Factual Proffer — U.S. v. Vandre Garcia Hernandez (S.D. Fla.)
Summary
A factual proffer in United States of America v. Vandre Garcia Hernandez, Case No. 22-80118-CR-MIDDLEBROOKS/MATTHEWMAN, in the United States District Court for the Southern District of Florida, entered on the docket November 22, 2022 as Document 133. It states that a PPP application for Garcia & Son Remodeling Services Corp. was submitted to Kabbage, Inc. claiming 35 employees and average monthly payroll of $206,350, when the company had only one employee. It states that Kabbage transferred $515,873 on or about July 1, 2020, and that the defendant gave co-defendant Yunior Barrera Almaguer blank pre-signed checks and wrote checks at that co-defendant's direction. It states that checks of $20,000 and $10,000 went to Saihdel Trucking, Inc., and that the defendant received $45,000 of the PPP funds as payment for a role in the money laundering.
Summary drafted by a model from the text of the original file linked on this page and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Factual Proffer — U.S. v. Vandre Garcia Hernandez (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-133-s-d-fla-51c347d670/
, SHA-256 b3130e70bed56b334822e1b9d3e14e985639ae80e8003635ebda4b4c68a4b022.Full text
Case 9:22-cr-80118-DMM Document 133 Entered on FLSD Docket 11/22/2022 Page 1 of 4
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
Case No. 22-80118-CR-MIDDLEBROOKS/MA TTHEWMAN
UNITED STATES OF AMERICA
V.
NOV 22 2022
VANDRE GARCIA HERNANDEZ,
ANGE E. OBLE
CLEAi< U.S. DIST. CT.
S.D. OF FLA -W.P.B.
Defendant.
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 order to be eligible to obtain the loan. In the
PPP loan application, the small business was required to provide , among other things ,
Case 9:22-cr-80118-DMM Document 133 Entered on FLSD Docket 11/22/2022 Page 2 of 4
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 June 28 , 2020 , VANDRE GARCIA HERNANDEZ (GARCIA)
allowed the submission of a PPP loan application on behalf of his company, Garcia
& Son Remodeling Services Corp . (Garcia & Son) to lender Kabbage , Inc.
Specifically , GARCIA gave his name , social security number, date of birth , mailing
address , and email address , and the bank account routing number for Garcia & Son
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 Garcia & Son , which falsely
represented that the company had 35 employees and an average monthly payroll of
$206 ,350 each month . In actuality, Garcia & Son had only one employee , GARCIA .
On or about July 1, 2020 , based on the false information provided in the loan
2
Case 9:22-cr-80118-DMM Document 133 Entered on FLSD Docket 11/22/2022 Page 3 of 4
application, Kabbage approved the loan and transferred $515,873 in PPP funds via
interstate wire communication to Garcia & Son 's account at Bank of America (BofA) ,
for which GARCIA was the only signatory. Bank records showed that Garcia &
Son 's bank account at BofA had a balance of approximately $41 .87 immediately prior
to receipt of the PPP funds , and that there was no evidence of payroll payments to
employees for Garcia & Son in the BofA account prior to receipt of the PPP funds .
BARRERA instructed GARCIA to give him blank, pre-signed checks drawn on
the BofA account so that BARRERA could access the PPP funds , which GARCIA
did . GARCIA also wrote checks on the account at BARRERA's direction .
Throughout July 2020 , GARCIA was aware that BARRERA laundered the PPP
funds , by either writing checks (or directing GARCIA to write checks) to entities or
individuals who were not associated with Garcia & Son , or by making large cash
withdrawals . For example , on July 24, 2020 , BARRERA wrote checks in the
amounts of $20 ,000 and $10 ,000 from Garcia & Son's BofA account using monies
from the PPP loan as described above to Saihdel Trucking, Inc., which had also
received its own PPP loan in the same scheme with BARRERA, and which was
controlled by co-defendant Jorge ALVAREZ. After receiving these checks , Saihdel
Trucking deposited them in Miami-Dade County into its own account at BofA, followed
by which Saihdel Trucking wrote checks directly to ALVAREZ, who also withdrew
$14 ,000 in two transactions . GARCIA was aware that BARRERA laundered the
PPP funds in Garcia & Son 's BofA account in such a fashion , and received $45 ,000
of the unlawfully obtained PPP funds from BARRERA as payment for his role in the
3
Case 9:22-cr-80118-DMM Document 133 Entered on FLSD Docket 11/22/2022 Page 4 of 4
money laundering .
At all times relevant to the offense conduct, Bank of America was a bank, the
deposits of which were insured by the Federal Deposit Insurance Corporation , and
which was engaged in , and the activities of which affected , interstate and foreign
commerce.
The parties agree that these facts , which do not include all facts known to the
United States and GARCIA , are sufficient to prove the offense to which GARCIA is
pleading guilty.
Respectfully submitted ,
JUAN ANTONIO GONZALEZ
UNIT D STATES ATTORNEY
Date : ,, r v~ I ~12--- By:
~ ..-nN OSBORNE
ASSISTANT UNITED STATES ATTORNEY
KHURRUM WAHID
ATTORNEY FOR DEFENDANT
Date:
4 GARCIA HERNANDEZ
DEFENDANT
4
File and source
- File
- 133-factual-proffer-as-to-yandre-garcia-hernandez.pdf
- Size
- 155,877 bytes
- SHA-256
- b3130e70bed56b334822e1b9d3e14e985639ae80e8003635ebda4b4c68a4b022
- Original
- PACER (login required)