Factual Proffer — United States v. Philossaint (Southern District of Florida, Document 94)
Summary
Factual Proffer entered on the docket November 14, 2022 as Document 94 in United States of America v. Joff Philossaint, Case No. 9:22-cr-80144-RS, U.S. District Court for the Southern District of Florida. The United States Attorney's Office and the defendant agree that the statement of facts is accurate and provides a factual basis for the defendant's plea of guilty. The proffer states that Philossaint assisted numerous conspirators to submit fraudulent applications for PPP loans and EIDLs, and that the conspirators paid a fee of approximately 10% of the value of the loans. It describes Unfold Perception, LLC as a representative example and states that Royal Elite Trans, LLC received an EIDL of $289,400. The proffer is nine pages.
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“Factual Proffer — United States v. Philossaint (Southern District of Florida, Document 94).”
Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-no-9-22-cr-80144-dkt-94-s-d-fla-60c1252328/
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Case 9:22-cr-80144-RS Document 94 Entered on FLSD Docket 11/14/2022 Page 1 of 9
UN ITED STATES D ISTRICT COU RT
SOU TH ERN DISTRICT O F FLO RIDA
CASE NO.22-CR-80144.SM lTH/M A> ARD(s)
U NITED STATES O F AM ERICA
JOFF STENN W ROY PHILOSSAINT,
Defendant.
FAG UA L PROFFER
TheUnitedStatesAttorney'sOfficefortheSouthern DistrictofFlorida(ddthisOffice'')and
thedefendant,JoffStenn W roy Philossaint,agreethatthefollowingstatem entoffactsisaccurate
and providesa factualbasisforthedefendant'spleaofguilt'y.Al1factsweretrue atalltim esrelevant
totheofinseconductunlessamorespeciftcdateortimeisspecified.Thedefendantunderstands
tlaatthegovernm entmaypresentevidence atfutureproceedingsthathiscrim inalconductwasm ore
extensive tlaan isdescribed in thisproffer.
Paragraphs1-9 oftheG eneralAllegationsoftheSklperseding Indictmentaccurately
describethePayrollProtection Program (''PPP')and theEconomicInjuryDisasterLoan (tfEIDL'')
program .Theyare incorporated into thisstatem entoffactsasiffully setforth herein.
GeneralSum m ary ofO ffense Conduct
Beginningno laterthan inoraround MayorJune2020and continuingthroughno
earlier than in or ar'ouad June 2021, Philossaint assisted numerous conspirators to submit
fraudtllentapplicacionsfor PPP loansand EIDL'ou behalfofbusinesses ownecland cotatrolled by
the conspirators.Atfirst,Philossaintcarried otltthisscheme whileworking forCom pany 1,which
'
Case 9:22-cr-80144-RS Document 94 Entered on FLSD Docket 11/14/2022 Page 2 of 9
1
I .
:
was operated by Conspirator 1.Later,Philossaintbegan working forhim selfand carrying outthe
sanle'schenRe.
Philossaint prepared loan applications for the conspirator business owners and
caused the applicationsto besentto hisconspiratorsto digitally sign and electronically subm itto
variousfinancialinstitutions and the SmallBusinessAdministration (ï(SBA'').The applications
contained materialm isrepresentations aboutthe businesses,sttt!h assubstantialoverstatem ents of
the businesses'grossrevenues,num berofemployees,and average monthly payrolt.Based on tlnese
fratldulent applications,various privpte financial institutions and SBA
' loaned m oney,generally
hundreds of thotlsands of dollars, to the conspirators' busirtesses. Philossaint later prepared
applications on behalf of the conspirator btlsinesses for forgiveness of the PPP loans. These
applicationsfalselystated thatthebtlsinesseshad metthepreconditionsofloan forgivenessbyusing
theloanstopaypayrolland/orforotherpermissibleexpenses.
4. Atltolnatic Data Processing,Inc.(td
A DP'')provided porrolland other services to
businesses.Conspirator1and/orPhilossaintopenedADP accotlntsonbehalfoftheirconspirators,
witlathemselves(Conspirator1orPlnilossaint)ast13eaccountadministrators.Theycaused ADP to
m ake paym ents ptlrportedly for payrolt to individtlals with tlRe loan proceeds,although these
indi
vidualseitherdid notwork fortheloan recipientsorwerenotentitled to payrollin theam ounts
paid.Philossaintattèm pted to obtain and use ADP recordsto s'
upportthe applications forloan
forgiveness.
BriannaM oniqueG aylehad previotlslyworketlforAD P.Durëng theconspiracy,she
worked asan assistantto Philossaint.Recordsobtained from ADP showed thatG ayle,whileworking
Case 9:22-cr-80144-RS Document 94 Entered on FLSD Docket 11/14/2022 Page 3 of 9
forPhilossaint,contacted AD P on mtlltiple occasions between M ay 2021 and April2022.G ayle
contacted AD P to m anagepayrollaccount.
senrolledby EIVC,such asaddingorrem oving accounts.
G ayle also contacted AD P to retzieve payrolldocum ent
.sand W -2's for the payroll
accounts.Gaylecalled ADP onJanuary 26,2022,and conferenced Philossaintinto thecall.They
stated thattheirentireclientlistshould havebeen term inated asgoingoutofbusinessand therefore
should have received W -2's for 2021. Gayle continued to m ake calls to ADP on behalf of the
com paniesenrolled by EIVC to olltain '
W L2's.
Shortly afiertlne conspiratorbusinessownersreceived theirloan proceeds,they paid
eitherConspirator1 or'
Philossainta fee ofapproxim ately 10% ofthevaltle ofthe loans.In m any
cases,the feewaspaid to shellcom paniesthatPhilossaintcontrolled,which did no trtlebusiness,or
inacctlrate notationswere m ade on ihe checks orother instrum entsofpaym ent.These paym ents
were m ade from and to financialinstitutions,thatis,bank.
sthe deposit.
s ofwhich were insured by
the FederalD epositlnsuranceC orporation.
Philossaintassi
'sted codefendantsand conspiratorstoapplyforfraudulentloansand
applied forsucla loans him self.Tlae conspirators applied on belaalf of:Gayte,applying as a sole
proprietor; Cinda Foundacion lnc; D DZ Fam ily Enterprises LLC; Ferro's Entertainm ent and
Prodtlction LLC;JREAM Vision TV LLC;One Solutton Group LLC;RoyalEliteTrans,LLC;
SunriseCityConstruction Dmrelopm entLLC ;U nfold Perception,LLC;and otkerbusinesses.Based
these applications, lenders and SBA which the
conspirators were not elatitled. The conspirators who received fhese loans paid Philossaint
approxilnately 10% oftllevalkle oftheloans.
Case 9:22-cr-80144-RS Document 94 Entered on FLSD Docket 11/14/2022 Page 4 of 9
The fraudulent PPP loan and EID L applications involved in the scheme were
subm itted electronically to selwers located outside R orida.Philossaint,Tollinchi, Rene, Gayle,
Shazier,Johnson,and mostoftheotherconspiratorsresided andworked in theSoutlwrn District
ofFloridaand subrnitted theirapplicationsfrom thisdistrict.
U nfold Perception,LLC
The applications for PPP loans subm kted by U nfold Perception, LLC are a
representative example of the scheme anul conspiracy. Unfold was a Florida lim ited liability
com pany.lt was organized on M ay 28, 2019. Rene was che sole m anaging m ember.U nfold's
principalplace ofbusilaesswasin q/estPalm Beach,Florida.
OnJune 18,2020,Unfold appliedforaPPPloan.Theloan application wasdigitally
signed byRene.The apptication waselectronically transm itted to CelticBank'sservers,which were
located in U tah.The application stated that U nfold had three employees and average m onthly
payrollof$32,781.66.Forthetwelvemonthsprecedingthisapplication,recordsofUnfold'sbank
accountrevealdaatthecompanyhadgrossrevenueofapproximately$10,000andnopayroll.A copy
ofan IRS Form 941(Employer'sQuarterlyTax Returns)wassubmitteulwith theapplication.This
form appeared to corroboratethepayrollfigttreon theapplication.H owever,U nfold did notsubm it
loan toUnfold'sW ellsFargobankaccountin theamotlntof$81,954.
Trust Alliance Enterprises lnc. (t'Trust'') was a Florida corporation. It was
incorporatedonJune 1..
5,2020.Conspirator1wasthesoleofficer.On June2.
5,2020,Renesigned
acheck.from theUnfold bank accountmadeouttoTrustin theamountof$10,654.02.
Case 9:22-cr-80144-RS Document 94 Entered on FLSD Docket 11/14/2022 Page 5 of 9
On June30,2020,eight-daysafterUnfold received itsPPP loan,a payroilaccount
was created at ADP for Unfold.Conspirator1 was the prim ary contact. From July through
December2020,usingproceedsofthePPP loan,Unfold paid$49,172.24 in paymentspurportedly
forpayrollviaADP,including$29,999.97toRene.
14. On Februaw 22.2021,Unfold applied fbr8
1second PPP loan.The application was
electronically transm itted to Celtic Bank's servers,which were located in U tah.The application
statedtllatUnfold hadthreeemployeesallclaveragemontlalypayrollof$32,781.Forthetwelve
months preceding tlnis application,U nfold haclgross revenue of approximately $24,000 (not
including PPP and EIDL l'
unds)and payrollofapproximately $2,300 (not including the ADP
payments).A copyofthesame1RS Form 941thathad accompaniedUnfold'spreviousapplication,
which had notbeen submitted to theIRS,wasstlbnlitted with thenew application.Based on this
application,on Februat
-y 23,2021,CelticBank transferred aPPP loan to U nfokl's'
W ellsFargobank
accotlntintheamountof$81,952.
Dad M oney lnvestmentGroup,LLC and Elite InternationalVenttlre Capital,LLC
Philossaintwasthe PresidentofDad M oney.Dad M oneywasEIVC'Ssole m anaging m em ber.Tlae
companies principal places ofbusiness were two differentsuites in the same office building in
H allandaleBeach,Florida.
O n M arch 5,2021,Renesigned a check from theU nfold W ellsFargo bank accotlnt
madeokltto EIVC in theamotlntof$5,597-somewl4atlessthan 10% ofthe amountofUnfold's
second PPP loan.In the lnem o lineofthecheck waswritten theword ïtaccounting.''
Case 9:22-cr-80144-RS Document 94 Entered on FLSD Docket 11/14/2022 Page 6 of 9
O n M ay 6,2021,Unfold opened a new ADP account.Philossaint was the only
authorized firm representative listed on the account.From M ay through August, 2021, using
proceedsofthePPP loan,Unfold paid $49,194.0.
5 in paymentspurportedlyforpayrollviaADP,
including$30,044.28 to Rene.ThelastpaymentwasmadeonAugust25,2021.
18. O n August6,2021,Rene sent Philossainta voice recording over MfhatsApp.She
stated thatshewas'Cwonderingwhen isthelastdate ofthe payrollso thatwaylcan callthem so they
can pause it.Please Ietme know-''0 n August18,2021,Renewrote to Philossaintby W hatsApp,
ttplease it
-tform meofwlnen daedarepayrollends.1believe ichasbeen six m ontlas-''Law enfbrcem ent
agentssubseqtlentlyrecovered thesemessagesfrom Philossaint'sphone.
19. O n M ay 24, 2021, U nfold applied for f'
orgiveness of its first PPP loan. The
application claim ed thatU nfold had three em ployeesatthetim eoftheapplication and thatU nfold
had spent$49,172.24oftheloan on paypllexpenses.AsaresultofUnfold'sapplication,theloan
wasforgiven.
20. O n September8,2021,U nfold applied forforgivenessofitssecond PPP loan.The
application claim ed thatU nfold had tllreeemployeesarthetim eoftlle application and t13atU nfold
had spent$49,761.07oftheloan on payrollexpenses.AsaresuttofUnfold'sapplication,theloan
wasforgivetl.
RoyalElite Trans
RoyalEliteTrans,LLC wasa Florida lim ited liability com pany.Philossaintwasthe
sole m anaging m ember.lts principal place ofbusiness changed severaltim es,butwas always in
M ianai-DadeorBroward County,Ftorida.Philossaintwasthe only signatow on RoyalEliteTrans's
bank accounts.
Case 9:22-cr-80144-RS Document 94 Entered on FLSD Docket 11/14/2022 Page 7 of 9
22. O n April 1, 2020, RoyalElite Trans applied for an EID L.The appllcation was
electronicallytransmitted to theselwersoftheSmallBtlsinessAdministl-ation (d'SBA''),whichwere
iocared ourside of Florida.The application required RoyalElite Trans to describe irs ï'detailed
businessactivity-''Theapplication listed ''Limosinelsicq& Transportation-''SBA initiallydeclined
theapplication,butPhilossaintrequestedreconsideration ofthatdecisionand thenadministratively
appealeclit,and the loan was granted.O n December 16,2021,Philossaintelectronically signed a
Loan Authorization and Agreement witl, SBA.The agreem ent il4cluded the requirement that
ttfblorrowerwirluse alltlaeproceedsoftlaisLoan solely asworking capitalto alleviate economic
injurycaused by disasteroccurring in tlne month ofJanuary31,2020 and continuingthereafter-''
On December21,2021,SBA transferred an EIDL to RoyalEliteTrans'Bank ofA mericachecking
accotlntin theamotlntof$289,400.Philossaintistheonlysignatoryon thisaccount.
RoyalEliteTranshadnotstlffered econom icinjtlryin2020.RoyalEliteTrans'sbank
records indicate that the colnpany's gross revenue increased frolu $136,766.93 in 2019 to
$237,755.07 in 2020 (exuluding PPP anclEIDL funds).The records contain no indications that
RoyalEliteTransoperated alimousineorsimilartransportasion businessand no indicationsrhat
RoyalEliteTranspaid anysignificantbusinesjexpenses.
Anattorney'slnterestonTrustAccount(t'1OTA'')isaninterest-bearingtrustaccount
used bym embersoftheFloridaBarto hold nom inalorshort-term futldsin trustforaclientorthird
party whell itwottld notbe feasible to earn incom eon che funds forthe clientorchird party.The
incom e on the IOTA accoklntbeneflts charitable causes tlesignated by the Florida Bar.Tollinchi
Law,PA was a Florida corporation engageul in the practice of law.The sole officer was M ariel
Case 9:22-cr-80144-RS Document 94 Entered on FLSD Docket 11/14/2022 Page 8 of 9
Tollinchi.Tollinchiwasan attorney and wasin a romanticrelationship with Philossaint.To'
llinchi
Law m aintained an IOTA accountatChaseBank.
O n Decem ber22,2021,two checkswerewritten from theRoyalEliteTransaccount,
onetoTollinchiLaw for$34,000andrheothertoTollinchipersonallyfor$6,573.63.OnJanua'v5,
2022.$26,371.30waswiretlfrom RoyalEliteTrans'BankofAmericacheckingaccounttoTollinchi
Law'sIOTA account.OnJanuary6,2022,TollinchiLaw wiredthesamesum,$26,371.30,from the .
salne accoulAtto an accountin the DomillicaïàRepublic.Tlle notation associared with thewireread,
''
JoffPbilossaintrealestatepurclaase-''OnJanuary20,2022,tlaesana.e RoyalElireTransaccounr
wired $190,000.00 to thesameTollinchiLaw IOTA account.OnJanuary25,2022,TollinchiLaw
wired $200,000 from itsIOTA accountto an accountin the Dominican Republic.The notation
associated with thewireincluded JoffPhilossaint'snameand thewords,'ïlkealestate-''RoyalElite
Trans'sbank recordscontain no indic
'ation thatitsbusinessitwolved realestate transactionsbefore
itobtained theEIDL.
2.6. BeforetheElDl-zwasdeposited into RoyalEliteTrans'Bank ofAm ericaaccotlnt,the
January2O,2022,theaccountreceivedappl-oximately$31,650indeposits.Therefore,RoyalElite
Transcould nothave transferred the fundstoTollinchidescribed abovewithouttl
4e EID L.
Case 9:22-cr-80144-RS Document 94 Entered on FLSD Docket 11/14/2022 Page 9 of 9
Fitaanciallnstitutions
W ells Fargo,Bank ofAm erica,and Chase Bank were financialinstitutions,thatis,
banksrhe deposit-
sofwhich were insured by rhe FederalDeposirlnstlrance Corporation.
JUAN ANTONIO GONM LEZ
U NITED STATES AU O RN EY
D ï1 /,#1.,
ate:
y.
M ARC O SBO RN E
ASSISTANT U NITED STATES AU O RNEY
oate: l
IAN GO LD. N
AU ORNE O R DEFEN DANT
oate, tl11/:z'F <.
JO FSTENN W ROY PHILOSSAINT
D EFEN DANT
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