United States' Sentencing Memorandum — United States v. Peterson (W.D. Wash., Document 210)
Summary
The United States' Sentencing Memorandum in United States v. Rayvon Darnell Peterson, No. CR-23-090-05 JHC, in the U.S. District Court for the Western District of Washington at Seattle, Document 210, filed March 11, 2024. It states that the appropriate sentence for Peterson is 33 months of imprisonment, as contemplated by the Plea Agreement, and acknowledges that this would create a sentencing disparity after the Court sentenced co-defendant Tia Robinson to 18 months. The conclusion asks for three years of supervised release and restitution of $420,346, as agreed in the Plea Agreement. The memorandum states that Peterson sought at least $440,846 and obtained at least $420,346. The signature block reads /s/ Cindy Chang.
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“United States' Sentencing Memorandum — United States v. Peterson (W.D. Wash., Document 210).”
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Case 2:23-cr-00090-JHC Document 210 Filed 03/11/24 Page 1 of 16
1 The Honorable John H. Chun
2
3
4
5
6
7 UNITED STATES DISTRICT COURT FOR THE
WESTERN DISTRICT OF WASHINGTON
8 AT SEATTLE
9
10
UNITED STATES OF AMERICA, NO. CR-23-090-05 JHC
11
Plaintiff,
12 UNITED STATES' SENTENCING
v. MEMORANDUM
13
14
RAYVON DARNELL PETERSON,
15
Defendant.
16
17
Rayvon Peterson was an active participant and beneficiary in a scheme to defraud
18
nearly every major federal pandemic assistance program of more than $6.8 million
19
through the submission of more than 125 fraudulent applications and claims. Peterson
20
personally defrauded the U.S. Department of Treasury’s Emergency Rental Assistance
21
program administered through the King County Eviction Protection and Rental
22
Assistance Program; and the Economic Injury Disaster Loan Program administered by
23
the U.S. Small Business Administration (SBA). In total, Peterson sought at least
24
$440,846 and obtained at least $420,346 in pandemic assistance that should have gone to
25
King County tenants on the verge of eviction and small businesses suffering from the
26
economic impact of the COVID-19 pandemic. He systematically laundered and used
27
United States’ Sentencing Memorandum UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
United States v. Peterson, CR23-090-JHC 05 - 1
SEATTLE, WASHINGTON 98101
(206) 553-7970
Case 2:23-cr-00090-JHC Document 210 Filed 03/11/24 Page 2 of 16
1 funds intended to support those in need for expenses such as a $70,000 Dodge Charger
2 SRT Hellcat, diamond-encrusted jewelry and watches, designer goods, luxury trips,
3 gambling, and potentially, an unlawfully obtained firearm.
4 The United States maintains that, as contemplated by the Plea Agreement, the
5 appropriate sentence for Peterson is 33 months of imprisonment. However, the
6 government acknowledges that imposing a sentence of 33 months after the Court
7 sentenced co-defendant Tia Robinson to 18 months would create a sentencing disparity
8 amongst the co-defendants who have the same offense and criminal history calculation
9 scores, even though the Court appeared to heavily weigh Robinson’s ACE score in its
10 rationale.
11 The Court should further order Peterson to pay restitution in the amount of
12 $420,346, as agreed upon in the Plea Agreement.
13 I. BACKGROUND
14 A. Peterson Stole Funds Intended for Vulnerable King County Residents and
Small Businesses.
15 As the COVID-19 pandemic economically devasted Americans across the country,
16 the federal government enacted measures to assist small businesses, legitimate workers
17 who lost their jobs because of the pandemic, and tenants who were vulnerable to eviction.
18 Among the earliest measures was federal funding for Economic Injury Disaster Loans
19 (EIDL) of up to $2 million for eligible small businesses. PSR at ¶ 15. Peterson, who has
20 limited employment history and no legitimate small business, viewed the EIDL program
21 as an opportunity for self-enrichment.
22 Approximately three months after presidential declarations of a nationwide
emergency and major disasters in every state, on July 1, 2020, Williams submitted a
23
fraudulent EIDL application using Peterson’s identity with his permission. PSR at ¶ 23.
24
Peterson falsely claimed he was a sole proprietor of a “Barber” business and gross
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revenue of $45,000 the year prior to January 31, 2020. Id. The application directed the
26
loan proceeds to be deposited into Peterson’s bank account. Id. at ¶ 24. The application
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United States’ Sentencing Memorandum UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
United States v. Peterson, CR23-090-JHC 05 - 2
SEATTLE, WASHINGTON 98101
(206) 553-7970
Case 2:23-cr-00090-JHC Document 210 Filed 03/11/24 Page 3 of 16
1 was ultimately denied without being funded because SBA detected that the device Ms.
Williams used to submit Peterson’s application was also used to submit other fraudulent
2
applications. Id. However, prior to the fraud being detected, Peterson received a $1,000
3
advance grant on July 2, 2020.
4
About a year later, Williams began defrauding the King County Eviction
5
Protection and Rental Assistance Program (EPRAP), which had received over $300
6
million in federal Emergency Rental Assistance funds and state grants to help King
7
County residents facing the loss of basic housing security as a result of the COVID-19
8 pandemic. It appears that Peterson was involved in Williams’ first fraudulent EPRAP
9 application, which used Peterson’s sister’s identity as the landlord for a fictitious tenant,
10 Adrian Isom. Peterson impersonated Isom with EPRAP staff and suggested that he
11 intended to use the criminal proceeds to make a car payment:
12 Timestamp: From To Text
Time
13 8/3/2021 10:54:21 WILLIAMS PETERSON I gave your number to this guy that helps with rental
PM(UTC-7) assistance i been emailing him his band is Andrew
14 8/3/2021 10:54:39 WILLIAMS PETERSON I did the app under the Adrain isom guy name
PM(UTC-7)
15
8/20/2021 7:53:36 PETERSON WILLIAMS Waiting for this move, it has to go thru 👊🏾 my car note
16 PM(UTC-7)
gonna be pullin from my acct at midnight 😬
8/26/2021 2:51:45
17 PM(UTC-7)
WILLIAMS PETERSON 738 Bridges Ave S, Kent WA 98032
18 8/26/2021 3:30:20 PETERSON WILLIAMS What’s the details
PM(UTC-7)
19
8/26/2021 3:32:59 WILLIAMS PETERSON Your behind on rent you need help
PM(UTC-7)
20
8/26/2021 3:35:09 WILLIAMS PETERSON Say you being like 5/6 months now
21 PM(UTC-7)
22 8/26/2021 3:35:24 WILLIAMS PETERSON 6/7
PM(UTC-7)
23 8/26/2021 3:36:31 WILLIAMS PETERSON Tell him your daughter stays with your
PM(UTC-7)
24
8/26/2021 3:36:33 WILLIAMS PETERSON You
25 PM(UTC-7)
8/26/2021 3:40:54 PETERSON WILLIAMS Adrianisom@yahoo.com
PM(UTC-7)
26
27
United States’ Sentencing Memorandum UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
United States v. Peterson, CR23-090-JHC 05 - 3
SEATTLE, WASHINGTON 98101
(206) 553-7970
Case 2:23-cr-00090-JHC Document 210 Filed 03/11/24 Page 4 of 16
Timestamp: From To Text
1 Time
2 8/26/2021
PM(UTC-7)
3:41:10 WILLIAMS PETERSON Yeah that’s the email
3 8/26/2021 3:43:08 PETERSON WILLIAMS What’s [SISTER’S] email
PM(UTC-7)
4
8/26/2021 3:43:49 PETERSON WILLIAMS They have her name and number
PM(UTC-7)
5
8/26/2021 3:44:10 PETERSON WILLIAMS They might call after
6 PM(UTC-7)
7 8/26/2021 3:44:25 WILLIAMS PETERSON [SISTER]081586@gmail.com
PM(UTC-7)
8 8/26/2021 3:45:21 WILLIAMS PETERSON How many months you say your behind
PM(UTC-7)
9
8/26/2021 3:49:19 PETERSON WILLIAMS Haven’t got that far
10 PM(UTC-7)
8/26/2021 3:49:19 PETERSON WILLIAMS What’s the monthly l?
11 PM(UTC-7)
12 8/26/2021 3:49:55 WILLIAMS PETERSON 2200
PM(UTC-7)
13
On about September 1, 2021, Peterson informed Williams that EPRAP staff
14
contacted his sister and directed Williams to provide his sister the relevant information
15 about the fraudulent application. On about September 10, 2021, $17,550 in EPRAP
16 funds were disbursed to Peterson’s sister’s account.
17 As time progressed, Peterson took a more active role in the scheme, obtaining free
18 disposable phone numbers (e.g., TextNow phone numbers) to associate with fake tenants,
19 completing portions of the fraudulent applications himself. In the following exchange,
20 Peterson informed Williams the fictitious information he used for a fraudulent EPRAP
21 application involving a fictitious tenant named “Tanner Wilson”:
Timestamp: From To Text
22 Time
23 11/1/2021
AM(UTC-7)
11:07:07 PETERSON WILLIAMS June 23 1982
24 11/1/2021 11:07:20 PETERSON WILLIAMS Caucasian
AM(UTC-7)
25
11/1/2021 11:07:29 PETERSON WILLIAMS Tanner
AM(UTC-7)
26
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United States’ Sentencing Memorandum UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
United States v. Peterson, CR23-090-JHC 05 - 4
SEATTLE, WASHINGTON 98101
(206) 553-7970
Case 2:23-cr-00090-JHC Document 210 Filed 03/11/24 Page 5 of 16
Timestamp: From To Text
1 Time
2 11/1/2021
AM(UTC-7)
11:07:31 PETERSON WILLIAMS Wilson
3 11/1/2021 11:07:58 WILLIAMS PETERSON Ok
AM(UTC-7)
4
11/1/2021 11:08:49 PETERSON WILLIAMS 2 rooms
AM(UTC-7)
5
11/1/2021 11:09:22 PETERSON WILLIAMS Water included in rent
6 AM(UTC-7)
7 11/1/2021 11:23:52 WILLIAMS PETERSON Do the lease
AM(UTC-7)
8 11/1/2021 11:24:15 WILLIAMS PETERSON Did you say how much for rent
AM(UTC-7)
9
11/1/2021 11:27:08 PETERSON WILLIAMS She didn’t ask
10 AM(UTC-7)
11/1/2021 11:27:10 WILLIAMS PETERSON Imma have to do ledger when I get home
11 AM(UTC-7)
12 EPRAP records show that the application for “Tanner Wilson” was associated
13 with the landlord account of “Shirley William,” one of Williams’ alias in the scheme.
14 Approximately four days after the text exchange, on about November 5, 2021, Williams’
15 bank account received $34,308 in EPRAP funds for the fraudulent application Peterson
16 and Williams submitted for “Tanner Wilson.”
17 Peterson also took an active role in laundering the funds between and amongst
Williams’ and Peterson’s associates whose identities were used to execute the scheme:
18
Timestamp: From To Text
19 Time
1/17/2022 9:09:43 PETERSON WILLIAMS You leaving this week how we gonna get the $$ from
20 AM(UTC-8) [ASSOCIATE]? Can’t leave that much money wit ppl,
21 always some weird excuses when it come to this shit
1/17/2022 9:10:15 WILLIAMS PETERSON I can have him meet you
AM(UTC-8)
22
1/17/2022 9:10:25 WILLIAMS PETERSON He knows better
23 AM(UTC-8)
24 1/17/2022 9:11:15 PETERSON WILLIAMS How much he getting?
AM(UTC-8)
25 1/17/2022 9:11:42 WILLIAMS PETERSON It’s 38 I told him keep the 8
AM(UTC-8)
26
27
United States’ Sentencing Memorandum UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
United States v. Peterson, CR23-090-JHC 05 - 5
SEATTLE, WASHINGTON 98101
(206) 553-7970
Case 2:23-cr-00090-JHC Document 210 Filed 03/11/24 Page 6 of 16
1 Over the course of approximately six months, Peterson participated in the filing of
2 at least 13 fraudulent applications, including five that used Peterson’s own identity as the
3 fraudulent landlord. See PSR at ¶ 25. Williams generated fake documents, including
4 ledgers and landlord attestations, that were submitted to support the applications. Id.
5 Peterson, Williams, and their associates impersonated landlords and tenants associated
6 with the fraudulent applications. The applications caused King County to pay at least
7 $419,346 in Emergency Rental Assistance funds to bank accounts belonging to Peterson,
8 Williams, and their associates. Id. at ¶ 28. Upon receipt of the criminal proceeds,
9 Peterson methodically laundered the funds through cash withdrawals, wire transfers, and
10 expensive purchases. Dkt. 132 at ¶ 8.f.
11 B. Peterson Stole Pandemic Emergency Rental Assistance for a Luxurious
12 Lifestyle.
13 As co-parents and partners in life and crime, Peterson and Williams co-mingled
14 their criminal proceeds. On October 24, 2021, Peterson and Williams argued over text
15 about Williams and his sister not telling him when they received the funds from the
16 application for which Peterson impersonated “Adrian Isom.” In an expression of his
17 frustration, Peterson texted, “IF WE PUT SOMETHIN TOGETHER AS A UNIT IT
18 SHOULD BE FINISHED AS A UNIT PERIOD”. Williams took issue with the
19 suggestion that she had cut Peterson out of proceeds and responded, “I know you ain’t
20 talking there was times when I actually gave you money to flip and never got it. & when I
21 put you on and you got the check you never gave me nothing.” The pair’s comingled
22 assets and expenditures were also apparent a few months later when Peterson texted
23 Williams “I need you to wire exclusive $5kthis [sic] weekend”. Mr. Exclusive is the
24 Boston-based jeweler who Williams and her co-defendants frequented for custom
25 diamond jewelry, and Peterson’s social media posts in April 2022 showcased the jewelry.
26 See infra at 9.
27
United States’ Sentencing Memorandum UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
United States v. Peterson, CR23-090-JHC 05 - 6
SEATTLE, WASHINGTON 98101
(206) 553-7970
Case 2:23-cr-00090-JHC Document 210 Filed 03/11/24 Page 7 of 16
1 In fact, Peterson used the pandemic aid he and Williams stole for a $70,000 Dodge
2 Charger SRT Hellcat, diamond jewelry, designer goods, luxury trips, gambling, and,
3 potentially, an unlawfully obtained firearm. See PSR at ¶¶ 29,
4 Peterson’s collateral benefit from Williams’ large-scale fraud was apparent in June
5 2021, when Peterson vacationed with Williams on a lavish trip to Miami. During the trip,
6 Williams spent $4,200 to rent a Lamborghini Huracan Coupe for three days. See Ex. A,
7 Email re Your reservation (DLRM-10442647) (June 21, 2021). When police attempted to
8 pull over the car for blackout tinted windows, it became clear that Peterson had been
9 driving, but the pair switched seats by the time the officer approached the car. PSR at ¶
10 65. Peterson was arrested for driving with a suspended license, and the matter remains
11 pending. Id.
12 Additionally, on or about July 6, 2021, using a fraudulent earnings statement from
13 Williams’ storefront salon, Extended Beauties, Peterson purchased a $70,000 Dodge
14 Charger SRT Hellcat with a $20,000 cash downpayment and monthly payments of nearly
15 $850. See Ex. B at 1-2, 5, 7.
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United States’ Sentencing Memorandum UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
United States v. Peterson, CR23-090-JHC 05 - 7
SEATTLE, WASHINGTON 98101
(206) 553-7970
Case 2:23-cr-00090-JHC Document 210 Filed 03/11/24 Page 8 of 16
1 Immediately after depleting EPRAP funds intended to assist King County
2 residents on the brink of eviction, in late February 2022, Peterson vacationed in Las
3 Vegas. On a single day, Peterson spent over $10,000 at the luxurious Wynn Las Vegas
4 Resort and Casino.
5 Two months later, and with little to no legitimate source of income (see PSR at ¶
6 121), in April 2022, Peterson posted a series of Instagram posts that showcased a pair of
7 diamond-encrusted Rolex and Cartier watches, Christian Dior shoes, and what appears to
8 be a necklace with a large custom diamond pendant from Mr. Exclusive:
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United States’ Sentencing Memorandum UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
United States v. Peterson, CR23-090-JHC 05 - 8
SEATTLE, WASHINGTON 98101
(206) 553-7970
Case 2:23-cr-00090-JHC Document 210 Filed 03/11/24 Page 9 of 16
1 Around the same time, Peterson’s TikTok account featured the diamond-encrusted
2 jewels:
3
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5
6
7
8
9
10
11
12 According to Williams’ social media, a few months later, in June 2022, Peterson
13 and Williams celebrated Peterson’s birthday in a lavish trip to New York, complete with
14 nights out clubbing, luxury cars, and a custom cake:
15
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United States’ Sentencing Memorandum UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
United States v. Peterson, CR23-090-JHC 05 - 9
SEATTLE, WASHINGTON 98101
(206) 553-7970
Case 2:23-cr-00090-JHC Document 210 Filed 03/11/24 Page 10 of 16
1 A month later, on July 28, 2022, Peterson—who is prohibited from possessing a
firearm—purchased a firearm from a person on the street in Las Vegas. PSR at ¶ 69.
2
Although the government does not have any direct evidence that the gun was purchased
3
with proceeds of Peterson’s pandemic fraud, it would be reasonable to infer that Peterson
4
used criminal proceeds to illegally purchase the firearm given Peterson’s limited
5
employment and the timing of the purchase within months of obtaining hundreds of
6
thousands of dollars in emergency rental assistance.
7
Even after the FBI executed a search warrant on Williams’ Kent home in March
8 2022, Peterson continued to bask in a lavish life punctuated by criminal activity with
9 Williams in Arizona. Using the alias of “Darnell Peterson,” the pair first rented a luxury
10 townhome in a gated Scottsdale complex that describes itself as “resort-style living,”1
11 complete with a 60-foot pool, sauna, and spa facilities:
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https://www.catherinescottsdale.com/photogallery.aspx
United States’ Sentencing Memorandum UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
United States v. Peterson, CR23-090-JHC 05 - 10
SEATTLE, WASHINGTON 98101
(206) 553-7970
Case 2:23-cr-00090-JHC Document 210 Filed 03/11/24 Page 11 of 16
1 The pair elected to stop paying rent in Scottsdale and were evicted in March 2023, after
Williams signed a lease for them to live in a luxury apartment complex in Phoenix. See
2
Ex. C, FBI Report (Mar. 15, 2023). That same month, Williams and Peterson are
3
suspected of shoplifting a $1,800 designer purse from a Scottsdale retailer. See PSR at ¶
4
61.
5
II. PROCEDURAL HISTORY
6
On May 31, 2023, the Grand Jury returned a 26-count indictment, charging
7
Paradise Williams, D’Arius Jackson, Jahri Cunningham, Tia Robinson, Rayvon Peterson,
8
and David Martinez with various counts of wire fraud in connection with a presidentially
9
declared emergency or major disaster, in violation of 18 U.S.C. § 1343; and money
10
laundering. Dkt. 1. Williams was charged with all 19 counts of wire fraud (Counts 1-19)
11
and two counts of money laundering (Counts 25-26) for the purchase of two luxury
12
vehicles. Peterson was charged with three counts of wire fraud (Counts 1, 11, 17) and
13
one count of concealment money laundering, in violation of 18 U.S.C. 1956(a)(1)(B)(i)
14
(Count 20).
15
On June 5, 2023, Peterson was arrested in the Western District of Washington and
16
has been detained since then.
17
On November 13, 2023, Peterson pled guilty to wire fraud as charged in Count 17.
18
Dkt. 130-33.
19
III. SENTENCING GUIDELINES CALCULATIONS
20
The United States agrees with the Probation Office on the Sentencing Guidelines
21
calculations and has no objections to the facts contained in the PSR.
22
The following calculation applies to wire fraud as charged in Count 10:
23
24 Item Guideline Adjustment
Base 2B1.1(a)(1) +7
25 Intended Loss in Excess 2B1.1(b)(1)(G) +12
26 of $250,000
Sophisticated Means 2B1.1(b)(10) +2
27
United States’ Sentencing Memorandum UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
United States v. Peterson, CR23-090-JHC 05 - 11
SEATTLE, WASHINGTON 98101
(206) 553-7970
Case 2:23-cr-00090-JHC Document 210 Filed 03/11/24 Page 12 of 16
1 Theft of Major Disaster 2B1.1(b)(12) +2
or National Emergency
2 Benefits
Acceptance 3E1.1 -3
3
Total 20
4 See PSR at ¶¶ 39-50.
5 The defendant’s total criminal history score is one, which correlates with a
6 criminal history category of I. Id. at ¶ 59. The resulting Guidelines range is 33 to 41
7 months of imprisonment. Id. at ¶ 131.
8 IV. SENTENCING RECOMMENDATION
9
The United States recommends that the Court impose a term of imprisonment of
10
18 months, followed by three years of supervised release. The government is
11
recommending a variance from the Guidelines to avoid a sentencing disparity with
12
Peterson’s co-defendant Tia Robinson.
13
For the reasons set forth below, this recommendation is appropriate given “the
14
nature and circumstances of the offense,” and the need for the sentence “to reflect the
15
seriousness of the offense, to promote respect for the law, and to provide just punishment
16
for the offense,” to ensure adequate general deterrence, and “to protect the public from
17
further crimes of the defendant.” 18 U.S.C. §§ 3553(a)(1), (a)(2)(A), and (a)(2)(C).
18
A. The Nature and Circumstances of the Offense—Peterson’s Exploitation of
19 Multiple Pandemic Assistance Programs During an Unprecedented National
20 Emergency is an Aggravating Factor.
Because nearly four years have lapsed since the onset of the COVID-19 pandemic,
21
it is easy to forget the chaotic, desperate, and dire circumstances facing our nation and
22
our government’s attempts to stem the catastrophic economic impact of the COVID-19
23
pandemic. Schools, businesses, and restaurants shuttered, while hospitals were
24
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United States’ Sentencing Memorandum UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
United States v. Peterson, CR23-090-JHC 05 - 12
SEATTLE, WASHINGTON 98101
(206) 553-7970
Case 2:23-cr-00090-JHC Document 210 Filed 03/11/24 Page 13 of 16
1 overwhelmed with patients dying of COVID-19.2 In 2020, a safe and effective COVID-
2 19 vaccine was unfathomable to most. Yet, Peterson saw the pandemic and its
3 consequences not as a public health catastrophe but as an opportunity to exploit for fast
4 cars, designer goods, diamonds, and luxury travel.
5 Emergency Rental Assistance. To mitigate the spread of COVID-19, federal,
6 state, and local governments—including Washington and cities in King County—enacted
7 eviction moratoriums that ensured residents remained housed during the global
8 pandemic. The moratoriums were intended to assist the millions of Americans facing
9 financial hardship. The last federal moratorium ended on October 3, 2021; Washington’s
10 statewide moratorium ended on October 31, 2021; and Seattle’s moratorium ended on
11 January 15, 2022.
12 In anticipation of exacerbating existing housing crises amidst the ongoing
13 pandemic when the moratoriums ceased, the U.S. Department of Treasury began
14 disbursing Emergency Rental Assistance Program funds to state, local, and tribal
15 governments in early 2021. From March 2021 through 2022, Washington State and local
16 governments, including King County, received over $900 million in federal emergency
17 rental assistance. Nevertheless, the administrating agencies acknowledged that there was
18 insufficient funding to help every household who qualified, thus, the screening criteria
19 was intended to target those most likely to become homeless but for the assistance. Even
20 so, during the first two years of the pandemic, between 2020 and 2022, the homeless
21 population in Washington State increased by approximately 10%.3
22 Peterson drained scarce resources available to assist those on the brink of eviction
23 during a national emergency. Every dollar Peterson diverted from the Emergency Rental
24
2
See, e.g., Cha, Ariana, “Faced with a crush of patients, besieged NYC hospitals struggle with life-or-death
25 decisions,” The Washington Post (Mar. 31, 2020), available at
https://www.washingtonpost.com/health/2020/03/31/new-york-city-hospitals-coronavirus/.
26 3
U.S. Dep’t of Housing and Urban Development, “The 2022 Annual Homelessness Assessment Report to
Congress,” (Dec. 2022) at 109, available at https://www.huduser.gov/portal/sites/default/files/pdf/2022-AHAR-
27 Part-1.pdf.
United States’ Sentencing Memorandum UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
United States v. Peterson, CR23-090-JHC 05 - 13
SEATTLE, WASHINGTON 98101
(206) 553-7970
Case 2:23-cr-00090-JHC Document 210 Filed 03/11/24 Page 14 of 16
1 Assistance Program for his extravagant purchases should have been used to keep a King
2 County resident housed through the winter of 2021 and 2022.
3 Small Business Assistance. In July 2020, when Peterson authorized Williams to
4 file his fraudulent EIDL application for funds intended to assist small businesses,
5 American business owners had seen their livelihoods vanish overnight, an unprecedented
6 occurrence in our nation’s history and a far more severe economic impact than the 1918
7 influenza.4 In fact, in July 2020, only approximately half of small businesses were fully
8 open and most worried about having to permanently close due to prolonged closures.5
9 Although Peterson only obtained a $1,000 advance grant, he contributed to the onslaught
10 of fraudulent claims that clogged the infrastructure in place to distribute aid and delayed
11 or denied genuine small business owners assistance.6
12 Sentencing Enhancements. Notably, both Congress and the Sentencing
13 Commission have endorsed sentencing enhancements during national emergencies and
14 major disasters. See 18 U.S.C 1343 (increases maximum penalties to 30 years
15 imprisonment and $1 million fine); USSG § 2B1.1(b)(2)(12) (two-level increase applied
16 for offenses involving disaster fraud). Congress enacted the enhanced statutory penalty
17 for wire (and mail) fraud in response to reports of widespread fraud and abuse in
18 connection to disaster funds disbursed for Hurricanes Katrina and Rita. The Senate
19 Judiciary Committee report noted:
20 We want to help ensure that federal money goes to the right people and
21 does not get stolen by criminals posing as victims. Congress wants to
provide appropriate recovery and relief resources to affected States, and
22
23
4
Bartik, Alexander, et al., “How Are Small Businesses Adjusting to COVID-19? Early Evidence From a Survey,”
24 Nat’l Bureau of Economic Research (Apr. 2020), at 3, 8, available at
https://www.nber.org/system/files/working_papers/w26989/w26989.pdf.
25 5
U.S. Chamber of Commerce, “July 2020 Small Business Coronavirus Impact Poll” (July 29, 2020), available at
https://www.uschamber.com/small-business/july-2020-small-business-coronavirus-impact-poll.
26 6
See, e.g., Trish Turner, “‘Double the number of users’ in PPP system as it reopens with more technical issues,”
ABC News (April 27, 2020), available at https://abcnews.go.com/Politics/double-number-users-ppp-system-
27 reopens-technical-issues/story?id=70370289.
United States’ Sentencing Memorandum UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
United States v. Peterson, CR23-090-JHC 05 - 14
SEATTLE, WASHINGTON 98101
(206) 553-7970
Case 2:23-cr-00090-JHC Document 210 Filed 03/11/24 Page 15 of 16
1 also ensure that these resources are protected and distributed only to the
real victims–not to individuals seeking to take advantage of the disaster.
2
Senate Report No. 110-69, 110th Cong., 1st Session (May 22, 2007).
3
In this case, by the onset of the COVID-19 pandemic, Peterson was already a
4
convicted felon and had already familiarized himself with the criminal justice system
5
through the course of over a dozen arrests. While the government sought to prioritize the
6
well-being of a suffering nation, Peterson took advantage of the vulnerable period for
7
self-enrichment.
8
B. Defendant’s History and Characteristics
9
1. Peterson’s Criminal History Category of I Understates His Criminal
10 Activity.
11 Peterson’s Criminal History Category of I understates his criminal activity.
12 Although only one of Peterson’s seven criminal convictions scores, Peterson has been
13 arrested over a dozen times and appears to have multiple pending uncharged offenses in
14 various jurisdictions. See PSR at ¶¶ 63-82. While many of the arrests are driving
offenses, they also include residential burglary and multiple firearm offenses. Id. at ¶¶
15
58, 69, 73. Peterson’s unyielding disregard for the law, even after three separate
16
custodial sentences, is an aggravating factor.
17
2. Peterson’s Luxurious Lifestyle is an Aggravating Factor.
18
As detailed above, Peterson used his criminal proceeds for a fast car, designer
19
goods, diamond jewelry, luxury travel, gambling, and potentially, an unlawful firearm.
20
His use of emergency pandemic assistance for these purposes while King County
21
residents on the brink of eviction suffered is unconscionable.
22
C. A Significant Term of Imprisonment is Necessary to Deter and is Just
23 Punishment for the Offense.
24 The United States maintains that, as contemplated by the Plea Agreement, the
25 appropriate sentence for Peterson is 33 months of imprisonment. This term is necessary
26 and just punishment for Peterson’s conduct, given the facts and circumstances discussed
27
United States’ Sentencing Memorandum UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
United States v. Peterson, CR23-090-JHC 05 - 15
SEATTLE, WASHINGTON 98101
(206) 553-7970
Case 2:23-cr-00090-JHC Document 210 Filed 03/11/24 Page 16 of 16
1 above. The proposed sentence is also necessary to deter Peterson from further criminal
2 behavior and promote rule of law. However, the government acknowledges that
3 imposing a sentence of 33 months after the Court sentenced co-defendant Tia Robinson
4 to 18 months would create a sentencing disparity amongst the co-defendants who have
5 the same offense and criminal history calculation scores, even though the Court appeared
6 to heavily weigh Robinson’s ACE score in its rationale.
7 V. CONCLUSION
8 The Court should sentence Peterson to a significant term of imprisonment,
9 followed by three years of supervised release. The Court should further order Peterson to
10 pay $420,346 in restitution, as agreed upon in the Plea Agreement.
11 Dated: March 11, 2024
12 Respectfully submitted,
13 TESSA M. GORMAN
United States Attorney
14
15 /s/ Cindy Chang
CINDY CHANG
16 Assistant United States Attorney
17 United States Attorney’s Office
700 Stewart Street, Suite 5220
18 Seattle, Washington 98101-1271
Phone: 206-553-7970
19
Fax: 206-553-0582
20 Email: Cindy.Chang@usdoj.gov
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United States’ Sentencing Memorandum UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
United States v. Peterson, CR23-090-JHC 05 - 16
SEATTLE, WASHINGTON 98101
(206) 553-7970
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