Indictment — U.S. v. Jaimeka Michelle Austin et al. (W.D. Va.)

Summary

An indictment returned at the June 2024 session in United States v. Jaimeka Michelle Austin and others, No. 7:24-cr-00019-TTC-CKM, in the U.S. District Court for the Western District of Virginia, Roanoke Division, filed July 10, 2024 as Document 120. Count One charges Jaimeka Michelle Austin and Kiearra Desiree Gardner with conspiracy to commit wire fraud under 18 U.S.C. § 1349 from in and around June 2020 through in or around October 2021, and Counts Two through Eighty-Two charge wire fraud. The indictment alleges that Austin advertised obtaining PPP loans for payment, with help from Gardner and a tax preparer, using fabricated Schedules C and nominal LLCs, and that at least $1.5 million in PPP funds was disbursed. Other counts cite 18 U.S.C. § 1040(a)(2), and a forfeiture notice seeks a money judgment of not less than $856,365.

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Cite this document

“Indictment — U.S. v. Jaimeka Michelle Austin et al. (W.D. Va.).” Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-no-7-24-cr-00019-dkt-120-681f33252c/, SHA-256 65268f2af14953568542d10cfe689cd2c57d54c5a80c236f78d584eafe938e0a.

Full text

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INDICTMENT

The Grand Jury charges:

INTRODUCTION

At all times relevant to this Indictment:

The Paycheck Protection Program

1. The Paycheck Protection Program (“PPP”) was a COVID-19 pandemic relief

program administered by the Small Business Administration (“SBA”) that provided forgivable

loans to small businesses for job retention and certain other expenses. The PPP permitted

participating third-party lenders to approve and disburse SBA-backed PPP loans to cover payroll,

fixed debts, utilities, rent/mortgage, accounts payable, and other bills incurred by qualifying

businesses during, and resulting from, the COVID-19 pandemic. PPP loans were fully guaranteed

by the SBA.

2. To obtain a PPP loan, a qualifying business had to submit a PPP loan application,

which was signed by an authorized representative of the business. The PPP loan application

required the business (through its authorized representative) to acknowledge the program rules and

make certain affirmative certifications to be eligible to obtain the PPP loan, including that the

business was in operation and either had employees for whom it paid salaries and payroll taxes or

paid independent contractors. A business applying for a PPP loan was required to provide

documentation showing its payroll expenses, such as filed federal income tax documents.

3. One such federal income tax document was an Internal Revenue Service (“IRS”)

Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship) (“Schedule C”). A

Schedule C was attached to a U.S. Individual Income Tax Return, Form 1040, and was used to

report income or loss from a business that the taxpayer operated as a sole proprietor.

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4. PPP loan applications were electronically submitted or caused to be submitted by

the borrower and were received through SBA servers located in Oregon. Once approved, the

business received the PPP loan proceeds via an electronic funds transfer from the third-party lender

to a financial account under the control of the business.

5. The proceeds of a PPP loan could be used for certain specified business expenses,

such as payroll costs, costs related to the continuation of group health care benefits, or mortgage

interest payments. The proceeds of a PPP loan were not permitted to be used by borrowers to

purchase consumer goods, automobiles, personal residences, clothing, jewelry, to pay a borrower’s

personal federal income taxes, or to fund a borrower’s ordinary day-to-day living expenses

unrelated to the specified authorized expenses.

6. The PPP allowed interest and principal on the PPP loan to be forgiven entirely if

the business spent the loan proceeds on the specified business expenses within a designated period

of time (typically within 24 weeks of receiving the proceeds) and used a certain percentage

(typically 60%) of the PPP loan proceeds towards payroll expenses.

The Co-Conspirators and Lenders

7. JAIMEKA MICHELLE AUSTIN (J. AUSTIN), a resident of Roanoke, Virginia,

purported to be the sole owner and authorized representative of a business named Mechelle’s

Boutique LLC.

8. TA’QUAN DE’CARLOS AUSTIN (T. AUSTIN), a resident of Roanoke, Virginia,

purported to be the sole owner and authorized representative of a business named Quan’o’s

Chimney Sweep, LLC.

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9. RICHARD DAVID HENSON BROWN (BROWN), a resident of Roanoke,

Virginia, purported to be the sole owner and authorized representative of a business named

Immaculate Balla Cleaning Service LLC.

10. ISRAEL ANTONIO CUNNINGHAM (I. CUNNINGHAM), a resident of

Roanoke, Virginia, purported to be the sole owner and authorized representative of a business

named Tate’s Lawn Care & Services LLC.

11. RAHIIM NOEL CUNNINGHAM (R. CUNNINGHAM), a resident of Roanoke,

Virginia, purported to be the sole owner and authorized representative of a business named

Quanie’s Lounge LLC.

12. TIMOTHY EDWARD CUNNINGHAM, JR (T. CUNNINGHAM), a resident of

Roanoke, Virginia, purported to be the sole owner and authorized representative of a business

named Gen5 Dog Kennels LLC.

13. MIKKIELIA SENTOYIA FISHER (FISHER), a resident of Roanoke, Virginia,

purported to be the sole owner and authorized representative of a business named Mad Stylez

Clothing.

14. JOSHUA SCOTT FLEMING (FLEMING), a resident of Roanoke, Virginia,

purported to be the sole owner and authorized representative of a business named Clear N Shine

Auto Detail.

15. KIEARRA DESIREE GARDNER (GARDNER), a resident of Roanoke, Virginia,

purported to be the sole owner and authorized representative of multiple business entities including

businesses named Kiearra Gardner and Kustom Kreationz by Kie LLC.

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16. SIERRA DESARAY GARRISON (GARRISON), a resident of Roanoke, Virginia,

purported to be the sole owner and authorized representative of a business named Major Pressure

LLC.

17. DESHAWN LAMAR JOHNSON (JOHNSON), a resident of Roanoke, Virginia,

purported to be the sole owner and authorized representative of a business named Affordable Car

Care LLC.

18.

19. ANTONIO DEVAUGHN LEVESY (LEVESY), a resident of Roanoke, Virginia,

purported to be the sole owner and authorized representative of a business named Squeaky Clean

Mobile Detailing LLC.

20. MILLOT LEXIMA (LEXIMA), a resident of Roanoke, Virginia, purported to be

the sole owner and authorized representative of a business named Plugd N Kennel LLC.

21. XAVIER LEE MANIGAULT (MANIGAULT), a resident of Roanoke, Virginia,

purported to be the sole owner and authorized representative of a business named The Goat Car

Care LLC.

22. TALISHA GEORNELL OTEY (OTEY), a resident of Roanoke, Virginia,

purported to be the sole owner and authorized representative of multiple business entities including

businesses named Talisha, Lash Tech, and the Butterfly Effect 540 LLC.

23. COREY DURRELL STEELMAN (C. STEELMAN), a resident of Roanoke,

Virginia, purported to be the sole owner and authorized representative of a business named Steel

Hauling LLC.

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24. JAMAL DONNELL STEELMAN (J. STEELMAN), a resident of Roanoke,

Virginia, purported to be the sole owner and authorized representative of a business named Steel

Painters LLC.

25. JESSICA NICOLE TAYLOR (J. TAYLOR), a resident of Roanoke, Virginia,

purported to be the sole owner and authorized representative of a business named All In Caregiving

LLC.

26. THOMAS MANUELTAYLOR (T. TAYLOR), a resident of Roanoke, Virginia,

purported to be the sole owner and authorized representative of a business named Showcase

Kennels LLC.

27. DENISHA MICHELLE WALKER (WALKER), a resident of Roanoke, Virginia,

purported to be the sole owner and authorized representative of multiple business entities including

businesses named Denisha Walker and Lit & Fit Sculpting LLC.

28. JENEA SHONTAE WEBB (J. WEBB), a resident of Roanoke, Virginia, purported

to be the sole owner and authorized representative of a business named Nae & Friends Childcare.

29. STEPHFON DAVIDO WEBB (S. WEBB), a resident of Roanoke, Virginia,

purported to be a self-employed individual working in the cleaning/janitorial industry.

30. AKEEM MARQUIS WILLIAMS (WILLIAMS), a resident of Roanoke, Virginia,

purported to be the sole owner and authorized representative of a business named Williams &

Williams Moving Company LLC.

31. Co-Conspirator 1, a resident of Chester, Virginia, was a tax preparer.

32. Lender A was a financial institution located in New Jersey that was authorized by

the SBA as a non-bank lender for PPP loans.

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33. Lender B was an Arizona-based Community Development Financial Institution

authorized by the SBA to issue PPP loans.

The PPP Fraud Scheme

34. In or around June 2020, J. AUSTIN began communicating with multiple

individuals regarding fraudulent PPP applications.

35. Beginning in or around November 2020 and continuing through approximately

May 2021, J. AUSTIN advertised that she could obtain PPP loans for individuals in return for

payment. During this time, J. AUSTIN collected information from various individuals for the

purpose of submitting fraudulent PPP loans on their behalf. Many of these individuals did not have

an operational business, so J. AUSTIN offered to nominally establish a business for them for an

additional fee.

36. J. AUSTIN collaborated with multiple co-conspirators to identify individuals who

were willing to pay her to file fraudulent PPP loan applications on their behalf (the “fraudulent

loan applicants”) and who could help create fraudulent documents for these individuals. The

fraudulent loan applicants would provide J. AUSTIN with personal identifying information and

bank account information for AUSTIN to use in preparing the fraudulent applications. GARDNER

and Co-Conspirator 1 assisted J. AUSTIN with preparing and submitting fraudulent PPP

applications on behalf of the fraudulent loan applicants. J. AUSTIN paid GARDNER and Co-

Conspirator 1 for their work on the scheme.

37. Co-Conspirator 1 used her tax preparation knowledge to advise J. AUSTIN about

the requirements to apply for a PPP loan. She also assisted J. AUSTIN by creating fraudulent

Schedules C to support the fraudulent PPP applications and submitting applications on behalf of

the fraudulent loan applicants. GARDNER helped create limited liability companies (“LLCs”) for

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the fraudulent loan applicants and helped obtain Employer Identification Numbers (“EINs”) from

the IRS for the fictitious LLCs created on behalf of the fraudulent loan applicants.

38. The fraudulent PPP applications submitted by J. AUSTIN, GARDNER, and Co-

Conspirator 1 on behalf of the fraudulent loan applicants contained multiple materially false

statements and representations, typically including the date the business had been established, the

business’s average monthly payroll, the business’s gross receipts, that the loan was necessary to

support the ongoing operations of the business, and that the funds would be used for authorized

purposes.

39. Some fraudulent loan applicants later used information and documents provided by

J. AUSTIN, GARDNER, and Co-Conspirator 1 to apply for additional fraudulent PPP loans.

40. After the false and fraudulent PPP applications were submitted by or on behalf of

the fraudulent loan applicants, the fraudulent loan applicants knowingly signed or caused to be

signed a promissory note that contained materially false statements and representations, including

that all certifications, authorizations, and representations made on the PPP application remained

true and accurate as of the date of the promissory note.

41. Many of the false and fraudulent PPP applications submitted by J. AUSTIN,

GARDNER, Co-Conspirator 1, and the fraudulent loan applicants were approved, and the funds

from each fraudulent PPP application were deposited into a financial account belonging to the

fraudulent loan applicant. The fraudulent loan applicant then spent some or all of the PPP loan

money for unauthorized purposes, including payments to J. AUSTIN.

42. J. AUSTIN also advised the fraudulent loan applicants on how and when to apply

to have their loans forgiven. As a result, some of the fraudulent loan applicants submitted loan

forgiveness applications that contained materially false and fraudulent representations.

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43. Some of the fraudulent loan applicants were also receiving Unemployment

Insurance at the time their PPP applications were filed and continued to receive Unemployment

Insurance after receiving the PPP loan money, despite claiming on their PPP applications that they

were continuing to operate a business. When submitting claims for Unemployment Insurance,

some of these fraudulent loan applicants falsely certified that they had not applied for or received

a PPP loan.

44. In addition, J. AUSTIN and GARDNER obtained fraudulent PPP loans for

themselves.

45. All told, at least $1.5 million in PPP funds were disbursed based on applications

submitted in connection with this PPP fraud scheme.

COUNT ONE
(Conspiracy to Commit Wire Fraud)

46. The Introduction to this Indictment is realleged and incorporated as if fully set forth

herein.

47. Beginning in and around June 2020 and continuing in or around October 2021, in

the Western District of Virginia and elsewhere, the defendants, J. AUSTIN and GARDNER, did

knowingly and willfully conspire and agree with each other, and with other persons both known

and unknown to the grand jury, to commit the offense of wire fraud, that is, to devise, and intend

to devise, a scheme and artifice to defraud, and to obtain money and property by means of

materially false and fraudulent pretenses, representations, and promises, and, for the purpose of

executing the scheme and artifice, did knowingly transmit and cause to be transmitted, by means

of wire communication in interstate commerce, certain writings, signs, signals, pictures, and

sounds, in violation of Title 18, United States Code, Section 1343.

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Object of the Conspiracy

48. It was the object of the conspiracy for the defendants and their co-conspirators to

unlawfully enrich themselves by, among other things: (a) submitting and causing the submission

of false and fraudulent applications for PPP loans made available through the SBA to provide relief

for the economic effects caused by the COVID-19 pandemic; (b) soliciting, offering, paying, and

receiving kickbacks in return for preparing false and fraudulent loan applications; (c) diverting

fraud proceeds for the personal use of the defendants and their co-conspirators, the use and benefit

of others, and to further the conspiracy; and (d) to obtain PPP loan money that was intended for

legitimate small business owners.

Manner and Means of the Conspiracy

49. To carry out the conspiracy and to effect its unlawful object, the defendants and

their co-conspirators engaged in a number of means and methods, including those referred to in

the section above entitled “The PPP Fraud Scheme,” among others.

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

COUNTS TWO THROUGH EIGHTY-TWO
(Wire Fraud)

The Grand Jury further charges:

51. The Introduction to this Indictment is realleged and incorporated as if fully set forth

herein.

52. On or about the dates below, in the Western District of Virginia and elsewhere, the

individuals listed below, for the purpose of executing and attempting to execute the scheme

described above, transmitted and caused to be transmitted, by means of wire communication in

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interstate commerce, the signals and sounds described below for each count, each transmission

constituting a separate count:

Count Defendant(s) Date Description

2 J. AUSTIN 3/7/2021 Submission of PPP application to Lender A
for Mechelle’s Boutique
3 J. AUSTIN 3/23/2021 Wire transfer of approximately $26,195 in
PPP proceeds from Lender A into account
controlled by J. AUSTIN
4 J. AUSTIN 5/14/2021 Submission of PPP application to Lender A
for Mechelle’s Boutique
5 J. AUSTIN 5/24/2021 Wire transfer of approximately $26,195 in
PPP proceeds from Lender A into account
controlled by J. AUSTIN
6 T. AUSTIN, J. AUSTIN 2/27/2021 Submission of PPP application to Lender A
for Quano’s Chimney Sweep
7 T. AUSTIN, J. AUSTIN 4/12/2021 Wire transfer of approximately $20,800 in
PPP proceeds from Lender A into account
controlled by T. AUSTIN
8 T. AUSTIN, J. AUSTIN, 5/21/2021 Submission of PPP application to Lender A
GARDNER for Quano’s Chimney Sweep
9 T. AUSTIN, J. AUSTIN, 6/1/2021 Wire transfer of approximately $20,800 in
GARDNER PPP proceeds from Lender A into account
controlled by T. AUSTIN
10 BROWN, J. AUSTIN, 3/16/2021 Submission of PPP application to Lender A
GARDNER for Immaculate Balla Cleaning Service
11 BROWN, J. AUSTIN, 4/23/2021 Wire transfer of approximately $20,833 in
GARDNER PPP proceeds from Lender A into account
controlled by BROWN
12 BROWN, J. AUSTIN, 5/21/2021 Submission of PPP application to Lender A
GARDNER for Immaculate Balla Cleaning Service
13 BROWN, J. AUSTIN, 6/1/2021 Wire transfer of approximately $20,800 in
GARDNER PPP proceeds from Lender A into account
controlled by BROWN
14 I. CUNNINGHAM, J. 3/31/2021 Submission of PPP application to Lender B
AUSTIN, GARDNER for Tate’s Lawn Care And Services LLC
15 I. CUNNINGHAM, J. 6/7/2021 Wire transfer of approximately $20,832 in
AUSTIN, GARDNER PPP proceeds from Lender B into account
controlled by I. CUNNINGHAM
16 R. CUNNINGHAM, J. 3/13/2021 Submission of PPP application to Lender A
AUSTIN, GARDNER for Quanie’s Lounge

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17 R. CUNNINGHAM, J. 4/2/2021 Wire transfer of approximately $29,165 in
AUSTIN, GARDNER PPP proceeds from Lender A into account
controlled by R. CUNNINGHAM
18 T. CUNNINGHAM, J. 3/13/2021 Submission of PPP application to Lender A
AUSTIN, GARDNER for Gen5 Dog Kennels
19 T. CUNNINGHAM, J. 4/12/2021 Wire transfer of approximately $20,832 in
AUSTIN, GARDNER PPP proceeds from Lender A into account
controlled by T. CUNNINGHAM
20 T. CUNNINGHAM, J. 5/21/2021 Submission of PPP application to Lender A
AUSTIN, GARDNER for Gen5 Dog Kennels
21 FISHER, J. AUSTIN 3/2/2021 Submission of PPP application to Lender A
for Mad Stylez Clothing
22 FISHER, J. AUSTIN 3/23/2021 Wire transfer of approximately $20,833 in
PPP proceeds from Lender A into account
controlled by FISHER
23 FISHER, J. AUSTIN 5/18/2021 Submission of PPP application to Lender A
for Mad Stylez Clothing
24 FISHER, J. AUSTIN 5/24/2021 Wire transfer of approximately $20,800 in
PPP proceeds from Lender A into account
controlled by FISHER
25 FLEMING, J. AUSTIN, 3/20/2021 Submission of PPP application to Lender A
GARDNER for Clear N Shine Auto Detail
26 FLEMING, J. AUSTIN, 4/9/2021 Wire transfer of approximately $22,412 in
GARDNER PPP proceeds from Lender A into account
controlled by FLEMING
27 FLEMING, J. AUSTIN, 5/25/2021 Submission of PPP application to Lender A
GARDNER for Clear N Shine Auto Detail
28 FLEMING, J. AUSTIN, 6/15/2021 Wire transfer of approximately $22,412 in
GARDNER PPP proceeds from Lender A into account
controlled by FLEMING
29 GARDNER, J. AUSTIN 1/19/2021 Submission of PPP application to Lender A
for Kiearra Gardner
30 GARDNER, J. AUSTIN 4/22/2021 Wire transfer of approximately $19,725 in
PPP proceeds from Lender A into account
controlled by GARDNER
31 GARDNER, J. AUSTIN 5/21/2021 Submission of PPP application to Lender A
for Kiearra Gardner
32 GARDNER, J. AUSTIN 5/28/2021 Wire transfer of approximately $20,800 in
PPP proceeds from Lender A into account
controlled by GARDNER
33 GARRISON, J. AUSTIN 3/11/2021 Submission of PPP application to Lender A
for Major Pressure LLC
34 GARRISON, J. AUSTIN 4/8/2021 Wire transfer of approximately $20,800 in
PPP proceeds from Lender A into account
controlled by GARRISON
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35 JOHNSON, J. AUSTIN 2/27/2021 Submission of PPP application to Lender A
for Affordable Car Care
36 JOHNSON, J. AUSTIN 3/30/2021 Wire transfer of approximately $24,544 in
PPP proceeds from Lender A into account
controlled by JOHNSON
37 JOHNSON, J. AUSTIN 3/2/2021 Submission of PPP application to Lender A
for Affordable Car Care
38 JOHNSON, J. AUSTIN 4/14/2021 Wire transfer of approximately $20,834 in
PPP proceeds from Lender A into account
controlled by JOHNSON
39 J. AUSTIN, 3/11/2021 Submission of PPP application to Lender A
GARDNER for
40 J. AUSTIN, 3/30/2021 Wire transfer of approximately $20,832 in
GARDNER PPP proceeds from Lender A into account
controlled by
41 LEVESY, J. AUSTIN, 3/4/2021 Submission of PPP application to Lender A
GARDNER for Squeaky Clean Mobile Detailing LLC
42 LEVESY, J. AUSTIN, 3/23/2021 Wire transfer of approximately $20,800 in
GARDNER PPP proceeds from Lender A into account
controlled by LEVESY
43 LEVESY, J. AUSTIN, 5/14/2021 Submission of PPP application to Lender A
GARDNER for Squeaky Clean Mobile Detailing LLC
44 LEVESY, J. AUSTIN, 5/24/2021 Wire transfer of approximately $20,800 in
GARDNER PPP proceeds from Lender A into account
controlled by LEVESY
45 LEXIMA, J. AUSTIN 2/23/2021 Submission of PPP application to Lender A
for Plugd N Kennel LLC
46 LEXIMA, J. AUSTIN 4/15/2021 Wire transfer of approximately $20,800 in
PPP proceeds from Lender A into account
controlled by LEXIMA
47 LEXIMA, J. AUSTIN 5/24/2021 Submission of PPP application to Lender A
for Plugd N Kennel LLC
48 LEXIMA, J. AUSTIN 6/2/2021 Wire transfer of approximately $20,800 in
PPP proceeds from Lender A into account
controlled by LEXIMA
49 MANIGAULT, J. 3/2/2021 Submission of PPP application to Lender A
AUSTIN for The Goat Car Care LLC
50 MANIGAULT, J. 4/6/2021 Wire transfer of approximately $20,800 in
AUSTIN PPP proceeds from Lender A into account
controlled by MANIGAULT
51 MANIGAULT, J. 5/21/2021 Submission of PPP application to Lender A
AUSTIN for The Goat Car Care LLC
52 MANIGAULT, J. 6/1/2021 Wire transfer of approximately $20,800 in
AUSTIN PPP proceeds from Lender A into account
controlled by Manigault
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53 OTEY, J. AUSTIN 2/27/2021 Submission of PPP application to Lender A
for Talisha
54 OTEY, J. AUSTIN 4/9/2021 Wire transfer of approximately $20,800 in
PPP proceeds from Lender A into account
controlled by OTEY
55 OTEY, J. AUSTIN 5/24/2021 Submission of PPP application to Lender A
for Talisha
56 OTEY, J. AUSTIN 6/1/2021 Wire transfer of approximately $20,800 in
PPP proceeds from Lender A into account
controlled by OTEY
57 C. STEELMAN, J. 3/18/2021 Submission of PPP application to Lender A
AUSTIN, GARDNER for Steel-Hauling Cleaning Services
58 C. STEELMAN, J. 4/12/2021 Wire transfer of approximately $20,835 in
AUSTIN, GARDNER PPP proceeds from Lender A into account
controlled by C. STEELMAN
59 C. STEELMAN, J. 5/21/2021 Submission of PPP application to Lender A
AUSTIN, GARDNER for Steel-Hauling Cleaning Services
60 C. STEELMAN, J. 5/28/2021 Wire transfer of approximately $20,835 in
AUSTIN, GARDNER PPP proceeds from Lender A into account
controlled by C. STEELMAN
61 J. STEELMAN, J. 3/16/2021 Submission of PPP application to Lender A
AUSTIN, GARDNER for Steel Painters
62 J. STEELMAN, J. 4/7/2021 Wire transfer of approximately $20,833 in
AUSTIN, GARDNER PPP proceeds from Lender A into account
controlled by J. STEELMAN
63 J. TAYLOR, J. AUSTIN 3/2/2021 Submission of PPP application to Lender A
for All In Caregiving
64 J. TAYLOR, J. AUSTIN 3/23/2021 Wire transfer of approximately $20,800 in
PPP proceeds from Lender A into account
controlled by J. TAYLOR
65 T. TAYLOR, J. AUSTIN 4/2/2021 Submission of PPP application to Lender A
for Showcase Kennels LLC
66 T. TAYLOR, J. AUSTIN 4/20/2021 Wire transfer of approximately $20,830 in
PPP proceeds from Lender A into account
controlled by T. TAYLOR
67 WALKER, J. AUSTIN 1/19/2021 Submission of PPP application to Lender A
for Denisha Walker
68 WALKER, J. AUSTIN 2/25/2021 Wire transfer of approximately $20,833 in
PPP proceeds from Lender A into account
controlled by WALKER
69 WALKER, J. AUSTIN 5/13/2021 Submission of PPP application to Lender A
for Denisha Walker
70 WALKER, J. AUSTIN 5/17/2021 Wire transfer of approximately $20,800 in
PPP proceeds from Lender A into account
controlled by WALKER
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71 J. WEBB, J. AUSTIN, 3/18/2021 Submission of PPP application to Lender A
GARDNER for Nae & Friends Childcare
72 J. WEBB, J. AUSTIN, 4/6/2021 Wire transfer of approximately $20,830 in
GARDNER PPP proceeds from Lender A into account
controlled by J. WEBB
73 J. WEBB, J. AUSTIN 5/21/2021 Submission of PPP application to Lender A
for Nae & Friends Childcare
74 J. WEBB, J. AUSTIN 5/28/2021 Wire transfer of approximately $20,800 in
PPP proceeds from Lender A into account
controlled by J. WEBB
75 S. WEBB, J. AUSTIN, 1/20/2021 Submission of PPP application to Lender A
GARDNER for Stephfon Webb
76 S. WEBB, J. AUSTIN, 2/18/2021 Wire transfer of approximately $20,833 in
GARDNER PPP proceeds from Lender A into account
controlled by S. WEBB
77 S. WEBB, J. AUSTIN 5/7/2021 Submission of PPP application to Lender A
for Stephfon Webb
78 S. WEBB, J. AUSTIN 5/13/2021 Wire transfer of approximately $20,800 in
PPP proceeds from Lender A into account
controlled by S. WEBB
79 WILLIAMS, J. AUSTIN, 3/16/2021 Submission of PPP application to Lender A
GARDNER for Williams and Williams Moving
Company
80 WILLIAMS, J. AUSTIN, 3/30/2021 Wire transfer of approximately $20,833 in
GARDNER PPP proceeds from Lender A into account
controlled by WILLIAMS
81 WILLIAMS, J. AUSTIN, 5/25/2021 Submission of PPP application to Lender A
GARDNER for Williams and Williams Moving
Company
82 WILLIAMS, J. AUSTIN, 6/7/2021 Wire transfer of approximately $20,800 in
GARDNER PPP proceeds from Lender A into account
controlled by WILLIAMS

53. These violations occurred in relation to and involving a benefit authorized,

transported, transmitted, transferred, disbursed, or paid in connection with, a presidentially

declared major disaster or emergency and affected a financial institution.

54. All in violation of Title 18, United States Code, Sections 1343 & 2(a).

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COUNTS EIGHTY-THREE THROUGH ONE HUNDRED TEN
(False Statements)

The Grand Jury further charges:

55. The Introduction to this Indictment is realleged and incorporated as if fully set forth

herein.

56. On or about the dates below, in the Western District of Virginia and elsewhere, the

individuals listed below, as principals, aiders, and abettors, did knowingly and willfully make and

use a false writing and document, knowing the same to contain a materially false, fictitious, and

fraudulent statement and entry in a matter within the jurisdiction of the executive branch of the

Government of the United States by submitting and causing to be submitted PPP Loan Forgiveness

Application Form 3508S to the SBA for the PPP loan that was disbursed on or about the dates

below, certifying compliance with the PPP Rules, when the defendants then and there knew they

had not complied with the PPP Rules, each constituting a separate count:

Count Defendant Forgiveness Application Date Loan Disbursement Date

83 J. AUSTIN 8/24/2021 3/23/2021
84 J. AUSTIN 8/24/2021 5/24/2021
85 BROWN 9/2/2021 4/23/2021
86 BROWN 9/2/2021 6/1/2021
87 FISHER 9/8/2021 3/23/2021
88 FISHER 9/8/2021 5/24/2021
89 FLEMING 9/1/2021 4/12/2021
90 FLEMING 9/1/2021 6/16/2021
91 GARDNER 9/20/2021 4/23/2021
92 GARDNER 9/20/2021 6/1/2021
93 GARRISON 9/8/2021 4/8/2021
94 LEVESY 10/28/2021 3/23/2021
95 LEVESY 10/28/2021 5/24/2021
96 LEXIMA 9/18/2021 4/15/2021
97 LEXIMA 9/18/2021 6/2/2021
98 OTEY 9/18/2021 4/12/2021
99 OTEY 9/18/2021 6/2/2021
100 C. STEELMAN 10/15/2021 4/13/2021
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101 C. STEELMAN 10/15/2021 6/1/2021
102 J. TAYLOR 8/25/2021 3/23/2021
103 T. TAYLOR 8/25/2021 4/21/2021
104 WALKER 10/11/2021 2/26/2021
105 WALKER 10/11/2021 5/18/2021
106 J. WEBB 9/9/2021 4/9/2021
107 J. WEBB 9/9/2021 5/28/2021
108 S. WEBB 8/25/2021 2/18/2021
109 S. WEBB 8/25/2021 5/13/2021
110 WILLIAMS 9/8/2021 3/30/2021

57. All in violation of Title 18, United States Code, Sections 1001(a)(3) & 2.

COUNTS ONE HUNDRED ELEVEN THROUGH ONE HUNDRED TWENTY-FOUR
(Money Laundering)

The Grand Jury further charges:

58. The Introduction to this Indictment is realleged and incorporated as if fully set forth

herein.

59. On or about the following dates, in the Western District of Virginia and elsewhere,

the individuals listed below did knowingly engage and attempt to engage in the following

monetary transactions by, through, and to a financial institution, affecting interstate and foreign

commerce, in criminally derived property of a value greater than $10,000, that is the withdrawal

and transfer of funds and monetary instruments, such property having been derived from a

specified unlawful activity, that is, wire fraud, in violation of 18 U.S.C. § 1343, and the distribution

of controlled substances, in violation of 21 U.S.C. § 841(a)(1):

Count Defendants Date Description and Approximate Amounts

111 J. AUSTIN 3/23/2021 $16,000 transfer from Wells Fargo Bank
account xx0325
112 J. AUSTIN 10/4/2021 $25,000 wire transfer from Wells Fargo Bank
account xx8348
113 J. AUSTIN 10/4/2021 $45,000 wire transfer from Wells Fargo Bank
account xx8348

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114 R. CUNNINGHAM 4/7/2021 $17,000 cash withdrawal from Wells Fargo
Bank account xx3146
115 FLEMING 4/12/2021 $15,000 cash withdrawal from Freedom First
Credit Union account xx9732
116 FLEMING 6/21/2021 $12,000 cash withdrawal from Freedom First
Credit Union account xx9732
117 GARDNER 6/1/2021 $15,000 transfer from Woodforest Bank
account xx0188
118 JOHNSON 3/31/2021 $23,000 cash withdrawal from SunTrust Bank
account xx9736
119 JOHNSON 4/15/2021 $15,000 cash withdrawal from SunTrust Bank
account xx9736
120 MANIGAULT 4/6/2021 $15,800 cash withdrawal from Wells Fargo
Bank account xx8585
121 MANIGAULT 6/1/2021 $10,405.39 cash withdrawal from Wells Fargo
Bank account xx8585
122 C. STEELMAN 4/13/2021 $19,000 cash withdrawal from Member One
Federal Credit Union account xx319
123 WALKER 5/19/2021 $12,000 transfer from Blue Eagle Credit Union
account xx583
124 S. WEBB 2/22/2021 $15,000 cash withdrawal from account held at
Wells Fargo Bank

60. All in violation of Title 18, United States Code, Sections 1957 & 2.

COUNTS ONE HUNDRED TWENTY-FIVE THROUGH ONE HUNDRED TWENTY-
EIGHT
(Money Laundering)

The Grand Jury further charges:

61. The Introduction to this Indictment is realleged and incorporated as if fully set forth

herein.

62. On or about the following dates, in the Western District of Virginia and elsewhere,

the defendant, J. AUSTIN, knowing that the property involved in the financial transactions listed

below represented the proceeds of some form of unlawful activity, did knowingly conduct and

attempt to conduct the financial transactions listed below, which affected interstate and foreign

commerce and which involved the proceeds of specified unlawful activity, that is, wire fraud, in

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violation of 18 U.S.C. § 1343, and the distribution of controlled substances, in violation of 21

U.S.C. § 841(a)(1), knowing that the transactions were designed in whole and in part to conceal

and disguise the nature, location, source, ownership, and control of the proceeds of said specified

unlawful activity:

Count Date Description and Approximate Amounts

125 5/25/2021 $10,000 transfer from Wells Fargo Bank account xx0325 to Wells
Fargo Bank account xx4234
126 9/9/2021 $9,500 cash withdrawal from Wells Fargo Bank account xx0549
127 9/13/2021 $6,500 cash withdrawal from Wells Fargo Bank account xx0549
128 10/4/2021 $9,500 cash withdrawal from Wells Fargo Bank account xx0549

63. All in violation of Title 18, United States Code, Sections 1956(a)(1)(B)(i) & 2.

COUNTS ONE HUNDRED TWENTY-NINE THROUGH ONE HUNDRED FORTY-
TWO
(Fraud in Connection with Emergency Benefits)

64. The Introduction to this Indictment is realleged and incorporated as if fully set forth

herein.

65. Unemployment Insurance (UI) is a state-federal program that provides monetary

benefits to eligible workers. Although state workforce agencies administer their respective UI

programs, they must do so in accordance with federal laws and regulations. UI payments (benefits)

are intended to provide temporary financial assistance to eligible workers who are unemployed

through no fault of their own. In the Commonwealth of Virginia, the Virginia Employment

Commission (“VEC”) administers the UI program.

66. On March 13, 2020, the President of the United States declared the ongoing

Coronavirus Disease (Covid) pandemic to be an emergency under § 501(b) of the Robert T.

Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C §§ 5121-5207).

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67. In connection with that emergency declaration, between March 18, 2020, and

March 11, 2021, Congress and the President authorized multiple programs to fund unemployment

insurance, including Pandemic Unemployment Assistance (“PUA”), Pandemic Emergency

Unemployment Compensation (“PEUC”), Federal Pandemic Unemployment Compensation, and

the Lost Wage Assistance Program (collectively “pandemic unemployment programs”). Together,

these programs offered unemployment benefits of varying amounts from as early as March 2020

through September 2021.

68. The pandemic unemployment programs offered benefits to individuals who would

not otherwise be eligible for unemployment insurance because they were: (1) self-employed,

seeking part-time employment, or otherwise would not qualify for regular UI (for example,

independent contractors and gig workers); and (2) unemployed, partially unemployed, unable to

work, or unavailable to work due to specific COVID-19 related reasons(s). Coverage included

individuals who had exhausted all rights to regular UI or extended benefits under state or federal

law or under PEUC.

69. The pandemic unemployment insurance programs were administered by the

various states, including the Commonwealth of Virginia, but their benefits were funded by the

federal government. In order to receive pandemic benefits, an applicant accessed a website

maintained and administered by the VEC and filed a claim. The VEC did not require claimants to

file separate claims for each pandemic unemployment program. A single accepted PUA

application and PUA weekly certification thereafter would entitle the claimant to receive benefits

from all available programs.

70. To apply for pandemic unemployment benefits via the VEC website, claimants had

to answer specific questions to establish their eligibility for pandemic unemployment benefits.

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Claimants provided their name, Social Security Number, and mailing address and self-certified

that they met one of the COVID-19-related reasons for being unemployed, partially unemployed,

or unable or unavailable to work. The VEC also required claimants to identify whether they had

performed any work or engaged in any self-employment for each week in which they claimed

pandemic unemployment benefits. Claimants also were required to answer whether they had

applied for or received funds from other income replacement programs, including PPP, for each

week in which they claimed pandemic unemployment benefits. A claimant who received PPP

funds was not eligible to receive pandemic unemployment benefits. Claimants then attested, under

penalty of perjury, that the information provided in the claim application was true and accurate.

71. On or about the following dates, in the Western District of Virginia and elsewhere,

the individuals listed below did knowingly make materially false, fictitious, and fraudulent

statements and representations on claim applications for pandemic unemployment benefits that

were authorized, paid, and disbursed in connection with an emergency declaration under § 501 of

the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. §§ 5191), for the

benefit weeks ending in the approximate dates listed below, to wit, that he/she had not applied for

nor received PPP funds during the week for which the defendant sought pandemic unemployment

benefits when, in fact, the defendant had received PPP funds during that week:

Count Defendant Submission Date Benefits Week Ending Date

129 T. AUSTIN 4/20/2021 4/17/2021
130 T. AUSTIN 9/8/2021 6/5/2021
131 FISHER 3/29/2021 3/27/2021
132 FISHER 6/1/2021 5/29/2021
133 GARDNER 3/28/2021 3/27/2021
134 GARDNER 4/26/2021 4/24/2021
135 GARDNER 6/7/2021 6/5/2021
136 4/4/2021 4/3/2021
137 MANIGAULT 4/11/2021 4/10/2021
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