Affidavit — No. 1:22-cr-10221 (D. Mass., Dkt. 1-1, June 6, 2022)

Summary

An affidavit by Jeff Thomson, who states that he is a Special Agent with the Federal Deposit Insurance Corporation, Office of Inspector General, filed June 6, 2022 as Document 1-1 in Case 1:22-cr-10221-FDS (D. Mass.). It supports an application for a criminal complaint charging Vinicius Santana with wire fraud under 18 U.S.C. § 1343 and for an arrest warrant. The affidavit states that Santana applied for four Paycheck Protection Program loans for Complete Home Care, LLC, that the first three were denied, and that the fourth, claiming 154 employees and an average monthly payroll of $1,000,000, led to a $2.5 million loan from Northeast Bank. It then describes the later payments from the loan proceeds, including a $900,000 wire to an account at Kraken.

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“Affidavit — No. 1:22-cr-10221 (D. Mass., Dkt. 1-1, June 6, 2022).” Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-no-1-22-cr-10221-dkt-1-1-d-mass-2431ec7791/, SHA-256 7e3042fe6c733d681de2342d1e1905e864d09f7981640c69a2f82d291071d6bc.

Full text

Case 1:22-cr-10221-FDS Document 1-1 Filed 06/06/22 Page 1 of 10

AFFIDAVIT

I, Jeff Thomson, having been duly sworn, do hereby depose and state as follows:

INTRODUCTION AND AGENT BACKGROUND

1. I have been a Special Agent with the Federal Deposit Insurance Corporation, Office

of Inspector General since May 2020. I was previously employed as a Special Agent with

Homeland Security Investigations from July 2007 to May 2020. My duties include the

investigation of violations of federal criminal laws, and my experience includes investigations of

money laundering, bank fraud and wire fraud.

2. I submit this affidavit in support of an application for a criminal complaint charging

Vinicius Santana with wire fraud, in violation of 18 U.S.C. § 1343, and for a warrant to arrest him.

As set forth below, there is probable cause to believe that Santana fraudulently obtained a Paycheck

Protection Program (“PPP”) loan.

3. This affidavit is based on my personal knowledge, information provided to me by

other law enforcement officers and federal agents, and my review of records described herein.

This affidavit is not intended to set forth all of the information that I have learned during this

investigation but includes only the information necessary to establish probable cause for the

requested complaint.

PROBABLE CAUSE TO BELIEVE THAT A FEDERAL CRIME WAS COMMITTED

Overview of the Paycheck Protection Program

At all times relevant to this Affidavit,

4. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, enacted in

March 2020, was a federal law intended to provide emergency financial assistance to millions of

Americans suffering from the economic effects of the COVID-19 pandemic.

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5. Through the CARES Act PPP, Congress initially authorized up to $349 billion in

forgivable loans to small businesses for job retention and certain other expenses. In or around

April 2020, Congress authorized more than $300 billion in additional PPP funding.

6. In order to obtain a PPP loan, a qualifying business had to submit an application

signed by an authorized representative of the business. The application required the business’

representative to acknowledge the program rules and to state and provide documentary proof of,

among other things, its (i) number of employees and (ii) average monthly payroll expenses. These

figures determined the size of the PPP loan that the business was eligible to receive.

7. Authorized Small Business Administration (“SBA”) lenders processed PPP loan

applications. Participating lenders funded approved loans using their own monies, which the SBA

fully guaranteed. The lenders transmitted data from applications to the SBA in the course of

processing the loans, including information about the borrower, the total loan amount, and the

listed number of employees.

8. PPP loan proceeds had to be used by the businesses on certain permissible

expenses, including payroll costs, interest on mortgages, rent, and utilities. The PPP allowed the

interest and principal on the PPP loan to be entirely forgiven if the business spent the loan proceeds

on these permissible expenses within a designated period of time and used a certain percentage of

the PPP loan proceeds on payroll expenses.

Relevant Individuals and Entities

9. Santana lived in Saugus, Massachusetts and later Florida.

10. Santana owned Complete Home Care, LLC, a Massachusetts painting company

(“CHC”). Santana formed CHC on or about September 2, 2017. In CHC’s Certificate of

Organization, Santana listed himself as the company’s “Resident Agent” and his wife, A.P., as its

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“Soc Signatory.” Santana listed an address for CHC in Revere, Massachusetts (“the Revere

Address”).

11. Northeast Bank was a federally insured financial institution and is an approved

SBA lender for PPP loans. In or about April 2020, Northeast Bank received an application for and

funded a $2.5 million PPP loan for CHC.

12. Lendio, Inc. (“Lendio”), headquartered in Lehi, Utah, was a company that

specialized in facilitating small-business lending. Lendio participated in the PPP by, among other

things, matching small businesses seeking PPP loans with authorized lenders. The authorized

lenders, not Lendio, decided whether to approve and fund the PPP loan applications.

Overview of the Scheme

13. In April 2020, Santana applied for four PPP loans on behalf of CHC. The first three

applications were denied. In his fourth application, Santana made materially false representations

about CHC’s employees and payroll expenses, and he supported those false representations with

fraudulent documents. Based on the false representations and fraudulent documents, Santana and

CHC received a $2.5 million PPP loan.

14. Between approximately May and September 2020, Santana misused the loan

proceeds to buy cars, invest in cryptocurrency, and send money to individuals and companies that

do not appear to be connected to payroll, utilities, rent, or mortgage payments for Santana’s

business.

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The CHC PPP Applications

The Failed Applications

15. Between approximately April 10, 2020, and April 26, 2020, Santana submitted

three unsuccessful PPP applications on behalf of CHC to Lendio. In all three applications,

Santana listed himself as CHC’s owner, the Revere Address, a phone number ending in 7748, and

the following business EIN: xx-xxx6891.

16. The three applications contained the following representations about CHC’s

average monthly payroll and number of employees.

Date Requested Loan Average Employees
Monthly
Payroll
4/10/20 $25,000 $10,000 5

4/26/20 $45,000 $18,000 5

4/26/201 $45,000 $18,000 5

17. In support of these applications, Santana submitted, among other things, an

unsigned 2019 IRS Form 1040, and an Individual Income Tax Return completed as a joint filing

for himself and his spouse. The form included a 2019 Schedule C, for a “Handyman Service” at

the Revere Address with EIN xx-xxx1277, showing a total of $88,577 in gross receipts or sales

and zero deductions for wages.

18. Lenders denied all three applications.

The Funded CHC Loan

19. On or about April 26, 2020, Santana submitted a fourth PPP loan application,

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Each PPP application submitted on 4/26/20 has a different timestamp.

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Case 1:22-cr-10221-FDS Document 1-1 Filed 06/06/22 Page 5 of 10

through Lendio, to Northeast Bank. Santana sought $2.5 million, a loan at least 50 times bigger

than three earlier loans.

20. In the fourth application, Santana claimed that CHC had 154 employees and an

average monthly payroll of $1,000,000. As with the loan amount, the number of employees and

the claimed average monthly dwarfed the figures in the previous three applications for the same

entity. Santana identified the “purpose of the loan” as “Payroll,” “Lease / Mortgage Interest,” and

“Utilities.” He listed the EIN xx-xxx1277 for CHC.

21. In support of his representations in the fourth application, Santana submitted an IRS

Form 944, an Employer’s Annual Federal Tax Return,2 dated April 2, 2020. The form, which bore

Santana’s signature, purported to reflect CHC’s wages and federal payroll tax information for

2019. In it, Santana claimed that CHC (with EIN xx-xxx1277) paid $12,041,600 in wages, tips,

and other compensation in 2019.

22. On or about May 11, 2020, after approving Santana’s fourth application, Northeast

Bank wired $2,500,000 to an account in CHC’s name at the East Boston Savings Bank (“the EBSB

Account”).

Misrepresentations in the Funded CHC PPP Application

23. Based on my training and experience investigating financial frauds and for the

reasons described below, there is probable cause to believe that Santana made materially false

representations to Lendio and Northeast Bank in order to obtain $2.5 million in PPP funding.

24. CHC’s bank records and tax return information show that the company engaged in

2
IRS Form 944 is an official document that an employer files with the Internal Revenue
Service (“IRS”) every year in order to report income taxes, Social Security taxes and Medicare
taxes withheld from employees’ paychecks. As set forth in further detail below, Santana did not
file this form with the IRS.
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Case 1:22-cr-10221-FDS Document 1-1 Filed 06/06/22 Page 6 of 10

some legitimate business between 2018 and 2021, but nowhere near the amounts listed in

Santana’s successful application. Rather, CHC’s records show business activity consistent with

the figures listed in CHC’s first three unsuccessful PPP loan applications.

25. First, there are clear contradictions between the three unsuccessful loan

applications and the fourth successful application. Each lists the same business name, address,

owner, and business phone number. But they list different average monthly payroll figures,

numbers of employees, and EIN numbers. The purported number of employees in the successful

application is roughly thirty times larger than that listed in the unsuccessful applications. The

purported average monthly payroll in the successful applications is roughly fifty-five times greater

than that listed in the unsuccessful applications. As a result, the requested loan in the fourth

application was almost 140 times larger than the requested loan in the unsuccessful applications.

26. Second, I have reviewed bank records for the EBSB Account that do not reflect the

payroll activity that Santana represented in either the fourth application or the purported IRS Form

944 that Santana submitted with it. Santana opened the EBSB Account in the name of CHC on or

about May 4, 2020—just seven days before CHC received $2.5 million from Northeast Bank.3

Accordingly, the EBSB Account does not reflect any payroll activity for CHC in 2019. To the

extent that there were payments consistent with payroll in the EBSB Account later in 2020, it was

nowhere near the size represented in the successful PPP application.

27. I have also reviewed records for other bank accounts opened and used by Santana

in 2019 and 2020, including accounts at TD Bank and USAA. None of the accounts reflects the

purported payroll activity listed in the successful PPP loan application. For example, in support

of the unsuccessful PPP applications, Santana included records associated with an account in his

3
The EIN for CHC listed on the signature card is xx-xxx6891.
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name at TD Bank (the “TD Bank Account”). In 2019, the daily account balance for the TD Bank

Account never surpassed $35,000. Santana closed the account in or around July 2019.

28. Third, I have also reviewed IRS tax returns filed by Santana. These returns indicate

that Santana did not file the purported Form 944 that he included in the successful PPP loan

application. The IRS has confirmed that it does not have any independent tax filings by CHC with

EIN xx-xxx-1277-- the EIN that Santana listed on the successful application. Instead, in 2018 and

2019, Santana filed Schedule C for CHC with EIN xx-xxx-1277, as part of his Form 1040. In

2018, Santana represented that his business as a “Handyman Service” for CHC had gross receipts

or sales of $153,493 and total expenses of $165,227. In 2019, Santana omitted a business name

and only listed the business as a “Handyman Service.” Santana represented that the business had

gross receipts of $88,577 and total expenses of $89,752.

Misuse of the CHC PPP Funds

29. On or about May 11, 2020, Northeast Bank wired $2,500,000 to the EBSB Account.

Before receiving the funds, on May 4, 2020, the EBSB Account balance was $60. Instead of using

the PPP funds for payroll, mortgage payments, or utilities, Santana spent the PPP funds on personal

expenses, such as cars and cryptocurrency, and sent money to businesses and individuals that were

not related to CHC’s payroll. After receiving the PPP funds, Santana made, among others, the

following payments:

a. Between May 13, 2020, and June 15, 2020, Santana sent approximately $825,332

in checks from the EBSB Account to Blackstone Construction Group, a business registered in

Massachusetts. According to the Massachusetts Secretary of State’s website, Individual-1

incorporated this business in or around July 2019 and dissolved it in or around December 2021.

Most of the checks to Blackstone Construction Group appear to have been cashed at a check-

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cashing business in Marlborough, Massachusetts. Based on my review of account records

associated with both Santana and CHC, I have not identified any additional payments to this

business.

b. On May 14, 2020, Santana issued a check from the EBSB Account for $7,861.12

to USAA Federal Savings Bank to satisfy an auto-financing loan that he had previously obtained.

c. Between May 18, 2020, and May 21, 2020, Santana sent $185,900 in checks from

the EBSB Account to DPC Construction Services, a business registered in Massachusetts.4

According to the Massachusetts Secretary of State website, Individual-2 incorporated this business

in or around February 2018 and continues to run the business. These checks appear to have been

similarly cashed at the same check-cashing business in Marlborough, Massachusetts described

above. Based on my review of account records associated with both Santana and CHC, I have not

identified any additional payment to this business.

d. On May 20, 2020, Santana issued a bank check from the EBSB Account for

approximately $9,681 to JP Morgan Inc. to pay off a car loan issued by Chase Auto Finance.

e. On July 2, 2020, Santana issued a bank check from the EBSB Account to Auto

Xpress Inc. for $29,471 for a 2019 Toyota Highlander.

f. On July 25, 2020, Santana authorized a bank check from the EBSB Account for

$90,000 to Audi of Burlington.

g. Between September 4 and September 14, 2020, Santana wired $900,000 from the

EBSB Account to an account at Kraken (a cryptocurrency exchange) that Santana opened on or

about September 4, 2020.

4
Based on a review of purported Intuit payroll records associated with Santana, he appears to
maintain a business interest in the company.
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30. On September 15, 2020, the account balance for the EBSB had fallen to $41,111.70.

During the time that Santana spent the majority of the PPP funds (approximately May 11, 2020,

to September 20, 2020), there were no deposits greater than $1 into the CHC EBSB Account.

31. Between December 22 and December 28, 2020, Santana wired $457,816.43 from

his Kraken account into the EBSB Account, increasing the balance to $468,642.83. On December

29, 2020, Santana authorized a $407,587.60 bank check from the EBSB account to the Moran Law

Office for the purchase of a residential property in Lowell, Massachusetts (the “Lowell Property”).

32. Based on my review of records maintained by the Middlesex North Registry of

Deeds, on or about December 30, 2020, Mytheos Properties Holdings LLC (“Mytheos”) recorded

a deed for the Lowell Property. According to records maintained by the Massachusetts Secretary

of State, Santana is the manager of Mytheos, which has its principal place of business listed as the

Revere Address. Mytheos was incorporated on December 29, 2020 (the same day as the property

purchase).

33. On or about January 19, 2021, Santana closed the EBSB Account.

34. On or about January 8, 2021, Santana opened a bank account in the name of CHC

at JP Morgan Chase (the “JPMC Account”). Santana listed the Revere Address as the business

address and EIN xx-xxx6891. Shortly after opening the JPMC Account, between January 19 and

January 28, 2020, Santana transferred approximately $257,510 from his Kraken account to the

JPMC Account.

CONCLUSION

35. Based on the information described above and my training and experience

investigating financial frauds, there is probable cause to believe that: on or about May 11, 2020,

Santana, having devised and intending to devise a scheme and artifice to defraud, and for

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obtaining money and property by means of materially false and fraudulent pretenses,

representations, and promises, caused to be transmitted by means of wire communications in

interstate and foreign commerce, writings, signs, signals, pictures, and sounds for the purpose of

executing the scheme to defraud, to wit: a $2,500,000 wire transfer from Northeast Bank to

Santana at the EBSB Account, in violation of Title 18, Untied States Code, Section 1343.

Sworn to under the pains and penalties of perjury.

Respectfully submitted,

Jeff G. Thomson
Special Agent
Federal Deposit Insurance Corporation

Sworn to via telephone in accordance with Federal Rule of Criminal Procedure 4.1 on June 6
__,
2022
11:34 a.m.

Hon. David H. Hennessy
United States Magistrate Judge

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