Criminal Information — Teldrin Foster (Northern District of Georgia, Atlanta Division)

Summary

Criminal information filed 05/19/21 in the Northern District of Georgia, Atlanta Division, charging Teldrin Foster in Count One with Conspiracy to Commit Wire Fraud. It alleges a conspiracy from in or about April 2020 through in or about May 2020 with Darrell Thomas and others. On or about April 21, 2020, Foster and his co-conspirators are alleged to have submitted a PPP loan application for Bellator Phront Group Inc. to Financial Institution 1, a non-bank financial institution, falsely representing 66 employees. It states that Foster assisted in creating and submitting falsified IRS Form 941s for each quarter of 2019, and it includes a forfeiture provision.

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Case 1:21-cr-00183-JPB Document 1 Filed 05/19/21 Page 1 of 7
FILED IN OPEN COURT
U.S.D.C--Atlanta

MAY 19 2021
JAMES N. HATTEN, Clerk

Br' (X/TH Deputy ClerR
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION

UNITED STATES OF AMERICA

Criminal Information

TELDRIN FOSTER I No- 1:21-CR-183

THE UNITED STATES ATTORNEY CHARGES THAT:

Background

At times relevant to this Information:

The Defendant and his Co-Conspirator

1. TELDRIN FOSTER ("FOSTER") was an individual residing in the State

of Georgia.

2. Darrell Thomas was an individual residing in the State of Georgia

who claimed ownership/ and was the Chief Financial Officer/ of Bellator Phront

Group Inc./ a Georgia corporation. As of May 21,2020, Thomas claimed to be the

Chief Executive Officer/ Secretary/ and registered agent of Elite Executive

Services Inc., a Georgia corporation.

The Small Business Administration

3. 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
Case 1:21-cr-00183-JPB Document 1 Filed 05/19/21 Page 2 of 7

of small businesses and by assisting in the economic recovery of communities

after disasters.

4. As part of this effort, the SBA enabled and provided for loans

through banks/ credit unions/ and other lenders. These loans had government-

backed guarantees.

The Pay check Protection Program

5. The Coronavirus Aid/ Relief/ and Economic Security ("CARES") Act

was a federal law enacted m or about March 2020 and was designed to provide

emergency financial assistance to the millions of Americans who are suffering

the economic effects caused by the COVID-19 pandemic.

6. One source of relief that the CARES Act provided for was the

authorization of up to $349 billion in forgivable loans to small businesses for

payroll/ mortgage interest/ rent/lease/ and utilities/ through a program referred

to as the Paycheck Protection Program (//PPP'/). Congress subsequently

authorized additional PPP funding.

7. The PPP allowed qualifying small businesses and other

organizations to receive PPP loans. Businesses were required to use PPP loan

proceeds for 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 and used a certain percentage of the PPP loan proceeds for payroll

expenses.
Case 1:21-cr-00183-JPB Document 1 Filed 05/19/21 Page 3 of 7

8. The amount of a PPP loan that a smaU business may have been

entitled to receive was determined by the number of employees employed by the

business and the business/s average monthly payroll costs.

9. 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) had 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 had to provide documentation

showing their payroll expenses.

10. The SBA oversaw the PPP. However/ individual PPP loans were

issued by private/ approved lenders who received and processed PPP

applications and supporting documentation/ and then made loans using the

lenders' own funds/ 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.

11. Financial Institution 1 was a non-bank financial institution

headquartered in Laguna Hills/ California. Financial Institution 1 participated in
Case 1:21-cr-00183-JPB Document 1 Filed 05/19/21 Page 4 of 7

the SBA/s PPP as a lender/ and as such/ was authorized to lend funds to eligible

borrowers under the terms of the PPP.

Count One
Conspiracy to Commit Wire Fraud

12. The United States Attorney re-alleges and incorporates by reference

the factual allegations contained in paragraphs 1 through 11 of this Information

as if fully set forth herein.

13. From in or about April 2020 through in or about May 2020, the exact

dates unknown/ in the Northern District of Georgia and elsewhere/ the

defendant/

TELDRIN FOSTER/

did knowingly and willfully combine/ conspire/ confederate/ agree/ and have a

tacit understanding with Darrell Thomas and with others known and unknown/

to devise and intend to devise a scheme and artifice to defraud/ and to obtain

money and property/ by means of materially false and fraudulent pretenses/

representations/ and promises/ and by the omission of material facts/ well

knowing and having reason to know that said pretenses were and would be false

and fraudulent when made and caused to be made and that said omissions were

and would be material/ and/ in so doing/ with intent to defraud/ caused interstate

and foreign wire communications to be made/ in furtherance of the scheme and

artifice to defraud/ in violation of Title 18, United States Code/ Section 1343.
Case 1:21-cr-00183-JPB Document 1 Filed 05/19/21 Page 5 of 7

Manner and Means

14. On or about April 21, 2020, FOSTER and his co-conspirators utilized

interstate wires to submit and assist in the submission of/ a PPP loan application

for Bellator Phront Group Inc. to Financial Institution 1.

15. On the PPP loan application for Bellator Phront Group Inc./ FOSTER

and his co-conspirators falsely represented that the company had 66 employees

and an average monthly payroll of $319/982.14.

16. The PPP loan application contained the initials of Bellator Phront

Group Inc/s owner to certify each of the following representations:

a. The Applicant business was in operation on February 15, 2020

and had employees for whom it paid salaries and payroll

taxes or paid independent contractors/ as reported on Form(s)

1099-MISC;

b. The funds will 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; and

c. The information provided in the application and the

information provided in all supporting documents and forms

is true and accurate in all material respects.

17. FOSTER assisted in the creation and submission of falsified IRS Form

941s for each quarter of 2019 included with Bellator Phront Group Inc/s PPP loan

application.
Case 1:21-cr-00183-JPB Document 1 Filed 05/19/21 Page 6 of 7

18. Based on the false and fraudulent representations and submissions

made by FOSTER and his co-conspirators/ Financial Institution 1 distributed

approximately $799/955.35 to Bellator Phront Group Inc.

All in violation of Title 18, United States Code/ Section 1349.

Forfeihare Provision

Upon conviction of the offense alleged in this Information/ the defendant/

TELDRIN FOSTER/ shall forfeit to the United States/ pursuant to Title 18, United

States Code/ Section 982(a)(2)/ any property/ real or personal/ constituting or

derived from proceeds obtained, directly or indu-ectly/ as a result of the violation/

including/ but not limited to/ the following:

(a) Money Judgment: A sum of money in United States currency

representing the amount of proceeds obtained as a result of each

offense/ or conspiracy to commit such offense/ for which each

defendant is convicted.

If/ as a result of any act or omission of the defendant(s)/ any property subject to

forfeiture/

(a) cannot be located upon the exercise of due diligence;

(b) has been transferred or sold to/ or deposited with/ a third party;

(d) has been substantially diminished in value; or

(e) has been commingled with other property which cannot be divided

without difficulty/
Case 1:21-cr-00183-JPB Document 1 Filed 05/19/21 Page 7 of 7

the United States intends/ pursuant to Title 21, United States Code/ Section

853(p)/ as incorporated by Title 18, United States Code/ Section 982(b)/ to seek

forfeiture of any other property of the defendant up to the value of the forfeitable

property described above.

KURT R. ERSKINE DANIEL S.KAHN
Acting United States Attorney Acting Chief, fraud Section
IJ.S. Department of Justice

^Ss?h.' "}tU-e-/u^

TAL C. CHAIKEN SlJI MOORE
Assistant United States Attorney Trial Attorney, Fraud Section
Georgia Bar No. 273949 U.S. Department of Justice

NATHAN p. KITCHENS
Assistant United States Attorney
Georgia Bar No. 263930

600 U.S. Courthouse 1400 New York Ave, NW
75 Ted Turner Drive SW Bond Building/ llth Floor
Atlanta/ GA 30303 Washington/ DC 20005
404-581-6000; Fax: 404-581-6181 202-514-2000; Fax: 202-514-3708

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