Information — United States v. Gerothia McCullough (District of South Carolina, Entry Number 1)

Summary

An Information, Entry Number 1, filed 10/10/24 in Case 3:24-cr-00804-MGL, United States of America v. Gerothia McCullough, 3:24-804, in the United States District Court, District of South Carolina, Columbia Division. Count 1 charges that between on or about June 4, 2020 and on or about January 31,2022 McCullough, the nominal owner and operator of Lyons Transport and GSM Home Care, and others conspired to defraud the United States through the PPP and EIDL programs. It alleges false statements about the businesses' expenses, including payroll, taxes and operating costs, and fraudulent loans totalling over $468K. The Information includes a forfeiture conspiracy allegation seeking a minimum of $468,777 in proceeds and a vehicle.

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         3:24-cr-00804-MGL        Date Filed 10/10/24       Entry Number 1          Page 1 of 5




                               TNITED STATES DISTRICT COURT
                               DISTRICT OF SOUTH CAROLINA
                                    COLUMBIA DIVISION

UNITED STATES OF AMERICA                                                      3:24-804
                                               )       CzuMINAL NO.
                                               )
                                               )
                v                              )                           18 U.S.C. $ 1349
                                               )                           18 u.s.c. $ e8l(a)(l)(c)
                                               )                           28 U.S.C. $ 2a6l(c)
                                               )
GEROTHIA McCULLOUGH                            )               INFORMATION


                                              COUNT 1

THE LINITED STATES ATTORNEY CHARGES:

At all time relevant to this Information,

    1.      GEROTHIA McCULLOUGH was the nominal owner and operator of Lyons

            Transport and GSM Home Care.

   2.       The Paycheck Protection Program (PPP) was a federal program that offered forgivable

            loans to small businesses when the COVID- 1 9 pandemic was declared a maj or disaster.

            It provided funds to maintain payrolls, hire back laid-off employees, ffid cover
            expenses such as rent, mortgage interest, and utility bills.

   3.       The Paycheck Protection Program operated by allowing existing Small Business

            Administration (SBA) lenders, federally insured banks and credit unions, and other

            SBA-approved lenders to make PPP loans available to small businesses.

   4.       PPP loans are entirely forgivable if the proceeds were used to cover payroll costs,

            including salaries and employee benefits and certain other non-payroll costs.

   5.       The COVID-I9 Economic Injury Disaster Loan (EIDL) program provided funding to

            help small businesses recover from the economic impacts of the COVID-l9 pandemic.




                                                   I
      3:24-cr-00804-MGL        Date Filed 10/10/24     Entry Number 1      Page 2 of 5



6.       COVID-I9 EIDL loan funds were to be used for working capital and other normal

         operating expenses.

                     THE SCHEME AND ARTIFICE TO DEFRAUD

7        Between on or about June 4, 2020 and on or about January 31,2022, in the District of

         South Carolina, the defendant GEROTHIA McCULLOUGH and others known and

         unknown to the United States Attorney, devised and intended to devise a scheme to

         defraud the United States through the the PPP and EIDL programs and to obtain money

         and property by means of materially false and fraudulent pretenses, representations and

         promises on behalf of Lyons Transport and GSM Home Care.

8.       GEROTHIA McCULLOUGH and others known and unknown to the United States

         Attorney secured by wire transmission PPP and EIDL loans on behalf of Lyons

         Transport and GSM Home Care by making false statements concerning the businesses'

         expenses, including payroll, taxes, and other operating costs.

9        Between the approximate dates of June 4,2020 and January 31,2022, in the District of

         South Carolina, the defendant GEROTHIA McCULLOUGH and others known and

         unknown to the United States Attorney secured fraudulent PPP and EIDL loans

         totalling over $468K on behalf of herself, Lyons Transport, and GSM Home Care.

10.      Between on or about June 4, 2020 and on or about January 31,2022, in the District of

         South Carolina, the defendant GEROTHIA McCULLOUGH and others known and

         unknown to the United States Attorney, knowingly and willfully did combine, conspire,

         confederate, and agree together to devise and intending to devise a scheme and artifice

         to defraud and to obtain money and property by means of false and fraudulent
         pretenses, representations, and promises and for the purpose of executing such scheme



                                              2
  3:24-cr-00804-MGL         Date Filed 10/10/24      Entry Number 1     Page 3 of 5



      and artifice, to knowingly transmit and cause to be transmitted by means of wire in

      interstate commerce, writings, signs and signals, to wit: money and property from the

      PPP and EIDL programs in violation of Title 18, United States Code, Section 1343.

All in violation of Title 18, United States Code, Section 1349.




                                            J
      3:24-cr-00804-MGL          Date Filed 10/10/24    Entry Number 1       Page 4 of 5



                                        FORFEITURE

CONSPIRACY:

       Upon conviction to violate Title 18, United States Code, Section 1349 (conspiracy to

violate 18 U.S.C. $ 1343) as charged in this Information, the Defendant, GEROTHIA

McCULLOUGH, shall forfeit to the United States any property, real or personal, constituting,

derived from or traceable to proceeds the Defendant obtained directly or indirectly as a result of

such offense.

PROPERTY:

       Pursuant to Title 18, United States Code, Section 981(a)(l)(C) and Title 28, United States

Code, Section 2461(c), the property subject to forfeiture includes, but is not limited to, the

following:


                A.    Proceeds/Forfeiture Judsment:

                      A sum of money equal to all proceeds the Defendant obtained
                      directly or indirectly as the result of the offense charged in this
                      Information, that is, a minimum of $468,777 and all interest and
                      proceeds traceable thereto, and/or such sum that equals all
                      property derived from or traceable to her violation of 18 U.S.C.
                      $ 134e.

                B.    Vehicle:

                      2018 GMC Canyon
                      VIN: 1 GTG6EENXJI 2 I 5055
                      Titled in the name of: Arielle McCullough




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       3:24-cr-00804-MGL         Date Filed 10/10/24       Entry Number 1        Page 5 of 5




SUBSTITUTION OF ASSETS:

       Ifany ofthe property described above as being subject to forfeiture, as a result ofany act

or omission of a 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 intention of the United States, pursuant to Title 18, United States Code, Section 982(bX1),

incorporating Title 21, United States Code, Section 853(p), to seek forfeiture of any other property

of the Defendant up to the value of the forfeitable property.

       Pursuant to Title 18, United States Code, Section 98l(a)(l)(C) and Title 28, United States

Code, Section 2a6l@\




ADAIR F. BOROUGHS
LINITED STATES ATTORNEY




T       ayne          (Fed. ID #10859)
Assistant U       States Attorney
1441 Main Stree, Suite 500
Columbia, South Carolina 29201
Tel.: 803-929-3000
Fax: 803-254-2912
Email : DeWayne. Pearson@usdoj . sov


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