Factual Proffer — United States v. Jason Scott Carter (Southern District of Florida, Document 41)

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Factual Proffer in United States v. Jason Scott Carter, Case 9:22-cr-80094-WPD, in the Southern District of Florida, Document 41 entered on the FLSD docket 10/12/2022. The United States and Jason Scott Carter, with undersigned counsel, agree that had the case proceeded to trial the United States would have proven the stated facts beyond a reasonable doubt. The proffer describes the SBA's EIDL program, under which applicants certified their information as true and correct, and states that Carter submitted an EIDL application for a company and certified its gross revenues and cost of goods sold. It states that the representations were knowingly false, concerning the company's revenues and the use of the funds, and that the facts are offered as a basis for the defendant's plea of guilty. The signature blocks name an Assistant United States Attorney and the defendant.

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Case 9:22-cr-80094-WPD Document 41 Entered on FLSD Docket 10/12/2022 Page 1 of 3




                                  "UNIT~D :sTATES DJSTRICl' COURT
                                  SOUTHERN DISTRICT
                                                 ·.. OF FLORIDA
                                                         . ·. . .

                                  Case No. 22-cr-80()94,-)).ll\ll'f.ROU,LEAS

    UNITED.STATES OF AME~tCA

    vs.
    JASON SCOTT CARTER,

    ____________
           .I)efendant.
                                                ____,/·

                                            FACTUAL P80FFER

            The· United States of Amerii::~ .Jason Scott Cartex (''.Carter"), amt hi~ undersigµ.ed. counsel

    agree that, had this- ~ase· -proc.ee:o.eq to ·µiaj., tb.e United Statt::~ woul4.have.· proven -the followi.h~

    facts,_ among others, beyond a reas_0nable doµbt:

            The .. E(;olion:iic. Injury· Dis~ster Loan ("EIDV') program was· a Small Business

    Admil)istration C'SBA'') _progr.:µn_-,;m~ated fu:M}l];ch· 2020 by the- Corona.virus Aid, .Relief~ arid

    Economic Security ("CARES").Act that provided low-interest financing .and cash advanc.es that

    cJid not have to· be repaid to _s;!Uall business~s ex:petiencin~ substantial ·financial disruption due-to

    "the COVID-19 .pru:i.d~mic,. T'o. obtain .a ioan and .advance -under--th.~ EIDL ,progfam, a .q~ing
    .busiiies.s v.,as requited to ·stj.bm.it ah -~ppiic~ti.OJJ. to ·thie SBA and· provide information ·about -its

    operations,. such ~s the number.ofett).ploye~s, grc;,~_s r.cweuµe_s.forthe ·t2.:.rnontli _period preceding_

    the disaster,.defined.as bcc~ig on Janµary 31,202_0". Th~ app!icant wa.sJurther-required·to:certify

    that all of·the .information .iii the -:applica\iQn w"'s "true and c9rr~ct t9 the best .of the· appiicanfs.

    knowledg_e.

            EibL: a;p.plicatioris· were submitted clirectly to-the: saA and processed by·the-.agency with

    supporrfrom a government cc,,~tiactc;,r, R_api<;l .Fiila1;1.ce,. through.-servers existing outsfde the: state.
Case 9:22-cr-80094-WPD Document 41 Entered on FLSD Docket 10/12/2022 Page 2 of 3




   of Florida:. The amoi.111t- of the loa~, ·if the applic~tiQn· was t,lppro.ved, was detennined based on ihe

    irifortnatiop. provicied by the appli_c~t~bou~ employment, revenue?-and cost of;g'ootls,_as.described

   above . .AQ.y funds issued ·wider a11.;EIP~ or:advance were·1ssued.directly.bythe.-SBA. EIDL·funds

    could be us.<;id for-payroH expenses,. sick le.ave, production costs.~ and business Qbligati(ms~ -such as.

    d.e.bt~, re.pt, tµ1d rpprtgage parments.

            OIJ. Mar.ch 3.1 ~ 2026, Carter:subrnitted an ctpplicatioil. to the. SBJ.\.::.eelci~g-a:l,qan.and advance.

    ·Wider the·. EIDL. program.. Jor .h,!s conip~ny, Jason S~. Carter, inc_; (the. '"Company"). In. that

    application, Carter. ct;:rtilied th.at .hi.s gross revenues -forAhe _year :precedfog the· pandemic were.

    $.100.,000 -and his ·eost_qf good_s s~ld Was $40,000 .. C~er ,certi:fied.-that. those representations were

    true and correct· on the application -and prqvided hls,.corr~~t personal..identify:ine;·infomiation· atid

    the corporate ·bank account fo.r ·th~ ·:CQmpany where SBA was: to direct the funds. On April '21 :,.

    2020, the· SBA dii"ec~ly deposited a $,l.,QbO. cash.'advance-in the ·C:Otnpany' bank account. Oil May

    26, 2020, Cari;er execute4 a loan· agreement with SBA for a.loan amount of $29~_000. On 'that loan

    application, Carter recerti:fieq. that his prfor: representation that the cr5mpany haii $'.100,_000. itj

    revenue f<;irthe year
                     .
                          prec~ding the disaster was true and ·correct, certified
                                                                         .
                                                                                  that he· wo-qld .1,1s.e:.~y

    fun,ds -received f~oni .fh,e .Si3A..only fot- ,;-working: capital to alleviate economic ip,Jucy•► c~ui,;e4. by

    the COVID- 1.9. p~d¢mic;;, and -M~in e~rt1fied that his. representations on the= toan agreement mid

    sU.pportiil.~ documents, fricfacling the· intake. ~ppiication, wel'.e-"tr.ue· .and ·cottect urtder penalty- :of

    perjury. On May 29~ 2020, th¢ :SBA. d,irectly· d~pos.it~~ $28;9.00, the loan amount.Jess a. $100

    processing.fee,.into the Corit_pahy"bahk.ac9ount.

             These t.epres·entations were ki1o:wip.gly 'false- .in two resp~cts . .Fir:;;t; the Company did not.

    have r~venues 0{$100.000 for the. relevanttime p~tiod. -,As:.refl~cted iJI.hfa business bank account



                                                            2
Case 9:22-cr-80094-WPD Document 41 Entered on FLSD Docket 10/12/2022 Page 3 of 3




   -records-amttheTevenues Hsted on"hi"fl;orpqra~e taxfotuin for 20] 9, th¢Coriipaiiy had revenues--

    far lower· than $100;()00. Carter intentionally inflated that loan amount to get additional EIDL

    funds. Second, Carter falsely stated t.hat he would use the funds only on alleviating economic h1jury

    to.his company. In fact, he intend,ed, and did, spend $21;788 or the EIDL funds on high.-end and

    o.ther repairs to a personal vintage car of his, a.19.69 Ford.Mustang, from June 15 through October

    23, 2022. Carter made these false representations for the purpose of inducing SBA to transfer the

    cash advance and loan proceeds fo. the Company.

            As ofthe-date-of this factual proffer, the cu:rrent un~ollected bal~nce 'On Carter's EIDL loan

    from the SBA is $28,616.00.

            The facts described above are not intended to be a complete· re~itation of the,facts of this

    case and are merely intended to foflll Ii basis for the unclersigned defendant's knowing, willful, and

    intentional plea of guilty.

                                                      JUAN ANTONIO GONZALEZ
                                                      UNITED STATES ATTORNEY

    Date:       /,2./22
             Jo »- •
                                              By:.
                                                      :::~EN~
                                                      JULIA M. MALONEY
                                                      ASSISTANT UNITED STATES ATTORNEYS


    Date:                                     By:
                                                                              TZ
                                                                   .·   R DEFENDANT
                                                                        l



                                                        ----
    Date:                                     B .              ~---=::,
                                                               .
                                                                              --~
                                      '              ~TT=C=AR=--.-T-.E------'R==--------
                                          '            EFENDANT




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