Criminal Information — United States v. Keyawn Lloyd Cook, Jr. (Dkt. 5, March 9, 2022)

Summary

Criminal Information in United States of America v. Keyawn Lloyd Cook, Jr., Case No. 2:22-cr-00027-GMN-NJK, in the U.S. District Court for the District of Nevada, filed 03/09/22 as Document 5. Count One, Wire Fraud (18 U.S.C §§ 1343 and 3147), alleges a scheme from in or around April 8, 2020 and continuing into 2021, while on pretrial release in Case No. 2:19-CR-00313-GMN-NJK, to defraud the SBA and a lender. It alleges that the defendant submitted at least four applications for EIDL funds and at least one application for a PPP loan, stating that the defendant was the sole proprietor of companies which did not exist. It alleges a PPP loan approval with $10,415 deposited on May 20, 2021, and that the SBA did not fund the EIDL applications; it is signed /s/ Jessica Oliva.

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Case 2:22-cr-00027-GMN-NJK Document 5 Filed 03/09/22 Page 1 of 7

~~~ FILED
—— ENTERED — RECEIVED
CHRISTOPHER CHIOU COUNSE PARTS or ON

Acting United States Alttomey

Nevada Bar No. 14853

JESSICA OLIVA

Assistant United States Attorney

501 Las Vegas Boulevard South, Suite 1100
Las Vegas, Nevada 89101

Tel: (702) 388-6268

Fax: (702) 388-6418

Attorneys for the United States of America

UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA

UNITED STATES OF AMERICA, Case No.: 2:22-cr-00027-GMN-NJK
Plaintiff, CRIMINAL INFORMATION
VS.
VIOLATION:
KEYAWN LLOYD COOK, JR, 18 U.S.C §§ 1343 and 3147 - Wire Fraud
Defendant.

THE UNITED STATES ATTORNEY FOR THE DISTRICT OF NEVADA CHARGES
THAT:
Background Allegations

At all times relevant to the Information, unless otherwise stated:

L. Defendant KEYAWN LLOYD COOK, JR. (“COOK”) was a United States
citizen, residing in Las Vegas, Nevada.

2. Defendant COOK was indicted in the federal District of Nevada on
December 4, 2019 for felony charges alleging violations of Attempted Interference with

Commerce by Robbery (18 U.S.C. § 1951) and Brandishing a Firearm in Furtherance of
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Case 2:22-cr-00027-GMN-NJK Document 5 Filed 03/09/22 Page 2 of 7

the Crime of Violence (18 U.S.C. § 924(c)(1)(A)(ii)) in case no. 2:19-CR-00313-GMN-NJK.
Defendant COOK entered a guilty plea to the § 1951 charge on May 26, 2021.

3. Institution | was a community development institution headquartered in

Bedford, Texas. Institution | participated as a lender in the Paycheck Protection Program.
Background Regarding the Paycheck Protection Program

4. The Coronavirus Aid, Relief, and Economic Security ("CARES") Act is a
federal law enacted in or around March 2020 and is designed to provide emergency
financial assistance to the millions of Americans who are suffering the economic effects
caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was
the authorization of up to $349 billion in forgivable loans to small businesses and sole
proprietorships for job retention and certain other expenses, through a program referred to
as the Paycheck protection Program (“PPP”). Subsequent legislation provided additional
funding for the PPP and extended its duration. Businesses and eligible individuals could
apply for PPP loans through May 31, 2021.

5. In order to obtain a PPP loan, a qualifying business, independent
contractor/ self-employed individual, or sole proprietorship was required to submit a PPP
loan application signed by an authorized representative of the business. The PPP loan
application required the applicant (through its authorized representative) to acknowledge
the program rules and make certain affirmative certifications in order to be eligible to obtain
the PPP loan. Inthe PPP loan application, the applicant (through its authorized
representative) was required to state, among other things, its: (a) average monthly payroll
expenses; and (b) number of employees. (Applicants who did not have employees and who
filed an IRS Form 1040, Schedule C could report gross income instead of payroll.) These

figures were used to calculate the amount of money the applicant was eligible to receive
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Case 2:22-cr-00027-GMN-NJK Document 5 Filed 03/09/22 Page 3 of 7

under the PPP. In addition, businesses or sole proprietorships applying fora PPP loan were
required to provide documentation showing their eligibility and qualifying payroll amount.

6. A participating financial institution (the lender) processed a PPP loan
application. If the lender approved a PPP loan application, it funded the PPP loan using its
own monies, which the Small Business Administration (“SBA”) guaranteed 100%. If the
lender made a PPP loan tothe applicant, the SBA paid the lender a processing fee, which
was calculated based on the amount of the loan. The lender transmitted information to the
Small Business Administration in the course of processing the loan data from the
application, including information about the borrower, the total amount of the loan, and the
listed number of employees. The SBA oversees the PPP, which has authority over all loans.
Over 5,000 lending institutions, mostly banks and credit unions, have participated in the
PPP.

7. The business or individual receiving the PPP loan proceeds must spend the
funds on certain permissible expenses, such as payroll costs, interest on mortgages, rent, and
utilities. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if
the loan proceeds are spent on permissible expense items within a designated period of time
and uses a specified portion of the PPP loan proceeds on payroll expenses. When a PPP
loan is forgiven, the SBA pays the lender the amount of the forgiven interest and principal.

Background Regarding the Economic Injury Disaster Loan Program

8. The Economic Injury Disaster Loan (“EIDL”) Program is a SBA program
that provides low-interest financing to small businesses, renters, and homeowners in
regions affected by declared disasters.

9. Another source of relief provided by the CARES Act was the authorization

for the SBA to provide EIDLs of up to $2 million to eligible small businesses experiencing
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Case 2:22-cr-00027-GMN-NJK Document 5 Filed 03/09/22 Page 4 of 7

substantial financial disruption due to the COVID-19 pandemic. In addition, the CARES

Act authorized the SBA to issue advances of up to $10,000 to small businesses within three
days of applying for an EIDL. The amount of the advance was determined by the number
of employees that the applicant certified it had. The advances did not have to be repaid.

10. In order to obtain an EIDL and advance, a qualifying business is required to
submit an application to the SBA and provide information about its operations, such as the
number of employees, gross revenues for the 12-month period preceding the disaster, and
cost of goods sold in the 12-month period preceding the disaster. In the case of EIDLs for
COVID-19 relief, the 12-month period was that preceding January 31, 3020. The applicant
must also certify that all the information in the application is true and correct to the best of
the applicant’s knowledge.

11. EIDLapplications are submitted directly to the SBA and processed by the
agency with support from a government contractor, Rapid Finance, through a server in Des
Moines, Jowa. The amount of the loan, if the application was approved, was determined
based, in part, on the information provided by the application about employment, revenue,
and cost of goods, as described above. Any funds issued under an EIDL or advance are
issued directly by the SBA. EIDL funds can be used for payroll expenses, sick leave,
production costs, and business obligations, such as debts, rent, and mortgage payments. If
the applicant also obtained a loan under the PPP, the EIDL funds cannot be used for the
same purpose as the PPP funds.

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Case 2:22-cr-00027-GMN-NJK Document 5 Filed 03/09/22 Page 5 of 7

COUNT ONE
Wire Fraud
(18 U.S.C §§ 1343 and 3147)

Scheme to Defraud

12. Beginning in or around April 8, 2020 and continuing until in or around July

12,2021, within the state and federal district of Nevada and elsewhere,
KEYAWN LLOYD COOK, JR.

defendant herein, while on pretrial release in United States v. Keyawn Lloyd Cook, Jr., Case
No. 2:19-CR-00313-GMN-NJK, and having been notified of the potential effect of
committing a felony offense while on pretrial release, devised, intended to devise, and
participated in a scheme and artifice to defraud the SBA and Institution | and to obtain
money and property by means of materially false and fraudulent pretenses, representations,
and promises.

Purpose of the Scheme to Defraud

13. It was the purpose of the scheme for COOK to unjustly enrich himself by
fraudulently obtaining EIDL and PPP Ioan proceeds by means of false and fraudulent
pretenses, representations, and promises.

Manner and Means of the Scheme to Defraud

14. It was part of the scheme that from on or about April 8, 2020 through until at
least July 12,2021, COOK submitted at least four applications for ETDL funds and at least
one application fora PPP loan. COOK submitted these applications electronically from
Clark County, Nevada, causing wire communications to be transmitted across state lines. In
order to qualify for these loans, COOK made and cause to be made materially false and
fraudulent statements, including that he was the sole proprietor of several companies which

did not in fact exist, false revenue amounts for each of those non-existent companies, and—
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Case 2:22-cr-00027-GMN-NJK Document 5 Filed 03/09/22 Page 6 of 7

for the EIDL applications—a false number of employees of those non-existent companies.
In each of these five applications, COOK falsely certified that he was not presently under
indictment.
15. COOK also provided fake documentation in order to support the April 7,
2021 PPP loan application: COOK attached a falsified Chime Spending Account Statement
which purported to show that he received deposits totaling $5,800 during February 2020.
However, this account statement was not real; COOK had no activity in this account prior
to December 2020.
16. | The PPP loan was approved. On May 20, 2021, Institution | deposited
$10,415 as the proceeds of this loan into a Chime Spending account controlled by COOK.
17. With respect to the EIDL applications, Defendant intended to obtain at least
$50,000 through an April 8, 2020 application, $10,000 through an October 7, 2020
application, $10,000 through a December 31, 2020 application, and $24,000 through a July
12,2021 application. The SBA did not, however, fund these loans.
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Case 2:22-cr-00027-GMN-NJK Document 5 Filed 03/09/22 Page 7 of 7

The Charged Wi anication

18. On or about April 8, 2020, in the State and District of Nevada and
elsewhere, COOK, for the purpose of executing the scheme and artifice to defraud,
transmitted and caused to be transmitted by means of wire communication in interstate
commerce, writings, signs, signals, pictures, and sounds, that is, an Economic Injury
Disaster Loan application electronically transmitted by COOK from Nevada to the SBA

outside of Nevada, in violation of Title 18, United States Code, Sections 1343 and 3147.

DATED: this Ist day of February, 2022.

CHRISTOPHER CHIOU
Acting United States Attorney

/s/ Jessica Oliva
JESSICA OLIVA
Assistant United States Attorney


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