Factual Basis — United States v. Bougere (Eastern District of Louisiana, Document 47)

Summary

Factual Basis filed March 14, 2024 as Document 47 in United States of America v. Jazmin J. Bougere, Case 2:23-cr-00043-BWA-KWR (Criminal No. 22-43), U.S. District Court for the Eastern District of Louisiana. The document states that Bougere has agreed to plead guilty to Count Two of the Bill of Information, Theft of Government Funds, in violation of Title 18, United States Code, Section 641. The stipulated facts state that DOL-OIG identified 26 unemployment insurance applications submitted to 26 different states using identifiers associated with Bougere, and that total losses connected to fraudulent unemployment insurance claims equal approximately $244,592.00. They also state that Bougere applied for and received two sole proprietorship PPP loans and that the total loss to the SBA is approximately $33,827.61. The document is nine pages.

Summary drafted by a model from the document's text below 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 Basis — United States v. Bougere (Eastern District of Louisiana, Document 47).” Original at ecf.laed.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-usa-v-bougere-dkt-47-7ec14468d0/, SHA-256 b0657128f6cd11610d75bd62c712e474c0864642fb4a9faaa3519d474dc92325.

Full text

Case 2:23-cr-00043-BWA-KWR Document 47 Filed 03/14/24 Page 1 of 9

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF LOUISIANA
g
UNITED STATES OF AMERICA CRIMINAL NO. 22-43

v * SECTION: "M"

JAZMIN J. BOUGERE ,<

,r ,< ,r

FACTUAL BASIS

The defendant, JAZMIN J. BOUGERE ("BOUGERE"), has agreed to plead guilty as

charged to Count Two of the Bill of Information, that is, Theft of Government Funds, in violation

of Title 18, United States Code, Section 641, currently pending against her. This Factual Basis

does not attempt to set forth all of the facts known to the United States at this time. The limited

purpose of this Factual Basis is to demonstrate that there exists a sufficient legal basis for

BOUGERE's guilty plea. The United States and BOUGERE do hereby stipulate and agree that

the allegations in the Bill of Information and the following facts, which include relevant conduct

beyond what is charged, are true and correct and that, should this matter have proceeded to trial,

the government would have proven them beyond a reasonable doubt through the introduction of

competent testimony and admissible tangible and documentary exhibits.

Parties, Lenders. and Federal Proqrams

At all times material herein, BOUGERE was a resident within the Eastern District of

Louisiana.

The United States Small Business Administration ("SBA") was an executive-branch

agency of the United States government that provided support to entrepreneurs and small

businesses. The mission of the SBA was to maintain and strengthen the nation's economy by

Page 1 of9
AUSA

Defense Counsel
Case 2:23-cr-00043-BWA-KWR Document 47 Filed 03/14/24 Page 2 of 9

enabling the establishment and viability of small businesses and by assisting in the economic

recovery of communities after disasters. As part of its efforts, the SBA provided business loans

through banks, credit unions, and other lenders. Those loans had government backed guarantees.

The CARES Act

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

Iaw enacted in or about March 2020.The CARES Act provided emergency financial assistance to

the millions of Americans suffering the economic effects of the COVID-19 pandemic. One source

of relief provided by the CARES Act was the authorization of forgivable loans to small businesses

for job retention and certain other expenses, through a program referred to as the Paycheck

Protection Program ("PPP").

The PPP was overseen by the SBA, which had authority over all PPP loans. Individual PPP

loans, however, were issued by approved private lenders, who received and processed PPP loan

applications and supporting documentation and, following SBA approval, made loans using the

lenders' own funds. To obtain a PPP loan, a qualifuing business had to submit a PPP loan

application signed by an authorized representative of the business, The PPP loan application

required the business, through its authorized representative, to acknowledge the program rules and

to make affirmative certifications to be eligible for the PPP loan. For example, in the PPP loan

application (SBA From 2483), the business, through its authorized representative, had to state its

average monthly payroll expenses and number of employees. In addition, businesses had to

provide documentation showing their payroll expenses, as part of the PPP loan application process.

These figures were used to calculate the amount of money the small business was eligible to

receive under the PPP.

Page 2 of9
AU A--
Def-ense Counsel
Case 2:23-cr-00043-BWA-KWR Document 47 Filed 03/14/24 Page 3 of 9

Among the type of businesses eligible for a PPP loan were individuals who operated under

a "sole proprietorship" business structure. In order to be eligible to receive such a PPP loan,

individuals had to report and document their income and expenses from the sole proprietorship, as

typically reported to the Internal Revenue Service ("lRS") on Form 1040, Schedule C, for a given

year. The lending institution or loan processor used this information and documents to calculate

the amount of money the individual was entitled to receive under PPP.

Once a qualifying business completed a PPP application, a participating lender processed

the application. If a PPP loan was approved, the participating lender funded the PPP loan using its

own monies, which the SBA guaranteed. In the course of processing the PPP loan, the lender

transmitted data from the loan application to the SBA, including information about the borrower,

the total amount of the loan, and the identified number of employees.

Proceeds from a PPP loan were legally required to be used only for certain permissible

business expenses, including payroll costs, mortgage interest, rent, and utilities. Under the

applicable PPP rules and guidance, the interest and principal on the PPP loan was eligible for

forgiveness if the business spent the loan proceeds on permissible items within a designated period

of time and used a certain portion of the loan toward payroll expenses.

Prestamos CDFI was a financial technology lender based in Phoenix, Arizona, authorized,

to process information for SBA backed PPP loans.

CARES Act Funded Unemployment Insurunce Program

Unemployment Insurance (UI) is a state-federal program that provides monetary benefits

to eligible lawful workers. Although State Workforce Agencies ("SWAs") administer their

respective UI programs, they must do so in accordance with federal laws and regulations. UI

payments ("benefits") are intended to provide temporary financial assistance to lawful workers

Page 3 of9
AU

Defense Counsel
Case 2:23-cr-00043-BWA-KWR Document 47 Filed 03/14/24 Page 4 of 9

who are unemployed through no fault of their own. Each state sets its own additional requirements

for eligibility, benefit amounts, and length of time benefits can be paid. Generally, UI weekly

benefit amounts are based on a percentage ofyour earnings over a base period.

In the State of Louisiana, the Louisiana Workforce Commission ("LWC") administers the

UI program. On March 73,2020, the President declared the ongoing COVID-19 pandemic of

sufficient severity and magnitude to warrant an emergency declaration for all states, tribes,

temitories, and the District of Columbia pursuant to section 501 (b) of the Robert T. Stafford

Disaster Relief and Emergency Assistance Act, 42 U.S.C. 512l-5207 (the "stafford Act"). On

March 18,2020, the President signed the Families First Coronavirus Response Act ("FFCRA")

into law. The FFCRA provides additional flexibility for state UI agencies and additional

administrative funding to respond to the COVID-19 pandemic. The CARES Act was signed into

law on March 27,2020.It expanded states' ability to provide UI for many workers impacted by

COVID-19, including for workers who are not ordinarily eligible for UI benefits. The CARES Act

provided for three new UI programs: Pandemic Unemployment Assistance ("PUA"); Federal

Pandemic Unemployment Compensation ("FPUC"); and Pandemic Emergency Unemployment

Compensation ("PEUC").

In Louisiana, a UI claim can be filed online on the LWC website. When an individualfiles

a UI claim, the LWC automatically maintains certain information regarding the filing of the claim.

This information includes the date and time the claim was submitted, the name of the person for

whom the claim was filed, and the IP address of the computer, or ISP account, that was used to

file the claim. UI claimants must answer various questions to establish their eligibility for UI

benefits. Claimants must provide their name, Social Security Number, and mailing address. The

claimants must also identify a qualifying occupational status and/or COVID- l9 related reason for

Page 4 of9
AUqAA--
^ Defenda rr@
Defense Counsel fut
Case 2:23-cr-00043-BWA-KWR Document 47 Filed 03/14/24 Page 5 of 9

being out of work. After LWC accepts a UI claim, LWC typically deposits UI funds every two

weeks in one of three ways selected by the claimant, e.g., Electronic Bill Payment ("EBP") debit

card, direct deposit to the claimant checking or saving account, or physical check to be mailed via

U.S. Mail.

When receiving regular UI benefits, claimants must complete a rectification every two

weeks, under penalty of perjury, that they remain unemployed or otherwise eligible to receive UI

benefits. In addition, any wages earned by the claimant must be reported during this recertification

process.

Count Two - Theft of Government Funds and Relevant Funds

United States Department of Labor - Office of Inspector General (DOL-OIG) initially

opened up an investigation into Raceland, Louisiana resident BOUGERE based upon a complaint.

During the course of the investigation, DOL-OIG learned that BOUGERE, while working as a

subcontractor for LWC to handle UI claims, improperly applied for UI benefits from26 different

states, helped others apply for improper UI claims, and she also received two PPP sole

proprietorship loans based upon false information.

Specifically, on or about May 11,2020, DOL-OIG, Houston, Texas field office received a

complaint from the LWC concerning a former contract employee, BOUGERE. The complaint

explained BOUGERE worked directly forthe Plexos Group LLC ("PIexos"), which had a contract

with LWC. BOUGERE's job title was "Call Center Representative", and BOUGERE's work

duties included processing UI claims for LWC during the pandemic. The position was remote, and

her job duties were conducted on a laptop and internet supplied byl belonging to BOUGERE. The

complaint alleged that BOUGERE was questioned by both LWC and Plexos management about

the following issues identified by LWC Information technology ("1T") department:

Page 5 of9
AUSAU.-'
o"r"ndai@
Defense Counsel ffar-
Case 2:23-cr-00043-BWA-KWR Document 47 Filed 03/14/24 Page 6 of 9

! Processing UI claims outside of normal work schedule.

I Possible use of PII not belonging to BOUGERE.

! Bi-weekly Certification for UI claim belonging to R.U.

! Activities on Facebook group related to COVID UI claims and LWC.

BOUGERE resigned without notice from Plexos before a second meeting with LWC and

Plexos management could be set up.

Thereafter, DOL-OIG identified 26 Ul applications submitted to 26 different U.S. states

using the same DOB, SSN, First and Last name, email address, and mailing address associated

with BOUGERE during the pandemic. In addition, the search provided a date, time, and IP address

which the UI applications were submitted. Also, a phone number associated with BOUGERE

(225-400-281 6) was used for 23 Ul applications, and separately, a First National Bank (FNB) bank

account associated with BOUGERE and ending with account number 2126958 was used to

receive direct deposits from 8 of the 26 UI applications, including Arizona in the amount of $2,1 00.

DOL-OIG also confirmed through records that the BOUGERE IP address (208.97.32.142)

was used for a total of fifty-four UI applications (26 in BOUGERE's name and 28 in the names

of other individuals but with BOUGERE's identifiers). The fifty-four UI applications went to:

Alabama; Arizona; California; Colorado; Hawaii; Idaho; Indiana; Kansas; Kentucky;

Massachusetts; Maryland; Minnesota; Missouri;North Carolina;Nebraska;New Hampshire;New

Jersey; New Mexico; Nevada; Oklahoma; Pennsylvania; South Carolina; Utah; Virginia;

Washington; and West Virginia. DOL-OIG determined that at no time did BOUGERE reside or

work in the26 states to which she applied for UI benefits and thus each UI application was false.

Additionally, each state unemployment application asks the UI claimant to certify he/she is not

Page 6 of9
AUSA //-.
O"frnd,(ffi
Defense Counsel-E-
Case 2:23-cr-00043-BWA-KWR Document 47 Filed 03/14/24 Page 7 of 9

eligible for UI in any other state, which was a false statement. Louisiana was the only state

reporting wages for BOUGERE during the applicable time period.

A Yahoo email account was used to apply for the majority of the UI claims. Records from

the Oath Holding, lnc. dlb/a (Yahoo) identified BOUGERE as the subscriber for the Yahoo email

account used to submit the numerous UI claims.

Records would also show that BOUGERE also worked as a contract worker for the

Colorado Department of Labor and Employment ("CDLE") during the pandemic. CDLE alerted

law enforcement authorities that BOUGERE was suspected of processing UI claims that were not

assigned to her, and separately, logging into UI claims and changing the banking account

information. In one instance, CDLE provided a screen recorded video to DOL-OIG of

BOUGER-E making changes to a CDLE UI claim for A.M. This claim was not assigned to

BOUGERE, and the video depicts BOUGERE's Virtual Private Network ("VPN") account

assigned to BOUGERE changing the account number and certiffing payments to be paid via

direct deposit. DOL-OIG and CDLE confirmed the account belonged to BOUGERE and showed

a deposit of $11,101.05 from CDLE. Once identified, the account was closed due to fraudulent

activity and the funds frozen.

ln sum, BOUGERE received/facilitated $2,100.00 from Arizona, $119,936.00 from
Califomia, $105,133.00 from Colorado/CDLE, $2,000.00 from Kentucky, $2,484.00 from

Maryland, $5,067.00 from Minnesota and $7,872.00 from Texas in improperly paid UI claims

during the pandemic.l For LA/LWC, BOUGERE improperly assisted with the payment of

r BOUGERE also claimed that the credit card sent by the Bank of America for UI benefits was lost or stolen a number
of times, which resulted in the issuing bank, Bank of America (BoA), resending a total of $ 124 ,420.00 to BOUGERE
for UI claims submitted in CA, AZ, MD and KY. BoA has submitted a claim for reimbursement to each state so the
losses to BoA are included in the individual state's losses.
Page 7 of9
AUS
Defend
Defense
Case 2:23-cr-00043-BWA-KWR Document 47 Filed 03/14/24 Page 8 of 9

approximately $144,003.00 in UI benefits to others (but the government concedes that the

payments may have been owed, if filed for without BOUGERE's improper assistance).

BOUGERE did attempt to collect UI benefits from Louisiana in the name of her minor son, but

the claims were denied. The total losses connected to fraudulent UI claims equals approximately

$244,592.00.

False Statements and Relevant Conduct

DOL-OIG also investigated two PPP loans that BOUGERE applied for and received.

Records from financial technology company Blue Acom LLC, lender Capital Plus, and lender

Prestamos CDFI show that BOUGERE applied for two sole proprietorship PPP loans in the name

of Bougere Designz, which were funded in the approximate amounts of $12,08200 and
$16,645.00. BOUGERE alleged in both loan applications that she earned income for her own

businesses and attested that the funds were needed to keep the businesses open. In truth,

BOUGERE made false statements in the applications and submitted fraudulent IRS documents to

show that she had income for the businesses. Specifically, BOUGERE did not eam $70,897.00

for the 2020 tax year and the 2020IRS Form Schedule C that she submitted to Prestamos CDFI

for a PPP loan on or about May 12,2021, in the name of Bougere Designz was a false document.

After getting the two PPP loans, BOUGERE also falsely applied for PPP loan forgiveness, which

was granted by the SBA. The total loss to the SBA, which backed the forgiven loans, is

approximately $33,827.61, which includes a $2,500 processing fee per lender and interest of

$49.93 (Prestamos CDFI) and $50.68 (Capital Plus).

Page 8 of 9
AUSA

Defense Counsel
Case 2:23-cr-00043-BWA-KWR Document 47 Filed 03/14/24 Page 9 of 9

In addition, BOUGERE also attempted to file for nine (9) Economic Injury Disaster Loans

("EIDL") from the SBA during the pandemic, but each application was denied.

Evidence, including fraudulent SBA PPP submissions, bank records, records from lenders,

the Louisiana Secretary of State, the LWC, and the IRS, would be introduced at trial to prove the

facts as set forth above. Moreover, the testimony of employees and agents of the DOL-OIG, the

LWC, and other competent witnesses would be introduced at trial to prove the facts set forth above.

APPROVED AND AGREED TO:

'^J ry l't-o4I
I
J D"tJ
Assistant United States Attomey

ALISA MIRON Date
for Defendant

IN Date

Page 9 of9

File and source

File: 47-factual-basis.pdf
Size: 4,224,163 bytes
SHA-256: b0657128f6cd11610d75bd62c712e474c0864642fb4a9faaa3519d474dc92325
Our copy: 47-factual-basis.pdf
Original: PACER (login required)