Affidavit of Michael Livingood — United States v. Daniel Maleus, 1:21-cr-10222 (D. Mass., Document 35-1)

Summary

Document 35-1, filed 09/13/21, in Case 1:21-cr-10222-RWZ, is an Affidavit of Michael Livingood, a Special Agent with the Federal Bureau of Investigation, supporting the government's request under 18 U.S.C. § 3148 to revoke the order releasing Daniel Maleus and detain Maleus pending trial. The affidavit states that Maleus was charged by criminal complaint on April 8, 2021, with wire fraud, wire fraud conspiracy and aggravated identity theft involving Pandemic Unemployment Assistance claims. It states that on April 10, 2021, Maleus signed a Paycheck Protection Program loan application to Harvest Small Business Finance, LLC claiming $137,000 in gross receipts in 2019. It also states that on April 20, 2021, Maleus was identified at Twin River Casino purchasing $10,500 in gambling chips.

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“Affidavit of Michael Livingood — United States v. Daniel Maleus, 1:21-cr-10222 (D. Mass., Document 35-1).” Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-united-states-v-maleus-dkt-35-1-d-mass-f3f8fbacab/, SHA-256 291bfc8d572bfd931b8cf7879f5a3952d20716060f7d45a836f9907005132074.

Full text

Case 1:21-cr-10222-RWZ Document 35-1 Filed 09/13/21 Page 1 of 5

AFFIDAVIT

I, Michael Livingood, being first duly sworn, hereby depose and state as follows:

INTRODUCTION AND AGENT BACKGROUND

1. I am a Special Agent with the Federal Bureau of Investigation (“FBI”) and have

been so employed since June 2016. I am assigned to the Economic Crimes Squad in the FBI’s

Boston, Massachusetts Field Office. My duties include investigating money laundering, wire

fraud, and internet fraud. I have participated in the execution of warrants involving the search

and seizure of computers, computer equipment, and electronically stored information. Before

becoming a Special Agent, I was an Intelligence Analyst for the FBI and supported investigative

work on a variety of federal crimes including crimes against children, transnational organized

crime, and money laundering. I have received specialized training in investigating financial

frauds and money laundering. I hold a master’s degree in human services.

2. As a federal agent, I am authorized to investigate violations of United States laws

and to execute warrants issued under the authority of the United States.

3. I have been investigating DANIEL MALEUS (“MALEUS”) for his involvement

in federal crimes related to the submission of fraudulent claims for Pandemic Unemployment

Assistance, in violation of Title 18, United States Code, Sections 1343 (wire fraud), 1349

(conspiracy to commit wire fraud), and 1028A (aggravated identity theft). More recently, I have

also been investigating MALEUS for his involvement in federal crimes related to the submission

of fraudulent loan applications, including a loan application under the Paycheck Protection

Program, in violation of Title 18, United States Code, Sections 1343 (wire fraud) and 1344 (bank

fraud) (the “TARGET OFFENSES”).
Case 1:21-cr-10222-RWZ Document 35-1 Filed 09/13/21 Page 2 of 5

4. I make this affidavit in support of the government’s request that the Court, under

18 U.S.C. § 3148, revoke its order releasing MALEUS and detain him pending trial.

5. Based on the facts as set forth in this affidavit, there is probable cause to believe

that MALEUS has committed the TARGET OFFENSES while on release and under the

supervision of this Court and U.S. Probation.

6. The facts set forth in this affidavit are based upon my personal observations, my

training and experience, and information obtained from various law enforcement personnel and

witnesses. This affidavit is intended to show merely that there is probable cause to believe

Maleus has committed crimes while on release, and it does not purport to set forth all of my

knowledge of or investigation into this matter. Unless indicated otherwise, all conversations and

statements described in this affidavit are related in substance and in part.

PROBABLE CAUSE THAT MALEUS COMMITTED CRIMES WHILE ON RELEASE
AND VIOLATED HIS CONDITIONS OF RELEASE

7. On April 8, 2021, Maleus was charged by criminal complaint with 18 U.S.C.

§§ 1343 (wire fraud), 1349 (wire fraud conspiracy), and 1028A (aggravated identity theft). As

described in my sworn affidavit in support of that complaint, there is substantial evidence that

Maleus and his co-conspirator, Lilly Nguyen, submitted more than thirty-five fraudulent claims

for Pandemic Unemployment Assistance using the names and Social Security numbers of third

parties without their consent. The resulting loss was more than $250,000 in Pandemic

Unemployment Assistance funds.

8. I, along with other federal agents, arrested MALEUS and Nguyen on April 9,

2021. Both MALEUS and Nguyen were brought to the federal courthouse in Boston on that

same day for their initial appearance. I understand that MALEUS was released on conditions,

which require that he “must not violate federal, state, or local law while on release.”

2
Case 1:21-cr-10222-RWZ Document 35-1 Filed 09/13/21 Page 3 of 5

9. On April 9, 2021, MALEUS told U.S. Probation that he “has not earned income

from . . . event planning . . . in over one year” and was only receiving $700 per month in income

from other sources.1

10. After April 9, 2021, Nguyen admitted that she participated in the conspiracy with

MALEUS and pleaded guilty.

11. On April 10, 2021, MALEUS signed a Paycheck Protection Program loan

(“PPP”) application loan to Harvest Small Business Finance, LLC (“Harvest Finance”).

12. I understand that the PPP provides forgivable loans to small businesses suffering

from economic losses due to the Covid-19 pandemic. The loans are processed by qualifying

lender banks and fully guaranteed by the SBA. PPP rules required that all loan funds be used for

job retention and certain other business expenses.

13. MALEUS claimed in his PPP loan application to be the owner and sole employee

of an “Event Planning” business named “Daniel Maleus” that had $137,000 in “Gross receipts or

sales” in 2019.

14. The application included an IRS Form 1040 and accompanying Schedule C

documenting the purported $137,000 in 2019 income.

15. MALEUS also certified on the application that he was not currently on “probation

before judgment” relating to a charge of “fraud . . . or a false statement in . . . an application for

federal financial assistance,” that he would use “[a]ll loan proceeds . . . only for business-related

expenses,” and that the loan was “necessary to support the ongoing operations.”

1
On April 9, 2021, Maleus was interviewed by U.S. Probation Officer Taia Thompson
prior to his initial appearance. In that interview, Maleus reported a monthly income of $700.
See Pretrial Services Report dated April 9, 2021.

3
Case 1:21-cr-10222-RWZ Document 35-1 Filed 09/13/21 Page 4 of 5

16. Harvest Financed disbursed approximately $20,800 in SBA-backed funds to

MALEUS on or about April 16, 2020.

17. I have reviewed MALEUS’s tax return information provided by the Internal

Revenue Service pursuant to a court order. MALEUS’s tax return information does not include

the IRS Form 1040 and accompanying Schedule C that MALEUS used in his PPP loan

application.

18. I have reviewed bank records from multiple bank accounts in MALEUS’s name.

None of those bank records reflect substantial income from an “Event Planning” business.

19. I have also reviewed records from the Massachusetts Department of

Unemployment Affairs relating to MALEUS’s claim for Pandemic Unemployment Assistance

(“PUA”). MALEUS has received over $30,000 in PUA funds from his claim, and has re-

certified his claim several times, including as recently as March 2021. MALEUS repeatedly

certified that his 2019 income was no more than $20,000.

20. Based on the information in this Affidavit, combined with my training and

experience investigating financial crimes, there is probable cause to believe that MALEUS

doctored the IRS Form 1040 and accompanying Schedule C that MALEUS submitted to Harvest

Finance in order to obtain PPP funds.

21. For reasons stated below, there is also probable cause to believe that MALEUS is

using the SBA-backed funds he received from his PPP loan for gambling. On April 20, 2021,

MALEUS was identified at Twin River Casino purchasing $10,500 in gambling chips.

MALEUS has subsequently been identified at Twin River Casino on three additional occasions

(July 8, July 12, and August 2) with a total of more than $59,000 in gambling chips. Because

Maleus has reported minimal from any source, received the PPP loan proceeds on April 16,

4
Case 1:21-cr-10222-RWZ Document 35-1 Filed 09/13/21 Page 5 of 5

2021, and began gambling in amounts inconsistent with the income he reported to U.S. Probation

just days later, there is probable cause to believe that the funds with which MALEUS was

gambling came from his PPP loan fraud or other fraudulently-obtained pandemic-related

government assistance.

22. The investigation into MALEUS’s PPP loan has also uncovered evidence that

MALEUS previously submitted several other loan applications to SBA. The investigation into

those loan applications is ongoing, but the same evidence that creates probable cause to believe

MALEUS committed fraud in relation to his PPP loan application suggests that MALEUS’s

other SBA loan applications will prove to be fraudulent.

23. There is accordingly probable cause to believe that MALEUS submitted a

fraudulent PPP loan application and impermissibly used the SBA-backed funds for gambling,

thereby violating 18 U.S.C. §§ 1343 (wire fraud) and 1344 (bank fraud).

By: __________________________
MICHAEL LIVINGOOD
Special Agent
Federal Bureau of Investigation

September 13, 2021

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