Criminal Complaint — United States v. Jacquelyn Pena (No. 2:21-mj-13427, D.N.J.)

Summary

A criminal complaint against Jacquelyn Pena, Case No. 2:21-mj-13427-LDW, in the U.S. District Court for the District of New Jersey, filed December 13, 2021 as Document 1, attested by a U.S. Postal Inspection Service inspector before Magistrate Judge Leda Dunn Wettre. Counts One Through Three charge bank fraud under Sections 1344(2) and 2 over PPP applications for Protemax Systems LLC and JP Interior Designs LLC that obtained approximately $46,500, $119,912 and $169,280, and Counts Four and Five charge money laundering under Sections 1957 and 2. The complaint alleges that Pena obtained approximately $335,692 using falsified employee counts, payroll records and federal tax documents that the SSA and IRS never received. It alleges transfers including $50,000 to an account in Pena's name and a withdrawal of approximately $11,274 for a cashier's check tied to a house purchase.

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Case 2:21-mj-13427-LDW Document1 Filed 12/13/21 Page 1 of 10 PagelD: 1

UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY

UNITED STATES OF AMERICA : Hon. Leda Dunn Wettre
i, > Mag. No. 21-13427
JACQUELYN PENA 3 CRIMINAL COMPLAINT

I, Postal Inspector Justyna Ramotowski, being duly sworn, state that the
following is true and correct to the best of my knowledge and belief:

SEE ATTACHMENT A

I further state that I am a Postal Inspector with the United States Postal
Inspection Service and that this complaint is based on the following facts:

SEE ATTACHMENT B
continued on the attached pages and made a part hereof.

Postal Insp@ctor Justyna Ramotowski
United States Postal Inspection Service

Postal Inspector Justyna Ramotowski attested to this Complaint by telephone
pursuant to Federal Rule of Criminal Procedure 4.1(b)(2)(A) on December 13, 2021
in New Jersey.

December 13, 2021 at
Newark, New Jersey

HONORABLE LEDA DUNN WETTRE Hon. Heda Dunn Ne Uy ce
UNITED STATES MAGISTRATE JUDGE Signature of Judicial Officer
Case 2:21-mj-13427-LDW Document1 Filed 12/13/21 Page 2 of 10 PagelD: 2

ATTACHMENT A

Counts One Through Three

(Bank Fraud)

From at least in or about July 2020 through in or about March 2021, in Middlesex
County, in the District of New Jersey and elsewhere, defendant

JACQUELYN PENA

did knowingly and intentionally execute and attempt to execute a scheme and artifice
to defraud one or more financial institutions, as defined by 18 U.S.C. § 20, to wit:
Lender 1 and Lender 2, the deposits of which were each insured by the Federal Deposit
Insurance Corporation, and to obtain moneys, funds, and credits owned by and under
the control of such financial institutions by means of materially false and fraudulent
pretenses, representations, and promises.

Pine Approximate Description
Date

1 July 25,2020 [PENA submitted a fraudulent loan application for
[Paycheck Protection Program (“PPP”) funds on behalf
of Protemax Systems LLC to Lender 1 and obtained
approximately $46,500 in PPP funds.

2 January 20, 2021 [PENA submitted a fraudulent loan application for PPP

funds on behalf of Protemax Systems LLC to Lender 1

and obtained approximately $119,912 in PPP funds.

3 March 16, 2021 [PENA submitted a fraudulent loan application for PPP

funds on behalf of JP Interior Designs LLC to Lender 2
and obtained approximately $169,280 in PPP funds.

In violation of Title 18, United States Code, Sections 1344(2) and 2.
Case 2:21-mj-13427-LDW Document1 Filed 12/13/21 Page 3 of 10 PagelD: 3

Counts Four and Five
(Money Laundering)

On or about the dates set forth below, in the District of New Jersey and
elsewhere, defendant

JACQUELYN PENA

did knowingly engage and attempt to engage in a monetary transaction by, through,
and to a financial institution, affecting interstate and foreign commerce, in criminally
derived property of a greater value than $10,000, that is, the transfer of U.S. currency
from bank accounts to the other bank accounts, cash withdrawals, foreign bank
transfers (defined in Attachment B), such property having been derived from a
specified unlawful activity, that is, wire fraud in violation of Title 18, United States
Code, Section 1343, and bank fraud, in violation of Title 18, United States Code,
Section 1344.

Count Approximate Description of Monetary Transaction
Date

Transfer from JP Interior Designs LLC bank account
4 April 30, 2021 at Bank 2 in the amount of approximately $50,000
to an account at Bank 2 held in PENA’s name.

Withdrawal from a bank account at Bank 2 held in
5 September 30, 2021 |PENA’s name in the amount of approximately
$11,274 to purchase a cashier’s check that was
megotiated at Bank 3.

In violation of Title 18, United States Code, Sections 1957 and 2.
Case 2:21-mj-13427-LDW Document1 Filed 12/13/21 Page 4 of 10 PagelD: 4

ATTACHMENT B

I, Justyna Ramotowski, a Postal Inspector with the United States Postal
Inspection Service, having conducted an investigation and having discussed this
matter with other law enforcement officers who have participated in this
investigation, have knowledge of the following facts. Because this Complaint is
being submitted for the limited purpose of establishing probable cause, I have not
included each and every fact known to me concerning this investigation. Rather, I
have set forth only the facts that I believe are necessary to establish probable cause.
Unless specifically indicated, all dates described in this affidavit are approximate
and all statements or representations described in this affidavit are related in
substance and in part.

Overview

1. From on or about July 25, 2020 through on or about March 16, 2021,
defendant JACQUELYN PENA (“PENA”) used a variety of false statements and
representations to fraudulently obtain approximately $335,692 in federal COVID-19
emergency relief loans meant for distressed small businesses. To obtain the loans,
PENA submitted falsified loan applications to three different lenders on behalf of
PENA’s purported businesses. On these loan applications, PENA falsified various
types of information associated with her purported businesses, including: the
number of employees; the names of employees; payroll records; and federal tax
documents. PENA then misused the loan proceeds, including by purchasing various
luxury items, and withdrawing large sums of cash.

Background

The Paycheck Protection Program

2. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a
federal law enacted in or about March 2020 and 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 a program referred
to as the Paycheck Protection Program (“PPP”). In oraround April 2020, Congress
authorized over $300 billion in additional PPP funding.

a. In order to obtain a PPP loan, a qualifying business must submit a PPP
loan application, which is signed by an authorized representative of the business.
The PPP loan application requires the business—through its authorized
representative—to acknowledge the program rules and make certain affirmative
certifications in order to be eligible to obtain the PPP loan. In the PPP loan
application, the small business must state, among other things, its: (a) average
monthly payroll expenses; and (b) number of employees. These figures are used to

4
Case 2:21-mj-13427-LDW Document1 Filed 12/13/21 Page 5 of 10 PagelD: 5

calculate the amount of moneythe small business is eligible to receive under the
PPP. In addition, businesses applying for a PPP loan must provide documentation
showing their payroll expenses.

4, A PPP loan application must be processed by a participating lender. Ifa
PPP loan application is approved, the participating lender funds the PPP loan using
its own money, which is 100% guaranteed by the SBA. Data from the application,
including information about the borrower, the total amount of the loan, and the
listed number of employees,is transmitted by the lender to the SBA in the course of
processing the loan.

5. PPP loan proceeds must be used by the business on certain permissible
expenses—payroll costs, interest on mortgages, rent, and utilities. The PPP allows
the interest and principal on the PPP loan to be entirely forgiven if the business
spends the loan proceeds on these expense items within a designated period of time
after receiving the proceeds and uses a certain amountof the PPP loan proceeds on
payroll expenses.

The Defendant and Relevant Entities
6. At all times as relevant to this Complaint:
a. PENA was a resident of Perth Amboy, New Jersey and the sole owner or

“member/manager” of the following entities through which she
fraudulently applied for PPP loan funds:

i. Protemax Systems LLC (“Protemax”) was a New Jersey limited
hability company that purported to be in the technology
distribution industry.

ii. JP Interior Designs LLC (“JP Interior”) was a New Jersey limited
liability company that purported to provide entertainment.

b. Lender 1 was a financial institution insured by the Federal Deposit
Insurance Corporation (“FDIC”) headquartered in New York, New York.

c. Lender 2 was a financial institution insured by the FDIC headquartered
in Boston, Massachusetts.

d. Bank 1 was a financial institution insured by the FDIC headquartered in
New York, New York.

e. Bank 2 was a financial institution insured by the FDIC headquartered in
Boston, Massachusetts.
Case 2:21-mj-13427-LDW Document1 Filed 12/13/21 Page 6 of 10 PagelD: 6

f. Bank 3 was a financial institution insured by the FDIC headquartered in
Pittsburgh, Pennsylvania.

The Scheme to Defraud

7. From at least in or about July 2020 through at least in or about March
2021, PENA submitted, or caused to be submitted, fraudulent loan applications to
approved lenders, including Lender 1 and Lender 2 in order to fraudulently obtain
funds through the PPP program.

8. In connection with this fraud, PENA submitted, or caused to be
submitted, the following PPP applications to Lender 1 and Lender 2:

Name of Business Amount Approximate Status
Applicant Approved | Lender Application
Date

Protemax Systems LLC $46,500 Lender 1 July 25, 2020 Funded

Protemax Systems LLC $119,912 Lender 1 | January 20, 2021 Funded

JP Interior Designs LLC | $169,280 | Lender 2 March 16, 2021 Funded

July 25, 2020 Falsified Protemax PPP Application to Lender 1

9. On or about July 25, 2020, Lender 1 received a PPP application in the
name of Protemax seeking a PPP loan in the amount of approximately $46,500. The
application was submitted in PENA’S name and listed her social security number. In
addition, the application listed PENA as the 100% owner of Protemax, her home
address in Perth Amboy, New Jersey, and a telephone number associated with PENA.

10. The PPP application submitted to Lender 1 stated that Protemax’s
monthly payroll was approximately $18,600 and that the company had 15 employees.
In connection with Protemax’s purported payroll numbers, the PPP application
included an annual Transmittal of Wage and Tax Statements (IRS Form W3) for 2019
and a Schedule C (IRS Form 1040) Profit or Loss From Business for 2019.
Case 2:21-mj-13427-LDW Document1 Filed 12/13/21 Page 7 of 10 PagelD: 7

11. The Protemax application to Lender 1 contained the following materially
false and fraudulent information:

a. The purported 2019 Form W3 claimed that Protemax had paid
employees approximately $252,023 for 2019 and withheld
approximately $16,060 in federal income tax. In addition, the
Protemax, Form 1040, Schedule C for 2019 claimed purported
wages in the amount of approximately $252,023. The purported
2019 Form W3 also stated that Protemax issued 2019 IRS W2
forms to 142 employees, which contradicted the loan application
that stated that the company had 15 employees.

b. Information obtained from the Social Security Administration
(“SSA”) revealed that Protemax reported no wages paid for the
period between 2018 and 2020. No Forms W-3, Transmittal or
Wage and Tax Statements, nor Forms W-2, Wage and Tax
Statements, were received by the SSA. Likewise, a review of
information obtained from the Internal Revenue Service (“IRS”)
revealed that no Forms 941 were filed by Protemax for the tax
quarters of 2019 and 2020. IRS records also revealed that no
Forms 1120, Form 1040, Schedule Cs, Forms W2, or Forms W3
were filed for Protemax between 2018 and 2020. In addition, a
review of information obtained from the IRS relating to PENA’s
filed 2019 Form 1040 revealed that no 2019 Form 1040, Schedule
C was filed by PENA.

12. Bank records show that the authorized signatory on the Protemax
bank account at Bank 1 (the “Protemax Bank Account”) was PENA, and that on
or about July 28, 2020, PENA received the full loan amount of approximately
$46,500 into the Protemax Bank Account.

January 20, 2021 Falsified Protemax PPP Application to Lender 1

13. On or about January 20, 2021, Lender 1 received a PPP application in
the name of Protemax seeking a PPP loan in the amount of approximately $119,912.
The application was submitted in PENA’S name and listed her social security
number. In addition, the application listed PENA as the 100% owner of Protemax and
her home address in Perth Amboy, New Jersey, and a telephone number associated
with PENA.

14. The PPP application submitted to Lender 1 stated that Protemax’s
monthly payroll was approximately $47,965 and that the company had 60 employees.
Case 2:21-mj-13427-LDW Document1 Filed 12/13/21 Page 8 of 10 PagelD: 8

15. Onor about February 2, 2021, Lender 1 received an amended PPP
application in the name of Protemax seeking the same loan amount, $119,912, that
the company sought in the original loan application. This amended application was
again submitted in PENA’s name and listed her social security number. In addition,
the application listed PENA as the 100% owner of Protemax and a telephone number
associated with PENA.

16. The amended PPP application submitted to Lender 1 stated that
Protemax’s monthly payroll was approximately $47,965 and that the company had 33
employees.

17. In connection with Protemax’s payroll numbers, the PPP application
included an annual Transmittal of Wage and Tax Statements (IRS Form W3) for 2019
and Schedule C (RS Form 1040) Profit or Loss From Business for 2019.

18. The Protemax application to Lender 1 contained the following materially
false and fraudulent information:

a. The purported Form W3 claimed that Protemax had paid
employees approximately $575,576 for 2020 and withheld
approximately $33,820 in federal income tax. In addition, the
purported Protemax Form W3 claimed that Protemax issued 2020
IRS Form W2s to 61 employees, in contradiction to the statement
in the amended loan application stating that Protemax had 33
employees. The Protemax IRS Form 1040, Schedule C also
claimed purported wages in the amount of approximately
$575,576.

b. Information obtained from the SSA revealed that Protemax
reported no wages paid for the period between 2018 and 2020. No
Forms W-3, Transmittal or Wage and Tax Statements, nor Forms
W-2, Wage and Tax Statements, were received by the SSA.
Likewise, a review of information obtained from the IRS revealed
that no Forms 941 were filed by Protemax for the 2020 tax year as
represented on the 2020 IRS Form W-3, Transmittal of Wage and
Tax Statements. In addition, a review of information obtained
from the IRS relating to PENA’s files 2020 Form 1040 revealed
that no 2020 Form 1040, Schedule C was filed by PENA.

19. Bank records show that the authorized signatory on the Protemax
Bank Account was PENA, and that on or about February 5, 2021, the full loan
amount of approximately $119,912 was transferred into the Protemax Bank
Account.
Case 2:21-mj-13427-LDW Document1 Filed 12/13/21 Page 9 of 10 PagelD: 9

March 16, 2021 Falsified JP Interior PPP Application to Lender 2

20. On or about March 16, 2021, Lender 2 received a PPP application in the
name of JP Interior seeking a PPP loan in the amount of approximately $169,280. The
application was submitted in PENA’S name and listed her social security number. In
addition, the application listed PENA as the 100% owner of JP Interior and her home
address in Perth Amboy, New Jersey, and a telephone number associated with PENA.

21. The PPP application submitted to Lender 2 stated that JP Interior’s
monthly payroll was approximately $67,712 and that the company had 72 employees.

22. In connection with JP Interior’s payroll numbers, the PPP application
included an annual Transmittal of Wage and Tax Statements (IRS Form W3) for
2019, a payroll summary from February 14 through 29, 2020, and Schedule C (IRS
Form 1040) Profit or Loss From Business for 2019.

23. The JP Interior application to Lender 2 contained the following
materially false and fraudulent information:

a. The purported Form W8 claimed that JP Interior had paid
employees approximately $712,550 for 2019 and withheld
approximately $16,060 in federal income tax. In addition, the
purported JP Interior Form W3 claimed that JP Interior issued
2019 IRS Form W2s to 72 employees. The JP Interior IRS Form
1040, Schedule C also claimed purported wages in the amount of
approximately $712,550.

b. Information obtained from the SSA revealed that JP Interior
reported no wages paid for the period between 2018 and 2020. No
Forms W-3, Transmittal or Wage and Tax Statements, nor Forms
W-2, Wage and Tax Statements, were received by the SSA.
Likewise, a review of information obtained from the IRS revealed
that no Forms 941 were filed by JP Interior for the 2019 tax year
as represented on the 2019 IRS Form W-3, Transmittal of Wage
and Tax Statements. In addition, a review of information obtained
from the IRS relating to PENA’s files 2019 Form 1040 revealed
that no 2019 Form 1040, Schedule C was filed by PENA.

24. Bank records show that the authorized signatory on the JP
Interior bank account at Bank 2 (the “JP Interior Bank Account”) was PENA,
and that on or about March 29, 2021, the full loan amount of approximately
$169,280 was transferred into the JP Interior Bank Account.
Case 2:21-mj-13427-LDW Document1 Filed 12/13/21 Page 10 of 10 PagelD: 10

25. Prior to the deposit of the $169,280 in loan proceeds on March 29,
2021, the JP Interior Bank Account had an account balance of approximately
$5,000.

26. Onor about April 30, 2021, the account balance in the JP Interior
Bank Account had an account balance of $174,280.

27. Onor about April 30, 2021, a transfer of $50,000 from the JP
Interior Bank Account was made to an account in PENA’s name at Bank 2.

28. Bank records show that that authorized signatory on PENA’s bank
account at Bank 2 was PENA, and that on or about April 30, 2021, a transfer
was received into that account from the JP Interior Bank Account.

29. From April 30, 2021 through September 30, 2021, PENA’s bank
account at Bank 2 had additional deposits of approximately $14,400 through
approximately 16 transactions from the business bank account of a known
associate also under investigation for suspected fraud in connection with PPP
loans. From April 30, 2021 through September 29, 2021, PENA’s bank account
at Bank 2 had total withdrawals of approximately $15,686 through
approximately four transactions, with withdrawals ranging from $500 to
$10,000.

30. Bank records at Bank 2 show that on or about September 30,
2021, PENA withdrew approximately $11,274 from her bank account to
purchase a cashier’s check which was negotiated at Bank 3. This payment was
made to an attorney trust account and included a description in the “Memo”
line for the address of a house that PENA purchased on or about September 30,
2021.

31. The balance in PENA’s account at Bank 2 following the September
30, 2021 withdrawal was approximately $37,482.

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