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Indictment — United States v. Valesky Barosy (S.D. Fla.)

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A grand jury Indictment in United States of America v. Valesky Barosy, Case No. 21-60345-CR-DIMITROULEAS/SNOW, in the U.S. District Court for the Southern District of Florida, entered on the docket December 15, 2021 as Document 1. Counts 1-5 charge wire fraud under 18 U.S.C. § 1343, Counts 6-8 money laundering under 18 U.S.C. § 1957, and Count 9 aggravated identity theft under 18 U.S.C. § 1028A(a)(1). The Indictment alleges that Barosy, president of a Florida corporation called VBS, submitted PPP loan applications for VBS seeking approximately $640,090 and for other applicants seeking approximately $3,510,446, with inflated expenses, net profit and payroll. It alleges receipt of approximately $2,108,654 in PPP funds, spent on items including a convertible, luxury watches and designer clothing. A penalty sheet lists a maximum of 20 years for each wire fraud count.

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“Indictment — United States v. Valesky Barosy (S.D. Fla.).” Original at storage.courtlistener.com. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-no-0-21-cr-60345-dkt-1-s-d-fla-1a92418857/, SHA-256 ef6f065e2d150202314ad658159134f58e5b14e10f0feb02aabafdd9d306f944.

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                                                                              KS
Case 0:21-cr-60345-WPD Document 1 Entered on FLSD Docket 12/15/2021 Page 1 of 10

                                                                                                Dec 15, 2021

                               UNITED STATES DISTRICT COURT
                               SOUTHERN DISTRICT OF FLORIDA
                                           21-60345-CR-DIMITROULEAS/SNOW
                              CASE NO. __________
                                       18 u.s.c. § 1343
                                       18 u.s.c. § 1957
                                       18 U.S.C. § 1028A(a)(l)
                                       18 u.s.c. § 2
                                       18 u.s.c. § 982


    UNITED STATES OF AMERICA

    vs.

    VALESKY BAROSY,

               Defendant.
    ------------
                                            INDICTMENT

          The Grand Jury charges that:

                                     GENERAL ALLEGATIONS

          At all times relevant to this Indictment:

          1.       The Coronavirus Aid, Relief, and Economic Security (CARES) Act was a federal

  law enacted in March 2020 to provide financial assistance to Americans suffering economic harm

  from the COVID-19 pandemic. One source of relief provided through the CARES Act was the

  authorization of forgivable loans to businesses for job retention and certain other expenses, through

  a program called the Paycheck Protection Program (PPP).

          2.       To obtain a PPP loan, a qualifying business submitted a PPP loan application, which

  was 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 to be eligible to obtain the PPP loan. In the PPP loan application

  (Small Business Administration ("SBA") Form 2483), the small business (through its authorized
Case 0:21-cr-60345-WPD Document 1 Entered on FLSD Docket 12/15/2021 Page 2 of 10




  representative)wasrequired to provide,nmong otherthings,its:(a)average monthly payroll
  expenses;(b)netprofit;and/or(c)nlzmberofemployees.Thesefigureswereusedtocalculatethe
  nm olmtofm oney thesmallbusinesswaseligibletoreceiveunderthePPP.Inaddition,businesses

  applyingforaPPP loanwererequiredtoprovidedocum entation confirm ingtheirpayrollexpenses.

  For sole proprietors,this docllm entation included their 2019 1R S Fol'm 1040 Schedule C,line 31

  netprofit.

                 The CARES A ctrequired PPP loan applicationsto be processed by a participating

  lender. lfa PPP loan application was approved,the participating lenderw ould fund the PPP loan

  usingitsownmonies,wllichwereguaranteedbytheSmallBusinessAdministration(SBA).Data
  from theapplication,including inform ation aboutthe borrower,the totalam olmtoftheloan,and

  the listednum berofem ployees,w eretransm itted by thelenderto theSBA toprocessthe loan.

         4.      SBA LomlProcessor1and SBA Loan Processor2 (theGGSBA Loan Processors'')
  w ere financial-technology com panies based in Califolmia.

                 The SBA Loan ProcessorspM icipated in the PPP by,nm ong otherthings,acting

  as a service provider for sm allbusinesses and certain lenders. Sm all businesses seeking a PPP

  loan could apply through the SBA Loan Processors, which would review the PPP loan

  applications. If a PPP loan application received was approved for funding,a partnerfmancial

  institution disbtlrsed the loan fundsto theapplicant.

         6.      The partner fm ancialinstitm ions for the SBA Loan Processors were Financial

  Institution 1 an.
                  d Financiallnstitution 2,170th ofw hich w erefederally insured bnnksheadquartered

  in SaltLake City,Utah.

                 A pplicant1w asa lim ited liability com pany in the assisted living industry registered

  in the State ofFlorida.



                                                   2-
                                                   -
Case 0:21-cr-60345-WPD Document 1 Entered on FLSD Docket 12/15/2021 Page 3 of 10




         8.     Applicant2 wasalim ited liability company in therealestateindustryregistered in

  the Com m onw ea1th ofV irginia.

         9.     Applicant3 wasa lim ited liability com pany in thehealth care industry registered

  in the State ofFlorida.

         10.    D efendantV AT,E SK Y BA R O SY ,a residentofBrow ard County,Florida,w asthe

  presidentofVBarosysolutionsInc.(VBS),acorporationregisteredintheStateofFlorida.
         11.    VA LE SK Y BA R O SY and V B S m aintained bank accounts atB nnk 1 in B row ard

  County,Florida. B ank 1 w as a federally insured financialinstitution headquartered in N ew Y ork

  City,N ew Y ork.

                                           C O UN TS 1-5
                                            W ire Fraud
                                         (18U.S.C.j1343)
         1.     Paragraphs 1through 11ofthe GeneralA llegationsSection oftllisIndictm entare

  re-alleged and incorporated by referenceasthough fully setforth herein.

         2.     From in orarotm d M ay 2020,through in orarotm d Jtm e 2020,in Brow ard County,

  inthe Southem DistrictofFlorida,and elsewhere,the defendant,

                                      V A I,ESK Y BA R O SY ,

  did knowingly,and with intentto defraud,devise,and intend to devise a schem e and artifice to

  defraud andto obtain m oney andproperty by m eansofmaterially false and fraudulentpretenses,

  representations, and prom ises,know ing that the pretenses,representations, and prom ises w ere

  false and fraudulent when m ade, and for the purpose of executing such schem e and artifice to

  defraud,did know ingly transm itand cause to be transm iûed by m eansofw ire com m unicationsin

  interstate and foreign com m erce,certain w ritings,signs,signals,pictures,and sotm ds.




                                                 -   3-
Case 0:21-cr-60345-WPD Document 1 Entered on FLSD Docket 12/15/2021 Page 4 of 10




                       PU R PO SE O F TH E SC H EM E A N D A R TIFICE

        ltwasthe purpose ofthe schem e and artitk e forthe defendantand his accomplicesto

  unjustly enrich themselvesby submitting,andcausingothers.to submit,falseandâaudulentPPP
  loan applicationson behalfofVAI,ESKY BARO SY,VBS,and otherapplicantstothe SBA Loan

  Processprsandthen usingthesubsequentloan pfoceedsfortheirpersonaluse and benefit.

                M ANNER AND M EAN S OF THE SCH EM E ANb ARTIFICE
         The m nnner and m eans by which the defendgnt, VALESKY BAROSY, sought to

  accomplish the schem e and artificeto defraud included,am ong others,thefollowing:

         3.     VAT,ESK Y BARO SY subm itted or caused to be subm itted to the SBA Loàn

  Processorsapproxim ately threePPP loan applicationsforthebenefitofVBS,seelcing PPP loans

  intlieapproximatenmotmtof$640,090.
                V AI,E SK Y BA R O SY subm itted or caused to be subm itted to the SBA Loan

  ProcessorsPPP loan applicationson behalfofothercompanies,including Applicants 1,2,and 3,

  seelcing PPP loansintheapproximate am olmtof$3,510,446.
         5.     hl each PPP loan application, V A LESK Y BA R O SY falsely and fraudulently

  intlated VB S'and the nam ed applicant'sprior-year expenses,netprofit,and payroll. In support,

  BAROSY subm itted false and fraudulent IRS form s,which purported to reportexpenses,net

  profit,and payrollfrom the nnm ed applicant's corporation,com pany,or soleproprietorship.

         6.     As a resultof the false and fraudulent PPP loan applications that VALESK Y

  BAROSY subm itled and caused to be subm itted,BAROSY and llis accomplicesreceived PPP

  loan fundsin theapproxim ateam ountof$2,108,654.
                V AL ESK Y BA R O SY used the âaudulently obtained fundsreceived from thePPP

  loan applications for his ow n personaluse and benefit,including the ptlrchase of a Lnm borghini

  convertible,luxury w atches,and designer clothing from Louis Vuitton,Gucci,and Chanel.
    Case 0:21-cr-60345-WPD Document 1 Entered on FLSD Docket 12/15/2021 Page 5 of 10




                                          U SE OF TH E W IR ES
               8.    On oraboutthe dates specified asto each countbelow ,in B row ard County,in the

      Southem DistrictofFlorida,and elsewhere,thedefendant,

                                          V AT,ESK Y BA R O SY ,

      forthe purpose ofexecuting,and in ftzrtherance of,the aforesaid scheme and artifice to deâaud

      and to obtain money and property by m eans of m atedally false and âaudulent pretenses,

      representations, and prom ises, knowing that the pretenses,representations, and prom ises w ere

      falseorfraudulentwhen m ade,did knowingly transm italld causeto betransm itted,by m eansof

      wirecom mllnicationsin interstateand foreign comm erce,certain m itings,signs,signals,pictures,

      and sotmds,asm ore specifically descdbed below :

       C O U NT     A PPR O X .D AT E        D ESCR IPTIO N O F W IRE CO M              CA TIO N
           1           Jtme 9,2020      Thesubmission ofan electronicPPP loan application onbehalf
                                        ofV BS to SBA Loan Processor2,causing a w ire transmission
'
                                        from the Southern DistrictofFlorida to outside the State of
                                        Flodda
           2           Jtm e15,2020     Thesubmission ofan electronicPPP loan application onbehalf
                                        of A pplicant 1 to SBA Loan Processor 1, causing a w ire
                                        transm ission from the Southern D istrict of Florida to outside
                                        the State ofFlodda
           3           Jtme 17,2020     Thesubmission ofan electronicPPP loan application on behalf
                                        of A pplicant 2 to SBA Loan Processor 2, causing a wire
                                        transm ission from the Southern D istrict of Florida to outside
                                        the State ofFlorida
           4           June 17,2020     Thesubm ission ofan electronicPPP loan application on behalf
                                        of Applicant 3 to SBA Loan Processor 1, causing a wire
                                        transmission from the Southern DistrictofFlorida to outside
                                        the State ofFlorida
           5           June 19,2020     The subm ission of an electronic PPP loan application in the
                                        nnm e of GçE.T.'' to SBA Loan Processor 1, causing a wire
                                        transm ission from the Southem D istrict of Florida to outside
                                        the State ofFlorida

               In violation ofTitle 18,United StatesCode,Section 1343 and 2.




                                                    -
                                                        5-
Case 0:21-cr-60345-WPD Document 1 Entered on FLSD Docket 12/15/2021 Page 6 of 10




                                           C O UN TS 6-8
                                        M oney Laundering
                                         (18U.S.C.j1957)
           1.    Paragraphs 1 through 11 ofthe GeneralA llegations Section ofthis Indictm entare

  re-alleged and incorporated by referenceasthough fully setforth herein.

           2.    On oraboutthe dates setfol'th in each Countbelow,in Broward Cotmty,in the

  Southern D istrictofFlorida,and elsew here,the defendant,

                                      V A LESK Y BA R O SY ,

  did knowingly engage in,and attem ptto engage in,a m onetary transaction affecting interstate

  com merce,by,through,and to a financialinstitution,in crim inally derived property of a value

  greaterthan $10,000,such property having been derived from a specified urllawfulactivity,and
  know ing thatthe property involved in the financialtransaction represented the proceeds of som e

  form ofunlawfulactivity,asm orespecitk ally descdbedbelow:

   C O U NT      A PPR O X .D A TE             D ESCR D TIO N O F TR AN SA C TIO N
       6           Jlm e 16,2020     Cashier's check withdraw al, in the approxim ate am otm t of
                                     $60,000 from Defendant'saccotmtending in 5809 atBanlc1,
                                     for a down a m enton a Lnm bor l'
                                                                     liniHuracân Evo
       7           Jtme 18,2020      Debitcard paym ent,in the approxim ate amount of $14,095
                                     from Defendant's account ending in 5809 atBarlk 1,for a
                                     Rolex w atch
       8           June27,2020       Debitcard payment,in the approxim ate nm ount of $16,056
                                     from Defendant's account ending in 5809 atBank 1,for a
                                     Hublotwatch

           Itisfurtherallegedthatthespecifiedunlawfulactivity iswirefraud,in violation ofTitle

  18,U nited States Code,Section 1343.

           In violation ofTitle 18,U nited States Code,Section 1957.




                                                 -   6-
Case 0:21-cr-60345-WPD Document 1 Entered on FLSD Docket 12/15/2021 Page 7 of 10




                                           C O UN T 9
                                   A ggravated Identity Theft
                                    (18U.S.C.j1028A(a)(1))
         On or aboutJune 19,2020,in Broward County,in the Southern DistrictofFlorida,and

  elsew here,the defendant,

                                     V AI,ESK Y BA R O SY ,

  dttring and in relation to a felony violation ofTitle 18,United StatesCode,Section 1343,thatis,

  w ire fraud,as charged in Count 5 of this Indictm ent,did know ingly transfer,possess,and use,

  without lawful authority,a m eans of identification of anotherperson,thatis,the nnm e,bank

  accotmtnumber,and SocialSeclzrity numberof GçE.T.,''in violation of Title 18,Uzlited States

  Code,Sections1028A(a)(1)and2.

                                         FO R FEITIJRE

         1.     The allegationsofthisIndictm entarehereby re-alleged and by thisreference fully

  incorporatedhereinforthepurposeofallegingforfeituretotheUnited StatesofAmericaofcertain

  property in w hich the defendant,V AI,ESK Y BA R O SY ,hasan interest.

         2.     U pon conviction of a violation ofTitle 18,United States Code,Section 1343,as

  allegedinthislndictm ent,thedefendantshallforfeittotheUnited Statesanyproperty constituting,

  or dedved f'
             rom ,proceeds the defendant obtained directly or indirectly,as the result of such

  violationptlrsuanttoTitle18,UnitedStatesCode,Section982(a)(2)(A).
         3.     Upon conviction ofa violation ofTitle 18,United StatesCode,Section 1957,as

  alleged in this Indictm ent,the defendant shallforfeitto the U nited States any property,real or

  personal,involved in such offense,and any property traceable to such property,puzsuan.
                                                                                       tto Title

  18,Section 982(a)(1).




                                                -   7-
  Case 0:21-cr-60345-WPD Document 1 Entered on FLSD Docket 12/15/2021 Page 8 of 10




           A1lpursuantto Title 18,United StatesCode,Section 982(a)(1)and (a)(2)(A),and the
    procedtlres set forth at Title 21,United States Code, Section 853 as incop orated by Title 18,

    Uzlited StatesCode,Section 982(b)(1).




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                                                 -   8-
 Case 0:21-cr-60345-WPD Document 1 Entered on FLSD Docket 12/15/2021 Page 9 of 10
                                             UNITED STATESD ISTR ICT CoURT
                                            SOUTH ERN DISTRICT OF FLOIU DA

  W TED STATESOF W            W CA                      CASE NO .

                                                        CERTIFICATE OF TRIAL ATTO RNEY*
  VALESKY BAROSY,                                       Superseding CaseInform ation:
                Defendant.                   /
    CourtDivision:tselectOne)                           Newdefendantts) I--IYes I
                                                                                --INo
   F-lMiami F-1KeyWest I'
                        Z FTL                           Numberofnewdefendants
   F-IWPB F-IFTP                                        Totalnumberofcounts
        1.1havecarefully considered theallegationsoftheindictm ent,thenum berofdefendants,thenum berofproh ble
          witnessesand thelegalcom plexitiesofthelndictment/lnformation atlachedhereto.
        2.1am aware thattheinformation supplied onthisstatem entwillberelied upon bytheJudgesofthisCourtin
          setting theircalendarsandscheduling crim inaltrialsunderthem andateoftheSpeedy TrialAct,
          Title28 U.S.C.Section3161.
        3.lnterpreter:(YesorNo) No
          Listlanguageand/ordialect
        4.ThiscaseFilltake 7 daysforthepartiestotry.
        5.Plea echeck appropriatecategory andtypeofoffenselistedbelow:
             (Checkonlyone)                           (Checkonlyone)
         I 0to5days              (71                   Petty             E1
         11 6to10days            Iq
                                  d                    Minor             IZ
         111 1lto20days          I71                   Misdemeanor       EEI
         IV 21to60days           (71                   Felony            Id
         V 61daysandover         E7
        6.HasthiscasepreviouslybeenfiledintlzisDistrictCourt? (YesorNo) NO
           lfyes:Judge                                  CaseN o.
           (Attachcopyofdispositiveorder)
           H&sacomplaintbeenfiledinthismatter? (YesorNo) No
           Ifyes:M agistrateCase No.
           Related miscellaneousnumbers:
           Defendantts)infederalcustodyasof
           Defendantts)instatecustodyasof
           Rule20 from theDistrictof
           Isthisapotentialdeathpenaltycase?(YesorNo) No
           Doesthiscase originatefrom amatterpending in theCentralRegionoftheU.S.Attorney'sOfficepriorto
           August9,2013(Mag.JudgeAlicia0.Valle)?(YesorNo) No
           Doestlziscase originatefrom amatterpending intheNorthern Region oftheU.S.Attorney'sOffice priorto
           August8,2014(Mag.JudgeShaniekMaynard?(YesorNo) No
           Doesthiscase originatefrom amatterpending intheCentralRegionoftheU.S.Attorney'
                                                                                        sOfficepriorto
           October3,2019(Mag.JudgeJaredStrauss)?(YesorNo) No
                                                                          k




                                                                          t n Bailyn
                                                                    As ' ntUnited States Attorney
                                                                    CourtID No.    A5502692
*penaltySheetts)attachd                                                                             REV 3/19/21
Case 0:21-cr-60345-WPD Document 1 Entered on FLSD Docket 12/15/2021 Page 10 of 10




                               U N ITE D STA TES DISTR ICT CO U R T
                               SO U TH ER N D ISTR ICT OF FL O RID A

                                        PEN AL TY SH EET

   D efendant's N am e: V alesky Barosy

   Case N o:

   Counts#:1-5

   W ire Fraud

   Title l8,U nited StatesCode,Section 1343

   *M ax.Penalty:20 Y ears'lm prisonm ent

   Counts #:6-8

  M oney Laundering

   Title 18,U nited States Code,Section 1957

   *M ax.Penalty: 10 Y ears'Im prisonm ent

   Cotmts #:9

  A ggravated Identity Theft

   Title18,UnitedStatesCode,Section 1028A(a)(1)
   *M ax.Penalty:2 Y ears'Im prisonm entConsecutive to Any O ther Sentence




   frR efers only to possible term ofincarceration,does not include possible fines,restitution,
              specialassessm ents,parole term s,orforfeitures thatm ay be applicable.


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