Information — United States v. Justin Etwaru (S.D. Fla., Dkt. 1)
Summary
An Information in United States v. Justin Etwaru, Case No. 1:21-cr-20156, in the U.S. District Court for the Southern District of Florida, entered on the docket March 12, 2021 as Document 1. The United States Attorney charges the defendant with conspiracy under 18 U.S.C. § 371 to commit wire fraud, for the period from on or about July 4, 2020, through on or about September 12, 2020. It alleges that a Paycheck Protection Program application submitted on or about July 8, 2020 for a restaurant claimed an average monthly payroll of $23,100 and that Bank A approved a $57,750 loan. The Information includes a forfeiture allegation seeking a money judgment of $57,750.00, a penalty sheet and a waiver of an indictment form.
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“Information — United States v. Justin Etwaru (S.D. Fla., Dkt. 1).”
Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-no-1-21-cr-20156-dkt-1-s-d-fla-0702c5f32f/
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Case 1:21-cr-20156-JLK Document 1 Entered on FLSD Docket 03/12/2021 Page 1 of 9YH
FILED by D.C.
Mar 12, 2021
ANGELA E. NOBLE
UNITED STATES DISTRICT COURT CLERK U.S. DIST. CT.
S.D. OF FLA. -MIAMI
21-iB~gg~ff-f6~01e1€E~RA
CASE NO. - - - - - - - - - - -
18 u.s.c. § 371
18 U.S.C. § 981(a)(2)(A)
UNITED STATES OF AMERICA
v.
JUSTIN ETWARU,
Defendant.
- - - - - - - - -- -- - -- I
INFORMATION
The United States Attorney charges that:
GENERAL ALLEGATIONS
At all times relevant to this Information:
l. The defendant, JUSTIN ETWARU, was a resident of Boca Raton, Florida.
2. The defendant, JUSTIN ETWARU, with Coconspirator A jointly owned_Business
A, a restaurant located in Miami, Florida.
3. Coconspirator A, was a resident of Miami, Florida. In addition to co-owning
Business A, Coconspirator A owned Business B, a catering and food service business located in
Miami, Florida.
4. Coconspirator B was a resident of Miami, Florida and an associate of JUSTIN
ETWARU and Coconspirator A.
5. Bank A was a participating lender of funds to small businesses under the ~aycheck
Protection Program ("PPP") in 2020. Under the PPP, the Small Business Administration agreed
Case 1:21-cr-20156-JLK Document 1 Entered on FLSD Docket 03/12/2021 Page 2 of 9
to guarantee loans provided by participant lenders under certain conditions. Financial Service
Provider A connected PPP loan applicants to qualified lenders.
6. In order to obtain a PPP loan, an applicant had to submit an application listing the
number of employees and average monthly payroll expenses for the applicant's company.
Furthermore, the applicant had to certify that the funds would be used for payroll and other
authorized expenses for the applicant's company.
Conspiracy to Commit Wire Fraud
(18 u.s.c. § 371)
From on or about July 4, 2020, through on or about September 12, 2020, in Miami-Dade
County, in the Southern District of Florida, and elsewhere, the defendant,
JUSTIN ETWARU,
did knowingly and willfully combine, conspire, confederate, and agree with other individuals
known and unknown to the United States Attorney, to commit certain offenses against the United
States, namely: to knowingly, and with the intent to defraud, devise, and intend to devise, a scheme
and artifice to defraud, and to obtain money and property by means of materially false and
fraudulent pretenses, representations, and promises, knowing that the pretenses, representations,
and promises were false and fraudulent when made, and for the purpose of executing such scheme
and artifice, did knowingly transmit and cause to be transmitted, by means of wire communication
in interstate and foreign commerce, certain writings, signs, signals, pictures, and sounds, in
violation of Title 18, United States Code, Section 1343.
PURPOSE OF THE CONSPIRACY
It was the purpose of the conspiracy for the defendant and his co-conspirators to unjustly
enrich themselves by submitting and causing others to submit to financial institutions false and
2
Case 1:21-cr-20156-JLK Document 1 Entered on FLSD Docket 03/12/2021 Page 3 of 9
fraudulent PPP loan applications that falsely certified employee payroll amounts and falsely
certified that the funds would be used for payroll and other authorized expenses.
MANNER AND MEANS OF THE CONSPIRACY
The manner and means by which the defendant and his conspirators sought to accomplish
the object and purpose of the conspiracy included, among others, the following:
1. JUSTIN ETWARU was having difficulty obtaining a PPP loan for Business A
when Coconspirator B, an associate, offered his assistance. ETWARU and Coconspirator B
worked together to complete a PPP application that ETWARU electronically submitted on or
about July 8, 2020 to Financial Service Provider A and Bank A for Business A. Coconspirator B
understood he would unjustly receive a portion of another PPP loan that Coconspirator B submitted
on behalf of Coconspirator A - the co-owner of Business A.
2. Coconspirator B originally suggested JUSTIN ETWARU apply for a loan for
hundreds of thousands of dollars, knowing that amount was far in excess of what Business A would
qualify for under the terms of the PPP program. ETWARU instead sought a smaller but
nonetheless unsupported amount in the PPP application to Financial Service Provider A and Bank
A.
3. The loan application that JUSTIN ETWARU submitted contained a number of
false statements including: (a) claiming an "average monthly payroll" of $23,100; and (b)
certifying that "[t]he funds will be used 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. At no time did Business A have an average monthly payroll of as much as $23,100.
3
Case 1:21-cr-20156-JLK Document 1 Entered on FLSD Docket 03/12/2021 Page 4 of 9
Indeed, on or about May 3, 2020, JUSTIN ETWARU claimed only $7,276.33 in average monthly
payroll on an (unsuccessful) PPP application to a different lender. ETWARU knew the loan
application for Business A that he submitted to Bank A on or about July 8, 2020, was for an amount
greater than the amount that Business A needed to retain workers, maintain payroll, or make
mortgage interest, lease or utility payments.
7. Bank A approved the loan in the amount of $57,750 and deposited the funds, via
interstate wire, to Business A's bank account at Bank Bon or about July 9, 2020.
8. Coconspirator A used the funds received from the PPP loan application that
JUSTIN ETWARU submitted for unauthorized purposes such as to pay taxes and repay loans,
the true nature of which were concealed as payroll.
OVERT ACTS
In furtherance of the conspiracy and to achieve its objects and purpose, at least one of the
co-conspirators committed and caused to be committed, in the Southern District of Florida, and
elsewhere, at least one of the following overt acts, among others:
1. On or about July 7, 2020, Coconspirator B, angry about a loan that he applied for
on behalf of Coconspirator A, text messaged JUSTIN ETWARU and said, "We'll get a loan for
[Business A]."
2. On or about July 8, 2020, JUSTIN ETWARU signed and submitted a Small
Business Administration Borrower Application Form electronically to Bank A, on which he falsely
certified that the average monthly payroll for Business A was $23,100.
All in violation of Title 18, United States Code, Section 371.
4
Case 1:21-cr-20156-JLK Document 1 Entered on FLSD Docket 03/12/2021 Page 5 of 9
FORFEITURE
(18 U.S.C. § 982(a)(2)(A))
1. The allegations of this Information are hereby re-alleged and by this reference fully
incorporated herein for the purpose of alleging forfeiture to the United States of America of certain
property in which the defendant, JUSTIN ETWARU, has an interest.
2. Upon conviction of a violation of Title 18, United States Code, Section 371, as
alleged in this Information, the defendant, shall forfeit to the United States any property
constituting, or derived from, proceeds the defendant obtained directly or indirectly, as the result
of such violation pursuant to Title 18, United States Code, Section 982(a)(2)(A).
3. The property subject to forfeiture includes, but is not limited to, the following: a
forfeiture money judgment in the amount of $57,750.00, which sum represents the amount of
directly forfeitable property.
5
Case 1:21-cr-20156-JLK Document 1 Entered on FLSD Docket 03/12/2021 Page 6 of 9
All pursuant to Title 18, United States Code, Section 982(a)(2)(A), and the procedures set
forth at Title 21, United States Code, Section 853 as incorporated by Title 18, United States Code,
Section 982(b)(l).
G:-- DANIEL KAHN
ACTING CHIEF, FRAUD SECTION
DEPARTMENT OF JUSTICE
(,/ EMILY SCRUGGS
TRIAL ATTORNEY, FRAUD SECTION
DEPARTMENT OF JUSTICE
ARIANA FAJARDO ORSHAN
UNITED STATES ATTORNEY
Cv- MICHAEL N. BERGER
ASSISTANT UNITED STATES ATTORNEY
Case 1:21-cr-20156-JLK Document 1 STATES
UNITED Entered on FLSD
DISTRICT COURT Docket 03/12/2021 Page 7 of 9
SOUTHERN DISTRICT OF FLORIDA
UNITED STATES OF AMERICA CASE NO.
vs.
CERTIFICATE OF TRIAL ATTORNEY*
JUSTIN ETWARU,
Defendant.
_______________ / __.: Superseding Case Information:
Court Division: (Select One) New Defendant(s) Yes No
Number of New Defendants
_X_ Miami Key West Total number of counts
FTL WPB FTP
I do hereby certify that:
1. I have carefully considered the allegations of the indictment, the number of defendants, the number of
probable witnesses and the legal complexities of the Indictment/Information attached hereto.
2. I am aware that the information supplied on this statement will be relied upon by the Judges of this Court in
setting their calendars and scheduling criminal trials under the mandate of the Speedy Trial Act, Title 28 U.S.C.
Section 3161.
3. Interpreter: (Yes or No)
List language and/or dialect
4. This case will take _Q_ days for the parties to try.
5. Please check appropriate category and type of offense listed below:
(Check only one) (Check only one)
I Oto 5 days X Petty
II 6 to 10 days Minor
II 11 to 20 days Misdem.
IV 21 to 60 days .Felony X
V: 61 days and over
6. Has this case been previously filed in this District Court? (Yes or No) No
If yes:
Judge: Case No.
(Attach copy of dispositive order)
Has a complaint been filed in this matter? (Yes or No) No
If yes:
Magistrate Case No.
Related Miscellaneous numbers:
Defendant(s) in federal custody as of
Defendant(s) in state custody as of
Rule 20 froni the_________ District of
Is this a potential death penalty case? (Yes or No) No
7. Does this case originate from a matter pending in the Northern Region of the U.S. Attorney's Office prior to
October 14, 2003? Yes X No
8. Does this case originate from a matter pending in the Central Region of the U.S. Attorney's Office prior to
September 1, 2007? Yes X No
MICHAEL N. BERGER
ASSISTANT UNITED STATES ATTORNEY
Court ID No. 5501557
*Penalty Sheet(s) attached REV 4/8/08
Case 1:21-cr-20156-JLK Document 1 Entered on FLSD Docket 03/12/2021 Page 8 of 9
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
PENAL TY SHEET
Defendant's Name: JUSTIN ETWARU
Case No:
Count#: 1
Conspiracy to Commit an Offense Against the United States
Title 18, United States Code, Section 371
* Max. Penalty: Five (5) Years' Imprisonment
*Refers only to possible term of incarceration, does not include possible fines, restitution,
special assessments, parole terms, or forfeitures that may be applicable.
Case 1:21-cr-20156-JLK Document 1 Entered on FLSD Docket 03/12/2021 Page 9 of 9
l
AO 455 (Rev. 01/09) Waiver ofan Indictment
UNITED STATES DISTRICT COURT
for the
Southern District of Florida
United States of America )
v. ) Case No.
JUSTIN ETWARU, )
)
Defendant )
WAIVER OF AN INDICTMENT
I understand that I have been accused of one or more offenses punishable by imprisonment for more than one
year. I was advised in open court ofmy rights and the nature of the proposed charges against me.
After receiving this advice, I waive my right to prosecution by indictment and consent to prosecution by
information.
Date: - - - - - - - -
Defendant's signature
Signature of defendant's attorney
Printed name of defendant's attorney
Judge 's signature
Judge's printed name and title
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