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Case 1:21-cr-20160-KMW Document 21 Entered on FLSD Docket 09/03/2021 Page 1 of 12
UNITED STATES D ISTRICT CO UR T
SO UTH ER N DISTRICT O F FLOR ID A
CA SE NO .21-20160-CR -m LLIA M S
U NITED STATES O F AM ERICA
VS.
LEONEL W W R O ,
Defendant.
PLEA AG REEM EN T
l
The United StatesAtlorney's Officeforthe Southern DistrictofFlorida,the Fraud Section
of the Criminal Division of the United States Department of Justice (collectively, Kçthe
Governmenf') and LeonelRivero (hereinafterreferred to as the 'tdefendanf') enter into the
. '
follow ing agreem ent:
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1. Thedefendantagreestopleadguiltytotheinformation,whichchargesthedeftndant
withwirefraud,inviolationof18U.S.C.j1343.
2. The defendant understands that he has the right to hake the evidence and charges.
againsthim presented to aFederalgrand jury fora.determination ofwhetherornotthere is
probablecauseto believethathe com m itted theoffensew ith w hich he ischarged. Understanding
thatright,and afterfulland com pleteconsultation w ith hiscounsel,the defendantagreesto w aive
J
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in open courthis rightto prosecution by indictm entand agreesthatthe Governm entm ay proceed
by w ay ofan inforination fled pursuantto Rule7 ofthe FederalRulçs of Crim inalProcedure.
3. Thedefepdantisaware thatthesentencewillbe imposrd by the Courtafterconsidering
the advisory FederalSentencing Guidelines and Policy Statements (hereinafter,Ccsentencing
Guidelines''). The defendantacknowledgesand understands thatthe Courtwillcompute an
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advisory sentence under the Sentencing Guidelines and that the applicable guidelines w ill be .
determ inedby the Courtrelyin'
g in pal4on theresultsofapre-sentenceinveàtigation by the Court's
probâtion office,which investigation w illcom m ence afterthe.guilty pleà hasbeen entelyd. The
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defendantisalso aw arethat,undercertain circum stances,the Courtm ay departfrom the advispry
Sentencing Guidelinesrange thatithascomputed,and m ay raise orlow erthatadvisory sentence
underthe Sentencing Guidelines. The defendantisfurther aw are and understandsthatthe Court
isrequired to considerthe advisory guideline range determ ined underthe Sentencing Guidelines,
butisnotboundto imposea sentence within thatadvisory range;theCourtispermitted to tailor
the ultim ate sentence in light of other statutory concerns,and such sentence m ay be either m ore
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severe or less severe than the Sentencing Guidelines'advisory range. Know ing these facts,the
defendantunderstands and acknow ledgesthatthe Courthasthe authority to impose any sentence
w ithin and up to the statutory m âxim um authorized by law forthe offense identified in paragraph
1 and thatthe defendantm ay notw ithdraw theplea solely asaresultofthe sentence imposed.
The defendant also understands and acknowledges that the Courtmay impose u
statm ory m axim um tenriofim prisonm entofup to twenty years,follow ed by aterm ofsupervised
release ofup to three years. 11iaddition to aterm ofimprisonmentand supervised release,the'
--
( .
Coul'
tmay imposeastoeachcountofconviction amaximut finethegreaterof(a)$250,000or
(b) twiée the gross pecuniary loss incprred by the victims in this case. The defendant
acknowledgesthatrestitution m ustalso be im posed.
,
The defendantf'
urtherundersunds and acknowledgesthat,in addition to any sentence
imposedunderparagraph4 ofthisagreem ent,aspecialassessmentin theamountof$100willbe
im posed on the defendant. The defendantagp es thatany specialassessm entim posed shallbe
Paidatthetimeofsentencing. lftfledefendantijfinanciallylmabletopaythespecialassessment,
2
)
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thedefendantagreestopresentevidenceto theGovernm entandthe Coul'
tatthetim eofsentencing
asto thereasonsforthe defendant'sfailure to pay.
6. The Governnîentreservesthe rightto infonn the Courtand the probatiôn office ofa1l
factspel-tinenttothesentencing process,including al1relevantinform ation concerningtheoffenses
com m itted,whether charged or not,as w ell as concerning the defendant and the.defendant's
background. Subjectonlytotheexpresstermsofanyagreed-uponseptencingrecommendations
contained in this agreem ent, the Governm ent further reserves thè right to m ake any
recom m endation asto the quality and quantity ofpunishm ent.
7. The G overnm entagreesthatitwillrecom m end atsentencing thatthe Coul'treduce by
two levelsthe Sentencing Guidelines levelapplicable to the defendant's offense,pursuantto
Section 3E1.1(a)ofthe Sentencing Guidelines,based upon the defendant's recognition and
affirm ative and tim ely acceptance of person&lresponsibility. lf atthe tim e of sentencing the
defendant's offense levelis determ ined to be 16 or greater,the Governm entF illfile a m otion
z
requesting an additionalone leveldecwase pursuantto Section 3E1.1(b) ofthe Sentencing
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Guidelines,stating thatthe defendanthasassisted authoritiesin the investigation orprosecution of
the defendant's own m isconduct by tim ely notifying authorities of the defendant's intention to
enterapleaofguilty,therebypenuitting the Governm entto'
avoidpreparing fortrialandperm itting
$he Governmentand the Courtto allocate theirresoprces efficiently. The Governmentfurther
agrees to recom m end thatthe defendantbe sentenced w ithin the advisory guideline range asthat
range is determ ined by the Coul'
t. The Governm ent,how ever,w illnotbe required to m ake this
motion andtheserecoinmendationsifthedefendant:(1)failsorrefusesiomakeafull,accurate
and com plete disolosure to the probation office of the circum stances surrounding the relevant
offenseconduct;or(2)commitsanymisconductafterenteringintothispleaagreement,including
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butnotlim ited to com lpitting a state or federaloffçnse,violating any term ofrelease,orm aking
false statem ents orm isrepresentationsto any governm entâlentity orofficial.
8. Acknow ledging thattheparties'recom m endationsasto sentencing ate notbinding on
theprobation ofticeorthe Coult theGovernmentandthedefendantagreethat,atsentencing:
(a) the Government and the defendantshalljpintly recommend thatthe relevant
amount of actual,probable,or intended loss under Section 2B1.1(b)(1) of the Sentencing
Guidelinesresulting from the offense commitled by the dejkendantin thiscase isbetween $1.5
m illion and$3.5m illion.
The'defe
'ndant is aw are thatthe
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sentence has notyetbeen determ ined by the Court.
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The defendantalso isaw arethatany ejtim ateofthe probable'sentencing rangeorsentçnce thatthe
defendant ma# receive, wh'
ether that estimate comes from the defendant's attorney, the
Governm ent,or the probation office,is a prediption,not a prom ise,and is not binding on the
G overnm ent, the probation offce or the Court. The defendant understands further that any
recom m'endation thatthe G overnm entm akesto the Cciurtasto sentencing,whether pursuantto
this agreem ent or otherwise, is npt binding on the Court and the Court m ay disregard the
recom m ehdation in its entirety. The defendant understands and acknowledges, as previously
ack2owledged in paragraph3 abovè,thatthedefendantmaynotwithdraw thedefendant'splea
based upon the Court's decision not to accépt a sentencing recom m endation m ade by the
defendant,the Government, or a recommendation made jointly by the defendant and the
G overnm ent.
10. The G ovérnm entand thedefendantstipulateto and agreenotto contestthe follow ing
facts,and stipulatethytsuch facts,in accordancewith Rule 11(b)(3)oftheFederalRulesof
Crim inalPrbcedure,providea sufficientfactualbasisforthedefendant'splea ofguilty in thiscase:
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FA CTU AT,BA SIS
ThePavcheck Protection Progrém andtheEconomiqlnlurvDisasterLoanProRram
Q
TheCoronavirusAid,Relief,anbEconomicSectyityIICCARES''IActwasafederal
law enacted in M arch 2020,toprovidefinancialassistancetoA m ericanssuffering econom icharm
from the COV lD -19 papdem ic. One source ofreliefprovided through the CA RES A ctw asthe
authorizationofforgivableloanstobusinessesforjobretentionandcertainotherexpenses,through
aprogram calledthePaycheckProtectionProgram'(çTPP'').
Am ong thetypesofbusinesseseligibleforaPPP loan were individualswho operated
under a (dsole proprietorship''business structure. Such individuals w ere eligible to receive a
maximum PPP loan of up to $20,833 to cover lost compensation or incom e from the sole
proprietorship. ln orderto be eligible to receive such a PPP loan,individuals had to reportand
docum enttheir incom e and expenses from the sole proprietorship,as typically reported to the
lnternalRevenueSelwice((IRS'')onForrh 1040,ScheduleC,foragiventaxyear. Thelending
institutionorloanprocessorusedthisinformationanddocumentitocalculatetheamountofmoney ,
the individualw asentitled to receive underthePPP.
The CARES Actrequired PPP loan applications to be processed by a participating
lender. IfaPPP loan appliéationwasapproved,theparticipatinglenderwould fundthePPP loan
l ;
using itsown monies,which are guaranteed by the SmallBuslâessAdministration (c;SBAjy).
Datafrom theapplication,including information aboutthèborrower,thetotalamountoftheloan,
and the listed num ber of employees,w ere transm itted by the lender to the SBA in the course of
processing the loan.
The CA RES A ctfurtherrequiredthatPPP loan proceedsbeused by thebttsiness for
certain permissible-expenses- namely,payrollcosts,intereston mortgages,rent,and utilities.
j
Case 1:21-cr-20160-KMW Document 21 Entered on FLSD Docket 09/03/2021 Page 6 of 12
Additionally,the CA RES A ct authorized the forgiveness of PPP loans and any intetest if the
business:(a)spentthe loan proceeds on these itemswithin a designated period oftime after
receiving the proceedsand (b)spenta certain amountofthe PPP loan proceedson payroll
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expenses.
TheD efendantand Related Entitirs
e. The defendant w as a resident of M iam i,Florida, and w orked prim arily as a tax
preparet.
f. RiveroTax Grouplnc.(:&RTG'')wasaFloridacoporationthatwasregisteredonor
aboutM ay 2,2016. The defendantw asthe registered agentand principalofthe com pany.
g. SBA Loan Processor 1 was a financial-teclm ology com pany based in California.
l
SBA Loan Processor 1participated in the SBA 'SPPP by,am ong otherthings,acting asa service
Provider for sm allbusinessesanbcertain lenders. Smallbusinessesseeking aPPP loan could
, .
apply through SBA Loan Processor 1,which w ould review the PPP loan applications. Ifa PPP
loan application received w as approved fo# fuùding,a partnerfinancialinstitution disbursed the
loan fundsto the applicant.
h. W ellsFargoBank,N.A.(çGW el1sFargo'')wasafederallyinsuredfinancialinstitution
based in South D akola.
The FraudulentPPP Loan Applications
i. .Between in orarourid.M ay 2020 and in oraround June2020,the defendantsubm itted
approxim ately 118fraudulentPPP loan applicationsto SBA Loan Processor1on behalfofhim self
and others.
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A l1ofthe 118 loan applicationsw ere electronically subm itted via the lnternetfrom
thesamelnternetProtocol(Gç1P'')address- anumericallabelassignedtoeachdeviceconnectedto
a computer network that uses the lnternet. 'The IP address w as registered to the defendant's
residencein South Floriba.
A 1lofthe 118 loan applicants applied as sole prpprietorships. N inety-nine ofthe
118loanapplicantsrequested$20,583.34,whichwasjustunderthehighestallowablePPP loan
for a sole propriet6rship ($20,833). Combined, the 118 PPP loan applications sought
approximately $2,334,064 in PPP loahfunds
On each PPP loan appliqation,thedefendantfalsely stated tizenamed applicant's
prior-year incom e and expenses. ln support of these false representations, the defepdant
repeatedly subm itted false and fraudulent1RS form s,which purported to docum ent incom e and
çxpensesfrom the nam ed applicant'ssoleproprietorship.
m . Specifically,nearly a11of the 118 loan applications contained identical2019 1R S
liorm 1040, ScheduleC infonnation. The2011IRSForm 1040,ScheduleCsdeclaredthesame
costsand expenses,to the dollar,including:
i. $11,745 formaterialand supplies;
ii. $850foruniforms;
iii. $1,754 forcellulartelephoneusage;and
iv. $6,544 forequipment.
ln addition,nearly a11ofthe 118 loan applicationsclaim ed the sam enum berofm iles
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,
forbusiness-relatedtraveledin2019(10,474miles).
Approxim ately 47 ofthe 118fraudulentPPP loan applicationswere funded,resulting
inthedisbursementofapproximately $975,582tothenamedapplicants'accountsatapproximately
seven differentfinancialinstitutions.
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TheD efendant'sFraudulentPPP Loan Application to SBA Loan Processor 1
On brabogtM ay 15,2020,the defendantsubm itted a PPP lotm application to SBA
Loan Processor on behélf of him self aj a sole proprietorship. The application sought
approximately $15,375.01in PPP loan funds.
Theapplication onbehalfofthedéfendantincludeda20191RSFonn 1040,Schedule
C,which reflected the follow ing:
i. The defendantlisted hisprincipulbusiness orprofession as çttax preparer'';
ii. Thedefendantclaimed $139,475 in gross'receiptsorsalesand anetprofit
of$103,653in2019,whichwasidentic>lto nearlyalloftheotherPPP loan
applications subm itted to SBA Loan Processor 1 from the defendant's IP
addressi' ' '
iii. The defendantlisted the sam e expenjesa'
s alm ostal1ofthe otherPPP loan
ayplicationssubmitted to SBA Loan Processor 1 from the defendant'gIP
address,including:
1. $11,745formaterialandsupplies; .
2. $850foruniforms;
3. $1,754 forcellulartelephoneusage;and
4. $6,544 forequipment;and .
iv. Thedefendantlistedthesamemileageforbusiness-relatedtravel(10,474
miles)asalmostalloftheotherPPP lèan applicationssubmittedto SBA
Loan Processor 1from the defendant'sIP address.
On or aboutM ay 19,2020,the PPP loan application on behalf of the defendant
.
. w as approved by SBA Loan Processor 1, and a.partner financial institution deposited
approximately $15,375.01.into abank accountinthenameofRTG atW ellsFargo.
FO RFEITUR E
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11. Thedefendàntagrees,in anindividualand any othercapacity,toforfeittotheUnited
States,völuntarily and im m ediately,any right,title,and interestto any pr'operty,realorpersonal,
whichconstitutesorisderivedfrom proceedstraceabletosuchviolation,pursuantto 18U.S.C.j
981(a)(1)(C),asincorporatedby28U.S.C.j2461(c),andtheprovisionsof21U.S.C.j853. In
s
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addition,thedefendantagreestoforfeitureofsubstitutepropeltypursuantto21U.S.C;j'853j$.
Thepropçrtysubjecttoforfeiturqincludes,butisnotlimitedto:
a forfeiture money judgmentin the sum of$975,582.00 in U.S.
currency,whichsum representsthevalueofthepropel'tysubjectto
forfeiture;
substitute property,including,butnotlim ited to:
T.
appioximately $197,611.01 formerly on deposit'in
6079717002 atW ells Fargo Bank,N .A .held in the
nam e ofR ivero Tax Group,lnc.,
'and
. approximately $773,600.00 in U.S.currency selzed
from the defendant's residence on or about
septem ber28,2020.1
12. The defendantfurtheragrees thatforfeiture is independent ofany assessm ent,fine,
cost,restitution, or penalty that m ay be im posed by the Court. The defendant know ingly and
. )
voluntarily agrees to w aive all constitutional, legal, and equitable defenses to the forfeiture,
including excessive tines under the Eighth Am endm ent to the U nited States Constitution.In
addition,thedefendantagreestowaive:any applicabletimelimitsforadministrativeorjudicial
forfeitureproceedings,therequirementsofFed.Rs.Crim.P.32.2and43(a),andanyappealofthe
forfeiture.
The defendantalso agrees to fully and truthfully disclose the existence,nature and
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location ofallassets in Fhich the defendanthas orhad any director indirectfinapcialinterestor
lA third-party claim was filed in the adm inistrative forfeiture proceedings for this asset. The
defendantonly consentsto the forfeiture ofhisinterestin the assetslisted in paragraph llb.
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1 .
control,and any assets involved itlthe offense of conviction. The defendantagrees to take all
stepsrequested by the U nited State! forthe recovery and forfeiture of allassets identified by the
UnitedStatesaqsubjecttoforfeiture. Thisincludes,butisnotlimitedto,thetimelydeliveryupon
l .
request of a11 necessqry'and appropriate docum entation to deliver good and m arketable title,
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consenting to al1ordersofforfeiture,and notcontesting orim peding in any F ay w ith any crip inul,
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civiloradm inistrative forfeittlreproceeding concerning the forfeiture.
The Governm entagrees to seek approval from the D epartm ent of Justice's M oney
Laundering and Asset Recovery Section ($$
MLARS'')tohave any assetsforfeited in thiscase
.
appliedtothedefendant'srestitutionjudgmentsolongasthefollowingéonditionsaremet:1)the
defendantagrees,in accordance with paragraph 15below,to subm itafinancialdisclosurewithin
.
fourteendaysofthechangeofpleahearing;and2)theGovernmentdeterminesihatthedefe-
ndant
doesnothavesufficientassetstosatisfyboththeforfeituremoneyjudgmentandtherestitution
judgmentin accordancewith DepartmentofJusticePolicy regardihg restoration requests. The
defendantunderstapds thatM LARS has the sole discretion to rejtore forfeited assets to the
restitutionjudgment,andthereisnoguaranteelhattheforfeited assetswillinfact.beappliedto
therestitutionjudgmentinthiscase.
l5. lnfurtherancèofthesatisfactionofaforfeituyemoneyjudgmententeredbytheCourt
in thiscase,the defendantagreesto the follow ing:
a. subm itafinancialstatem entto the Goverpm entupon request,w ithin
14 calendardaysfrom the request;
maintain any assetvalued in'excessof$10,000,and notsell,hide,
w aste,encum ber,destroy,or otherw ise devalue such assetw ithout
priorapprovaloftheU nited States;
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provideinfonnationaboutanytransferofanassetvaluedinexcess
of$10,000 sincethecommencem entoftheoffense conductin this
caseto date;
coopefate fully in the investigation and the identification '
of assets,
including liquidating assets, m eeting w ith representatives of the
United States,and ptoviding any docum entation requested;and .
notify,w ithin 30 days,the Clerk of the Courtfor the Southern
l .
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DistrictofFloridaandtheGovernmentof:(i)any changeofname,
re
'sidence, or mailing address,and (ii) any materialchange in
econom ic circum stances.
The defendant further understands thatproviding false or incom plete inform atioflaboutassets,
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concealing assets,m aking m aterially false statem entsorrepresentations,orm aking orusing false
writings ordocum ents pertaining to assqts,taking any action thatw ould im pede the forfeiture of
assets?orfailing to coöperatefully in the investigation and identification ofassetsm ay be used as
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.
abasisfor:(i)separateprosecution,including,uhder18U.S.C.j1001,
.
''
-or(ii)recommendationof
adenialofareduction foracceptanc'eofresponsibility pursuantto Section 3E1.1oftheSentencing
Guidelines.
CO NCLU SION
This is the entire agreem ent and understanding between the Governm ent and the
defendant. There are no otheragreem ents,prom ises,representations,orunderstandings.
Forthe United States:
JUAN AN TOM O G ON ZALEZ
A CTING UN ITED STATES A TTORN EY
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CLIRISTOPHER 9ROW NE N
ASSISTANT U.S.ATTORNEY
D AN IEL S.K AIIN
G T G HIEF FR AUD SECTION
U .S.D ARTX NT OF J E
Date:
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ATTORN EFEN DAN T
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