Indictment — United States v. Lebnitz Tran (Northern District of California, Document 1)

Summary

An Indictment, Document 1 filed July 1, 2021 in United States of America v. Lebnitz Tran, a/k/a Viet Tran, Case No. 5:21-cr-00269-LHK, in the United States District Court for the Northern District of California, San Jose venue. The caption lists Wire Fraud, Bank Fraud and a Forfeiture Allegation, and the pages carry the marking UNDER SEAL. The Grand Jury charges that Tran was a resident of San Jose, California, and owned or controlled multiple business entities. The indictment includes allegations about Paycheck Protection Program applications, including one for another person seeking a PPP loan in the amount of $174,582 that allegedly stated an average monthly payroll of $69,833.

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Case 5:21-cr-0O0269-LHK rey Bye nae Page 1 of 16
Gnited St trict Court

FOR THE

NORTHERN DISTRICT OF CALIFORNIA

VENUE: SAN JOSE FILED
Jul 01 2021
SUSAN Y. SOONG
UNITED STATES OF AMERICA, CLERK, U.S. DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
V. SAN FRANCISCO

LEBNITZ TRAN, a/k/a VIET TRAN,

cp 21 oo26o |

DEFENDANT(S).

INDICTMENT

18 U.S.C. § 1343 — Wire Fraud
18 U.S.C. § 1344(2) - Bank Fraud
18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c) —
Forfeiture Allegation

A true bill.
/s/ Foreperson of the Grand Jury

Foreman

1st

Filed in open court this day of

July, 2021

Stephen Ybarra

Clerk

Hon. Joseph C. Spero
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Case 5:21-cr-00269-LHK Document 1 Filed 07/01/21 Page 2 of 16

STEPHANIE M. HINDS (CABN 154284)
Acting United States Attorney

FILED

Jul 01 2021
SUSAN Y. SOONG
CLERK, U.S. DISTRICT COURT
ans NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA

UNITED STATES OF americlg ht CASE NQ. 69x =
)
Plaintiff, ) VIOLATIONS:
) 18 U.S.C. § 1343 — Wire Fraud;
v. ) 18 U.S.C. § 1344(2) - Bank Fraud;
——— 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c) -
° ° ) Forfeiture Allegation
Defendant. )
) SAN JOSE VENUE
)
UNDER SEAL
)
)
)
INDICTMENT
The Grand Jury charges:

Introductory Allegations

At all times relevant to this Indictment:

Defendant TRAN and Relevant Individuals

1. LEBNITZ TRAN, a/k/a VIET TRAN, was a resident of San Jose, California. TRAN
owned or controlled multiple business entities organized in California.
on Person | was a resident of Marin County, California and an associate of TRAN.

3: Person 2 was a resident of Sacramento, California and a relative of TRAN.

INDICTMENT
o Co NY DO A Se WY NY

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Case 5:21-cr-00269-LHK Document1 Filed 07/01/21 Page 3 of 16

4, Person 3 was a person residing in the same household with TRAN in San Jose,
California.

Business Entities Controlled by TRAN

5. 88 Cloud Computing LLC was a California limited liability company that was first
registered on or about June 2, 2020. TRAN was listed as the sole member of 88 Cloud Computing LLC.

6. 88 Engineering Group LLC was a California limited liability company that was first
registered on or about June 22, 2020. TRAN was listed as the sole member of 88 Engineering Group
LLC.

7. 88 Enterprise Services LLC was a California limited liability company that was first
registered on or about June 11, 2020. TRAN was listed as the sole member of 88 Enterprise Services
LLC.

8. 88 Investment Empire LLC was a California limited liability company that was first
registered on or about June 4, 2020. TRAN was listed as the sole member of 88 Investment Empire
LLC.

9, 88 Venture Capital LLC was a California limited liability company that was first
registered on or about June 1, 2020. TRAN was listed as the sole member of 88 Venture Capital LLC.

10. 88 Water LLC was a California limited liability company that was first registered on or
about May 22, 2019. TRAN was listed as the organizer and registered agent of 88 Water LLC.

11. Active Energy Water Corporation was a California corporation that was first registered
on or about December 12, 2013. TRAN was listed as the “CEO/Founder” of Active Energy Water
Corporation.

12. The registered business address for all of the above-listed entities was 1440 Saffle Court
in Campbell, California, which was a residential home owned by relatives of TRAN.

Other Relevant Entity

13. Divine Feminine Masterpiece LLC was a Nevada limited liability company that was first
registered on or about October 22, 2018. The registered business address for Divine Feminine
Masterpiece LLC was 500 N. Rainbow Road, Suite 300A in Las Vegas, Nevada. Person | was listed as

the Managing Member of Divine Feminine Masterpiece LLC.

INDICTMENT 2
Case 5:21-cr-00269-LHK Document 1 Filed 07/01/21 Page 4 of 16

The Small Business Administration

14. 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 enabling the
establishment and viability of small businesses and by assisting in the economic recovery of
communities after disasters.

The Paycheck Protection Program

15. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law
enacted in or around March 2020 and designed to provide emergency financial assistance to the millions
of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source
of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to
small businesses for job retention and certain other expenses, through a program referred to as the
Paycheck Protection Program (“PPP”). In or around April 2020, Congress authorized over $300 billion
in additional PPP funding. .

16. In order to obtain a PPP loan, a qualifying business was required to submit a PPP loan
application, which was 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 make
certain affirmative certifications in order to be eligible to obtain the PPP loan. In the PPP loan
application, the small business (through its authorized representative) was required to state, among other
things, its: (a) average monthly payroll expenses; and (b) number of employees. These figures were
used to calculate the amount of money the small business was eligible to receive under the PPP. In
addition, businesses applying for a PPP loan were required to provide documentation showing their
payroll expenses.

17. Among the types 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 (“IRS”) on Form 1040, Schedule C, for a given tax

INDICTMENT 3
oO co NY BD Wn FF WY NO —

Case 5:21-cr-00269-LHK Document1 Filed 07/01/21 Page 5 of 16

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 the PPP.

18. A PPP loan application was required to be processed by a participating lender. If a PPP
loan application was approved, the participating lender funded the PPP loan using its own monies,
which were 100% guaranteed by the SBA. Data from the application, including information about the
borrower, the total amount of the loan, and the listed number of employees, was transmitted by the
lender to the SBA in the course of processing the loan.

19. PPP loan proceeds were required to be used by the business on certain permissible
expenses—payroll costs, interest on mortgages, rent, and utilities. The PPP allowed the interest and
principal on the PPP loan to be entirely forgiven if the business spent the loan proceeds on these expense
items within a designated period of time after receiving the proceeds and used a certain amount of the
PPP loan proceeds on payroll expenses.

The Economic Injury Disaster Loan Program

20. | The Economic Injury Disaster Loan (“EIDL”) program was a SBA program that provided
low-interest financing to small businesses, renters, and homeowners in regions affected by declared
disasters.

21. |The CARES Act also authorized the SBA to provide EIDL loans of up to $2 million to
eligible small businesses experiencing substantial financial disruption due to the COVID-19 pandemic.
In addition, the CARES Act authorized the SBA to issue advances of up to $10,000 to small businesses
within three days of applying for an EIDL loan. The amount of the advance was determined by the
number of employees the applicant certified having. The advances did not have to be repaid.

22. _ In order to obtain an EIDL loan and/or advance, a qualifying business was required to
submit an application to the SBA and provide information about its operations, such as the number of
employees, gross revenues for the 12-month period preceding the disaster, and cost of goods sold in the
12-month period preceding the disaster. In the case of EIDL loans for COVID-19 relief, the 12-month
period was that preceding January 31, 2020. The applicant was also required to certify that all of the

information in the application was true and correct to the best of the applicant’s knowledge.

INDICTMENT 4
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Case 5:21-cr-00269-LHK Document1 Filed 07/01/21 Page 6 of 16

23. EIDL applications were submitted directly to the SBA. The amount of the loan, if the
application was approved, was determined based, in part, on the information provided by the applicant
about employment, revenue, and cost of goods, as described above. Any funds issued under an EIDL
loan or advance were issued directly by the SBA. EIDL funds could be used for payroll expenses, sick
leave, production costs, and business obligations, such as debts, rent, and mortgage payments. If the
applicant also obtained a loan under the PPP, the EIDL funds amount needed to be declared by the
applicant and deducted from the total loan eligibility.

Relevant PPP Lenders and Affiliated Companies

24. Lender 1 was a federally insured financial institution based in Utah. Lender 1 was an
SBA Preferred Lender and participated as an SBA-approved PPP lender to small businesses.

25. Lender 2 was a non-bank lender based in New York. Lender 2 was an SBA Preferred
Lender and participated as an SBA-approved PPP lender to small businesses.

26. Lender 3 was a federally insured financial institution based in Maine. Lender 3 was an
SBA Preferred Lender and participated as an SBA-approved PPP lender to small businesses.

27. Lender 4 was a non-bank lender based in California. Lender 4 was an SBA Preferred
Lender and participated as an SBA-approved PPP lender to small businesses.

28. Lender 5 was a non-bank lender based in California. Lender 5 participated as an SBA-
approved PPP lender to small businesses.

29. Lender 6 was a non-bank lender based in Florida. Lender 6 was an SBA Preferred
Lender and participated as an SBA-approved PPP lender to small businesses.

30. Lender 7 was a federally insured financial institution based in Utah. Lender 7
participated as an SBA-approved PPP lender to small businesses.

31. Lender 8 was a financial services company based in California. Lender 8 participated as
an SBA-approved PPP lender to small businesses.

The Scheme and Artifice to Defraud

32. Beginning at least as early as April 2020, and continuing through in or around July 2020,

in the Northern District of California and elsewhere, TRAN, together with others known and unknown

to the Grand Jury, knowingly and with intent to defraud, devised, participated in, and executed a scheme

INDICTMENT 5
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Case 5:21-cr-00269-LHK Document1 Filed 07/01/21 Page 7 of 16

to defraud the SBA and SBA-approved lenders as to material matters, and to obtain moneys, funds,
assets, and other property owned by and under the custody and control of lenders and the SBA by means
of material false and fraudulent pretenses, representations, and promises, and the concealment of
material facts.

33. TRAN identified pre-existing business entities, and created and caused to be created
additional business entities, for the purpose of submitting false and fraudulent applications for PPP and
EIDL loans.

34. | TRAN made, and caused to be made, false and fraudulent statements to the SBA and
lenders, including Lender 1, Lender 2, Lender 3, Lender 4, Lender 5, Lender 6, Lender 7, and Lender 8,
in connection with applications for PPP and EIDL loans, including false and fraudulent representations
regarding the dates of operation of the loan applicant (e.g., falsely asserting that the loan applicant had
been in business longer than it actually had); falsely overstating the number of persons employed by the
loan applicant; and falsely overstating the loan applicant’s monthly payroll expenses.

35. | TRAN also electronically submitted, and caused to be submitted, false and fictitious
documents to the SBA and lenders, including Lender 1, Lender 2, Lender 3, Lender 4, Lender 5, Lender
6, Lender 7, and Lender 8, in support of the fraudulent PPP and EIDL loan applications, including false
and fictitious tax documents.

36. | TRAN submitted and caused to be submitted at least 27 PPP loan applications and at
least seven EIDL loan applications, submitted in TRAN’s name as well as in the name of others. In
total, TRAN sought approximately $8.5 million in PPP and EIDL loan proceeds through these
applications and received over $3.6 million from the SBA and SBA-approved lenders. TRAN netted in
excess of $2 million from the scheme.

37. TRAN directed that PPP and EIDL loan proceeds be electronically deposited into bank
accounts that TRAN controlled, including, but not limited to, accounts at Wells Fargo ending in -0718,
-0825, -3949, -3956, and -8480, and at Bank of America ending in -6420.

38. After receiving PPP and EIDL loan proceeds, TRAN used the fraudulently obtained
funds to enrich himself, including to pay rent, utilities, credit cards, and personal loans, make purchases

at various retail stores, and make deposits into personal investment accounts. TRAN also transferred

INDICTMENT 6
Case 5:21-cr-00269-LHK Document1 Filed 07/01/21 Page 8 of 16

hundreds of thousands of dollars to other individuals, including Person 1, Person 3, and others. Those
individuals then used the funds for various purposes, including to make purchases at restaurants and
retail stores, make deposits into personal investment accounts, buy cryptocurrency, and to purchase a
$100,000 Tesla at a luxury car dealership in Livermore, California.

39. Some of the loan applications submitted as part of the scheme and artifice to defraud are
described below.

Person 2 Application to Lender 1

40. | Onor about May 28, 2020, Lender | received a PPP application in the name of Person 2
(as a Sole Proprietor) seeking a PPP loan in the amount $174,582.

41. | The PPP application falsely stated that Person 2’s average monthly payroll was $69,833
and that Person 2 had eight employees. The PPP application included a false and fraudulent Employer’s
Federal Tax Return (IRS Form 1040 Schedule C) for year 2019, which claimed that Person 2 had paid
$888,000 in wages, tips, and other compensation, and listed Person 2’s business address as the same
address used for the business entities controlled by TRAN identified at paragraphs 5 through 11 above.

42. Based on the false information provided to Lender | in the Person 2 PPP application,
Lender | approved and funded the PPP loan. On or about May 28, 2020, $174,582 was transferred to a
personal checking account ending in -8480 held in the name of TRAN at Wells Fargo bank.

88 Water LLC Application to Lender 2

43. | Onor about April 30, 2020, Lender 2 received a PPP application in the name of 88 Water
LLC seeking a PPP loan in the amount $75,000. The application was submitted in the name of TRAN
who represented himself to be the CEO of 88 Water LLC.

44. The PPP application falsely stated that 88 Water LLC’s average monthly payroll was
$30,000, and that the company had five employees. The PPP application included false and fraudulent
Employer’s Quarterly Federal Tax Return forms (IRS Form 941) for the third and fourth quarters of
2019, which claimed that 88 Water LLC had paid $192,128 in wages, tips, and other compensation for
those two quarters in 2019.

. 45. Based on the false information provided to Lender 2 in the 88 Water LLC PPP
application, Lender 2 approved and funded the PPP loan. On or about May 1, 2020, $75,000 was

INDICTMENT 7
Case 5:21-cr-00269-LHK Document1 Filed 07/01/21 Page 9 of 16

transferred to a personal checking account ending in -6420 held in the name of TRAN at Bank of
America.
Active Energy Water Corporation Application to Lender 3

46. Onor about May 6, 2020, Lender 3 received a PPP application in the name of Active
Energy Water Corporation seeking a PPP loan in the amount $120,000. The application was submitted
in the name of TRAN, who represented himself to be the sole managing member of Active Energy
Water Corporation.

47. The PPP application falsely stated that Active Energy Water Corporation’s average
monthly payroll was $48,000, and that the company had nine employees. The PPP application included
false and fraudulent IRS Form 941s for all four quarters of 2019, which claimed that Active Energy
Water Corporation had paid $589,782 in wages, tips, and other compensation in 2019.

48. Based on the false information provided to Lender 3 in the Active Energy Water
Corporation PPP application, Lender 3 approved and funded the PPP loan. On or about May 14, 2020,
$120,000 was transferred to a personal checking account ending in -8480 held in the name of TRAN at

Wells Fargo bank.

88 Enterprise Services LLC Application to Lender 4
49. On or about May 30, 2020, Lender 4 received a PPP application in the name of 88

Enterprise Services LLC seeking a PPP loan in the amount $458,332. The application was submitted in
the name of TRAN, who represented himself to be the CEO and owner of 88 Enterprise Services LLC.
50. | The PPP application falsely stated that 88 Enterprise Services LLC’s average monthly
payroll was $183,333, and that the company had 24 employees. The PPP application included a false
and fraudulent IRS Form 941, which claimed that 88 Enterprise Services LLC had paid $549,999.87 in
wages, tips, and other compensation for the first quarter of 2020.
51. Based on the false information provided to Lender 4 in the 88 Enterprise Services LLC
PPP application, Lender 4 approved and funded the PPP loan. On or about June 5, 2020, $458,332 was
transferred to a personal checking account ending in -8480 held in the name of TRAN at Wells Fargo
bank.

INDICTMENT 8
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Case 5:21-cr-00269-LHK Document 1 Filed 07/01/21 Page 10 of 16

88 Investment Empire LLC Application to Lender 5
52. | Onor about June 2, 2020, Lender 5 received a PPP application in the name of 88

Investment Empire LLC seeking a PPP loan in the amount $458,000. The application was submitted in
the name of TRAN, who represented himself to be the CEO of 88 Investment Empire LLC.

53. The PPP application falsely stated that 88 Investment Empire LLC’s average monthly
payroll was $183,333 and that the company had 24 employees. The PPP application included a false
and fraudulent IRS Form 941, which claimed that 88 Investment Empire LLC had paid $549,999.87 in
wages, tips, and other compensation for the first quarter of 2020.

| 54. Based.on the false information provided to Lender 5 in the 88 Investment Empire LLC
PPP application, Lender 5 approved and funded the PPP loan. On or about June 10, 2020, $469,696 was
transferred to a business account at Wells Fargo bank ending in -3956 held in the name of 88 Investment
Empire LLC, with the sole signer and account holder of the account being TRAN.
Divine Feminine Masterpiece LLC Application to Lender 6

55. According to bank records, on or about May 24, 2020, Lender 6 received a PPP
application in the name of Divine Feminine Masterpiece LLC seeking a PPP loan in the amount
$592,500. The application was submitted in the name of Person 1, who was represented to be the owner
of Divine Feminine Masterpiece LLC.

56. The PPP application submitted to Lender 6 stated that Divine Feminine Masterpiece
LLC’s average monthly payroll was $237,000, and that the company had 33 employees. The PPP
application included false and fraudulent IRS Form 941s for the first quarter of 2020 and for all four
quarters of 2019, which claimed that Divine Feminine Masterpiece LLC had paid $2,877,294 in wages,
tips, and other compensation in 2019 and $789,210 in wages, tips, and other compensation in the first
quarter of 2020.

57. Based on the false information provided to Lender 6 in the Divine Feminine Masterpiece
LLC PPP application, Lender 6 approved and funded the PPP loan. On or about June 11, 2020,
$592,500 was transferred to a business bank account at Wells Fargo ending in -3949 held in the name of
88 Enterprise Services LLC, with the sole signer and account holder being TRAN.

INDICTMENT 9.
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Case 5:21-cr-00269-LHK Document1 Filed 07/01/21 Page 11 of 16

Person | Application to Lender 7
58. | Onor about May 25, 2020, Lender 7 received a PPP application in the name of Person |

(Sole Proprietor) seeking a PPP loan in the amount $162,500.

59. The PPP application falsely stated that Person 1’s average monthly payroll was $65,000
and that Person 1 had eight employees. The PPP application included a false and fraudulent IRS Form
1040 Schedule C for 2019, which claimed that Person 1 had paid $940,000 in wages, tips, and other
compensation in 2019.

60. Based on the false information provided to Lender 7 in the Person 1 PPP application,
Lender 7 approved and funded the PPP loan. On or about June 12, 2020, $162,500 was transferred to a
business account at Wells Fargo bank ending in -0825 held in the name of 88 Water LLC, with the sole
signer and account holder being TRAN.

88 Engineering Group LLC Application to Lender 8

61. | Onor about June 13, 2020, Lender 8 received a PPP application in the name of 88
Engineering Group LLC seeking a PPP loan in the amount $458,000. The application was submitted in
the name of TRAN, who represented himself to be the CEO of 88 Engineering Group LLC.

62. | The PPP application falsely stated that 88 Engineering Group LLC’s average monthly
payroll was $183,000, and that the company had 24 employees. The PPP application included a false
and fraudulent IRS Form 941, which claimed that 88 Engineering Group LLC had paid $549,999.87 in
wages, tips, and other compensation for the first quarter of 2020.

63. Based on the false information provided to Lender 8 in the 88 Engineering Group LLC
PPP application, Lender 8 approved and funded the PPP loan. On or about June 26, 2020, $114,5 82.50
was transferred to a personal checking account ending in -6420 held in the name of TRAN at Bank of
America.

88 Cloud Computing LLC Application to SBA

64. On or about June 16, 2020, TRAN submitted and caused to be submitted to the SBA an
EIDL loan application in the name of 88 Cloud Computing LLC. On the application, TRAN represented
himself to be the Owner of 88 Cloud Computing LLC. The application also requested an advance on the

loan.

INDICTMENT 10
Case 5:21-cr-00269-LHK Document 1 Filed 07/01/21 Page 12 of 16

65. | The EIDL application falsely stated that 88 Cloud Computing LLC had 10 employees,
and that the business opened on January 3, 2020.

66. Based on the false information provided to the SBA in the 88 Cloud Computing LLC
application, on or about July 14, 2020 the SBA extended to TRAN a loan advance of $10,000.!
COUNTS ONE THROUGH SIX: (18U.S.C. § 1343 _ Wire Fraud)

67. Paragraphs 1 through 66 of this Indictment are re-alleged and incorporated as if fully set
forth here.

68. Beginning at least as early as April 2020, and continuing through in or around July 2020,
in the Northern District of California and elsewhere, the defendant,

LEBNITZ TRAN, a/k/a VIET TRAN,
with others known and unknown to the Grand Jury, knowingly and with the intent to defraud,
participated in, devised, and intended to devise a scheme and artifice to defraud as to a material matter,
and to obtain money and property by means of materially false and fraudulent pretenses, representations,
and promises, and by means of omission and concealment of material facts.

69. On or about the dates set forth below, in the Northern District of California and
elsewhere, for the purpose of executing the aforementioned scheme and artifice to defraud and
attempting to do so, the defendant,

LEBNITZ TRAN, a/k/a VIET TRAN,
did knowingly transmit and cause to be transmitted in interstate and foreign commerce, by means of a

wire communication, certain writings, signs, signals, pictures, and sounds, specifically identified below:

Count Approx. Date Description of Wire

l May 1, 2020 | Interstate wire transfer of $75,000 from Lender 2 to TRAN’s Bank of
America personal checking account ending in -6420 in California, to
fund a PPP loan to 88 Water LLC.
2 June 5, 2020 | Interstate wire transfer of $458,332 from Lender 4 to TRAN’s Wells
Fargo personal checking account ending in -8480 in California, to
fund a PPP loan to 88 Enterprise Services LLC
3 June 10, 2020 | Interstate wire transfer of $469,696 from Lender 5 to a Wells Fargo
business account ending in -3956 in California controlled by TRAN,
to fund a PPP loan to 88 Investment Empire LLC

' Although the SBA ultimately rejected this and other of TRAN’s EIDL loan applications, the
SBA has not recouped the advances that were extended.

INDICTMENT 11
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Count Approx. Date Description of Wire

4 June 11, 2020 | Interstate wire transfer of $592,500 from Lender 6 to a Wells Fargo
business account ending in -3949 in California controlled by TRAN,
to fund a PPP loan to Divine Feminine Masterpiece LLC

5 June 26, 2020 | Interstate wire transfer of $114,582.50 from Lender 8 to TRAN’s
Bank of America personal checking account ending in -6420 in
California, to fund a PPP loan to 88 Engineering Group LLC

6 July 14, 2020 | Interstate wire transfer of $10,000 sent by the SBA to a Wells Fargo
business account ending in -0718 in California controlled by TRAN,

representing an EIDL loan advance for 88 Cloud Computing LLC

All in violation of Title 18, United States Code, Section 1343.

COUNTS SEVEN THROUGH NINE: (18 U.S.C. § 1344(2) - Bank Fraud)

70. Paragraphs | through 66 of this Indictment are re-alleged and incorporated as if fully set

|| forth here.

71. Beginning at least as early as April 2020, and continuing through in or around July 2020,

in the Northern District of California and elsewhere, the defendant,

LEBNITZ TRAN, a/k/a VIET TRAN,
with others known and unknown to the Grand Jury, knowingly and with the intent to defraud, devised,
participated in, executed, and attempted to execute a scheme to obtain moneys, funds, credits, assets,
and other property owned by and under the custody and control of federally insured financial institutions
by means of material false and fraudulent pretenses, representations, and promises, and the concealment
of material facts.

72. | Onor about the dates set forth below, in the Northern District of Califomia and
elsewhere, for the purpose of executing the aforementioned scheme and attempting to do so, the
defendant,

LEBNITZ TRAN, a/k/a VIET TRAN,
with others known and unknown to the Grand Jury, aiding and abetting each other, committed and
willfully caused others to commit the following acts, each of which constituted an execution of the

fraudulent scheme:

INDICTMENT 12
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Case 5:21-cr-00269-LHK Document1 Filed 07/01/21 Page 14 of 16

Count | Approx. Date Description of Act

7 May 14, 2020 | Lender 3 transferred $120,000 to TRAN’s Wells Fargo personal
checking account ending in -8480 to fund a PPP loan to Active Energy
Water Corporation
8 May 28, 2020 | Lender 1 transferred $174,582 to TRAN’s Wells Fargo personal
checking account ending in -8480 to fund a PPP loan to Person 2
9 June 12,2020 | Lender 7 transferred $162,500 to a Wells Fargo business account ending
in -0825 controlled by TRAN to fund a PPP loan to 88 Water LLC

All in violation of Title 18, United States Code, Section 1344(2).

FORFEITURE ALLEGATION: (18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c))

The allegations contained in this Indictment are re-alleged and incorporated by reference for the
purpose of alleging forfeiture pursuant to Title 18, United States Code, Section 981(a)(1)(C) and Title
28, United States Code, Section 2461(c).

Upon conviction for any of the offenses set forth in this Indictment, the defendant,

LEBNITZ TRAN, a/k/a VIET TRAN,
shall forfeit to the United States, pursuant to Title 18, United States Code, Section 981(a)(1)(C) and
Title 28, United States Code, Section 2461(c), all property, real or personal, constituting, or derived
from proceeds the defendant obtained directly and indirectly, as the result of those violations, including
but not limited to the following:

l. A 2020 Tesla Model X (VIN#45YJXCBE49LF236777) purchased on or about June 15,
2020 from a luxury car dealership in Livermore, California; and

2. A forfeiture money judgment in the amount of $2,006,514.79, representing the total value
of proceeds obtained directly or indirectly by the defendant from the commission of the offense of
conviction. |

If any of the property described above, as a result of any act or omission of the defendant:

a. cannot be located upon exercise of due diligence;

b. has been transferred or sold to, or deposited with, a third party;

c. has been placed beyond the jurisdiction of the court;
d. has been substantially diminished in value; or
e. has been commingled with other property which cannot be divided without

INDICTMENT 13
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Case 5:21-cr-00269-LHK Document1 Filed 07/01/21 Page 15 of 16

difficulty,
the United States of America shall be entitled to forfeiture of substitute property pursuant to Title 21,
United States Code, Section 853(p), as incorporated by Title 28, United States Code, Section 2461(c).
All pursuant to Title 18, United States Code, Section 981(a)(1)(C), Title 28, United States Code,
Section 2461(c), and Federal Rule of Criminal Procedure 32.2.

DATED: July 1, 2021 A TRUE BILL.

/s/
- FOREPERSON

STEPHANIE M. HINDS
Acting United States Attorney

/s/ Sarah E. Griswold

SARAH E. GRISWOLD
Assistant United States Attorney

JOSEPH S. BEEMSTERBOER
Acting Chief, Fraud Section, Criminal Division

/s/ Christopher D. Jackson

CHRISTOPHER D. JACKSON
Trial Attorney, Fraud Section, Criminal Division

INDICTMENT 14
Case 5:21-cr-00269-LHkK;

7/01/21 Page 16 of 16

AO 257 (Rev. 6/78)

DEFENDANT INFORMATION RELATIVE TAU PCTION - IN U.S. DISTRICT COURT

BY: i) COMPLAINT L) INFORMATION INDICTMENT Name of District Court, and/or Judge/Magistrate Location
OFFENSE CHARGED O SUPERSEDING NORTHERN DISTRICT OF CALIFORNIA
SAN JOSE DIVISION

Counts 1-6: Wire Fraud in violation of 18 U.S.C. § 1343; C] Petty
Counts 7-9: Bank Fraud in violation of 18 U.S.C. § 1344(2) .

[1] Minor — DEFENDANT - Us —————— FILED

oO Misde- Jul 01 2021

meanor » LEBNITZ TRAN, a/k/a VIET TRAN
SUSAN Y. SOONG
Felony CLERK, U.S. DISTRICT COURT
DISTRICT COURT NUMBER NORTHERN DISTRICT OF CALIFORNIA

PENALTY: Counts 1-6: 20 years imprisonment, 3 years supervised release, ~ f »| gg SANPRANCISCO
$250,000 fine, $100 special assessment per count; a = CR 21 2 i = -
Counts 7-9: 30 years imprisonment, 5 years supervised se, 4 ) a

$1,000,000 fine, $100 special assessment per count;

forfeiture

DEFENDANT
— PROCEEDING IS NOTIN CUSTODY
P mG 4 Has not been arrested, pending outcome this proceeding.
Name of Complaintant Agency, or Person (& Title, if any) 1) If not detained give date any prior

summons was served on above charges N/A

FBI Special Agent Kathryn Taylor

person is awaiting trial in another Federal or State Court, 2) [] Is a Fugitive
L give name of court

3) [] Is on Bail or Release from (show District)

this person/proceeding is transferred from another district

LO per (circle one) FRCrp 20, 21, or 40. Show District
IS IN CUSTODY

4) [[] On this charge

this is a reprosecution of

charges previously dismissed 5) [[] On another conviction
L which were dismissed on motion SHOW C] Federal C] State
of: DOCKET NO. .
: 6) [[] Awaiting trial on other charges
.S. ATTORNEY DEFENSE Fcourcensads

O 0 . Ll If answer to (6) is "Yes", show name of institution

this prosecution relates to a if "Yes"

pending case involving this same Has detainer LC Yes give date

defendant MAGISTRATE been filed? O No filed

CASE NO. ManttyDaviy

prior proceedings or appearance(s) DATE OF b SSS Set

before U.S. Magistrate regarding this ARREST

defendant were recorded under Or... if Arresting Agency & Warrant were not
Name and Office of Person DATE TRANSFERRED Month/Day/Year
Furnishing Information on this form _ Stephanie Hinds, Acting USA TO U.S. CUSTODY

[x] U.S. Attorney [ Other U.S. Agency

Name of Assistant U.S. L] This report amends AO 257 previously submitted
Attorney (if assigned) S. Griswold, C. Jackson

ADDITIONAL INFORMATION OR COMMENTS

PROCESS:
[_] SUMMONS [_] NO PROCESS” WARRANT Bail Amount:

If Summons, complete following:
[_] Arraignment [_] Initial Appearance

Defendant Address:

* Where defendant previously apprehended on complaint, no new summons or
warrant needed, since Magistrate has scheduled arraignment

Date/Time: Before Judge:

Comments:


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