Criminal Complaint — United States v. Jean E. Rabbitt and Kevin Aguilar (Mag. No. 22-12029, D.N.J.)

Summary

Criminal complaint in United States v. Jean E. Rabbitt and Kevin Aguilar, Mag. No. 22-12029, in the U.S. District Court for the District of New Jersey, attested by telephone and signed /s/ James B. Clark III on March 1, 2022. Counts One through Seven charge Rabbitt with bank fraud under Title 18, United States Code, Sections 1344 and 2 over PPP loan applications for Showtime Trucking LLC, Showtime TTR XPO, Inc., TTS Terminal Corp. and American Consolidated Freightways Corp.; Count Eight charges both defendants with money laundering conspiracy, and Counts Nine and Ten charge monetary transactions of $69,825 and $238,374. The FDIC OIG affidavit states that Rabbitt obtained at least approximately $3.3 million in PPP loans with falsified payroll records, routed proceeds through sham payroll companies controlled by Aguilar, and bought real property in Sherman, Texas.

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Cite this document

“Criminal Complaint — United States v. Jean E. Rabbitt and Kevin Aguilar (Mag. No. 22-12029, D.N.J.).” Original at www.justice.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/complaint-no-d-n-j-mag-no-22-12029-d-n-j-4bc9a0c438/, SHA-256 c4a94d3e59911cd35e11eacbebf68ae0427819422e866804ec40b0e594231e89.

Full text

══════════════════════════════════════════════════════
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
══════════════════════════════════════════════════════

:
UNITED STATES OF AMERICA Hon. James B. Clark, III
:
v. Mag. No. 22-12029
:
JEAN E. RABBITT and
KEVIN AGUILAR : CRIMINAL COMPLAINT

I, Special Agent Francis Mace, 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 Special Agent with the Federal Deposit Insurance
Corporation, Office of Inspector General, and that this Complaint is based on the
following facts:

SEE ATTACHMENT B

continued on the attached pages and made a part hereof.

_______________________________________________
Special Agent Francis Mace
Federal Deposit Insurance Corporation
Office of Inspector General

Special Agent Francis Mace attested to this Complaint by telephone pursuant to
Federal Rule of Criminal Procedure 4.1(b)(2)(A).

March 1, 2022
Newark, New Jersey

HONORABLE JAMES B. CLARK, III /s/ James B. Clark III 3:50PM
______________________________
UNITED STATES MAGISTRATE JUDGE Signature of Judicial Officer
ATTACHMENT A

Counts One through Seven
(Bank Fraud)

From at least in or about April 2020 through at least in or about October
2021, in the District of New Jersey and elsewhere, defendant

JEAN E. RABBITT

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, Lender 2, and Lender 3 (the “Lenders”), 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, namely
RABBITT submitted fraudulent loan applications for Paycheck Protection Program
(“PPP”) funds as set forth below:

Approximate Approximate
Name of Business
Count Submission Amount Lender
Applicant
Date Approved

One 4/16/20 Showtime Trucking LLC $412,953 Lender 1

Two 4/20/21 Showtime Trucking LLC $402,952 Lender 1

Three 4/27/20 Showtime TTR XPO, Inc. $507,325 Lender 2

Four 2/10/21 Showtime TTR XPO, Inc. $507,107 Lender 2

Five 5/6/20 TTS Terminal Corp. $398,515 Lender 2

Six 3/22/21 TTS Terminal Corp. $398,515 Lender 2

Seven 5/17/20 American Consolidated $698,200 Lender 3
Freightways Corp.

In violation of Title 18, United States Code, Sections 1344 and 2.

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Count Eight
(Conspiracy to Engage in Monetary Transactions in Property
Derived from Specified Unlawful Activity)

From in or around October 13, 2020, through in or around January 12, 2022,
in the District of New Jersey, and elsewhere, defendants,
JEAN E. RABBITT and
KEVIN AGUILAR
did knowingly and intentionally conspire and agree with each other and other
persons to knowingly engage and attempt to engage in monetary transactions by,
through, or to a financial institution, in and affecting interstate and foreign
commerce, in criminally derived property of a value greater than $10,000, derived
from a specified unlawful activity, that is, bank fraud, contrary to Title 18, United
States Code, Section 1957.
In violation of Title 18, United States Code, Sections 1956(h) and 2.
Count Nine
(Engaging in Monetary Transactions in Property
Derived from Specified Unlawful Activity)

On or about October 14, 2020, in the District of New Jersey and elsewhere,
defendant

JEAN E. RABBITT

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 by
check of $69,825 in U.S. currency from the bank account of American Consolidated
Freightways Inc. to the bank account of Global Payroll Corporation, such property
having been derived from a specified unlawful activity, that is, bank fraud, in
violation of Title 18, United States Code, Sections 1957 and 2.

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Count Ten
(Engaging in Monetary Transactions in Property
Derived from Specified Unlawful Activity)

On or about February 5, 2021, in the District of New Jersey and elsewhere,
defendant

KEVIN AGUILAR

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 by
check of $238,374 in U.S. currency from the bank account of Executive Payroll
Services Inc. to the bank account of Capital Payroll Processing Company, Inc., such
property having been derived from a specified unlawful activity, that is, bank fraud,
in violation of Title 18, United States Code, Sections 1957 and 2.

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ATTACHMENT B

I, Francis Mace, a Special Agent with the Federal Deposit Insurance
Corporation (“FDIC”), Office of Inspector General (“OIG”), 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 otherwise, all dates and
amounts described in this affidavit are approximate and all statements or
representations described in this affidavit are related in substance and in part.

Overview of the Scheme to Defraud

1. Defendant Jean E. Rabbitt (“RABBITT”) used a variety of false
representations to fraudulently obtain at least approximately $3.3 million in federal
COVID-19 emergency relief loans meant for distressed small businesses. To obtain
the loans, RABBITT submitted at least seven falsified loan applications to three
different lenders on behalf of four of RABBITT’s purported businesses. On these
loan applications, RABBITT falsified numerous pieces of information, including the
number of employees at RABBITT’s businesses, the federal tax returns for
RABBITT’s businesses, and the payroll documentation. Based upon RABBITT’s
material misrepresentations, the loan proceeds were disbursed into RABBITT’s
accounts. RABBITT misused the loan proceeds, sent the illegally obtained proceeds
through various sham payroll companies created and controlled by defendant Kevin
Aguilar (“AGUILAR”), and ultimately transferred the proceeds to companies
AGUILAR created between September 2020 and August 2021. RABBITT and
AGUILAR then utilized the proceeds to purchase residential property and pay for
personal expenses. RABBITT then submitted fraudulent Paycheck Protection
Program (“PPP”) loan forgiveness applications that resulted in over $2 million in
loss to the U.S. Small Business Administration (“SBA”).
Background

2. At all times relevant to this Complaint:

a. RABBITT was a resident of New Jersey, New York, and Texas.
RABBITT owned and controlled the following companies: TTS Terminal Corp.,
American Consolidated Freightways Corp., Showtime Trucking LLC, Showtime
TTR XPO Inc. (the “Borrower Companies”).

b. AGUILAR was a resident of New Jersey, New York, and Texas.
AGUILAR owned and controlled the following businesses: Atlantic Commercial
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Payroll Corp., Capital Payroll Processing Company, Inc., Global Payroll
Corporation, and Executive Payroll Services, Inc. (the “Sham Payroll Companies”).
AGUILAR also owned and controlled Eichler & Eben Holdings, Inc.; Angel Ridge
LP.; and Westwood, Washington & McKown Development LLC (the “Beneficiary
Companies”).

c. Between 2012 and the present, RABBITT and AGUILAR have
resided together in at least three residences—one in Norwich, New York, one in
Farmingdale, New Jersey, and one in Frisco, Texas; and they received mail at the
same addresses. In addition, one of AGUILAR’s companies, Eichler & Eben
Holdings, Inc., made regular payments towards rent at their residences and to one
of RABBITT’s credit card companies.

d. Lender 1 was a financial institution insured by the FDIC
headquartered in North Carolina and a member bank of the Federal Home Loan
Bank system.

e. Lender 2 was a financial institution insured by the FDIC
headquartered in New Jersey and a member bank of the Federal Home Loan Bank
system.

f. Lender 3 was a financial institution insured by the FDIC
headquartered in North Carolina and a member bank of the Federal Home Loan
Bank system.
The Paycheck Protection Program
g. The Coronavirus Aid, Relief, and Economic Security (“CARES”)
Act is a federal law enacted in or about March 2020 designed to provide emergency
financial assistance to millions of Americans suffering 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 PPP. In
or about April 2020, Congress authorized over $300 billion in additional PPP
funding.

h. 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 loan application requires the business—through its authorized
representative—to acknowledge the program rules and make certain affirmative
certifications to be eligible to obtain the PPP loan. In the loan application, the small
business must state, among other things, its: (a) average monthly payroll expenses;

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and (b) number of employees. These figures are used to calculate the amount of
money the business is eligible to receive under the PPP. In addition, businesses
applying for a PPP loan must provide documentation showing their payroll
expenses.

i. A PPP loan application must be processed by a participating
lender. If a loan application is approved, the participating lender funds the 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.

j. 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 amount of the PPP
loan proceeds on payroll expenses.

k. A PPP loan borrower may qualify for full loan forgiveness if
during the 8- to 24-week covered period following loan disbursement, (i) employee
and compensation levels are maintained, (ii) the loan proceeds are spent on payroll
costs and other eligible expenses, and (iii) at least 60% of the proceeds are spent on
payroll costs. A borrower can apply for forgiveness once all loan proceeds for which
the borrower is requesting forgiveness have been used. To seek forgiveness, the
borrower must submit an application to the lender, providing a range of information
and supporting documentation to establish eligibility for forgiveness. Once the
borrower furnishes a completed application, the lender then applies to the SBA for
forgiveness, furnishing the information provided by borrower. Based on the
borrower’s information furnished by the lender, the SBA determines whether the
PPP loan qualifies, in whole or in part, for forgiveness.
The Fraudulent PPP Loan Applications

3. From at least in or about April 2020 through at least in or about May
2021, RABBITT submitted, or caused to be submitted, falsified loan applications to
approved lenders, including Lender 1, Lender 2, and Lender 3, to fraudulently
obtain funds through the PPP.

4. On each application, RABBITT falsely stated as follows:

a. That the Borrower Companies would use the PPP loan proceeds
for business-related purposes consistent with the PPP.

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b. That the Borrower Companies had employees for whom it paid
salaries and payroll taxes.

c. That the Borrower Companies needed the PPP loans to support
their ongoing operations.

d. That the Borrower Companies would use the PPP loans to retain
workers and maintain payroll or making certain covered mortgage interest
payments, leases payments, and utility payments, as specified within the PPP.

e. That the information she furnished for each of the Borrower
Companies in the PPP applications and supporting documentation was true and
accurate in all material respects. RABBITT further certified that she understood
that knowingly making false statements to obtain the PPP loans for the Borrower
Companies was punishable under the law, including under 18 U.S.C. 1001 and 3571
by imprisonment of not more than five years and/or a fine of up to $250,000; under
15 U.S.C. 645 by imprisonment of not more than two years and/or a fine of not more
than $5,000; and, if submitted to a federally insured institution, under 18 U.S.C.
1014 by imprisonment of not more than thirty years and/or a fine of not more than
$1,000,000.

5. There is probable cause to believe that the information and documents
provided by RABBITT in support of the Borrower Companies’ PPP applications
were fraudulent for multiple reasons.

6. If the four Borrower Companies did, in fact, have employees, they
would be required to file certain documents with the IRS. Specifically, each of the
four Borrower Companies are required to file an IRS Form 941 each quarter, and a
Form 940 each year, reporting to the IRS certain information regarding wages paid,
taxes withheld, and number of employees. RABBITT submitted documents on
behalf of the Borrower Companies purporting to be these forms, however, the
Borrower Companies filed no such documents with the IRS, which indicates that
the forms were falsified to create the appearance of legitimate payroll activity.

7. Each of the Borrower Companies purportedly operate within the
United States. As such, if the Borrower Companies did, in fact, have employees,
each of the Borrower Companies would be required to file certain payroll records
with the Social Security Administration (“SSA”). However, the SSA has no record of
any payroll records for any of the Borrower Companies. Information obtained from
the SSA revealed that the Borrower Companies reported no wages paid for the
period between 2018 and 2020.

8. Furthermore, as a Special Agent with FDIC OIG having experience
reviewing legitimate payroll records, I am familiar with how these records appear in
the ordinary course. Based on my knowledge and experience, several indicia of

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fraud are apparent in the purported payroll records that RABBITT submitted on
behalf of the Borrower Companies (the “Submitted Payroll Records”).

9. In many instances, the Submitted Payroll Records indicated that each
Borrower Company employed the same number of employees from one quarter to
the next. In contrast, legitimate payroll records typically show fluctuations in the
size of a company’s workforce, reflecting that, during the course of a year, employees
can quit, be fired, retire, or be hired.

10. Certain of the Submitted Payroll Records also indicated that all
employees received the same amount in compensation each quarter. For example,
payroll records submitted in connection with the PPP loan for American
Consolidated Freightways Corp., shows that for each quarter in 2019, the company
employed 36 employees, all which earned $23,275.20 in gross quarterly pay. In
contrast, the payroll records for companies similar in size to the claimed size of the
Borrower Companies would typically show that different employees earn different
amounts of money. This would reflect that different employees were compensated
differently based on, for instance, job type, experience, number of hours worked,
overtime, bonuses, or change in employment status (i.e., all else being equal, an
employee that is hired mid-quarter should receive less in compensation than an
employee who worked for the company throughout the relevant time period).

11. Certain of the Submitted Payroll Records also indicated that all
employees worked the same number of hours in a particular quarter. For example,
payroll records submitted in connection with the PPP loan for American
Consolidated Freightways Corp. shows that each of its 36 employees worked 520
hours in the quarter. In contrast, payroll records for companies similar in size to the
claimed size of the Borrower Companies would typically show that different
employees worked different amounts of time during the year. This variation in
hours would reflect, among other things, sick time, vacation time, overtime, or part-
time arrangements.

The Sham Payroll Companies and the Beneficiary Companies

12. After the four Borrower Companies received PPP funds, AGUILAR
used the Sham Payroll Companies to fraudulently receive PPP loan proceeds
disguised as weekly payroll payments. Based on my knowledge and experience,
several indicia of fraud are apparent in these records.

13. There is no evidence that the Sham Payroll Companies employ any
staff. Specifically, the SSA has no records of the Sham Payroll Companies paying
wages to any employees. Similarly, the Sham Payroll Companies have not filed
Form 940s with the Internal Revenue Service indicating taxes having been paid for
any employees.

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14. Based on my knowledge and experience, companies such as the
Borrower Companies would be expected to have payroll obligations that fluctuate
from week to week. Payroll records that are identical from week to week are
indicative of fraud. Here, after receiving the PPP loans, and after AGUILAR created
the Sham Payroll Companies, the Borrower Companies began making regular
payments to the Payroll Companies via check. Those checks typically included a
memorandum that the payment was for payroll for a specific period of time. In
almost all cases, the Borrower Companies’ checks were identical in amount.

15. Furthermore, a review of the banking records shows that, prior to the
Borrower Companies’ first transfers to the Payroll Companies in October 2020,
there were no other similar payments. Given that the Borrower Companies made
fixed payments, ostensibly for payroll, approximately once per week after receiving
the PPP funds, and that those transfers were almost uniformly identical from week
to week for each of the Borrower Companies, I would expect to see the Borrower
Companies making similar payments before receiving the PPP funds if the
Borrower Companies did, in fact, have legitimate payroll. Based on my knowledge
and experience, the absence of such transfers prior to the PPP loans indicates the
aforementioned checks were not, in fact, for payroll.

16. Based on my knowledge and experience, after an employer makes
transfers to a payroll company for the purpose of meeting its payroll obligations, the
payroll company then issues paychecks (either electronically or in hard copy) to
employees. Here, however, after the Borrower Companies issued checks to the
Sham Payroll Companies, the bank accounts for the Sham Payroll Companies show
no evidence that payroll payments were made to individual employees. Instead,
those banking records show that money was shifted between the Sham Payroll
Companies and then, eventually, to the Beneficiary Companies. Once the money
reached the Beneficiary Companies, RABBITT and AGUILAR utilized the funds for
general living expenses, including debt and credit card payments, and to purchase
real property.

The Fraudulent PPP Loan Forgiveness Applications

17. In September and October of 2021, RABBITT submitted fraudulent
and falsified applications for forgiveness for at least four of the PPP loans received
by the Borrower Companies.

18. On each PPP loan forgiveness application, RABBITT falsely stated
that:

a. “The dollar amount for which forgiveness is requested … was
used to pay business costs that are eligible for forgiveness (payroll costs to retain
employees; business mortgage interest payments; business rent or lease payments;

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business utility payments; covered operations expenditures; covered property
damage costs; covered supplier costs; or covered worker protection expenditures).”

b. “The information provided in this application and the
information provided in all supporting documents and forms is true and correct in
all material respects.”

c. “The tax documents I have submitted to the Lender (if
applicable) are consistent with those the Borrower has submitted or will submit to
the IRS and/or state tax or workforce agency.”

19. In connection with the PPP loan forgiveness application, RABBITT
submitted falsified and fraudulent payroll records and tax forms that purported to
show that the PPP loan proceeds were spent on eligible expenses.

20. In signing each PPP loan forgiveness application, RABBITT attested
as follows:

a. “I understand that if the funds were knowingly used for
unauthorized purposes, the federal government may pursue recovery of loan
amounts and/or civil or criminal fraud charges.”

b. “I understand that knowingly making a false statement to
obtain forgiveness of an SBA-guaranteed loan is punishable under the law,
including 18 USC 1001 and 3571 by imprisonment of not more than five years
and/or a fine of up to $250,000; under 15 USC 645 by imprisonment of not more
than two years and/or a fine of not more than $5,000; and, if submitted to a
Federally insured institution, under 18 USC 1014 by imprisonment of not more
than thirty years and/or a fine of not more than $1,000,000.”

21. RABBITT’s false and fraudulent statements caused the Lenders to
seek SBA’s forgiveness of the loans under the PPP. Based on the Lenders’
applications, SBA granted forgiveness on four of the loans, causing the SBA to pay
the loan balance to each of the Lenders. As a result of those payments, the SBA paid
a total of approximately $2,016,993 to the Lenders, thereby extinguishing the
Borrower Companies’ obligations under certain of the PPP loan agreements.

Showtime Trucking LLC

22. RABBITT owned and controlled Showtime Trucking, LLC, a New York
limited liability company, formed on or about September 12, 2018. RABBITT
opened bank accounts for Showtime Trucking, LLC in 2019.

23. On or about April 16, 2020, Lender 1 received a PPP application in the
name of Showtime Trucking LLC seeking a PPP loan in the amount of $412,953.

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The application was submitted in RABBITT’s name and identified her as the owner
of Showtime Trucking LLC.

24. Showtime Trucking LLC’s application to Lender 1 contained the
following materially false and fraudulent information:

a. RABBITT submitted five fraudulent payroll documents showing
purported payroll records for the time period from January 1, 2019, through
February 15, 2020. Information obtained from the SSA revealed that Showtime
Trucking LLC reported no wages paid for the period between January 1, 2019,
through February 15, 2020. Likewise, a review of information obtained from the
IRS revealed that no Employer’s Quarterly Tax Return Form 941 for Showtime
Trucking LLC were filed for between January 1, 2019, through February 15, 2020.

b. Each of the five fraudulent payroll documents indicated that
Showtime Trucking LLC had 22 employees, and that each employee earned the
exact same amounts as each other during each of the five time periods listed. For
instance, for the first quarter of 2019, payroll records showed 22 employees each
earning $18,000; in the second quarter, those same 22 employees were reported to
have each earned $19,500; in the third quarter, those same employees were
reported to have each earned $21,375; and in the fourth quarter, each of those 22
employees were reported to have each earned $24,750. Payroll records for
approximately the first 8 weeks of 2020 report those same 22 employees having
each earned $13,125 each.

c. In addition, on the PPP application, RABBITT falsely stated
that the purpose of the loan was for “payroll.” RABBITT further falsely stated that
Showtime Trucking LLC had 21 employees with an average monthly payroll of
$183,750.

d. The PPP application included a fraudulent Form 940, Annual
Federal Unemployment Tax Return that falsely indicated that Showtime Trucking
LLC paid $1,872,375.00 to employees in 2019 when, in fact, no such payments were
made. A review of information obtained from the IRS revealed that Showtime
Trucking LLL did not file any Employer’s Annual Federal Unemployment Tax
Return Form 940 for 2019.

25. The first draw PPP loan funds totaling $412,953 were disbursed to
Showtime Trucking LLC on or about May 4, 2020.

26. On or about April 20, 2021, Lender 1 received a second PPP
application in the name of Showtime Trucking LLC seeking a PPP loan in the
amount of $402,952. The application was submitted in RABBITT’s name and
identified her as the owner of Showtime Trucking LLC.

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27. In support of Showtime Trucking LLC’s second PPP loan application,
Lender 1 relied upon the fraudulent previously submitted payroll documents
showing Showtime Trucking LLC’s purported payroll records for the time period
between January 1, 2019, through February 15, 2020.

28. The second draw PPP loan funds totaling $402,952 were disbursed to
Showtime Trucking LLC on or about May 3, 2021.

29. Between on or about October 19, 2020, and September 9, 2021,
Showtime Trucking, LLC transferred approximately $577,500 to Atlantic
Commercial Payroll Corp. via 14 checks each for approximately $41,250. Those
payments were made approximately once per week. All of the checks bear
RABBITT’s signature. AGUILAR owned and controlled the Sham Payroll Company
Atlantic Commercial Payroll Corp., which was formed on or about June 1, 2020.
AGUILAR opened a bank account for Atlantic Commercial Payroll Corp. on or about
September 4, 2020.

30. On or about October 4, 2021, RABBITT submitted a fraudulent PPP
loan forgiveness application for Showtime Trucking LLC to Lender 1. In connection
with the PPP loan forgiveness application, RABBITT submitted falsified and
fraudulent payroll records and tax forms that purported to show that the PPP loan
proceeds were spent on eligible expenses. RABBITT also falsely attested that the
PPP loan had been used to pay eligible expenses, that the information she provided
in the application was true and correct, and that the purported tax documents she
submitted were consistent with those the borrower had submitted or will submit to
the IRS and/or state tax or workforce agency. As a result of this fraudulent
application, the SBA forgave $402,953 of the PPP loan to Showtime Trucking LLC.

Showtime TTR XPO Inc.

31. RABBITT owned and controlled Showtime Trucking TTR XPO Inc., a
New York corporation formed on or about August 1, 2017. RABBITT opened bank
accounts for Showtime Trucking TTR XPO Inc. in 2019.

32. On or about April 27, 2020, Lender 2 received a PPP application in the
name of Showtime TTR XPO Inc. seeking a PPP loan in the amount of $507,325.
The application was submitted in RABBITT’s name and listed her as the owner of
Showtime TTR XPO Inc.

33. Showtime TTR XPO Inc.’s application to Lender 2 contained the
following materially false and fraudulent information:

a. A payroll document showing purported payroll records for the time
period between January 1, 2019, through February 22, 2020. Information obtained
from the SSA revealed that Showtime TTR XPO Inc. reported no wages paid for the
period between January 1, 2019, through February 22, 2020. Likewise, a review of

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information obtained from the IRS revealed that no Employer’s Annual Federal
Unemployment Tax Return Form 940, or Employer’s Quarterly Tax Return Form
941 for Showtime TTR XPO were filed for the period between January 1, 2019,
through February 15, 2020.

b. The document indicates that Showtime TTR XPO Inc. had 25
employees, and that each employee earned the exact same amount during each
period. Specifically, each of the 25 employees listed on the purported payroll
document were listed as earning precisely $14,979.20.

c. In addition, on the PPP application, RABBITT falsely stated that the
purpose of the loan was to “[r]etain workers and maintain payroll.” RABBITT
further falsely stated that Showtime TTR XPO Inc. had 25 employees with an
average monthly payroll of $202,930.

34. The first draw PPP loan funds totaling $507,325 were disbursed to
Showtime TTR XPO Inc. on or about May 11, 2020.

35. On or about February 10, 2021, Lender 2 received a second PPP
application in the name of Showtime TTR XPO Inc. seeking a PPP loan in the
amount of $507,107. The application was submitted in RABBITT’s name and listed
her as the owner of Showtime TTR XPO Inc.

36. Showtime TTR XPO Inc.’s second application to Lender 2 contained the
following materially false and fraudulent information:

a. RABBITT falsely stated that Showtime TTR XPO Inc. had 25
employees with an average monthly payroll of $202,930. Information obtained from
the SSA revealed that Showtime TTR XPO Inc.’s reported no wages paid for the
period between January 1, 2019, through December 31, 2019, and information
obtained from the IRS revealed that no Employer’s Quarterly Tax Return Form 941
for Showtime TTR XPO were filed for the period between January 1, 2019, through
December 31, 2019.

b. RABBITT also submitted a fraudulent IRS Form 940 for 2019 that
reported Showtime TTR XPO Inc.’s employees earned a total of $2,434,120 in 2019,
when in fact, no such payments were made. A review of information obtained from
the IRS revealed that no Employer’s Annual Federal Unemployment Tax Return
Form 940 for TTR XPO, Inc. was filed with the IRS for the period between January
1, 2019, through December 31, 2019.

37. The second draw PPP loan funds totaling $507,107, were disbursed to
Showtime TTR XPO, Inc. on or about April 9, 2021.

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38. Between October 14, 2020, and September 2, 2021, Showtime TTR
XPO, Inc. transferred approximately $825,026 to Global Payroll Corp. via eight
checks – four of those payments were in the amount of approximately $112,344;
three of those payments were in the amount of approximately $93,620; and one
payment was in the amount of approximately $94,790. All of the checks bear
RABBITT’s signature. AGUILAR owned and controlled the Sham Payroll Company
Global Payroll Corp., which was formed on or about July 6, 2020. AGUILAR opened
two bank accounts for Global Payroll Corp. on or about September 4, 2020.

39. On or about September 20, 2021, RABBITT submitted a fraudulent
PPP loan forgiveness application for Showtime TTR XPO, Inc. to Lender 2. In
connection with the PPP loan forgiveness application, RABBITT submitted falsified
and fraudulent payroll records and tax forms that purported to show that the PPP
loan proceeds were spent on eligible expenses. RABBITT also falsely attested that
the PPP loan had been used to pay eligible expenses, that the information she
provided in the application was true and correct, and that the purported tax
documents she submitted were consistent with those the borrower had submitted or
will submit to the IRS and/or state tax or workforce agency. As a result of this
fraudulent application, the SBA forgave $506,718 of the PPP loan to Showtime TTR
XPO, Inc.

TTS Terminal Corp.

40. RABBITT owned and controlled TTS Terminal Corp., a New York
corporation formed on or about July 30, 2018. RABBITT opened bank accounts for
TTS Terminal Corp. in 2020.

41. On or about May 6, 2020, Lender 2 received a PPP application in the
name of TTS Terminal Corp. seeking a PPP loan in the amount of $398,515. The
application was submitted in RABBITT’s name and listed her as the owner of TTS
Terminal Corp.

42. TTS Terminal Corp.’s application to Lender 2 contained the following
materially false and fraudulent information:

a. Fraudulent IRS Form 941s, in support of TTS Corp.’s PPP loan
application, showing purported payroll payments for the time period from January
1, 2019, through December 31, 2019. Information obtained from the SSA revealed
that TTS Terminal Corp. reported no wages paid for the period between January 1,
2019, through December 31, 2019. Likewise, a review of information obtained from
the IRS revealed that no Employer’s Quarterly Tax Return Form 941 for TTS Corp
was filed for the period between January 1, 2019, through December 31, 2019.

b. Several of the fraudulent documents, which report quarterly
wages, indicated that TTS Terminal Corp. had 20 employees, and that the reported
wages in 2019 were the same amount each quarter.

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c. The PPP application included a fraudulent IRS Form 940,
Annual Federal Unemployment Tax Return, falsely indicating that the company
paid $1,912,872.00 to employees in 2019 when, in fact, no such payments were
made. A review of information obtained from the IRS revealed that no Employer’s
Annual Federal Unemployment Tax Return Form 940 was filed by TTS Terminal
Corp. for the period between January 1, 2019, through December 31, 2019.

d. In addition, in the PPP application, RABBITT falsely stated that
TTS Terminal Corp. sought the PPP loan to “retain workers and maintain payroll”
and that it had 20 employees, with an average monthly payroll of $159,406.

43. The first draw PPP loan funds totaling $398,515 were disbursed to
TTS Terminal Corp. on or about May 12, 2020.

44. On or about March 22, 2021, Lender 2 received a second PPP
application in the name of TTS Terminal Corp. seeking a PPP loan in the amount of
$398,515. The application was submitted in RABBITT’s name and listed her as the
owner of TTS Terminal Corp.

45. TTS Terminal Corp.’s second PPP Application to Lender 2 contained
the following materially false and fraudulent information:

a. Fraudulent IRS Form 940 for 2019 and fraudulent IRS Form
941 for each quarter of 2019, showing TTS Terminal had 20 employees and paid the
employees a total of $1,912,872 in 2019. Information obtained from the SSA
revealed that TTS Terminal Corp. reported no wages paid for the period between
January 1, 2019, through December 31, 2019. Likewise, a review of information
obtained from the IRS revealed that no Employer’s Annual Federal Unemployment
Tax Return Form 940, or Employer’s Quarterly Tax Return Form 941 for TTS Corp
were filed for the period between January 1, 2019, through December 31, 2019.

46. The second draw PPP loan funds totaling $398,515 were disbursed to
TTS Terminal Corp. on or about April 8, 2021.

47. Between on or about October 16, 2020, and September 7, 2021, TTS
Terminal transferred approximately $555,756 to Executive Payroll Services, Inc. in
13 installments of approximately $39,729, and one installment of approximately
$39,279. Those payments were made approximately once per week. All of the checks
bear RABBITT’s signature. AGUILAR owned and controlled the Sham Payroll
Company Executive Payroll Services, Inc., which was formed on or about July 6,
2020. AGUILAR opened two bank accounts for Executive Payroll Services, Inc. on
or about September 4, 2020.

48. On or about September 21, 2021, RABBITT submitted a fraudulent
PPP loan forgiveness application for TTS Terminal Corp. to Lender 2. In connection
with the PPP loan forgiveness application, RABBITT submitted falsified and

16
fraudulent payroll records and tax forms that purported to show that the PPP loan
proceeds were spent on eligible expenses. RABBITT also falsely attested that the
PPP loan had been used to pay eligible expenses, that the information she provided
in the application was true and correct, and that the purported tax documents she
submitted were consistent with those the borrower had submitted or will submit to
the IRS and/or state tax or workforce agency. As a result of this fraudulent
application, the SBA forgave $398,515 of the PPP loan to TTS Terminal Corp.

American Consolidated Freightways Corp.

49. RABBITT owned and controlled American Consolidated Freightways
Corp., a New York corporation formed on or about June 7, 2019. RABBITT opened
bank accounts for American Consolidated Freightways Corp. in 2020.

50. On or about May 17, 2020, Lender 3 received a PPP application in the
name of American Consolidated Freightways Corp. seeking a PPP loan in the
amount of $698,200. The application was submitted in RABBITT’s name and listed
her as the owner of American Consolidated Freightways Corp.

51. American Consolidated Freightways Corp.’s application to Lender 3
contained the following materially false and fraudulent information:

a. False and fraudulent payroll summary documents showing
purported payroll records for the time period from January 1, 2019, through
December 28, 2019. The falsified documents indicate that American Consolidated
Freightways Corp. had 36 employees, and that each employee worked the exact
same number of hours and earned the exact same amount during each of the four
submitted time periods.

b. False and fraudulent IRS Form 941s, in support of American
Consolidated Freightways Corp.’s PPP loan application, purporting to show that the
company made payroll payments to 36 employees each quarter in 2019. The
application also included a false and fraudulent IRS Form 940 for the year 2019,
reporting that American Consolidated Freightways Corp. paid a total of
$3,351,628.80 to its employees. Information obtained from the SSA revealed that
American Consolidated Freightways Corp. reported no wages paid for the period
between January 1, 2019, through December 31, 2019. Likewise, a review of
information obtained from the IRS revealed that no Employer’s Annual Federal
Unemployment Tax Return Form 940, or Employer’s Quarterly Tax Return Form
941 for American Consolidated Freightways Corp. were filed for the period between
January 1, 2019, through December 31, 2019.

c. Moreover, on the PPP application, RABBITT falsely reported
that American Consolidated Freightways Corp. had 36 employees, with an average
monthly payroll of $279,302.40.

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52. The first draw PPP loan funds totaling $698,200 were disbursed to
American Consolidated Freightways Corp. on or about June 9, 2020.

53. Between on or about October 14, 2020, through December 7, 2020,
American Consolidated Freightways Corp. transferred approximately $698,250 to
Global Payroll Corp. in 10 installments of approximately $69,825. Those payments
were made approximately once per week and include the payment on October 14,
2020, of $69,825 referenced in Count 9. All of the checks bear RABBITT’s signature.
AGUILAR owned and controlled the Sham Payroll Company Global Payroll Corp.,
which was formed on or about July 6, 2020. AGUILAR opened two bank accounts
for Global Payroll Corp. on or about September 4, 2020.

54. On or about October 8, 2021, RABBITT submitted a fraudulent PPP
loan forgiveness application for American Consolidated Freightways Corp. to
Lender 3. In connection with the PPP loan forgiveness application, RABBITT
submitted falsified and fraudulent payroll records and tax forms that purported to
show that the PPP loan proceeds were spent on eligible expenses. RABBITT also
falsely attested that the PPP loan had been used to pay eligible expenses, that the
information she provided in the application was true and correct, and that the
purported tax documents she submitted were consistent with those the borrower
had submitted or will submit to the IRS and/or state tax or workforce agency. As a
result of this fraudulent application, the SBA forgave $698,200 of the PPP loan to
American Consolidated Freightways Corp.

Transfers Between the Sham Payroll Companies
and the Beneficiary Companies

55. Atlantic Commercial Payroll Corp., Global Payroll Corp., Executive
Payroll Corp., and Capital Payroll Processing Company were all Sham Payroll
Companies controlled by AGUILAR and were all formed on June 1, 2020, and July
6, 2020. AGUILAR opened up bank accounts for the Sham Payroll Companies in
2020 and 2021.

56. Between on or about February 10, 2021, and September 15, 2021,
Atlantic Commercial Payroll Corp. transferred at least approximately $575,965 to
Capital Payroll Processing Company in two transactions.

57. Between on or about February 5, 2021, and February 12, 2021, Global
Payroll Corp. transferred at least approximately $1,204,033 to Capital Payroll
Processing Company, Inc. in three transactions.

58. Between on or about February 5, 2021, and September 14, 2021,
Executive Payroll Corp. transferred at least approximately $555,111 to Capital
Payroll Processing Co. Inc. in three transactions. The first payment was made on or
about Feb. 5, 2021, via check signed by AGUILAR, in the amount of approximately
$238,374, and is the transaction referenced in Count 10. The second transfer was

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made on or about February 11, 2021, in the amount of approximately $157,729, via
wire transfer. The third transfer was made on or about September 14, 2021, in the
amount of approximately $159,008.50, via check signed by AGUILAR.

59. As a result of the transfers set forth above, Capital Payroll Processing
Company, Inc. received approximately $2,335,109 in PPP funds that the Borrower
Companies had transferred to the Sham Payroll Companies.

60. After receiving the funds set forth above, Capital Payroll Processing
Company, Inc. then transferred funds to the Beneficiary Companies. Once the funds
were in the possession of the Beneficiary Companies, AGUILAR and RABBITT
utilized the funds for general living expenses, including debit and credit card
payments, and to purchase real property.

61. Eichler and Eben Holdings, Inc.; Angel Ridge, LP; and Westwood,
Washington & McKown Development LLC were all Beneficiary Companies
controlled by AGUILAR and were all formed in 2020 and 2021 as set forth below.

62. In six transactions between on or about February 16, 2021, and
February 22, 2021, Capital Payroll Processing Company, Inc. transferred
approximately $2,008,259 to Eichler and Eben Holdings, Inc., a company controlled
by AGUILAR and formed on or about September 9, 2020.

63. Between on or about February 16, 2021, and February 17, 2021,
Eichler & Eben Holdings, Inc. transferred at least approximately $1,162,000 to a
land title company in Sherman, Texas via wire transfers. Bank records show that at
least one of those wire transfers was directed by a person using a computer with an
Internet Protocol (or “IP”) address registered to the Farmingdale home where
RABBITT and AGUILAR are believed to have resided together. Those funds were
then used to purchase real property in Sherman, Texas. The real property was held
in the name of Angel Ridge, LP, a company controlled by AGUILAR and formed on
or about January 26, 2021.

64. On or about September 2, 2021, Eichler & Eben Holdings, Inc.
transferred at least approximately $303,794 to a land title company in Sherman,
Texas. Those funds were then used to purchase real property in Sherman, Texas.
The real property is held in the name of Westwood, Washington, & McKown
Development LLC, a company controlled by AGUILAR and formed on or about
August 2, 2021.

File and source

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Our copy: complaint-doj-complaint.pdf
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