Information — United States v. Alfredo Hudson (S.D. Fla.)
Summary
An Information entered on the docket 02/14/2023 as Document 6 in United States of America v. Alfredo Hudson, Case No. 23-20060-CR-ALTMAN/REID, U.S. District Court, Southern District of Florida, citing 18 U.S.C. § 1343 and 18 U.S.C. § 982(a)(2). The United States Attorney charges, in general allegations, that the Small Business Administration was an agency of the executive branch, that the CARES Act authorized forgivable loans through the Paycheck Protection Program (PPP), and that a PPP loan application required an average monthly payroll and number of employees. The general allegations also describe second draw loans, loan forgiveness applications, and the lenders and a technology company involved in processing applications.
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“Information — United States v. Alfredo Hudson (S.D. Fla.).”
Original at ecf.flsd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-no-1-23-cr-20060-dkt-6-s-d-fla-aadab9f60c/
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Case 1:23-cr-20060-RKA Document 6 Entered on FLSD Docket 02/14/2023 Page 1 of MM
11
Feb 14, 2023
U NITED STATE S D ISTR ICT C O UR T
SO U TH ERN DISTR ICT O F FLO R IDA
23-20060-CR-ALTMAN/REID
CA SE N O .
18U.S.C.j1343
18U.S.C.j982(a)(2)
UNJTED STATES OF AM ERICA
V S.
A LFR ED O H UD SO N ,
D efendant.
/
IN FO RM ATIO N
TheUnited StatesAttorney chargesthat:
G EN ER AL A LLEG A TIO N S
Ata11tim esm aterialto thislnform ation:
The United States SmallBusinessAdministration (tSBA'')wasan agency ofthe
executivebranch ofthe G overnm entofthe U nited States.Them ission oftheSBA w asto m aintain
and strengthen the nation's economy by enabling the establishm ent and viability of small
businessesand by assisting in theeconomicrecovery ofcommllnitiesafterdisasters.
TheCoronavirusAid,Relief,andEconomicSectlrity IGGCARES''IAd wasafederal
1aw enacted in orarotmd M arch 2020 and designed to provide emergency financialassistanceto
'
themillions'
LfAmericanswhoweresufferingtheeconomic effeclscausedbytheCOVID-19
pandem ic. One source ofreliefprovided by the CARES A ctw as the authorization of forgivable
Case 1:23-cr-20060-RKA Document 6 Entered on FLSD Docket 02/14/2023 Page 2 of 11
loanstosmallbusinesjesforjobretention andcertainotherexpenses,throughaprogram referred
toasthePaycheckProtectionProgram (:TPP'').
In ordertoobtain aPPP loan,aqualifyingbusinesssubm itted aPPP loarlapplication,
which was signed by an authorized representative ofthe business. The PPP loan application
requiredthebusiness(throughitsauthorizedrepresentative)toacknowledgetheprogram rulesand
m ake certain affirmative certificationsin orderto be eligibleto obtain the PPP loan. In the PPP
loanapplication (SBA Form 2483),thesmallbusiness(throughitsauthorizedrepresentative)was
required to provide,nmong otherthings,its:(a)average monthly payroll;and (b)ntlmberof
em ployees. These figtlres w ere used to calculate the am ount ofm oney the sm allbusiness w as
eligible to receive tm derthe PPP. In addition,the sole proprietorhad to reportand docum entthe
soleproprietorship'sincom e and expenses,astypically reported to the Intem alRevenue Service
(ççIRS'')onForm 1040,ScheduleC.Thisapplication andthesupportingdocumentationsubnlitled
w ere used to calculate the nm ountofm oney the applicantw asentitled to receive tm derthe PPP.
ThePPP also allowed aqualifyingbusinessthathadobtained aPPP loan in 2020and
experienced a required revenue reduction in 2020 to obtain a second PPP loan in 2021. These
second PPP loanswerealso lcnown asGtsecond draw''loans. Starting on oraboutM arch 4,2021,
sm allbusinessesthatfiled an 1RS Form 1040,Schedule C,could apply fortllissecond clraw loan
basedontheirgrossincomebyusingaPPP seconddraw application (SBA Form 2483-SD-C)that
provided theirgross income 9om ejther2019 or2020. This second draw application and the
'
supporting doctzm entation subm itted wereusedto calculatetheam ounfofsecond draw m oney the
applicantwasentitled to receive underthe PPP.
A PPP loan application wasprocessed by a participating lender. Ifa PPP loan
application w as approved,the pm icipating lender funded the PPP loan using its ow n m onies.
Case 1:23-cr-20060-RKA Document 6 Entered on FLSD Docket 02/14/2023 Page 3 of 11
W hile itwasthepm icipating lenderthatissued the PPP loan,the loan was 100% guaranteed by
theSBA.batafrom theapplication,includinginfonnation abouttheborrower,thetotalamount
ofthe loan,and the listed nllm ber ofem ployees,w astransm itted by the lenderto the SBA in the
course ofprocessing the loan.
PPP loan proceedswere required to be used by thebusinesson certain permissible
expenses,specifically,payrollcosts,intereston m ortgages,rent,and utilities. The PPP allow ed
the interest and principalon the PPP loan to be entirely forgiven if the business spentthe loan
proceedsonthesepennissibleexpenseitem swithin adesignatedperiodoftim eandused adefined
portion ofthe PPP loan proceedson payrollexpenses. In thePPP loan forgiveness application
(SBA Form 35085),theborrowerwasrequiredtoprovide,amongotherthings,theamountofthe
loan spenton payrollcosts,and to certify com pliance w ith a11the nzles and requirem ents of the
PPP program . Certain PPP borrowerswith loanstm der$150,000 were allow edtousethe SBA 'S
DirectForgivenessPortalto apply forPPP loan forgiveness. Forgivenessrequestsmadethrough
thisportalwerereviewed and acceptedby thelender,and then processedby the SBA.Theservers
forthisportalw erelocated outsidethestateofFlorida.
D efendantAL FRE D O H UD SO N w as a resident ofM inm i-D ade County,Florida,
w ho at vazious tim es relevant to this Infonnation was em ployed by the State of Florida as a
Corrections Officer.
Lender1 wasa financialteclmology com pany based in Atlanta,Georgia. Lender 1
wasan SBA-apploved lenderforPPP loans,andprocessedPPP loan applicationsfrom applicants
located throughouttheU nited States. Lender 1's serversw ere located outsidethe state ofFlorida.
Teclm ology Com pany 1 w as a com pany based in San Francisco, California,that
operated an online platfonn that received inform ation and docum ents from PPP loan applicants
Case 1:23-cr-20060-RKA Document 6 Entered on FLSD Docket 02/14/2023 Page 4 of 11
throughoutthe United States. Technology Company 1wasnota PPP lender,butratherwasan
independentbusinessthatserved asareferralpartnerandtechnology servicesproviderform ultiple
SBA -approved PPP lenders. Once an applicant subm itled their inform ation and docum ents
through the online platform , Technology Com pany 1 w ould m ake certain inform ation and
docum ents available to one of the lenders that retained its selwices for the lender's review,
approval,and ftm ding ofthePPP loan.Technology Company 1'sserverswerelocatedoutsidethe
state ofFlorida.
10. Lender 2 w as an SBA -approved lender for PPP loans. Lender 2 contracted w ith
Teclm ology Com pany 1 to receive PPP applicationsforfunding by Lender2.
11. Lender 3 w as an SBA -approved lender that originated and ftm ded PPP loans,and
thatalsoacquired and serviced pre-existing PPP loansissuedby otherlenders.Lender3 reviewed
PPP loan forgiveness applications subm itted directly to the SBA by borrow ers ofthe loans itw as
selwicing, and m ade recom m endations to the SBA on w hether those applications satisfied the
requim mentsforPPP loan forgiveness. .
12. Bank 1 was a bank that did business throughout the United States, including
m aintaining branches in the Southem D istrictofFlorida.
13. Bnnk 2 was a bnnk that did business thzoughout the United States, including
m aintainingbranchesin the Southel'
n DistrictofFlorida.
C O UN T 1 .
W ire Fraud
'
..
(18U.S.C.j1343) ..
'
. 1. Paragraphs 1 tilrough 13 ofthe G eneralA llegationssection ofthisInfonnation are
re-alleged and incop orated by reference asthrough ftzlly setforth herein.
2. From in or around June 2020, and continuing through in or arotmd Septem ber, '
4
Case 1:23-cr-20060-RKA Document 6 Entered on FLSD Docket 02/14/2023 Page 5 of 11
2021,in M inmi-DadeCotmty,in the Southem DistrictofFlorida,and elsewhere,thedefendant,
A LFR ED O H U D SO N ,
did knowingly,and with theintentto defraud,devise,and intend to devise,aschem e and artifice
to deâaud, and to obtain m oney and property by m eans of m aterially false and fraudulent
pretenses, representations, and promises, knowing that the pretenses, representations, and
prom ises were false and fraudulentw hen m ade,and,forthe purpose ofexecuting the schem e and
artifice,did knowingly transmitand causeto betransm itted,by m eansofwire comm unication in
interstate and foreign com m erce,certaiù writings,signs,signals,picturesand sotm ds,in violation
ofTitle 18,United States Code,Section 1343.
PU R PO SE O F TH E SCH EM E A ND A RTIFICE
3. The purpose of the schem e and artifice w as for ALFRED O H UD SO N to
llnlawfully enrich him self by subm itling false and fraudulent PPP appliçations to obtain loml
proceedsforhisown use arld benefit,and by subm itting falseandfraudulentapplicationsforPPP
loan forgivenessto allow him to avoidhaving torepay thePPP loansheobtained.
TH E SCH EM E A N D A R TIFA CE
Them annerandmeansbywhich M T RED O HUDSON soughttoaccomplishthepurpose
oftheschem eandartificeincluded,am ongothers,thefollowing:
ALFREDO H UDSON subm itted to Lender1,viainterstatewirecom munications,
a false and fraudulent PPP 2020 loan application claim ing to be a self-employed individual
operatingabusinessrunderthenameçlAlfredoEnterprise.''ThatPPP loan#.plicationfalsely and
fraudulently represented A lfredo Enterprise's m ontllly payroll, and as pal't of the application
process,HUDSON subm itted afalseandfraudulentIRS Fonn 1040,ScheduleC fortax year2019,
stating thatA lfredo Enterprise w asa (ilkecreation''business.
Case 1:23-cr-20060-RKA Document 6 Entered on FLSD Docket 02/14/2023 Page 6 of 11
Asaresultoftlzisfalseand fraudulentapplication,AI,FREDO H UDSON obtained
approximately $10,104in PPP loanproceedsf'
rom Lender 1thatw ereelectronically deposited by
Lender 1 into one of H UD SO N 'S accounts at Bnnk 1. This electronic deposit w as m ade via
interstate w ire com m unications.
ALFREDO HUDSON subm itted to Technology Com pany 1,via interstate wire
com m tm ications,a false and gaudulent2021 PPP second clraw loan application claim ing to be a
sole proprietor operating a business underthe tradennm e of çW lfredo Entep rise.'' This second
draw PPP loan application falsely and gaudulently represented Alfredo Enterprise's2019 gross
income,and aspat'toftllissecond draw applicationprocess,HUDSON submitted adifferentfalse
and fraudulentlRS Form 1040,Schedule C,fortax year2019,stating thatA lfredo Enterprise w as
a ttl
Barbershop.''
Asaresultofthisfalseandfraudulentapplication,AI,FREDO H UDSON obtained
approximately $11,251in second draw PPP loan proceedsfrom Lender2 thatwereelectronically
deposited by Lender2 into one ofH UDSON'SaccolmtsatBnnk 2. Tlliselectronic depositwas
m ade via interstate w ire com m unications. Lender 2 later transferred this loan to Lender 3 for
servicing.
8. A LFR ED O H U D SO N subm itted to the SBA ,via interstatew ire com m unications,
a falseandfraudtllentSBA PPP loan forgivenessapplication seeldng forgivenessfrom repaym ent
ofthe PPP second draw loan hereceived from Lender2. A sa resultofthisfalse and fraudulent
forgivenessapplication: HUDSON wasexcused f'
rom any repaymentobligatiùn on the $11,251
second draw PPP loan he received,and the SBA reim bursed Lender 3,which has acquired this
loan f'
rom Lender2,forthefullam ountofthisloan and itsaccrued interest.
Case 1:23-cr-20060-RKA Document 6 Entered on FLSD Docket 02/14/2023 Page 7 of 11
USE O F W IR ES
On or about the date specified below , in the Southet'
n D istrict of Florida, and
elsewhere,ALFREDO H UDSON,forthepurposeofexecutingandin furtherarlceoftheaforesaid
schem eand artificeto defraud,andtoobtain m oney andpropertyby m eansofm aterially falseand
âaudulentpretenses,representations,and prom ises,knowing thatthe pretenses,representations,
and prom ises w ere false and fraudulent w hen m ade, did know ingly transm it and cause to be
transmitted in interstate and foreign com m erce,by m eansofw ire com m tm ication,certain writings,
signs,signals,pictures,and sotm ds,asdescribed below :
COUNT APPROXIM ATE DESCRIPTION OF W IRE
D ATE
1 A pril25,2021 Electrorlic transm ission of a PPP second draw
loan application containing false inform ation
aboutthe 2019 gross incom e ofA lfledo H udson
using the tradenam e Algedo Enterprise,
including afalse2019 1RS Form 1040 Schedule
C,causing aw iretransm ission f'rom the Southern
District of Florida to outside of the State of
Florida
In violation ofTitle 18,U nited States Code,Sections 1343 and 2.
FO RFEITUR E A LL EG A TIO N S
The allegationsofthisInfonnation are hereby re-alleged and by thisreferencefully
incop orated herein forthepurpose ofalleging forfeim reto theU nited StatesofA m erica ofcertain
property in w hich the defendant,A LFR ED O H U D SO N ,has an interest.
U pon conkiction of a violation ofTitle 18,United States Code,Section 1343,as
Vx .x
allegedinthisInform ation,thedefendant,AI,
FREDO HUDSON,shallforfeittotheUrlitedStates
any property constitm ing,orderived from ,proceedsobtained,directly orindirectly,asaresultof
suchviolation,ptlrsuanttoTitle18,UnitedStatesCode,Section982(a)(2)(A).
Case 1:23-cr-20060-RKA Document 6 Entered on FLSD Docket 02/14/2023 Page 8 of 11
AllpursuanttoTitle18,United StatesCode,Section 982(a)(2)(A),andtheprocedtlresset
forthinTitle21,United StatesCode,Section 853,asincop oratedby Title 18,UnitedStatesCode,
Section 982(b)(1).
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Case 1:23-cr-20060-RKA Document 6 Entered on FLSD Docket 02/14/2023 Page 9 of 11
UM TED STA TES D ISTRICT C OUR T
SOU TH ERN DISTR ICT OF FLO RIDA
UNITED STA TES OF A M ER ICA CA SE N O .:
V.
CER TIFICA TE O F TR G L A TTO R N EY *
AlgedoHudson
/ Superseding Case Inform ation:
Defendant.
CourtDivision(selectone) New Defendantts)(YesorNo)
EIM iami I:IKey W est E!FTP N um berofN ew D efendants
D'FTL EIW PB Totalnum berofN ew Counts
1do hereby certify that: .
1. Ihave carefully considered the allegations ofthe indictm ent,the num berofdefendants,the num berofprobable
wim essesand the legalcomplexitiesofthelndictm ent/lnform ation attached hereto.
lam awarethattheinformationsupyliedonthisstatementwillberelieduponbytheJudgesofthisCourtinsetting
theircalendarsandschedulingcrimmal.
trialsunderthemandateoftheSpeedyTrialAct,Title28U.S.C.j3161.
Interpreter:(YesorNo)NO
Listlanguage and/ordialect:
Thiscasewilltake 0 daysforthepartiestotry.
Please check appropriate category and typeofoffense listed below :
(Checkonlyone) (Checkonlyone)
1 I'
ZI0 to 5days ID Petty
11 IZI6 to 10days E1M inor
1II Q 11to 20days E'
D M isdem eanor
IV 1721to 60days z Felony
V Q 61daysand over
6. HasthiscasebeenpreviouslyfiledinthisDistrictCourt?(YesorNo)No
Ifyes,Judge CaseN o.
Hasacomplaihtbeenfiledinthismatter?(YesorNo)Yes
lfyes,M agistrate CaseNo.23-mj-02177-AOR .
DoesthiscaserelatetoapreviouslyfiledmatterinthisDistrictCourt?(YesorNo)No
lfyes,Judge CaseN o.
9. Defendantts)infederalcustodyasof
l0. Defendantts)instatecustodyasof
11. Rule 20 from the D istrictof
12. Isthisapotentialdeathpenaltycase?(YesorNo)No
13. D oesthiscase originate from am atterpending in the N orthern R egion oftheU .S.Attorney's Office
priortoAugust8,2014(Mag.JudgeShaniekMaynard?(YesorNo)No
D oesthiscase originate from am atterpending in the CentralRegion ofthe U .S.Attorney's Office
priortoOctober3,2019(M ag.JudgeJaredStrauss?(YesorNo)No
By:
Edward N .Stamm
AssistantUnited StatesAttorney
FL BarN o. 373826
Case 1:23-cr-20060-RKA Document 6 Entered on FLSD Docket 02/14/2023 Page 10 of 11
ITNITED STA TES D ISTR ICT C OU RT
SO UTH ER N DISTRICT OF FLO RIDA
PENALTY SH EET
D efendant'sN am e:A lfredo Hudson
Case No:
Count#:1
W ire Fraud
18U.S.C.i 1343.
* M ax.Term oflm prisonm ent:20 years
*M andatoryM in.Term ofImprisonment(ifapplicable):N/A
* M ax.Supervised R elease:5 years
*M ax.Fine:$250,000
*SpecialAssessm ent:$100
frRefersonly to possibleterm ofincarceration,supervised releaseand lines. Itdoesnotinclude
'
restitution,specialassessm ents,paroleterms,orforfeituresthatm ay beapplicable.
Case 1:23-cr-20060-RKA Document 6 Entered on FLSD Docket 02/14/2023 Page 11 of 11
AO455(Rev.01/09)WaiverofanIndictment
U NITED STATES D ISTRICT COURT
forthe
Southern DistrictofFlorida
United StatesofAmerica
V. CaseNo.
Al
fredo Hudson
De#ndant
W AW ER OF AN INDICTM ENT
1understand that1have been accused ofoneorm ore offensespunishableby imprisonmentformorethan one
year.1wasadvised in open courtofmy rightsandthenatureoftheproposed chargesagainstme.
Afterreceiving thisadvice,Iwaivemy rightto prosecution by indictm entand consentto prosecution by
information.
Defendant'
s.
çl
> tz//?'
c
Signatureofde#ndant'
sattorney
DanielEcarius,Esq.
Printedname o./We-
/bWtznf'
sattorney
Judge'
sâ'
fgntz/zl
rc
Judge'
sprinted nameand title
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