Factual Proffer — United States v. Jorge S. Alvarez (S.D. Fla.)

Summary

A factual proffer in United States of America v. Jorge S. Alvarez, Case No. 22-80118-CR-MIDDLEBROOKS/MATTHEWMAN, in the United States District Court for the Southern District of Florida, entered on the docket November 21, 2022 as Document 126. It states that on or about April 28, 2020 a loan application for Saihdel Trucking, Inc. was submitted to TD Bank claiming 28 employees and average monthly payroll of $158,400, when the company had only one employee. It states that TD Bank transferred $396,000 on or about May 4, 2020, and that the defendant moved all of it to a Bank of America account the next day as instructed by co-defendant Yunior Barrera Almaguer. It states that other companies' PPP funds also passed through that account, and the defendant agrees the funds totaled approximately $1,212,220. The proffer is dated 11-15-2022.

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“Factual Proffer — United States v. Jorge S. Alvarez (S.D. Fla.).” Original at ecf.flsd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-usa-v-barrera-almaguer-et-al-dkt-126-s-d-fla-daf3f2ee35/, SHA-256 e15c71a35e78e72b41b6a5cb322f85dfd746034afdd5567d3cb67fb72c0efad6.

Full text

Case 9:22-cr-80118-DMM Document 126 Entered on FLSD Docket 11/21/2022 Page 1 of 5

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA

Case No. 22-80118-CR-MIDDLEBROOKS/MATTHEWMAN

UNITED STATES OF AMERICA

v.
JORGE S. ALVAREZ, NOV 21 2022
Defendant. ANGELA E. NOBLE
CLERK U.S. DIST. CT.
S.D. OF FLA. - W.P.8.

FACTUAL PROFFER

If this matter had gone to trial , the United States would have proven the following

facts beyond a reasonable doubt, which occurred in the Southern District of Florida and

elsewhere:

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was a

federal law enacted in or around March 2020 , designed to provide emergency

financial assistance to Americans who were suffering the economic effects caused

by the COVID-19 pandemic. One source of relief provided by the CARES Act was a

program referred to as the Paycheck Protection Program (PPP), which authorized

forgivable loans to small businesses for job retention and certain other expenses .

In order to obtain a PPP loan , a qualifying business submitted a PPP loan

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

PPP loan application required the business to acknowledge the program rules and

make certain affirmative certifications in orde r to be eligible to obtain the loan . In the

PPP loan application , the small busi ness was required to provide, among other things ,
Case 9:22-cr-80118-DMM Document 126 Entered on FLSD Docket 11/21/2022 Page 2 of 5

its average monthly payroll expenses and number of employees, which were used to

calculate the amount of money the small business was eligible to receive.

A PPP loan application was processed by a participating lender. If a PPP loan

application was approved, the participating lender funded the PPP loan using its own

monies, and the loan was 100% guaranteed by the SBA. PPP loan proceeds were

required to be used by the business to pay expenses necessary to continue the

operations of the business , including the payroll costs of employees, interest on

mortgages, rent, and utilities. The interest and principal on the PPP loan could be

entirely forgiven if the business spent the loan proceeds on these expense items within a

designated period of time and used a defined portion of the loan proceeds on payroll

expenses .

On or about April 28, 2020, JORGE S. ALVAREZ caused the submission of a

loan application on behalf of his company, Saihdel Trucking, Inc. to TD Bank.

Specifically, ALVAREZ gave his name, social security number, date of birth, mailing

address, and email address, and the bank account routing number for Saihdel

Trucking to co-defendant Yunior BARRERA ALMAGUER (BARRERA) , who then

had an unindicted co-conspirator use interstate wire communications to

electronically view and sign a PPP Loan Application Form on behalf of Saihdel

Trucking, which falsely represented that the company had 28 employees and an

average monthly payroll of $158,400 each month . In actuality, Saihdel Trucking had

only one employee , ALVAREZ. ALVAREZ knew that BARRERA applied for a loan

on behalf of Saihdel Trucking and made these false representations.

2
Case 9:22-cr-80118-DMM Document 126 Entered on FLSD Docket 11/21/2022 Page 3 of 5

On or about May 4, 2020, based on the false information provided in the loan

application , TD Bank approved the loan and transferred $396 ,000 in PPP funds via

interstate wire communication to Saihdel Trucking's account at TD Bank, for which

ALVAREZ was the only signatory. Bank records showed that the TD Bank account

had a balance of approximately $73 prior to receipt of the PPP funds , and there was

no evidence of payroll payments to employees for Saihdel Trucking prior to receipt of

the PPP funds.

BARRERA told ALVAREZ to expect the PPP funds to arrive in the TD Bank

account. On May 5, 2020, the day after receiving the funds , ALVAREZ wire

transferred all of the PPP funds ($396,000) to another Saihdel Trucking account at

Bank of America (BofA) as instructed by BARRERA. ALVAREZ gave BARRERA

blank pre-signed checks to the BofA Saihdel Trucking account so that BARRERA

could access the PPP funds . ALVAREZ was aware that BARRERA laundered the

PPP funds , by either writing checks to entities or individuals who were not associated

with Saihdel Trucking or by making large cash withdrawals . By on or about June 24 ,

2020 , BARRERA had disbursed the PPP funds .

ALVAREZ was also aware that BARRERA directed other companies that

BARRERA had obtained unlawful PPP loans for to send PPP funds to the BofA

Sa ihdel Trucking account, so that BARRERA could launder those funds as well.

ALVAREZ knew that BARRERA was using the BofA Saihdel Trucking account for

that purpose and received payment from unlawfully obtained PPP funds for his

participation in the money laundering.

3
Case 9:22-cr-80118-DMM Document 126 Entered on FLSD Docket 11/21/2022 Page 4 of 5

For example, BARRERA also applied for a fraudulent PPP loan on behalf of

Garcia & Son Remodeling Services Corp (Garcia & Son) on June 28, 2020 , by falsely

stating that Garcia & Son had 35 employees, with a monthly payroll of $206 ,350 . As

a result, the lender wired $515,873 in PPP funds to Garcia & Son's BofA account on

July 1, 2020 , in which the previous balance was approximately $42. On or about

July 24, 2020 , Garcia & Son wrote checks to Saihdel Trucking in the amounts of

$20 ,000 and $10 ,000 respectively, which Saihdel Trucking deposited into its BofA

account in Miami-Dade County. After receiving the funds from Garcia & Son ,

Saihdel Trucking wrote two checks from the same account directly to ALVAREZ on

July 24 , 2020 , in the amounts of $9 ,500 and $4 ,500 respectively. The Saihdel

Trucking BofA account would not have had sufficient funds to cover either of these

checks if not for the deposits from Garcia & Son and other companies that had also

received PPP funds based on fraudulent misrepresentations. ALVAREZ also

withdrew $5,000 from the BofA Saihdel Trucking account on July 24 , 2020, and

$9 ,000 on July 27, 2020.

ALVAREZ agrees that the Saihdel Trucking PPP loan and the funds from other

companies involved in the PPP fraud that were actually deposited into the Saihdel

Trucking accounts totaled approximately $1 ,212,220, and that he assisted in the

laundering of those funds .

At all times relevant to the offense conduct, TD Bank and Bank of America

were banks the deposits of which were insured by the Federal Deposit Insurance

Corporation , and which were engaged in, and the activities of which affected,

4
Case 9:22-cr-80118-DMM Document 126 Entered on FLSD Docket 11/21/2022 Page 5 of 5

interstate and foreign commerce .

The parties agree that these facts, which do not include all facts known to the

United States and ALVAREZ, are sufficient to prove the offense to which ALVAREZ is

pleading guilty.

Respectfully submitted ,

JUAN ANTONIO GONZALEZ
~_NITED STATES ATTORNEY

Date: 11-15-2022 By: ~ ~
SUSAN OSBO E
ASSISTANT. ED STATES ATTORNEY

Date : JI-IG-2.-)... By:
A DO IZAGUIRRE
ATTORNEY FOR DEFENDANT

By: ~
JORGE S. ALVAREZ
DEFENDANT

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