Criminal Complaint — No. 21-8190 (D.N.J.)
Summary
A criminal complaint sworn by Postal Inspector David Arminio before U.S. Magistrate Judge Jessica S. Allen on September 13, 2021, Mag. No. 21-8190, charging Jordan C. Larkins. Counts One through Three charge bank fraud under 18 U.S.C. §§ 1344(2) and 2 for Paycheck Protection Program applications submitted in June 2020 for Silver Star Advisors, Inc. ($280,830), Agro Development Consulting, Inc. ($151,890) and MVP Advisors, LLC ($284,850). Counts Four through Ten charge wire fraud for Economic Injury Disaster Loan applications to the SBA in May and June 2020, several for approximately $149,900 each. Attachment B states that Larkins transferred at least approximately $1.1 million in fraudulently obtained PPP and EIDL funds, withdrawing $526,918 in cash, making $444,307 in purchases and transferring $253,000 to a bank in Ghana. The charges are allegations.
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UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
══════════════════════════════════════════════════════
UNITED STATES OF AMERICA : Hon. Jessica S. Allen
:
v. : Mag. No. 21-8190
:
JORDAN C. LARKINS : CRIMINAL COMPLAINT
I, Postal Inspector David Arminio, being duly sworn, state that the following
is true and correct to the best of my knowledge and belief:
SEE ATTACHMENT A
I further state that I am a Postal Inspector with t he United States Postal
Inspection Service and that this complaint is based on the following facts:
SEE ATTACHMENT B
continued on the attached pages and made a part hereof.
P-~
______________________________
Postal Inspector David Arminio
United States Postal Inspection Service
Postal Inspector David Arminio attested to this Complaint by telephone pursuant to
Federal Rule of Criminal Procedure 4.1(b)(2)(A) on September 13, 2021 in New
Jersey.
September 13, 2021 at
Newark, New Jersey
HONORABLE JESSICA S. ALLEN S/Jessica S. Allen
_____________________________
UNITED STATES MAGISTRATE JUDGE Signature of Judicial Officer
ATTACHMENT A
Counts One Through Three
(Bank Fraud)
From at least in or about June 2020 through in or about July 2020, in Middlesex
and Union Counties, in the District of New Jersey and elsewhere, defendant
JORDAN C. LARKINS
did knowingly and intentionally execute and attempt to execute a scheme and artifice
to defraud one or more financial institutions, as defined by 18 U.S.C. § 20, to wit:
Lender 1 and Lender 2, the deposits of which were each insured by the Federal Deposit
Insurance Corporation, and to obtain moneys, funds, and credits owned by and under
the control of such financial institutions by means of materially false and fraudulent
pretenses, representations, and promises.
Approximate
Count
Date Description
1 June 1, 2020 LARKINS submitted a fraudulent loan application for
Paycheck Protection Program (“PPP”) funds on behalf of
Silver Star Advisors, Inc. to Lender 1 and obtained
approximately $280,830 in PPP funds.
2 June 5, 2020 LARKINS submitted a fraudulent loan application for
PPP funds on behalf of Agro Development Consulting,
Inc. to Lender 1 and obtained approximately $151,890 in
PPP funds.
3 June 29, 2020 LARKINS submitted a fraudulent loan application for
PPP funds on behalf of MVP Advisors, LLC to Lender 2
and obtained approximately $284,850 in PPP funds.
In violation of Title 18, United States Code, Sections 1344(2) and 2.
2
Counts Four Through Ten
(Wire Fraud)
From at least in or about May 2020 through at least in or about June 2020, in
Middlesex and Union Counties, in the District of New Jersey and elsewhere,
defendant
JORDAN C. LARKINS
knowingly and intentionally devised and intended 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, for the purpose of
executing and attempting to execute such scheme and artifice, did transmit and cause
to be transmitted by means of wire communications in interstate and foreign
commerce, the following writings, signs, signals, pictures, and sounds:
Count Approximate
Date Description of Wire
4 May 18, 2020 LARKINS submitted a fraudulent loan application for
Economic Injury Disaster Loan (“EIDL”) funds to the
Small Business Administration (the “SBA”) on behalf of
Agri Link International, Inc. causing the SBA to deposit
approximately $149,900 in EIDL funds into LARKINS’s
bank account via interstate wire transmission through
the District of New Jersey.
5 May 20, 2020 LARKINS submitted a fraudulent loan application for
EIDL funds to the SBA on behalf of Silver Star Advisors,
Inc. causing the SBA to deposit approximately $149,900
in EIDL funds into LARKINS’s bank account via
interstate wire transmission through the District of New
Jersey.
6 May 20,2020 LARKINS submitted a fraudulent loan application for
EIDL funds to the SBA on behalf of Silver Star Advisors,
Inc. causing the SBA to deposit approximately $10,000
in EIDL funds into LARKINS’s bank account via
interstate wire transmission through the District of New
Jersey.
7 June 21, 2020 LARKINS submitted a fraudulent loan application for
EIDL funds to the SBA on behalf of MVP Advisors, LLC,
causing the SBA to deposit approximately $149,900 in
EIDL into LARKINS’s bank account via interstate wire
transmission through the District of New Jersey.
3
8 June 21, 2020 LARKINS submitted a fraudulent loan application for
EIDL funds to the SBA on behalf of MVP Advisors, LLC
causing the SBA to deposit approximately $10,000 in
EIDL funds into LARKINS’s bank account via interstate
wire transmission through the District of New Jersey.
9 June 24, 2020 LARKINS submitted a fraudulent loan application for
EIDL funds to the SBA on behalf of Capital Logistics
Group, Inc. causing the SBA to deposit approximately
$149,900 in EIDL funds into LARKINS’s bank account
via interstate wire transmission through the District of
New Jersey.
10 June 24, 2020 LARKINS submitted a fraudulent loan application for
EIDL funds to the SBA on behalf of Capital Logistics
Group causing the SBA to deposit approximately
$10,000 in EIDL funds into LARKINS’s bank account
via interstate wire transmission through the District of
New Jersey.
In violation of Title 18, United States Code, Sections 1343 and 2
4
Counts Eleven and Twelve
(Money Laundering)
On or about the dates set forth below, in the District of New Jersey and
elsewhere, defendant
JORDAN C. LARKINS
did knowingly engage and attempt to engage in a monetary transaction by, through,
and to a financial institution, affecting interstate and foreign commerce, in criminally
derived property of a greater value than $10,000, that is, the transfer of U.S. currency
from bank accounts to the other bank accounts, cash withdrawals, foreign bank
transfers (defined in Attachment B), such property having been derived from a
specified unlawful activity, that is, wire fraud in violation of Title 18, United States
Code, Section 1343, and bank fraud, in violation of Title 18, United States Code,
Section 1344.
Count Approximate Description of Monetary Transaction
Date
Transfer from the Silver Star Advisors, Inc. bank account
11 June 11, 2020 at Bank 1 (“Silver Star Account 2”) in the amount of
approximately $51,000 to a bank account located in
the country of Ghana.
Transfer from the MVP Advisors, LLC bank account at
12 June 29, 2020 Bank 1 (“MVP Advisors Account 1”) in the amount of
approximately $51,000 to a Silver Star Account 2.
In violation of Title 18, United States Code, Sections 1957 and 2.
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ATTACHMENT B
I, David Arminio, a Postal Inspector with the United States Postal Inspection
Service, having conducted an investigation and having discussed this matter with
other law enforcement officers who have participated in this investigation, have
knowledge of the following facts. Because this Complaint is being submitted for the
limited purpose of establishing probable cause, I have not included each and every
fact known to me concerning this investigation. Rather, I have set forth only the facts
that I believe are necessary to establish probable cause. Unless specifically indicated,
all dates described in this affidavit are approximate and all statements or
representations described in this affidavit are related in substance and in part.
Overview
1. From on or about May 18, 2020 through on or about June 29, 2020,
defendant JORDAN C. LARKINS (“LARKINS”) used a variety of false statements
and representations to fraudulently obtain approximately $1.3 million in federal
COVID-19 emergency relief loans meant for distressed small businesses. To obtain
the loans, LARKINS submitted falsified loan applications to two different lenders
and the SBA on behalf of LARKINS’s purported businesses. On these loan
applications, LARKINS falsified various types of information associated with his
purported businesses, including: the number of employees; bank records; the
identities of the owners and other individuals associated with the applications; and
federal tax returns. LARKINS then misused the loan proceeds, including by
purchasing various luxury items and services, transferring money overseas, and
withdrawing large sums of cash.
Background
The Paycheck Protection Program and Economic Insurance Disaster Loans
2. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a
federal law enacted in or about 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
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order to be eligible to obtain the PPP loan. In the PPP loan application, the small
business 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 lender. If a
PPP loan application is approved, the participating lender funds the PPP loan using
its own money, which is 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, is 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 amountof the PPP loan proceeds on
payroll expenses.
6. The Economic Injury Disaster Loan (“EIDL”) program is an SBA program
that provides low-interest financing to small businesses, renters, and homeowners in
regions affected by declared disasters.
7. The CARES Act authorized the SBA to provide EIDLs of up to $2 million
to eligible small businesses experiencing substantial financial disruption due to the
COVID-19 pandemic.
8. In order to obtain an EIDL, a qualifying business must 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
EIDLs for COVID-19 relief, the 12-month period constitutes the 12 months preceding
January 31, 2020. In addition, the business entity must have existed in an
operational condition on February 1, 2020.
9. The amount of the EIDL is determined based, in part, on the information
the applicant provides regarding the revenue, employees, and cost of goods of the
company. The SBA directly issues any funds disbursed under an EIDL to the
applicant company. A company may use EIDL funds for payroll expenses, sick leave,
production costs, and business obligations, such as debts, rent, and mortgage
payments. If an applicant also obtains a loan under the PPP, the applicant company
is prohibited from using EIDL funds for the same purpose as the PPP funds.
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The Defendant, Relevant Entities, and Individuals
10. At all times as relevant to this Complaint:
a. LARKINS was a resident of Edison and Somerset, New Jersey and
controlled or established the following entities through which he
fraudulently applied for PPP and EIDL funds:
i. Silver Star Advisors, Inc. (“Silver Star”), which was a Wyoming
corporation that purported to provide retail and internet services.
ii. Agro Development Consulting Inc. (“Agro Development”), which
was a Florida corporation that purported to provide agriculture
or engineering services.
iii. MVP Advisors, LLC (“MVP Advisors”), which was a New Jersey
limited liability company that purported to provide business
and advertising services, including printing and graphic design
services.
iv. Capital Logistics Group (“Capital”), which was a New Jersey
company that purported to provide freight and trailer
transportation services.
v. Agri Link International, Inc. (“Agri Link”), which was New
Jersey corporation, that purported to provide agriculture
services.
b. Lender 1 was a financial institution insured by the Federal Deposit
Insurance Corporation (“FDIC”) headquartered in New Jersey.
c. Lender 2 was an FDIC-insured financial institution headquartered in
San Francisco, California.
d. Bank 1 was a financial institution headquartered in Boston,
Massachusetts.
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The Scheme to Defraud
11. From at least in or about May 2020 through at least in or about June
2020, LARKINS submitted, or caused to be submitted, fraudulent loan applications
to approved lenders, including Lender 1, Lender 2, and the SBA, in order to
fraudulently obtain funds through the PPP and EIDL programs.
12. In connection with this fraud, LARKINS submitted, or caused to be
submitted, the following PPP and EIDL applications to Lender 1, Lender 2, and the
SBA:
Name of Amount Approximate Status
Business Approved Lender Date Funded
Applicant
Silver Star $280,830.00 Lender 1 June 3, 2020 Funded
Agro Development $151,890.00 Lender 1 June 9, 2020 Funded
MVP Advisors $149,900.00 SBA June 23, 2020 Funded
Capital $149,900.00 SBA June 25, 2020 Funded
Silver Star $10,000.00 SBA June 26, 2020 Funded
MVP Advisors $10,000.00 SBA July 1, 2020 Funded
Capital $10,000.00 SBA July 6, 2020 Funded
MVP Advisors $284,850.00 Lender 2 July 9, 2020 Funded
Silver Star $149,900.00 SBA July 14, 2020 Funded
Agri Link $149,900.00 SBA July 24, 2020 Funded
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Falsified Agri Link EIDL Application to the SBA
13. On or about May 18, 2020, LARKINS submitted an EIDL application to
the SBA in the name of Agri Link seeking an EIDL in the amount of approximately
$149,900. The application was submitted in the name of Individual-1, a fake name
with a social security number associated with another unrelated individual. The
EIDL application identified Individual-1 as Agri Link’s owner.
14. LARKINS claimed that Agri Link had 45 employees; that the business’s
annual gross revenue for the 12-months prior to the disaster date, i.e., January 31,
2019 through January 31, 2020, was approximately $965,000; and that its cost of
goods sold was approximately $350,000. Social Security Administration (“SSA”)
records, however, revealed that Agri Link did not report any wages paid to employees
for the period between 2018 and 2020. Nor did the Internal Revenue Service (the
“IRS”) receive from Agri Link any Transmittal of Wage and Tax Statements (IRS
Forms W-3); Wage and Tax Statements (Forms W-2); Corporate Income Tax Returns
(Forms 1120); or Employer’s Annual Federal Unemployment Tax Return (Forms 940)
between 2018 and 2020. IRS records also show that Agri Link did not file any
Employer’s Quarterly Federal Tax Returns (Forms 941) for the tax quarters of 2018
through 2020.
15. In addition, bank records revealed that on or about July 21, 2020, Agri
Link opened its bank account with a starting balance of only approximately $300,
excluding the approximate $149,900 in EIDL funds later received. This amount of
deposited funds in the Agri Link account was significantly lower than the
approximately $965,000 in gross revenue that LARKINS claimed for the company on
its EIDL loan application.
16. LARKINS submitted the application using the name of Individual-1 as
the owner of Agri Link. SSA records revealed that the social security number listed
for Individual-1 belonged to another individual and that there was no social security
number associated with Individual-1’s name.
17. Agri Link’s bank account at Bank 1 is registered to the same address that
LARKINS used as his address in connection with the other business bank accounts
for Capital, Silver Star, MVP Advisors, and Agro Development at Bank 1. On or
about July 22, 2020, LARKINS provided this bank account to the SBA for purposes
of the EIDL application. This was the account funded with the loan proceeds.
Specifically, the bank account was opened on or about July 21, 2020 in the name of
Agri Link, with LARKINS’s name, his personal identifiers, driver’s license, and
passport information. LARKINS was also listed as the owner of the company. In
addition, the certificate of incorporation for Agri Link was attached to the bank
opening documents and listed the incorporation date as July 21, 2020. The certificate
listed LARKINS—and not Individual-1—as the registered agent and board of
directors. The certificate also provides the same address that was listed in the bank
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account application.
18. Bank records show that on or about July 24, 2020, LARKINS received the
full loan amount of approximately $149,900 into the Agri Link account at Bank 1.
19. On or about September 1, 2020 and September 2, 2020, LARKINS
transferred approximately $75,000 and approximately $37,500, respectively, to a
bank account for Silver Star, another purported company that LARKINS controlled
and, as set forth below, identified himself as the owner of on its EIDL application to
the SBA.
20. From on or about September 9, 2020, through on or about September 18,
2020, LARKINS withdrew a total of $31,000 in funds from the Agri Link account at
Bank 1.
Falsified Silver Star EIDL Application to the SBA
21. On or about May 20, 2020, LARKINS submitted an EIDL application to
the SBA in the name of Silver Star seeking an EIDL Loan in the amount of
approximately $149,900 and an advance of approximately $10,000. The application
was submitted in LARKINS’s name and listed his social security number and date of
birth.
22. LARKINS claimed that Silver Star had 25 employees; that the business’s
annual gross revenue for the prior 12-month period prior to the disaster, i.e., January
31, 2019 through January 31, 2020, was approximately $1.5 million; and that its cost
of goods sold was approximately $50,000. SSA records, however, revealed that Silver
Star did not report any wages paid to employees for the period between 2018 and
2020. Nor did the IRS receive any Transmittal of Wage and Tax Statements (IRS
Forms W-3); Wage and Tax Statements (Forms W-2); Corporate Income Tax Returns
(Forms 1120); or Employer’s Annual Federal Unemployment Tax Return (Forms 940)
between 2018 and 2020. IRS records also show that Silver Star did not file any
Employer’s Quarterly Federal Tax Returns (Forms 941) for the tax quarters of 2018
through 2020.
23. In addition, bank records revealed that Silver Star’s bank account a Bank
1 (“Silver Sar Account 1”) had a starting balance of approximately $5 on February 3,
2020 and, on or about June 22, 2020, Silver Star had total deposits of approximately
$147.24, excluding the approximate $149,900 in EIDL funds and $10,000 advance
later received. This amount of deposited funds in the Silver Star’s bank account was
significantly lower than the approximately $1.5 million in gross revenue that
LARKINS claimed for the company on its EIDL loan application.
24. Bank records show that on or about June 26, 2020, LARKINS received
the full EIDL advance amount of approximately $10,000 into the Silver Star Account
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1 at Bank 1. The full loan amount of approximately $149,900 was received on July
14, 2020.
25. Upon receiving the loan proceeds, LARKINS then transferred the loan
proceeds and made payments from Silver Star Account 1 at Bank 1 as follows:
a. From on or about July 1, 2020 through on or about July 3, 2020, LARKINS
withdrew for a total of approximately $3,615 in cash.
b. On or about July 6, 2020, LARKINS spent approximately $4,134 at a luxury
retail store.
c. From on or about June 29, 2020 through on or about July 13, 2020,
LARKINS had approximately $1,143 in various other miscellaneous
transactions.
d. On or about July 14, 2020, LARKINS received the full loan amount of
approximately $149,900. Upon receiving this amount, LARKINS
transferred the loan proceeds as follows:
i. On or about July 17, 2020, LARKINS withdrew a total of approximately
$2,500 in cash.
.
ii. On or about July 21, 2020, LARKINS withdrew a total of approximately
$15,100 in cash.
iii. On or about July 22, 2020, LARKINS withdrew a total of
approximately $2,500 in cash.
iv. On or about that same date, LARKINS made a purchase at a furniture
store for approximately $5,217.08.
v. On or about July 24, 2020 LARKINS transferred approximately
$16,000 to Silver Star Account 2.
vi. On or about August 3, 2020, LARKINS transferred approximately
$29,000 to Silver Star Account 2 at Bank 1.
vii. On or about August 28, 2020, LARKINS transferred a wire of
approximately $40,000 to an investment company.
26. On September 1, 2020, LARKINS transferred approximately $75,000
from Agri Link’s loan proceeds to Silver Star Account 1. Upon receipt of this transfer
or soon thereafter, LARKINS wired a total of approximately $77,000 into an
investment company.
12
Falsified Silver Star PPP Application to Lender 1
27. On or about June 1, 2020, LARKINS submitted a PPP application to
Lender 1 in the name of Silver Star seeking a PPP loan in the amount of
approximately $280,830. The application was submitted in LARKINS’s name and
listed LARKINS as the owner along with his personal identifiers.
28. LARKINS claimed that Silver Star had 49 employees and that the
business’s average monthly payroll was approximately $112,332. LARKINS also
provided an Employer’s Quarterly Federal Tax Return (IRS Form 941) for the
fourth quarter of 2019 that reflected these same figures. SSA records, however,
revealed that Silver Star did not report any wages paid to employees for the period
between 2018 and 2020. Nor did the IRS receive any Transmittal of Wage and Tax
Statements (IRS Forms W-3); Wage and Tax Statements (Forms W-2); Corporate
Income Tax Returns (Forms 1120); or Employer’s Annual Federal Unemployment
Tax Return (Forms 940) between 2018 and 2020. IRS records also show that Silver
Star did not file any Employer’s Quarterly Federal Tax Returns (Forms 941) for the
tax quarters of 2018 through 2020.
29. In addition, as part of the application, LARKINS provided a purported
February 2020 bank account statement for Silver Star which showed a balance of
approximately $390,944.72. Bank records, however, revealed that the largest balance
the account held during the month of February 2020 was approximately $60. And at
the time the PPP loan was funded—on June 3, 2020—the Silver Star Account 1 had
a balance of approximately $405, excluding the PPP loan proceeds.
30. Bank records show that on or about June 3, 2020, LARKINS received the
full loan amount of approximately $280,830 into the Silver Star Account 1 at Bank 1.
31. LARKINS then transferred the loan proceeds and made payments from
Silver Star Account 1 at Bank 1 as follows:
a. On the same day the PPP funds were deposited into Silver Star Account 1
bank account, LARKINS transferred the full loan amount into Silver Star
Account 2 at Bank 1.
b. Using Silver Star Account 2 at Bank 1, LARKINS then made the following
transfers:
i. On or about June 4, 2020 and June 5, 2020 LARKINS withdrew a total
of approximately $35,000 in cash.
ii. On or about June 11, 2020 and again on or about June 29, 2020,
LARKINS transferred approximately $51,000—for a total of
approximately $102,000—to a bank in the country of Ghana.
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iii. On or about July 3, 2020, LARKINS transferred $51,000 to a bank in
Ghana.
iv. On or about July 6, 2020, LARKINS withdrew approximately $10,000
in cash.
v. On or about July 7, 2020, LARKINS made a purchase at a luxury
retail store for $5,941.
vi. On or about July 10, 2020, LARKINS made a purchase at a furniture
store of approximately $8,933.
vii. On or about July 13, 2020 and July 15, 2020, LARKINS withdrew a
total of approximately $8,000 in cash.
viii. On or about July 13, 2020, LARKINS transferred approximately
$50,000 to a bank in Ghana.
ix. On or about July 14, 2020, LARKINS transferred approximately
$50,000 to a bank in Ghana.
x. On or about July 24, 2020 LARKINS initiated a wire transfer from the
Silver Star Account 1 at Bank 1 for approximately $16,000 credit to
Silver Star Account 2.
xi. From on or about July 24, 2020 through on or about July 29, 2020,
LARKINS withdrew a total of approximately $14,370 in cash through
a series of withdrawals.
Falsified Agro Development PPP Application to Lender 1
32. On or about June 5, 2020, LARKINS submitted a PPP application to
Lender 1 in the name of Agro Development seeking a PPP loan in the amount of
approximately $151,890. The application was submitted in the name of Individual-2, a
fake name with a social security number associated with another individual. The
PPP application identified Individual-2 as Agro Development’s owner.
33. LARKINS claimed that Agro Development had 38 employees and that the
business’s average monthly payroll was approximately $60,756. LARKINS also
provided an Employer’s Quarterly Federal Tax Return (IRS Form 941) for the fourth
quarter of 2019 that reflected these same figures. SSA records, however, revealed
that Agro Development did not report any wages paid to employees for the period
between 2018 and 2020. Nor did the IRS receive any Transmittal of Wage and Tax
Statements (IRS Forms W-3); Wage and Tax Statements (Forms W-2); Corporate
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Income Tax Returns (Forms 1120); or Employer’s Annual Federal Unemployment
Tax Return (Forms 940) between 2018 and 2020. IRS records also show that Agro
Development did not file any Employer’s Quarterly Federal Tax Returns (Forms 941)
for the tax quarters of 2018 through 2020.
34. In addition, as part of the application, LARKINS provided falsified bank
account records for an Agro Development bank account. Specifically, LARKINS
included a falsified bank statement for February 2020 that indicated a balance of
$393,129. Bank records from Bank 1, however, show that this account was not
opened until on or about June 2, 2020— four months after the date of the fraudulent
statement that LARKINS submitted and had a starting balance of only $60.
35. LARKINS submitted the application using the name of Individual-2 as
the owner of Agro Development. SSA records, however, revealed the social security
number listed for Individual-2 belonged to another individual and that there was no
social security number associated with Individual-2’s name. In addition, bank
records for Agro Development’s account at Bank 1 show that LARKINS opened and
controlled the bank account listed on the application and that later received the loan
proceeds. Specifically, the bank account was opened on or about June 2, 2020, only
three days before LARKINS submitted the application, in the name of Agro
Development, with LARKINS’s name on the account and its signature card. On the
bank account opening documents LARKINS listed himself as 80% owner and
LARKINS listed Individual-2 as a 20% owner.
36. Bank records show that on or about June 9, 2020, Larkins received the
full loan amount of approximately $151,890 into the Agro Development account at
Bank 1. This account was opened on June 2, 2020 with a starting balance of $60.
37. Upon receiving the loan proceeds LARKINS then transferred the loan
proceeds from Agro Development’s account at Bank 1 as follows:
a. On or about June 10, 2020, LARKINS transferred approximately
$93,834 to a third-party company.
b. From on or about June 11, 2020 through on or about June 25, 2020,
LARKINS withdrew a total of approximately $53,100 in cash through a
series of transactions.
c. On or about June 22, 2020, LARKINS made a cash withdrawal to
purchase a bank check for $10,000 payable to a consulting company
labeled as a “cash equivalent.” This check was then deposited into
another bank account that LARKINS controlled.
d. In or about July 2020, LARKINS made a series of withdraws for a total
of approximately $28,000 in cash.
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e. On or about July 20, 2020, LARKINS made a purchase at a luxury retail
store for approximately $5,300; a purchase at an optical store for
approximately $294.68; and a purchase at another luxury retail store for
approximately $842.70.
f. On or about July 23, 2020, LARKINS transferred approximately $3,888
at a luxury hotel.
g. In or around August 2020, LARKINS withdrew approximately $14,680
in cash through a series of transactions.
h. From in or around June 2020 through in around August 2020, LARKINS
spent approximately $2,193 on various items.
Falsified MVP Advisors EIDL Application to the SBA
38. On or about June 21, 2020, LARKINS submitted an EIDL application to
the SBA in the name of MVP Advisors seeking an EIDL Loan in the amount of
approximately $149,900 and an EIDL advance payment of approximately $10,000.
The application was submitted in the name of Individual-3, which consists of
LARKINS’s father’s first name and his mother’s maiden name. In addition, the social
security number was not associated with his name or any other name. The EIDL
application identified Individual-3 as the owner of MVP Advisors. The Internet
Protocol (“IP”) address through which the application was submitted was the same
IP address used to submit applications for Capital and Silver Star, which LARKINS
purports to own.
39. LARKINS claimed that MVP Advisors had 25 employees; that the
business’s annual gross revenue for the prior 12-months prior to the disaster date, i.e., January
31, 2019 through January 31, 2020, was approximately $860,000; and that its cost of goods
sold was approximately $35,000. SSA records, however, revealed that MVP Advisors
did not report any wages paid to employees for the period between 2018 and 2020.
Nor did the IRS receive any Transmittal of Wage and Tax Statements (IRS Forms
W-3); Wage and Tax Statements (Forms W-2); Corporate Income Tax Returns (Forms
1120); or Employer’s Annual Federal Unemployment Tax Return (Forms 940)
between 2018 and 2020. IRS records also show that MVP Advisors did not file any
Employer’s Quarterly Federal Tax Returns (Forms 941) for the tax quarters of 2018
through 2020.
40. In addition, bank records also revealed that, on or about June 18, 2020,
MVP Advisors Account 1 had total deposits of approximately $300, excluding the
approximate $149,900 and $10,000 received in EIDL funds. This amount of
deposited funds in the MVP Advisor’s Account 1 was significantly lower than the
approximately $860,000 of gross revenue that LARKINS claimed for the company on
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its EIDL application. Bank records also reflect that this account was opened on of
June 18, 2020.
41. The MVP Advisors Account 1 and another MVP Advisors bank account
(“MVP Advisors Account 2”) were opened at Bank 1 in the name of MVP Advisors,
but with LARKINS listed as the owner along with his personal identifiers. LARKINS
also submitted a certificate of formation and a certificate of reinstatement, both of
which list LARKINS as the owner/officer of MVP Advisors for the business’s two bank
accounts. LARKINS also comingled funds from Silver Star and Capital, two other
companies that he owned, and controlled the bank accounts.
42. Bank records show that on or about June 23, 2020, LARKINS received
the full loan amount of approximately $149,900 into the MVP Advisors Account 1 at
Bank 1. Bank records show that on or about July 1, 2020, LARKINS received the
full advance amount of approximately $10,000 into MVP Advisors Account 1 at Bank
1.
43. LARKINS then transferred the loan proceeds and made payments from
MVP Advisors Account 1 at Bank 1 as follows:
a. On June 25, 2020, LARKINS withdrew approximately $10,000 in cash.
b. On June 29, 2020 LAKRINS transferred approximately $51,000 to a
Silver Star account in Bank 1.
c. On July 9, 2020, LARKINS received the PPP loan into this MVP advisors
Account 1 for approximately $284,850.
d. On July 16, 2020, LARKINS withdrew approximately $50,000 in cash.
e. On July 21, 2020 LARKINS transferred a total of $70,000 from Capital
and Silver Star, each of which are companies LARKINS purports to own.
f. From July 22, 2020 to July 29, 2020, LARKINS withdrew a total of
approximately $67,600 in cash through several transactions.
g. From August 3, 2020 to August 6, 2020, LARKINS withdrew a total of
approximately $16,000 in cash through several transactions.
h. On August 24, 2020, LARKINS made a purchase from a luxury retail
store for approximately $4,765.
i. In September 2020, LARKINS withdrew a total of approximately
$16,700 in cash through a series of transactions.
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j. On October 5, 2020, LARKINS withdrew approximately $1,050 in cash.
44. By in or about October 2020, the MVP Advisors Account 1 at Bank 1 had
a balance of approximately $374.53.
Falsified Capital EIDL Application to the SBA
45. On or about June 24, 2020, LARKINS submitted an EIDL application to
the SBA in the name of Capital seeking an EIDL in the amount of approximately
$149,900 and an EIDL advance of approximately $10,000. The application was
submitted in LARKINS’s name as the owner of Capital with his social security
number and date of birth.
46. LARKINS claimed that Capital had 30 employees; that the business’s
annual gross revenue for the prior 12-months prior to the disaster date, i.e., January
31, 2019 through January 31, 2020, was approximately $956,000; and that its cost of
goods sold was approximately $125,000. SSA records, however, revealed that Capital
did not report any wages paid to employees for the period between 2018 and 2020.
Nor did the IRS receive any Transmittal of Wage and Tax Statements (IRS Forms
W-3); Wage and Tax Statements (Forms W-2); Corporate Income Tax Returns (Forms
1120); or Employer’s Annual Federal Unemployment Tax Return (Forms 940)
between 2018 and 2020. IRS records also show that Capital did not file any
Employer’s Quarterly Federal Tax Returns (Forms 941) for the tax quarters of 2018
through 2020.
47. In addition, bank records revealed that on or about June 18, 2020, Capital
opened its bank account at Bank 1 with a starting balance of approximately $300,
excluding the approximate $149,900 and $10,000 loan proceeds later received. This
amount of deposited funds in Capital’s bank account was significantly lower than the
approximate $956,000 of gross revenue that LARKINS claimed for the company on
its EIDL application.
48. In addition, as part of the application, LARKINS provided falsified a
February 2020 bank account statement for Capital which showed a balance of
approximately $561,712. Bank records, however, revealed that this account was not
opened until June 18, 2020 with a starting balance of approximately $300.
49. Bank records also show that on or about June 25, 2020, LARKINS
received the full loan amount of approximately $149,900 into the Capital account at
Bank 1. On July 6, 2020, LARKINS received approximately $10,000 in an EIDL
advance as a part of the loan.
50. LARKINS then transferred the loan proceeds from the Capital bank
account at Bank 1 as follows:
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a. On or about June 29, 2020, and on or about June 30, 2020, LARKINS
withdrew a total of approximately $20,000 in cash.
b. On or about July 6, 2020, and or about July 7, 2020, LARKINS made
two purchases at luxury retail stores for a total of approximately
$13,925.97.
c. From on or around July 9, 2020 through on or about July 17, 2020,
LARKINS withdrew approximately $19,600 in cash through several
transactions.
d. On or about July 17, 2020, LARKINS made a purchase at an optical
store for approximately $4,400.
e. On or about July 21, 2020, LARKINS transferred approximately $35,000
from the Capital bank account at Bank 1 to MVP Advisors Account 1 at
Bank1.
f. From on or about July 22, 2020, through on or about August 5, 2020,
LARKINS withdrew a total of approximately $24,000 in cash through
several transactions.
g. From on or about August 6, 2020, through on or about August 26, 2020,
LARKINS made a series of miscellaneous charges for a total of
approximately $6,358.
h. From on or about August 20, 2020, August 21, 2020, and August 27,
2020, LARKINS made purchases at a department retail store for a total
of approximately $2,630.
i. On or about September 2, 2020, LARKINS made five withdrawals for a
total of approximately $4,000 in cash.
j. From on or about September 9, 2020, through on or about September 15,
2020, LARKINS withdrew approximately $29,000 in cash through a
series of transactions.
Falsified MVP Advisors PPP Application to Lender 2
51. On or about June 29, 2020, LARKINS submitted a PPP application to
Lender 2 in the name of MVP Advisors seeking a PPP Loan in the amount of
approximately $284,850. The application was submitted in the name of Individual-
3. The PPP application identified Individual-3 as the owner of MVP Advisors.
Individual-3’s name is a combination of LARKINS father’s first name and his
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mother’s maiden name. The IP address through which the application was submitted,
was the same IP address used to submit applications for Capital and Silver Star,
which LARKINS purports to own.
52. LARKINS claimed MVP Advisors had 53 employees and that the
business’s average annual payroll was approximately $113,940. In addition, as part
of the application, LARKINS submitted purported Employer’s Quarterly Federal Tax
Returns (Forms 941) for each quarter of 2019. SSA records, however, revealed that
MVP Advisors did not report any wages paid to employees for the period between
2018 and 2020. Nor did the IRS receive any Transmittal of Wage and Tax Statements
(IRS Forms W-3); Wage and Tax Statements (Forms W-2); Corporate Income Tax
Returns (Forms 1120); or Employer’s Annual Federal Unemployment Tax Return
(Forms 940) between 2018 and 2020. IRS records also show that MVP Advisors did
not file any Employer’s Quarterly Federal Tax Returns (Forms 941) for the tax
quarters of 2018 through 2020.
53. In addition, bank records revealed that MVP Advisors opened its bank
account on or about June 18, 2020 with a starting balance of approximately $300
excluding the approximate $149,900 and $10,000 in EIDL funds received. In
connection with the application, LARKINS submitted a falsified February 2020 bank
account statement for this account that listed the company’s balance as
approximately $478,712.
54. LARKINS submitted the application using the name of Individual-3 as
the owner of MVP Advisors. He provided a driver’s license with the name of
Individual-3 along with social security number. SSA records reveal, however, that
the social security number listed for Individual-3 was not a valid social security
number and was not associated with any individual. The bank account was opened
in the name of MVP Advisors, but with LARKINS’s name and personal identifiers
listed as the owner. LARKINS also submitted a certificate of formation and a
certificate of reinstatement, both of which list LARKINS as the owner/officer of MVP
Advisors for the two MVP Advisor bank accounts. LARKINS also comingled funds
from other companies that he controlled—Silver Star and Capital—through this
Bank account.
55. Bank records show that on or about July 9, 2020, LARKINS received the
full loan amount of approximately $284,850 into the MVP Advisors Account 1 at
Bank 1.
56. LARKINS then transferred the loan proceeds and made payments from
the MVP Advisors Account 1 at Bank 1 as follows:
a. On July 16, 2020, LARKINS withdrew approximately $50,000 in cash
b. On July 21, 2020 LARKINS transferred funds from Capital and Silver
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Star, each of which are companies LARKINS purports to own, each for
approximately $35,000, for a total of approximately $70,000.
c. From July 22, 2020 to July 29, 2020, LARKINS withdrew a total of
approximately $67,600 in cash through several transactions.
d. From August 3, 2020 to August 6, 2020, LARKINS withdrew a total of
approximately $16,000 in cash through several transactions.
e. On August 24, 2020, LARKINS made a purchase from a luxury retail store
for approximately $4,765.
f. In September 2020, LARKINS withdrew a total of approximately $16,700
in cash through a series of transactions.
g. On October 5, 2020, LARKINS withdrew approximately $1,050 in cash.
h. By October 2020, the account had an ending balance by October 2020, of
approximately $374.53.
Misuse of the PPP and EIDL Loan Proceeds
57. In total, LARKINS transferred at least approximately $1.1 million in
fraudulent obtained PPP and EIDL funds from the companies’ bank accounts.
Specifically, LARKINS withdrew approximately $526,918 in cash; made
approximately $444,307 in purchases via third-parties, including $388,157 at one
company; and transferred approximately $253,000 to a bank in Ghana.
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