, for the purpose of executing such scheme and artifice,
which affected a financial institution, to wit, MA engaged in a
scheme to obtain over $20 million in Government-guaranteed loans
for the Ma Companies from the SBA and financial institutions
through the PPP and the EIDL Program by means of false and
fraudulent pretenses, representations, and documents, including
2
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 3 of 24
emails transmitted into and out of the Southern District of New
York.
(Title 18, United States Code, Sections 1343 and 2.)
COUNT FOUR
(Making False Statements to a Bank)
4. From at least in or about March 2020 through at least
on or about May 15, 2020, in the Southern District of New York
and elsewhere, MUGE MA, a/k/a “Hummer Mars,” the defendant,
knowingly made false statements and reports and willfully
overvalued land, property, and security, for the purpose of
influencing the actions of financial institutions, the accounts
of which were insured by the FDIC, in connection with an
application, advance, discount, purchase, purchase agreement,
repurchase agreement, commitment, and loan, to wit, MA made
false statements to FDIC-insured banks regarding, among other
things, the number of employees of the Ma Companies and the
wages paid to employees of the Ma Companies, for the purpose of
obtaining over $20 million in Government-guaranteed loans for
the Ma Companies through the PPP.
(Title 18, United States Code, Sections 1014 and 2.)
COUNT FIVE
(Making False Statements)
5. From at least in or about March 2020 through at least
on or about May 15, 2020, in the Southern District of New York
and elsewhere, MUGE MA, a/k/a “Hummer Mars,” the defendant, in a
matter within the jurisdiction of the executive branch of the
Government of the United States, knowingly and willfully made a
materially false, fictitious, and fraudulent statement and
representation and made and used a false writing and document
knowing the same to contain a materially false, fictitious, and
fraudulent statement and entry, to wit, MA made false statements
to the SBA regarding, among other things, the number of
employees of the Ma Companies, for the purpose of obtaining a
total of approximately $650,000 for the Ma Companies through the
EIDL Program administered by the SBA.
(Title 18, United States Code, Sections 1001 and 2.)
3
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 4 of 24
COUNT SIX
(Making False Statements to the SBA)
6. From at least in or about March 2020 through at least
on or about May 15, 2020, in the Southern District of New York
and elsewhere, MUGE MA, a/k/a “Hummer Mars,” the defendant,
knowingly and willfully made a false statement for the purpose
of obtaining a loan for an applicant, influencing in any way the
action of the SBA, and obtaining money, property, or anything of
value, under Chapter 14 of Title 15 of the United States Code,
to wit, MA made false statements to the SBA regarding, among
other things, the number of employees of the Ma Companies, for
the purpose of obtaining a total of approximately $650,000 for
the Ma Companies through the EIDL Program administered by the
SBA.
(Title 15, United States Code, Sections 645(a), and Title 18,
United States Code, Section 2.)
The bases for my knowledge and for the foregoing charges
are, in part, as follows:
7. I am a Special Agent with the FBI and I have been
personally involved in the investigation of this matter. This
affidavit is based upon my personal participation in the
investigation of this matter, my conversations with law
enforcement agents, witnesses, and others, as well as my
examination of report and records. Because this affidavit is
being submitted for the limited purpose of establishing probable
cause, it does not include all the facts that I have learned
during the course of my investigation. Where the contents of
documents and the actions, statements, and conversations of
others are reported herein, they are reported in substance and
in part, except where otherwise indicated. Where figures,
calculations, and dates are set forth herein, they are
approximate, unless stated otherwise.
Overview of the Fraudulent Conduct
8. MUGE MA, a/k/a “Hummer Mars,” the defendant, is a
Chinese national presently residing in Manhattan, New York with
lawful permanent resident status in the United States.
According to his publicly available LinkedIn profile, MA earned
a Master of Business Administration in or about 2013, and has
been the Executive Director of NYIC since in or about June 2016,
and the Executive Director of Hurley since in or about January
2019. Based on their websites described herein, the Ma
4
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 5 of 24
Companies are purportedly “global” companies with hundreds of
employees.
9. From at least in or about March 2020 through at least
on or about May 15, 2020, MUGE MA, a/k/a “Hummer Mars,” the
defendant, applied to the SBA and at least five banks for a
total of over $20 million in government-guaranteed loans for the
Ma Companies through the SBA’s PPP and EIDL Program. In
connection with these loan applications, MA represented, among
other things, that he was the sole owner and executive director
of the Ma Companies, that the Ma Companies were located on the
sixth floor of a luxury condominium building in Manhattan, New
York (the “Condo Building”), and that NYIC and Hurley together
had hundreds of employees and paid millions of dollars in wages
to those employees on a monthly basis. In fact, however, as
described below, MA appears to have been the only employee of
NYIC since at least in or about 2019, and Hurley does not appear
to have any employees. In order to support the false
representations made by MA in the loan applications about the
number of employees at and the wages paid by the Ma Companies,
MA submitted fraudulent and doctored bank records, tax records,
insurance records, payroll records, and/or audited financial
statements to at least five banks.
10. Before the discovery of the fraudulent conduct by MUGE
MA, a/k/a “Hummer Mars,” the defendant, the SBA approved a
$500,000 EIDL Program loan for NYIC and a $150,000 EIDL Program
loan for Hurley, and a $10,000 loan advance was provided to
NYIC. In addition, a bank approved and disbursed over
approximately $800,000 in PPP loan funds for Hurley, which were
frozen in connection this investigation. As a result, MA sought
to withdraw his loan applications from the financial
institutions and return the funds.
11. Finally, MUGE MA, a/k/a “Hummer Mars,” the defendant,
and individuals purporting to work for NYIC, have fraudulently
represented to a COVID-19 test kit manufacturer and a medical
equipment supplier that NYIC is representing the New York State
Government and the Governor of New York in procuring COVID-19
test kits and personal protective equipment to respond to the
COVID-19 pandemic. NYIC is not, however, an authorized vendor
of New York State, nor has NYIC been authorized to represent New
York State in connection with the procurement of COVID-19
supplies.
5
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 6 of 24
Background on SBA Lending in Response to COVID-19
12. The SBA is a federal agency of the Executive Branch
that administers assistance to American small businesses. This
assistance includes guaranteeing loans that are issued by
certain lenders to qualifying small businesses. Under the SBA
loan guarantee programs, the actual loan is issued by a
commercial lender, but the lender receives the full faith and
credit backing of the United States Federal Government on a
percentage of the loan. Therefore, if a borrower defaults on an
SBA-guaranteed loan, the commercial lender may seek
reimbursement from the SBA, up to the percentage of the
guarantee. By reducing the risk to commercial lenders, the SBA
loan guarantee programs enable lenders to provide loans to
qualifying small businesses when financing is otherwise
unavailable to them on reasonable terms through normal lending
channels. When a borrower seeks an SBA-guaranteed loan, the
borrower must meet both the commercial lender’s eligibility
requirements for the loan as well as the SBA’s eligibility
requirements.
13. The Coronavirus Aid, Relief, and Economic Security
(“CARES”) Act is a federal law enacted on March 29, 2020
designed to provide emergency financial assistance to the
millions of Americans who are 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 the PPP. On April 24, 2020, the
Paycheck Protection Program and Health Care Enhancement Act was
signed into law, authorizing over $300 billion in additional PPP
funding.
14. The PPP allows qualifying small businesses and other
organizations to receive unsecured SBA-guaranteed loans with a
maturity of two years and interest rate of one percent. PPP
loan proceeds must be used by businesses on payroll costs,
mortgage interest, rent, and/or utilities. The PPP allows the
interest and principal to be forgiven if businesses spend the
proceeds on these expenses within eight weeks of receipt and use
at least 75% of the forgiven amount for payroll. Pursuant to
the CARES Act, the amount of PPP funds a business is eligible to
receive is determined by the number of employees employed by the
business and their average payroll costs. Businesses applying
for a PPP loan must provide documentation to confirm that they
have in the past paid employees the compensation represented in
the loan application. The PPP is overseen by the SBA, which has
6
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 7 of 24
authority over all PPP loans, but individual PPP loans are
issued by approved commercial lenders who receive and process
PPP applications and supporting documentation, and then make
loans using the lenders’ own funds.
15. The CARES Act also expanded the separate EIDL Program,
which provides small businesses with low-interest loans of up to
$2 million that can provide vital economic support to help
overcome the temporary loss of revenue they are experiencing due
to COVID-19. To qualify for an EIDL under the CARES Act, the
applicant must have suffered “substantial economic injury” from
COVID-19, based on a company’s actual economic injury determined
by the SBA, up to $2 million. EIDLs may be used for payroll and
other costs as well as to cover increased costs due to supply
chain interruption, to pay obligations that cannot be met due to
revenue loss, and for other similar uses. The CARES Act also
permits applicants to request an advance of up to $10,000 to pay
allowable working capital needs, which is expected to be paid by
the SBA within three days of submission of an EIDL application
to the SBA, provided the application contains a self-
certification under penalty of perjury of the applicant’s
eligibility for an EIDL. Unlike the PPP, the SBA directly makes
loans to applicants under the EIDL Program.
The Ma Companies
16. Based on my review of publicly available information
from the website of the Delaware Department of State, Division
of Corporations, as well as records provided by MUGE MA, a/k/a
“Hummer Mars,” the defendant, to the SBA and financial
institutions, I have learned the following, in substance and in
part:
a. NYIC is a Delaware limited liability company that
was formed on or about June 20, 2016 with MA as the sole member.
b. Hurley is a Delaware limited liability company
that was formed on or about January 28, 2019 with MA as the sole
member.
17. Based on my review of the website for NYIC accessible
via https://www.nyinternationalcapital.com as of on or about May
16, 2020 (the “NYIC Website”), I have learned the following, in
substance and in part:
a. The homepage of the NYIC Website describes NYIC
as follows:
7
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 8 of 24
NYIC is a patriotic American CLOUD-based
Management Consulting firm headquartered in
Manhattan, New York City. NYIC has the unique
ability to deploy HUNDREDS of brilliant, hard-
working & passionate young professionals ALL
dedicated to YOUR project connecting you with
10,000+ CHIEF EXECUTIVES of the world’s
10,000+ BLUE-CHIPs as your strategic partners
in the speed of light.
b. A section of the NYIC Website titled “THE ONE THE
ONLY” states the following:
Coordinated by the Manhattan New York City
headquarters, NYIC’s MULTIPLE TEAMS spread
over the entire country work SEAMLESSLY
connecting YOU with the world’s BLUE-CHIPs and
make them as your strategic partners. The work
can be DONE ONLY WITHIN WEEKs, soliciting
MULTIPLE OFFERs, having them COMPETE EACH
OTHER HEAD TO HEAD in front of YOU for you to
engage the one with THE BEST FIT.
c. The NYIC Website displays numerous purported
photos of MUGE MA, a/k/a “Hummer Mars,” the defendant, and
other purported employees of NYIC meeting with government and
business leaders around the world, including the New York State
Governor, a former New York City Mayor, and chief executives of
major corporations.
d. The “NYIC GLOBAL HEADQUARTERS” is purportedly
located on the sixth floor of the Condo Building.
18. Based on my review of the website for Hurley
accessible via https://www.hurleyhumanresources.com as of on or
about May 16, 2020 (the “Hurley Website”), I have learned the
following, in substance and in part:
a. A section of the Hurley Website titled “ABOUT”
states the following: “HURLEY HR is a global human resources
consulting firm with its global headquarters in Manhattan, New
York City.”
b. A section of the Hurley Website titled “CORE
EXPERTISE” states the following: “HURLEY HR’s core expertise
include Mergers & Acquisitions, Debt Financing, Growth Equity,
8
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 9 of 24
Joint Venture/Partnering, Valuations/Fairness Opinion, and
Strategic Advisory human resources management. HURLEY HR offers
products and services on a global scale.”
c. A section of the Hurley Website titled “Global
Capabilities” contains photos depicting and listing the
following cities around the world: New York City, London, Hong
Kong, Frankfurt, Shanghai, Paris, Beijing, São Paulo, Tokyo, Los
Angeles, Shen Zhen, San Francisco, and Hang Zhou.
d. The “HURLEY HR GLOBAL HEADQUARTERS” is
purportedly located at 85F One World Trade Center in Manhattan,
New York.
The EIDL Applications to the SBA for NYIC and Hurley
19. Based on my review of records obtained from the SBA, I
have learned the following, in substance and in part, regarding
an EIDL application for NYIC submitted by MUGE MA, a/k/a “Hummer
Mars,” the defendant:
a. On or about March 30, 2020, MA applied to the SBA
for an EIDL for NYIC.
b. The EIDL application for NYIC represented, in
substance and in part, that NYIC opened for business on or about
June 19, 2016, had 197 employees, and had gross revenues of $2.9
million for the 12 months prior to the COVID-19 disaster. The
application also represented that MA was the sole owner of NYIC
and a U.S. citizen. The address listed in the application for
both NYIC and MA was the Condo Building.
c. In email correspondence with the SBA, MA used the
name “Hummer Mars.” When the SBA inquired about his legal name,
MA wrote the following, in substance and in part: “Hummer Mars
is my American name I have been proudly using everywhere since I
permanently moved to the United States a decade ago. MUGE MA is
my original name and legal name at this moment.” MA also
included a link to the NYIC Website in his email correspondence
with the SBA.
d. On or about April 15, 2020, an EIDL advance of
$10,000 was deposited into NYIC’s bank account, a portion of
which was spent at a consumer electronics store and a department
store.
9
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 10 of 24
e. On or about April 27, 2020, the SBA authorized a
$500,000 EIDL to NYIC. The same day, MA signed a Loan
Authorization and Agreement with the SBA in which he certified,
among other things, the following: “All representations in the
Borrower’s Loan application (including all supplementary
submissions) are true, correct and complete and are offered to
induce SBA to make this Loan.”
20. Based on my review of records obtained from the SBA, I
have learned the following, in substance and in part, regarding
an EIDL application for Hurley submitted by MUGE MA, a/k/a
“Hummer Mars,” the defendant:
a. On or about March 30, 2020, MA applied to the SBA
for an EIDL for Hurley.
b. The EIDL application for Hurley represented, in
substance and in part, that Hurley opened for business on or
about January 28, 2019, had 147 employees, and had gross
revenues of $1.51 million for the 12 months prior to the COVID-
19 disaster. The application also represented that MA was the
sole owner of Hurley and a U.S. citizen. The address listed in
the application for both NYIC and MA was the Condo Building,
with a certain unit of the Condo Building specified for MA’s
residence (the “Ma Apartment”).
c. In email correspondence with the SBA, MA provided
a company profile for Hurley that listed the Hurley Website and
stated the following, in substance and in part:
HURLEY HR’s mission is to help American
workers and recent graduates find jobs. The
employers HURLEY HR work with include U.S.-
based small and medium-sized businesses
(“SMBs”), large corporations, and blue-chip
companies based both in the U.S. and overseas.
. . .
The short-term strategic goal of HURLEY HR is
preventing an irreversible disruption of its
operation caused by the pandemic. The final
strategic goal of HURLEY HR is to help the
country reduce the high unemployment rate
caused by the pandemic by helping unemployed
American workers and unemployed American fresh
graduates find jobs as quickly as possible by
introducing American job seekers with HURLEY
10
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 11 of 24
HR’s U.S. and international employer
connections.
d. On or about May 13, 2020, the SBA authorized a
$150,000 EIDL to Hurley, which was put on hold as a result of
this investigation.
The PPP Loan Application for Hurley to Bank-1
21. Based on my review of records obtained from a
financial institution headquartered in Manhattan, New York
(“Bank-1”) and my conversations with representatives of Bank-1,
I have learned the following, in substance and in part,
regarding a PPP loan application for Hurley submitted by MUGE
MA, a/k/a “Hummer Mars,” the defendant:
a. On or about April 20, 2020, MA applied to Bank-1
for a $4,859,500 PPP loan for Hurley. The loan amount requested
by MA was subsequently reduced to $813,250 in an amended PPP
loan application dated May 6, 2020 (the “Bank-1 Application”).
b. The Bank-1 Application for Hurley signed by MA
represented, in substance and in part, that Hurley had an
average monthly payroll of approximately $325,300, had 163
employees, and that the loan funds would be used for payroll,
lease/mortgage interest, and utilities. The Bank-1 Application
also represented that MA was the sole owner and executive
director of Hurley and a U.S. citizen. The address listed in
the application for Hurley was the sixth floor of the Condo
Building, and the address listed for MA was the Condo Building.
c. In the Bank-1 Application, MA certified, in
substance and in part, the following:
i. MA was not the owner of any business other
than Hurley;
ii. The United States was the principal place of
residence for all employees of Hurley included in the payroll
calculation;
iii. Current economic uncertainty makes the loan
request necessary to support the ongoing operations of Hurley;
iv. Hurley will provide documentation verifying
the number of full-time equivalent employees on Hurley’s payroll
as well as the dollar amounts of payroll costs;
11
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 12 of 24
v. The information provided in the loan
application and in all supporting documents and forms is true
and accurate in all material respects; and
vi. MA understood that knowingly making a false
statement to obtain a guaranteed loan from the SBA is punishable
under the law.
d. In order to support the representations regarding
the number of employees and average monthly payroll for Hurley
in the Bank-1 Application, MA submitted the following documents
to Bank-1:
i. A purported Internal Revenue Service (“IRS”)
Form 941 (Employer’s Quarterly Federal Tax Return) for Hurley
for the first quarter of 2019, which was signed by MA on or
about March 31, 2020 and reported that Hurley had 158 employees
who were paid a total of approximately $975,900 during the
period.1
ii. A purported IRS Form W-3 (Transmittal of
Wage and Tax Statements) for Hurley, which was signed by MA on
or about March 31, 2020 and reported a total number of 158 Forms
W-2 filed for employees and a total of approximately $3.904
million in wages, tips, and other compensation paid in 2019.2
iii. A purported IRS Form 1120 (U.S. Corporation
Income Tax Return) for Hurley for 2019, which was signed by MA
and reported gross revenues of approximately $6.789 million and
salaries and wages paid of approximately $3.904 million.
iv. A document purportedly issued by a payroll
company (the “Payroll Company”) addressed to MA stating, in
substance and in part, that Hurley’s payroll for the pay period
1 IRS Form 941 is used to report wages a business has paid as
well as employment taxes withheld. Form 941 is generally due by
the last day of the month following the end of the quarter. For
example, a business is required to file Form 941 by April 30 for
wages paid during the first quarter, which is January through
March.
2 IRS Form W-3 provides a summary of the wages and contributions
paid by a business for the previous year, and essentially totals
up all of the Form W-2 data that the business submits in an
overview document.
12
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 13 of 24
of December 16, 2019 through December 31, 2019 had been approved
and submitted for processing.
e. MA also provided a document to Bank-1 containing
a description of Hurley’s business, which stated the following,
in substance and in part: “About 70% of our employees are
managers who manage our engaged institutional and individual
clients as well as the managers’ associates. The rest of our
staff are our administrative executives who focus on running our
company’s day-to-day operation in various aspects.”
f. On or about May 6, 2020, Bank-1 approved a
$813,250 PPP loan to Hurley, which was disbursed to Hurley’s
account at Bank-1 on or about May 13, 2020. As a result of this
investigation, however, the loan funds and other accounts held
by MA at Bank-1 were frozen by Bank-1.
g. On or about May 14, 2020, after MA learned that
Hurley’s bank account and his accounts at Bank-1 had been frozen
pending an investigation by Bank-1, MA informed Bank-1, in
substance in part, that he wanted to return the funds.
The PPP Loan Application for NYIC to Bank-2
22. Based on my review of records obtained from a
financial institution headquartered in Manhattan, New York
(“Bank-2”), I have learned the following, in substance and in
part, regarding a PPP loan application for NYIC submitted by
MUGE MA, a/k/a “Hummer Mars,” the defendant:
a. On or about April 24, 2020, MA applied to Bank-2
for a $6,174,658 PPP loan for NYIC (the “Bank-2 Application”).
b. The Bank-2 Application for NYIC signed by MA
represented, in substance and in part, that NYIC had an average
monthly payroll of approximately $2,469,863, had 483 employees,
and that the loan funds would be used for payroll and
lease/mortgage interest. The Bank-2 Application also
represented that MA was the sole owner and executive director of
NYIC and a U.S. citizen. The address listed in the application
for NYIC was the sixth floor of the Condo Building, and the
address listed for MA was the Condo Building.
c. In the Bank-2 Application, MA certified, in
substance and in part, the following:
13
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 14 of 24
i. MA was not the owner of any business other
than NYIC;
ii. The United States was the principal place of
residence for all employees of NYIC included in the payroll
calculation;
iii. Current economic uncertainty makes the loan
request necessary to support the ongoing operations of NYIC;
iv. NYIC will provide documentation verifying
the number of full-time equivalent employees on NYIC’s payroll
as well as the dollar amounts of payroll costs;
v. The information provided in the loan
application and in all supporting documents and forms is true
and accurate in all material respects; and
vi. MA understood that knowingly making a false
statement to obtain a guaranteed loan from the SBA is punishable
under the law.
d. In order to support the representations regarding
the number of employees and average monthly payroll for NYIC in
the Bank-2 Application, MA submitted the following documents to
Bank-2:
i. A purported IRS Form 941 for NYIC for the
first quarter of 2019, which was signed by MA on or about March
31, 2020 and reported that NYIC had 495 employees who were paid
a total of approximately $8.002 million during the period.
ii. A purported IRS Form 941 for NYIC for the
second quarter of 2019, which was signed by MA on or about March
31, 2020 and reported that NYIC had 421 employees who were paid
a total of approximately $6.817 million during the period.
iii. A purported IRS Form 941 for NYIC for the
third quarter of 2019, which was signed by MA on or about March
31, 2020 and reported that NYIC had 440 employees who were paid
a total of approximately $7.113 million during the period.
iv. A purported IRS Form 941 for NYIC for the
fourth quarter of 2019, which was signed by MA on or about March
31, 2020 and reported that NYIC had 476 employees who were paid
a total of approximately $7.706 million during the period.
14
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 15 of 24
v. A purported IRS Form W-3 for NYIC, which was
signed by MA on or about March 31, 2020 and reported a total
number of 458 Forms W-2 filed for employees and a total of
approximately $29.638 million in wages, tips, and other
compensation paid in 2019.
vi. A purported IRS Form 1120 for NYIC for 2019,
which was signed by MA on or about March 30, 2020 and reported
gross revenues of approximately $41.744 million and salaries and
wages paid of approximately $29.638 million.
vii. A document purportedly issued by the Payroll
Company addressed to NYIC stating, in substance and in part,
that NYIC’s payroll for the pay period of March 16, 2020 through
March 31, 2020 had been approved and submitted for processing.
viii. Audited consolidated financial statements
for 2018 and 2019 purportedly certified by a “Big Four”
accounting firm (the “Accounting Firm”), which reported total
revenues of approximately $41.744 million in 2019 and $30.921
million in 2018, and total assets of approximately $34.078
million in 2019 and $26.482 million in 2018.
e. Bank-2 ultimately denied the PPP loan application
based on potential fraud.
The PPP Loan Application for NYIC to Bank-3
23. Based on my review of records obtained from a
financial institution headquartered in Providence, Rhode Island
(“Bank-3”), I have learned the following, in substance and in
part, regarding a PPP loan application for NYIC submitted by
MUGE MA, a/k/a “Hummer Mars,” the defendant:
a. On or about April 27, 2020, three days after MA
submitted the Bank-2 Application, MA applied to Bank-3 for a
$4,464,600 PPP loan for NYIC (the “Bank-3 Application”).
b. The Bank-3 Application for NYIC signed by MA
represented, in substance and in part, that NYIC had monthly
payroll costs of approximately $1,789,861, had over 250
employees, and that the loan funds would be used for payroll and
lease/mortgage interest. The Bank-3 Application also
represented that MA was the sole owner of NYIC and a U.S.
citizen. The address listed in the application for NYIC was the
sixth floor of the Condo Building, and the address listed for MA
was the Ma Apartment in the Condo Building.
15
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 16 of 24
c. In the Bank-3 Application, MA certified, in
substance and in part, the following:
i. MA was not the owner of any business other
than NYIC;
ii. The United States was the principal place of
residence for all employees of NYIC included in the payroll
calculation;
iii. Current economic uncertainty makes the loan
request necessary to support the ongoing operations of NYIC;
iv. NYIC will provide documentation verifying
the number of full-time equivalent employees on NYIC’s payroll
as well as the dollar amounts of payroll costs;
v. The information provided in the loan
application and in all supporting documents and forms is true
and accurate in all material respects; and
vi. MA understood that knowingly making a false
statement to obtain a guaranteed loan from the SBA is punishable
under the law.
d. In order to support the representations regarding
the number of employees and average monthly payroll for NYIC in
the Bank-3 Application, MA submitted to Bank-3 the same
purported IRS Forms 941 for each quarter of 2019 and the same
purported IRS Form W-3 provided to Bank-2 in connection with the
Bank-2 Application.
e. Bank-3 ultimately denied the PPP loan application
based on potential fraud.
The PPP Loan Application for NYIC to Bank-4
24. Based on my review of records obtained from a
financial institution headquartered in Detroit, Michigan (“Bank-
4”), I have learned the following, in substance and in part,
regarding a PPP loan application for NYIC submitted by MUGE MA,
a/k/a “Hummer Mars,” the defendant:
a. On or about April 28, 2020, three days after MA
submitted the Bank-2 Application and one day after MA submitted
16
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 17 of 24
the Bank-3 Application, MA applied to Bank-4 for a $4,484,654.32
PPP loan for NYIC (the “Bank-4 Application”).
b. The Bank-4 Application for NYIC signed by MA
represented, in substance and in part, that NYIC had an average
monthly payroll of approximately $1,605,410, had 313 employees,
and that the loan funds would be used for payroll and
lease/mortgage interest. The application also represented that
MA was the sole owner and executive director of NYIC and a U.S.
citizen. The address listed in the application for NYIC was the
sixth floor of the Condo Building, and the address listed for MA
was the Ma Apartment in the Condo Building.
c. In the Bank-4 Application, MA certified, in
substance and in part, the following:
i. MA was not the owner of any business other
than NYIC;
ii. The United States was the principal place of
residence for all employees of NYIC included in the payroll
calculation;
iii. Current economic uncertainty makes the loan
request necessary to support the ongoing operations of NYIC;
iv. NYIC will provide documentation verifying
the number of full-time equivalent employees on NYIC’s payroll
as well as the dollar amounts of payroll costs;
v. The information provided in the loan
application and in all supporting documents and forms is true
and accurate in all material respects; and
vi. MA understood that knowingly making a false
statement to obtain a guaranteed loan from the SBA is punishable
under the law.
d. In order to support the representations regarding
the number of employees and average monthly payroll for NYIC in
the Bank-4 Application, MA submitted the following documents to
Bank-4:
i. A purported statement for a bank account in
the name of NYIC at Bank-2 (the “NYIC Bank-2 Account”) for the
period from March 27, 2020 through April 27, 2020, which
reflected a beginning balance of approximately $10.284 million
17
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 18 of 24
and approximately $2.762 million in purported payroll payments
on or about April 1, 2020.
ii. Purported payment receipts from an insurance
company (the “Insurance Company”) for group healthcare insurance
for NYIC for each month from in or about December 2018 through
in or about December 2019.
iii. An annual payroll report for NYIC
purportedly issued by the Payroll Company, which reflected a
total payroll for 2019 of approximately $20.395 million and a
total employee count of 313.
e. On or about May 14, 2020, after Bank-4 had denied
NYIC’s PPP loan application and after Bank-1 had frozen Hurley’s
PPP loan funds pending an investigation, MA emailed Bank-4 and
stated, in substance and in part, that NYIC wanted to withdraw
and cancel its PPP loan application “because our company does
not want the PPP.”
The PPP Loan Application for NYIC to Bank-5
25. Based on my review of records obtained from a
financial institution headquartered in San Francisco, California
(“Bank-5”), I have learned the following, in substance and in
part, regarding a PPP loan application for NYIC submitted by
MUGE MA, a/k/a “Hummer Mars,” the defendant:
a. On or about May 7, 2020, approximately two weeks
after MA submitted the Bank-2 Application and approximately ten
days after MA submitted the Bank-3 Application and the Bank-4
Application, MA applied to Bank-5 for a $4,885,783.83 PPP loan
for NYIC (the “Bank-5 Application”).
b. The Bank-5 Application for NYIC signed by MA
represented, in substance and in part, that NYIC had an average
monthly payroll of approximately $1,954,313, had 240 employees,
and that the loan funds would be used for payroll and
lease/mortgage interest. The application also represented that
MA was the sole owner and executive director of NYIC and a U.S.
citizen. The address listed in the application for NYIC was the
sixth floor of the Condo Building, and the address listed for MA
was the Ma Apartment in the Condo Building.
c. In the Bank-5 Application, MA certified, in
substance and in part, the following:
18
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 19 of 24
i. MA was not the owner of any business other
than NYIC;
ii. The United States was the principal place of
residence for all employees of NYIC included in the payroll
calculation;
iii. Current economic uncertainty makes the loan
request necessary to support the ongoing operations of NYIC;
iv. NYIC will provide documentation verifying
the number of full-time equivalent employees on NYIC’s payroll
as well as the dollar amounts of payroll costs;
v. The information provided in the loan
application and in all supporting documents and forms is true
and accurate in all material respects; and
vi. MA understood that knowingly making a false
statement to obtain a guaranteed loan from the SBA is punishable
under the law.
d. In order to support the representations regarding
the number of employees and average monthly payroll for NYIC in
the Bank-5 Application, MA submitted the following documents to
Bank-5:
i. The same purported IRS Forms 941 for each
quarter of 2019 provided to Bank-2 in connection with the Bank-2
Application and Bank-3 in connection with the Bank-3
Application.
ii. Documents purportedly issued by the Payroll
Company addressed to NYIC stating, in substance and in part,
that NYIC’s payroll for each month from in or about January 2019
through in or about March 2020 had been approved and submitted
for processing.
iii. A Bank-5 payroll expenses worksheet
reflecting a purported average monthly payroll of approximately
$1,954,313 and an average number of employees of 240 for the
past year.
e. Bank-5 ultimately denied the PPP loan
application.
19
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 20 of 24
26. Based on my training and experience and my
participation in this investigation, I know that the deposits of
Bank-1, Bank-2, Bank-3, Bank-4, and Bank-5 were insured by the
FDIC at all relevant times.
Evidence of MA’s Submission of Fraudulent Documents
27. Based on my review of tax records for NYIC and Hurley
obtained from the IRS, I have learned, in substance and in part,
that the IRS Forms 941, 1120, and W-3 submitted by MUGE MA,
a/k/a “Hummer Mars,” the defendant, in connection with the PPP
loan applications to Bank-1, Bank-2, Bank-3, and Bank-5, which
are summarized above in paragraphs 21(d)(i)-(iii), 22(d)(i)-
(vi), 23(d), and 25(d)(i), were never actually filed with the
IRS and were fabricated. Rather, the actual IRS Forms 941 filed
by NYIC with the IRS reflect that NYIC did not pay any wages to
any employees in 2019. In addition, NYIC has not filed any IRS
Forms 1120 or W-3 for 2019, and Hurley has not filed any tax
forms with the IRS.
28. Based on my review of records and correspondence
obtained from the Payroll Company, I have learned the following,
in substance and in part:
a. Hurley has never had an account with the Payroll
Company. Accordingly, the payroll document submitted by MUGE
MA, a/k/a “Hummer Mars,” the defendant, in connection with the
Bank-1 Application, which is summarized above in paragraph
21(d)(iv), was fabricated.
b. NYIC had an account with the Payroll Company from
in or about March 2017 through in or about October 2019. For
the period from January 1, 2018 through October 2019, the only
employee of NYIC was MA, who was paid a total of $30,000 for the
three pay periods from on or about December 16, 2017 through on
or about January 31, 2018. Accordingly, the payroll documents
submitted by MA in connection with the PPP loan applications to
Bank-2, Bank-4, and Bank-5, which are summarized above in
paragraphs 22(d)(vii), 24(d)(iii), and 25(d)(ii), were
fabricated.
29. Based on my review of correspondence from the
Accounting Firm, I have learned, in substance and in part, that
NYIC was never a client of the Accounting Firm. Accordingly,
the NYIC audited consolidated financial statements for 2018 and
2019 submitted by MUGE MA, a/k/a “Hummer Mars,” the defendant,
20
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 21 of 24
in connection with the Bank-2 Application, which are summarized
above in paragraph 22(d)(viii), were fabricated.
30. Based on my review of records obtained from Bank-2 for
the NYIC Bank-2 Account, I have learned, in substance and in
part, the following:
a. Contrary to the statement for the NYIC Bank-2
Account submitted by MUGE MA, a/k/a “Hummer Mars,” the
defendant, in connection with the Bank-4 Application, which is
summarized above in paragraph 24(d)(i) and reflects a beginning
balance of approximately $10.284 million on or about March 27,
2020, the actual bank statement for the same period provided by
Bank-2 reflects a beginning balance of $510.25 on or about March
27, 2020.
b. Contrary to the statement for the NYIC Bank-2
Account submitted by MA in connection with the Bank-4
Application, which is summarized above in paragraph 24(d)(i) and
reflects approximately $2.762 million in purported payroll
payments on or about April 1, 2020, the actual bank statement
for the same period provided by Bank-2 reflects only a charge of
$21.56 on or about April 1, 2020 for newspaper delivery.
c. Based on my comparison of the statement for the
NYIC Bank-2 Account provided by MA in connection with the Bank-4
Application and the actual bank statement for the same period
provided by Bank-2, it appears that MA also doctored several of
the actual debit and credit entries in the statement by adding
zeroes or otherwise increasing the amounts in order to inflate
the amount of funds appearing in the statement. For example,
the first debit in the actual bank statement provided by Bank-2
reflects a $61.00 debit for a consumer electronics store on or
about March 30, 2020, whereas the purported bank statement
provided by MA to Bank-4 reflects a debit of $6,100.00 for the
same consumer electronics store on the same day. Similarly, the
actual bank statement provided by Bank-2 reflects a credit on or
about April 16, 2020 in the amount of $6,292.00, whereas the
purported bank statement provided by MA to Bank-4 reflects a
credit of $2,200,000.00 on the same day.
d. Accordingly, the purported statement for the NYIC
Bank-2 Account submitted by MA in connection with the Bank-4
Application was fabricated.
31. Based on my review of correspondence from the
Insurance Company, I have learned, in substance and in part,
21
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 22 of 24
that NYIC has never held an insurance policy with the Insurance
Company. Accordingly, the purported payment receipts from the
Insurance Company submitted by MUGE MA, a/k/a “Hummer Mars,” the
defendant, in connection with the Bank-4 Application, which are
summarized above in paragraph 24(d)(ii), were fabricated.
32. Based on my conversation with a representative of the
company managing the Condo Building, I have learned that the
Condo Building is a residential-only building with no commercial
space and that the sixth floor of the Condo Building, where the
Ma Companies are purportedly located, primarily contains a
lounge and other amenities available for residents.
33. Based on my review of correspondence with a
representative of U.S. Customs and Border Protection (“CBP”), I
have learned that, contrary to the representations by MUGE MA,
a/k/a “Hummer Mars,” the defendant, in the loan applications
described above that he is a U.S. citizen, MA is actually a
Chinese national with lawful permanent resident status since on
or about March 24, 2017.
Fraudulent Representations by NYIC in Connection with
Procurement of COVID-19 Test Kits and PPE
34. Based on email correspondence I obtained from medical
equipment suppliers to New York State, I have learned the
following, in substance and in part:
a. On or about April 23, 2020, the day before MUGE
MA, a/k/a “Hummer Mars,” the defendant, submitted the Bank-2
Application for NYIC, a purported employee of NYIC (“NYIC
Employee-1”) emailed a manufacturer of COVID-19 test kits
headquartered in Canada (“Company-1”) and wrote the following,
in substance and in part: “Our investment bank is representing
New York State Government and the Governor of New York procuring
Testing Kits. We are interested in ordering Testing Kits in the
huge bulk.” The email then asked for information regarding
Company-1’s current stock of testing kits, production capacity
per day, unit price, and payment terms, including whether
Company-1 would accept payment in full upon delivery to a New
York airport. The email ended with the following: “Your prompt
response will be greatly appreciated because we are literally
saving lives.” NYIC Employee-1 copied three other email
addresses purporting to belong to NYIC employees on the email,
including one that appears to belong to MA’s spouse. The
signature for NYIC Employee-1 listed the sixth floor of the
Condo Building as the address for NYIC.
22
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 23 of 24
b. On or about April 27, 2020, the same day MA
submitted the Bank-3 Application for NYIC, another purported
employee of NYIC (“NYIC Employee-2”) emailed a personal
protective equipment (“PPE”) manufacturer headquartered in
Germany (“Company-2”) and wrote the following, in substance and
in part: “Our investment bank is representing New York State
Government and the Governor of New York procuring personal
protective equipment.” The email then listed 12 types of PPE
NYIC was interested in procuring, including KN95 masks,
protective gowns and goggles, face shields, and ventilators, and
stated “[w]e are interested in ordering 100,000,000 units of
each of the aforementioned PPEs.” The email then asked for
information regarding Company-2’s current stock of PPE,
production capacity per day, unit price of each PPE listed, and
payment terms, including whether Company-2 would accept payment
in full upon delivery to a New York airport. The email ended
with the following: “Your prompt response will be greatly
appreciated because we are literally saving lives.” NYIC
Employee-2 copied three other email addresses purporting to
belong to NYIC employees on the email, including two of the same
email addresses that were copied on the email to Company-1,
including the email address that appears to belong to MA’s
spouse. The signature for NYIC Employee-2 listed the sixth
floor of the Condo Building as the address for NYIC.
c. On or about May 17, 2020, another purported
employee of NYIC (“NYIC Employee-3”) emailed Company-2 seeking
to procure PPE and requested information from Company-2
regarding, among other things, Company-2’s product catalog,
pricing structure and payment terms, and current stock of PPE.
In the email, NYIC Employee-3 wrote the following, in substance
and in part: “As an investment bank, we are able to pay for
the order out of our strong balance sheets. . . . If you would
like to speak over the phone, you may call [a phone number
ending in 9839 (the “9839 Number”)] to speak with our Executive
Director who’s in charge of the procurement project.”
d. Based on my familiarity with this investigation,
I know that the 9839 Number is the phone number listed by MA in
the loan applications described above.
35. On or about May 18, 2020, I called the 9839 Number
posing as a sales representative of Company-2 and reached MUGE
MA, a/k/a “Hummer Mars,” the defendant, who identified himself
as “Hummer.” During this phone call, which was recorded, MA
represented, in substance and in part, that NYIC was a
23
Case 1:20-cr-00407-RMB Document 1 Filed 05/20/20 Page 24 of 24
registered vendor for New York State, among other state
governments, and that NYIC had a big team working on the deal.
36. Based on my review of correspondence with
representatives of New York State, NYIC is not an authorized
vendor of New York State and does not represent New York State
in procuring COVID-19 test kits or PPE.
WHEREFORE, I respectfully request that a warrant be issued
for the arrest of MUGE MA, a/k/a “Hummer Mars,” the defendant,
and that he be arrested and imprisoned or bailed, as the case
may be.
s/William R. McKeen by
KNF, USMJ
WILLIAM R. MCKEEN
Special Agent
Federal Bureau of Investigation
Sworn to me through the transmission
of this Affidavit by reliable electronic means,
pursuant to Federal Rules of Criminal Procedure
41(d)(3) and 4.1, this 20th day of May, 2020
__________________________________
THE HONORABLE KEVIN NATHANIEL FOX
UNITED STATES MAGISTRATE JUDGE
SOUTHERN DISTRICT OF NEW YORK
24
File and source
- File
- 1-complaint.pdf
- Size
- 311,378 bytes
- SHA-256
- 1e4b8779d15ddcc8d887c0790e32c7afe3c52f94911bdc87b20e2b90feb62d41
- Our copy
- 1-complaint.pdf
- Original
- archive.org