Criminal Information — United States v. Stanley Dorceus (Northern District of Georgia)
Summary
Criminal information filed August 26, 2020, in United States v. Stanley Dorceus, Case 1:20-cr-00320-LMM, Document 1, in the Northern District of Georgia. Count One charges conspiracy and Count Two charges false statements tied to an SBA Form 2483 signed and initialed on or about May 10, 2020. The information alleges a PPP loan package requesting $300,000 for Elevate Horizons, with an IRS Form 941 stating $358,819.00 in compensation in the first quarter of 2019, and that Bank 1 wired approximately $300,000 on or about May 12, 2020. It alleges checks totaling approximately $20,780 were written to Dorceus. The forfeiture allegation lists $92,170.15 seized from a Wells Fargo Bank account in the name of Elevate Horizons.
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“Criminal Information — United States v. Stanley Dorceus (Northern District of Georgia).”
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Case 1:20-cr-00320-LMM Document 1 Filed 08/26/20 Page 1 of 8
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION
U NITED S TATES OF A MERICA
Criminal Information
v.
No. 1:20-CR-320-LMM
S TANLEY D ORCEUS
THE UNITED STATES ATTORNEY CHARGES THAT:
Count One
Conspiracy
18 U.S.C. § 371
1. In or about May 2020, in the Northern District of Georgia and elsewhere,
the defendant, STANLEY DORCEUE, did knowingly and willfully combine,
conspire, confederate, agree, and have a tacit understanding with Co-
Conspirator 1 and others, known and unknown, to commit an offense against the
United States, that is, to devise and intend to devise a scheme and artifice to
defraud the United States and to obtain money and property by means of
materially false and fraudulent pretenses, representations, and promises, and by
omission of material facts, and, with the intent to defraud, cause to be
transmitted certain wire communications in interstate and foreign commerce for
the purposes of executing the scheme, in violation of Title 18, United States Code,
Section 1343.
Case 1:20-cr-00320-LMM Document 1 Filed 08/26/20 Page 2 of 8
Background
The Paycheck Protection Program
2. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is 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.
3. In order to obtain a PPP loan, a qualifying business must submit a PPP
loan application, which is signed by an authorized representative of the business.
The PPP loan application requires 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) must
state, among other things, its: (a) average monthly payroll expenses; and (b)
number of employees. These figures are used to calculate the amount of money
the small business is eligible to receive under the PPP. In addition, businesses
applying for a PPP loan must provide documentation showing their payroll
expenses.
4. A PPP loan application must be processed by a participating financial
institution (the lender). If a PPP loan application is approved, the participating
financial institution funds the PPP loan using its own monies, which are 100%
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Case 1:20-cr-00320-LMM Document 1 Filed 08/26/20 Page 3 of 8
guaranteed by Small Business Administration (“SBA”). Data from the
application, including information about the borrower, the total amount of the
loan, and the listed number of employees, are transmitted by the lender to the
SBA in the course of processing the loan.
5. PPP loan proceeds must be used by the business on certain permissible
expenses—payroll costs, interest on mortgages, rent, and utilities. The PPP
allows the interest and principal on the PPP loan to be entirely forgiven if the
business spends the loan proceeds on these expense items within a designated
period of time after receiving the proceeds and uses a certain amount of the PPP
loan proceeds on payroll expenses.
6. The PPP is overseen by the SBA, which is headquartered at 409 3rd Street
SW, Washington, D.C. 20416, and has authority over all loans. Individual PPP
loans, however, are issued by private approved lenders (most commonly, banks
and credit unions), which receive and process PPP applications and supporting
documentation, and then make loans using the lenders’ own funds.
Relevant Entities
7. Bank 1 is an SBA-approved lender headquartered in Salt Lake City, Utah.
8. Bank 2 is a federally-insured financial institution headquartered in San
Francisco, California.
9. Company 1 pairs PPP applicants with lenders by collecting applications,
performing underwriting tasks, and submitting approved applications to SBA-
approved lenders such as Bank 1 for funding.
The Co-Conspirators
10. DORCEUS was a citizen of the United States and resident of the Northern
District of Georgia.
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Case 1:20-cr-00320-LMM Document 1 Filed 08/26/20 Page 4 of 8
11. DORCEUS was an owner and authorized representative of Elevate
Horizons, located at 1687 Cedar Bluff Way, Marietta, Georgia, 30062. Elevate
Horizon’s Employer Identification Number issued by the U.S. Internal Revenue
Service was 83-3179279.
12. Elevate Horizons maintained a business checking account number ending
4636 at Bank 2. DORCEUS was an authorized signatory on the account.
13. Co-Conspirator 1 (CC-1) aided DOREUS in submitting an application for a
PPP loan for Elevate Horizons.
Object of the Conspiracy
14. The object of the conspiracy was for DORCEUS and his co-conspirators to
fraudulently obtain Paycheck Protection Program loans for themselves, and to
conceal the conspiracy.
Manner and Means of the Conspiracy
The Fraudulent PPP Loan Application
15. On or about May 10, 2020, a PPP loan application package was submitted
to Bank 1, via Company 1, requesting a $300,000 PPP loan for Elevate Horizons.
Included with the loan application were (1) an SBA Form 2483 PPP Borrower
Application Form bearing DORCEUS’s digital signature; (2) IRS Form 941
(Employer’s Quarterly Federal Tax Returns) purportedly reflecting Elevate
Horizon’s payroll data for January to March 2019; (3) a statement from Elevate
Horizon’s business checking account at Bank 2; and (4) a Promissory Note
bearing DORCEUS’s digital signature.
16. On the SBA Form 2483, DORCEUS falsely certified that his business had
an average monthly payroll of $120,000 and 16 employees. Among other things,
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Case 1:20-cr-00320-LMM Document 1 Filed 08/26/20 Page 5 of 8
DORCEUS further falsely certified that all of the PPP loan funds would be “used
to retain workers and maintain payroll or make mortgage interest payments,
lease payments, and utility payments, as specified under the Paycheck Protection
Program Rule.” DORCEUS also acknowledged that failure to use the PPP funds
in accordance with the requirements of the PPP program, and making false
statements in support of the loan application, could result in criminal penalties.
17. The IRS Form 941 that was included with the PPP loan application falsely
represented, among other things, that Elevate Horizons had 16 employees, paid
wages, tips, and other compensation in the amount of $358,819.00 in the first
quarter of 2019. In fact, Elevate Horizons made no quarterly tax filings in 2019.
18. On or about May 10, 2020, at CC-1’s direction, DORCEU digitally signed
the SBA Form 2483 and the Promissory Note and electronically transmitted them
to Company 1. Company 1 then transmitted the loan package to Bank 1 for
approval.
19. On or about May 10, 2020, Bank 1 approved the PPP loan.
20. On or about May 12, 2020, Bank 1 wired approximately $300,000 to the
Elevate Horizons checking account at Bank 2.
21. In or about May 2020, at CC-1’s direction, DORCEUS wrote and signed
numerous checks from the Elevate Horizon’s checking account at Bank 2 and
supplied them to an unknown individual acting on CC-1’s behalf. The
individuals who cashed the checks were not eligible to receive funds from the
PPP loan made to Elevate Horizons.
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Case 1:20-cr-00320-LMM Document 1 Filed 08/26/20 Page 6 of 8
22. DORCEUS also wrote checks to himself totaling approximately $20,780,
and provided a check for approximately $8,333.33 to an individual who returned
approximately $7,500 to DORCEUS.
All in violation of Title 18, United States Code, Section 371.
Count Two
False Statements
18 U.S.C. § 1001(a)(1) and 2
23. In or about May 2020, in the Northern District of Georgia and elsewhere,
the defendant, STANLEY DORCEUS, did knowingly and willfully make
materially false, fictitious, and fraudulent statements and representations in a
matter within the jurisdiction of the executive branch of the Government of the
United States, namely, the Small Business Administration, those being: on or
about May 10, 2020, DORCEUS signed and initialed an SBA Form 2483 Paycheck
Protection Program Borrower Application Form knowing the form contained
false information regarding his company’s eligibility for a Paycheck Program
loan.
All in violation of Title 18 United States Code, Section 1001(a)(1) and Section
2.
FORFEITURE ALLEGATION
24. Upon conviction of the offense alleged in Count One of this Criminal
Information, the defendant, STANELY DORCEUS, shall forfeit to the United
States, pursuant to 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c), all property,
real and personal, constituting and derived from proceeds traceable to the
scheme to defraud, including but not limited to the following:
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Case 1:20-cr-00320-LMM Document 1 Filed 08/26/20 Page 7 of 8
(a) MONEY JUDGMENT: A sum of money in United States currency equal
to the amount of proceeds the defendant obtained as a result of the
offense for which the defendant is convicted.
(b) FUNDS:
(1) $92,170.15 seized from Wells Fargo Bank account number
XXXXXX4636 held in the name of Elevate Horizons.
25. If any of the property described above, as a result of any act or omission of
the defendant:
a. cannot be located upon the 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 has been commingled with
other property which cannot be divided without 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).
BYUNG J. PAK
United States Attorney
DIANE C. S CHULMAN
Special Assistant United States Attorney
Georgia Bar No. 497764
M ICHAEL P. M C C ARTHY
Trial Attorney
DC Bar No. 1020231
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Case 1:20-cr-00320-LMM Document 1 Filed 08/26/20 Page 8 of 8
600 U.S. Courthouse
75 Ted Turner Drive SW
Atlanta, GA 30303
404-581-6000; Fax: 404-581-6181
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