Statement of Facts — United States v. Scott Suber (E.D. Va., Dkt. 8, filed 12/09/20)

Summary

A Statement of Facts, Document 8, filed 12/09/20, in United States of America v. Scott Suber, in the Eastern District of Virginia, Norfolk Division. The parties stipulate that the allegations in the criminal information are true and correct. It states that in or about June 2020, Suber executed a scheme to defraud Celtic Bank by submitting a fraudulent Paycheck Protection Program (PPP) loan application for Debris or Not Debris Property Preservation, Inc., supported by a Wells Fargo Bank statement whose date had been altered. The application represented eight employees and an average monthly payroll of $140,000, which are described as completely false and fabricated. Celtic Bank funded a PPP loan of $350,000, and the proceeds were used for personal benefit, including cash withdrawals and travel to Las Vegas.

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“Statement of Facts — United States v. Scott Suber (E.D. Va., Dkt. 8, filed 12/09/20).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-e-d-va-no-2-20-cr-00110-dkt-8-e-d-va-27325184db/, SHA-256 66d1b42048b0ebc3f4d4ecdef8dabd075150fd4f3833c7f6db8d532ea2719286.

Full text

Case 2:20-cr-00110-RGD-LRL Document 8 Filed 12/09/20 Page 1 of 4 PageID# 27
FILED
IM OPEN COURT

I r
IN THE UNITED STATES DISTRICT COURT DEC - 9 2020

FOR THE EASTERN DISTRICT OF VIRGINIA CLERK, U.S. DISTRICT COURT
NORFOLK, VA
NORFOLK DIVISION

UNITED STATES OF AMERICA
CRIMINAL NO.2:20crl 10

SCOTT SUBER,

Defendant.

STATEMENT OF FACTS

The parties stipulate that the allegations in the criminal information are true and correct,

and that if this case were to proceed to trial, the evidence presented by the United States would

establish the following facts beyond a reasonable doubt:

1. In or about June 2020, SCOTT SUBER,the defendant, executed a scheme and artifice

to defraud Celtic Bank,a financial institution with deposits insured by the Federal Deposit

Insurance Corporation, and to obtain monies owned by and under the control of Celtic Bank, by

means of materially false pretenses, representations and promises, as described below.

2. The Paycheck Protection Program ("PPP")is a program administered by the Small

Business Administration. In or around March 2020, Congress passed the Coronavirus Aid,

Relief, and Economic Security("CARES")Act, of which the PPP is one component. Through

the PPP,Congress authorized the award of hundreds of billions of dollars in forgivable loans to

small businesses, for the purpose of enabling those businesses to continue to pay salary or wages

to their employees. To apply for a forgivable loan under the PPP,a business must submit an

application to a participating financial institution. Ifa PPP loan application is approved, the
Case 2:20-cr-00110-RGD-LRL Document 8 Filed 12/09/20 Page 2 of 4 PageID# 28

participating lender funds the PPP loan using its own money. The SBA,in turn, guarantees the

repayment ofthe loan.

3. An applicant seeking a PPP loan is required to disclose to a participating lender,

among other things, the applicant's number of employees and average payroll expenses. The

applicant also must agree to use any funds disbursed through the program only "to retain workers

and maintain payroll or make mortgage interest payments, lease payments,and utility payments

as specified under the Paycheck Protection Program Rule."

4. The object ofthe scheme and artifice executed by the defendant was to obtain monies

for himself by submitting and causing to be submitted to Celtic Bank a firaudulent application for

a PPP loan, and then to use the loan proceeds for impermissible purposes.

5. The defendant provided information about his business. Debris or Not Debris Property

Preservation, Inc. to another person, knowing that person would,in turn, provide the information

to a third-party who would prepare and file a fi^audulent PPP loan application on behalfofthe

business. The defendant provided the other person with a Wells Fargo Bank monthly statement

for Debris or Not Debris Property Preservation Inc. that the defendant had altered. In order to

qualify for a PPP loan, a business must have been in operation as of February 15,2020. The

defendant opened a bank account in the name of Debris or Not Debris or Not Debris Property

Preservation, Inc. on April 9,2020. He changed the date on the statement from April 30,2020 to

February 29,2020 to make it appear that Debris or Not Debris Property Preservation, Inc. had a

bank account as ofFebruary 15,2020. In fact. Debris or Not Debris Property Preservation, Inc.

did not have a bank account as of February 15,2020.

6. In the application to Celtic Bank for a PPP loan that was prepared and filed on behalf

of Debris or Not Debris Property Preservation, Inc., it was represented that the business had eight

j
Case 2:20-cr-00110-RGD-LRL Document 8 Filed 12/09/20 Page 3 of 4 PageID# 29

(8)employees and an average monthly payroll of$140,000. These representations were

completely false and fabricated.

7. In support ofthe fraudulent application, a false Form 941, Employer's Quarterly

Federal Tax Retum for Debris or Not Debris Property Preservation Inc. was submitted for the 4th

quarter of2019, claiming that the business had quarterly wages of$420,000 and federal tax

withholding of$36,620. These figures were completely false and fabricated. In addition, the

false bank statement with the altered date that had been provided by the defendant was submitted

to the bank in support ofthe application.

8. In reliance on the representations in the application, Celtic Bank approved and funded

a PPP loan for Debris or Not Debris Property Preservation Inc. in the amount of$350,000.

Based on information provided by the defendant, Celtic Bank wire transferred the funds to an

account the defendant maintained in the name of Debris or Not Debris Property Preservation,

Inc. at Wells Fargo Bank.

9. In the loan application, it was stated that Debris or Not Debris Property Preservation

Inc. would use the loan proceeds for purposes connected to the business, that is, for the costs of

payroll, lease and utilities. Instead, the defendant used the proceeds for his own personal benefit,

including,among other things, making large cash withdrawals and travel to Las Vegas, and

making payments to individuals as directed by the person who filed the fraudulent loan

application on his behalf.

G. Zachary Terwilliger
United States Attorney

By:
dan M.Salsburv
Alan Salsbury 1
Assistant United States Attorney'

ec
Case 2:20-cr-00110-RGD-LRL Document 8 Filed 12/09/20 Page 4 of 4 PageID# 30

I hereby stipulate that the above Statement ofFacts is true and accurate, and that ifthis

case had proceeded to trial, the United States would have proved the same beyond a reasonable

doubt.

Scott Suber

I have reviewed the ahove Statement of Facts with Scott Suber and his decision to

stipulate to the accuracy ofthese facts is an informed and yoli^ary one.

ScottPrHallauer
Counsel for the defendant

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