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