Indictment — United States v. Moshe Rosenfeld (S.D.N.Y.)

Summary

An Indictment filed 03/16/23 as Document 31 in United States of America v. Moshe Rosenfeld, 23 Cr. 65 (CM), U.S. District Court, Southern District of New York. The Grand Jury charges that from at least in or about May 2020 through at least in or about September 2020 the defendant and Zvi Zigelman, a/k/a "Aron Zigelman," engaged in a scheme to obtain approximately $4 million in Government-guaranteed loans through the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan Program (EIDL) by means of false and fraudulent representations and documents. It states that the SBA approved and disbursed at least approximately $942,000 in EIDL loan funds and a bank approved approximately $411,000 in PPP loan funds. Count One is headed Conspiracy to Commit Bank Fraud and Wire Fraud and Count Two Conspiracy to Make False Statements to Banks and the SBA.

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            Case 1:23-cr-00065-CM Document 31 Filed 03/16/23 Page 1 of 7




UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

 UNITED STATES OF AMERICA                              INDICTMENT

                       V.                              Sl 23 Cr. 65 (CM)

 MOSHE ROSENFELD,

                            Defendant.



                                         OVERVIEW

       The Grand Jury charges:

       1.      From at least in or about May 2020 through at least in or about September 2020,

MOSHE ROSENFELD, the defendant, Zvi Zigelman, a/k/a "Aron Zigelman," and others known

and unknown, engaged in a scheme to obtain approximately $4 million in Government-guaranteed

loans through two loan programs of the United States Small Business Administration (the "SBA")

designed to provide relief to small businesses during the COVID-19 pandemic, namely the

Paycheck Protection Program ("PPP") and the Economic Injury Disaster Loan Program ("EIDL"),

by means of false and fraudulent representations and documents submitted on behalf of various

purported businesses that they owned and controlled.

       2.      In connection with these loan applications, MOSHE ROSENFELD, the defendant,

and Zvi Zigelman, a/k/a "Aron Zigelman" represented, among other things, that those businesses

had over two hundred employees and paid millions of dollars in wages to those employees on a

monthly basis. In fact, those business had no employees, and no such wages were paid. To support

the false representations, ROSENFELD and Zigelman submitted fraudulent tax records and

doctored bank records to the SBA and federally-insured U.S. banks.

       3.        As a result of the above-described fraud scheme, the SBA approved and disbursed
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at least approximately $942,000 EIDL Program loan funds, and a bank approved and disbursed

approximately $411,000 in PPP loan funds. The EIDL Program and PPP funds were not used for

employee payroll or other permissible purposes pursuant to the terms of the loans. Rather, most

of the loan funds were funneled into bank accounts or a personal online trading account controlled

by MOSHE ROSENFELD, the defendant, or Zvi Zigelman, a/k/a "Aron Zigelman".

                                       COUNT ONE
                     (Conspiracy to Commit Bank Fraud and Wire Fraud)

       The Grand Jury further charges:

       4.      The allegations set forth in paragraphs 1 through 3 are repeated and realleged, and

incorporated by reference as if fully set forth herein.

       5.      From at least in or about May 2020 through at least in or about September 2020, in

the Southern District of New York and elsewhere, MOSHE ROSENFELD, the defendant, Zvi

Zigelman, a/k/a "Aron Zigelman", and others known and unknown, willfully and knowingly did

combine, conspire, confederate, and agree together and with each other to commit bank fraud, in

violation of Title 18, United States Code, Section 1344, and wire fraud, in violation of Title 18,

United States Code, Section 1343 .

       6.      It was a part and an object of the conspiracy that MOSHE ROSENFELD, the

defendant, Zvi Zigelman, a/k/a "Aron Zigelman," and others known and unknown, knowingly

would and did execute, and attempt to execute, a scheme and artifice to defraud a financial

institution, as that term is defined in Title 18, United States Code, Section 20, and to obtain

moneys, funds, credits, assets, securities, and other property owned by, and under the custody and

control of, such financial institution, by means of false and fraudulent pretenses, representations,

and promises, to wit, ROSENFELD and Zigelman engaged in a scheme to obtain approximately

$4 million in Government-guaranteed loans from federally-insured banks through the PPP and


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            Case 1:23-cr-00065-CM Document 31 Filed 03/16/23 Page 3 of 7




EIDL programs by means of false and fraudulent representations and documents.

       7.      It was further a part and an object of the conspiracy that MOSHE ROSENFELD,

the defendant, Zvi Zigelman, a/k/a "Aron Zigelman", and others known and unknown, knowingly

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

and property by means of false and fraudulent pretenses, representations, and promises, would and

did transmit and cause to be transmitted by means of wire, radio, and television communication in

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

executing such scheme and artifice, which affected a financial institution, in violation of Title 18,

United States Code, Section 1343, to wit, ROSENFELD and Zigelman engaged in a scheme to

obtain approximately $4 million in Government-guaranteed loans from the SBA and federally-

insured financial institutions through the PPP and EIDL programs by means of false and fraudulent

representations and documents, and sent and received, and caused others to send and receive, wires

and electronic communications, to and from the Southern District of New York and elsewhere, in

furtherance of that scheme.

                           (Title 18, United States Code, Section 1349.)

                                     COUNT TWO
                (Conspiracy to Make False Statements to Banks and the SBA)

       The Grand Jury further charges:

       8.      The allegations set forth in paragraphs 1 through 3 are repeated and realleged, and

incorporated by reference as if fully set forth herein.

       9.      From at least in or about May 2020 through at least in or about September 2020, in

the Southern District of New York and elsewhere, MOSHE ROSENFELD, the defendant, Zvi

Zigelman, a/k/a "Aron Zigelman", and others known and unknown, willfully and knowingly did

combine, conspire, confederate, and agree together and with each other to commit an offense


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          Case 1:23-cr-00065-CM Document 31 Filed 03/16/23 Page 4 of 7




against the United States, to wit, false statements for the purpose of influencing the actions of

financial institutions, the deposits of which were then federally insured, in violation of Title 18,

United States Code, Section 1014, and false statements for the purpose of influencing the actions

of the SBA, in violation of Title 15, United States Code, Section 645(a).

       10.     It was a part and an object of the conspiracy that MOSHE ROSENFELD, the

defendant, Zvi Zigelman, a/k/a "Aron Zigelman", and others known and unknown, would and did

knowingly make false statements or reports for the purpose of influencing the actions of a financial

institution, the accounts of which were then federally insured, in connection with an application,

advance, discount, purchase, purchase agreement, repurchase agreement, commitment, and loan,

to wit, ROSENFELD and Zigelman made false statements in loan applications to federally-insured

banks regarding, among other things, the number of employees at and amount of wages paid to

employees of various companies, for the purpose of obtaining over $1 million in Government-

guaranteed loans through the PPP program.

       11 .    It was further a part and an object of the conspiracy that MOSHE ROSENFELD,

the defendant, Zvi Zigelman, a/k/a "Aron Zigelman", and others known and unknown would and

did knowingly make false statements for the purpose of obtaining a loan for an applicant, and

influencing in any way the action of the SBA, and obtaining money, property and anything of

value, under Chapter 14 of Title 15 of the United States Code, to wit, ROSENFELD and Zigelman

made false statements to the SBA regarding, among other things, the number of employees at

various companies, for the purpose of obtaining over $2 million in Government-guaranteed loans

through the EIDL Program administered by the SBA.

                                            Overt Acts

       12.     In furtherance of the conspiracy, and to effect the illegal object thereof, the



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following overt acts, among others, were committed in the Southern District of New York and

elsewhere:

                a.    On or about May 21, 2020, Zvi Zigelman, a/k/a "Aron Zigelman" submitted

a PPP loan application for USA DIP Corporation ("USA DIP" and the "USA DIP Application,"

respectively) to a federally-insured bank headquartered in Atlanta, Georgia, that contained false

information regarding USA DIP's number of employees and average monthly payroll.

                b.    On or about May 27, 2020, Zigelman transferred $30,000 in PPP loan funds,

which had been obtained from Bank-1 on or about May 26, 2020 in connection with the USA DIP

Application, to a bank account held in the Southern District of New York associated with

Zigelman's personal online trading account controlled.

                c.    On or about June 5, 2020, MOSHE ROSENFELD, the defendant, submitted

a PPP loan application for Rose 123 Consulting LLC ("Rose 123 ") to an entity responsible for

processing PPP applications for a federally-insured bank headquartered in Salt Lake, Utah, that

contained false information regarding Rose 123's number of employees and average monthly

payroll.

                d.    On or about June 16, 2020, ROSENFELD submitted an EIDL loan

application for Rose 123 to the SBA that contained false information regarding Rose 123 's number

of employees and gross revenue.

                e.    On or about June 24, 2020, Zigelman submitted an EIDL loan application

for 1808 Ave P LLC ("1808 Ave P" and the " 1808 Ave P Application," respectively) to the SBA

that contained false information regarding 1808 Ave P's number of employees and gross revenue.

                f.    On or about July 7, 2020, Zigelman transferred $50,000 in EIDL loan funds,

which had been obtained from the SBA on that same day in connection with the 1808 Ave P



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              Case 1:23-cr-00065-CM Document 31 Filed 03/16/23 Page 6 of 7




Application, to a bank account held in the Southern District of New York associated with

Zigelman' s personal online trading account.

                               (Title 18, United States Code, Section 371.)

                                   FORFEITURE ALLEGATIONS

       13 .      As a result of committing the offenses alleged in Counts One and Two of this

Indictment, MOSHE ROSENFELD, the defendant, shall forfeit to the United States, pursuant to

Title 18, United States Code, Section 982(a)(2)(A), any and all property constituting, or derived

from, proceeds the defendant obtained directly or indirectly, as a result of the commission of said

offenses, including but not limited to a sum of money in United States currency representing the

amount of proceeds traceable to the commission of said offenses.

                                       Substitute Assets Provision

       14. If any of the above-described forfeitable property, as a result of any act or omission of

              the defendant:

                 a.      cannot be located upon the exercise of due diligence;

                 b.      has been transferred or sold to, or deposited with, a third person;

                 c.      has been placed beyond the jurisdiction of the Court;

                 d.      has been substantially diminished in value; or

                 e.      has been commingled with other property which cannot be subdivided

                 without difficulty;

it is the intent of the United States, pursuant to Title 21, United States Code, Section 853(p) and




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           Case 1:23-cr-00065-CM Document 31 Filed 03/16/23 Page 7 of 7




Title 28, United States Code, Section 2461(c), to seek forfeiture of any other property of the

defendant up to the value of the above forfeitable property.

                           (Title 18, United States Code, Section 982;
                          Title 21, United States Code, Section 853; and
                           Title 28, United States Code, Section 2461.)


                                                               ~~
                                                               DAMIAN WILLIAMS
                                                               United States Attorney




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