Criminal Complaint and Affidavit — United States v. Stephanie Diane Smith (S.D. Fla., Document 3)
Summary
A criminal complaint and supporting affidavit charging Stephanie Diane Smith with wire fraud under Title 18, United States Code, Section 1343, sworn before a United States Magistrate Judge on 10/11/2023 and entered in Case 0:23-cr-60203-BB as Document 3 in the U.S. District Court for the Southern District of Florida. FBI Special Agent Kelly Dipietrantonio states that Smith, a Broward Sheriff's Office Deputy Sheriff, received two PPP loans as a sole proprietor, including a $20,833 loan disbursed April 1, 2021 for Children 1st Basketball Training. The affidavit states the application claimed $100,000 in 2019 gross income with a Schedule C not filed with the IRS, while the return Smith actually filed reported $0.00 gross income. It states the SBA forgave the Children 1st loan after a forgiveness application dated July 19, 2021.
Summary drafted by a model from the text of the original file linked on this page and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Criminal Complaint and Affidavit — United States v. Stephanie Diane Smith (S.D. Fla., Document 3).”
Original at ecf.flsd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/criminal-complaint-usa-v-smith-stephanie-diane-dkt-3-s-d-fla-09a87b2606/
, SHA-256 b8db89446a02436cbb967be8f42116db32e1d384868cdc8637f45ee7c78205c3.Full text
Case 0:23-cr-60203-BB Document 3 Entered on FLSD Docket 10/11/2023 Page 1 of 16
U NITED STA TES DISTRICT CO URT
SO UTHER N DISTRICT OF FLOR ID A
Case No. 23-m 1-6477-PH 11
UNITED STATESOFAMERICA FILED BY D.C.
V S.
22T 1 1 2223
STEPHA NIE DIAN E SM ITH , ANGELA E.NOBLE
CLERKU S.DIS'ECT:
s.o.oFFtk.-F'
ctxtlo.
Defendant.
CR IM INAL CO VER SHEET
D id thism atteroriginate from a m atterpending in theN orthern Region ofthe U nited States
Attorney'sOfficepriortoAugust8,2014(Mag.JudgeShaniekM aynard)? NO.
Didthismatterorigtnatefrom amatlerpending in theCentralRegionoftheUnited States
Attorney'sOfficepriortoOctober3,2019(Mag.JudgeJaredStrauss)? NO.
Respectfully Subm itted,
M ARKEN ZY LAPOINTE
U NITED STA TES ATTORNEY
By: D ' W -Y *
D AVID A .SN IDER
A ssistantUnited SltesAttorney
CourtID N o.A 5502260
500 E.Broward B lvd.,Suite 700
FortLauderdale,FL 33394
Tel:(954)660-5696
Fax:(954)156-7336
Email:david.snider@usdoj.gov
Case 0:23-cr-60203-BB Document 3 Entered on FLSD Docket 10/11/2023 Page 2 of 16
AO 91(Rev.1l/11) CI
iYIVIComplai
nt
U NITED STATES D ISTRICT C OURT
forthe
Southern DistrictofFlorida
UnitedStatesofAmerica )
V. )
STEPHANIE DI
ANIE SMITH ) CaseNo.'
) 23-mj-6477-PMH
)
)
)
De#ndantls)
CR IM INAL CO M PLM G
1,thecomplainantinthisemne,statethatthefollowingistruetothe bestofmy knowledgeandbelief.
Onoraboutthedatets)of 03/29/2021through11/01/2021 inthecountyof BroFard inthe
Southern Districtof Florida ,thedefendantts)violated:
CodeSection OA zizeDescrètion
18U.S.C.j1343 WireFraud.
Thiscriminalcomplaintisbasedonthesefacts:
See attachedAffi
davit.
W continuedontheattachedsheet.
ptokx&
Complainant'
ssignature
Kell
y Dipietrantonio,SpecialAgent,FBl
Printedname> zdzp/,
Sworntoandsubscribed beforemetelephonically
this11thday ofOdober,2023.
Date: 10/11/2023
Judge'sa'fgn//lzre
city andstate: FortLauderdalevFlorida PatrickM.Hunt,United States Magistrate Judge
Printed novieandtitle
Case 0:23-cr-60203-BB Document 3 Entered on FLSD Docket 10/11/2023 Page 3 of 16
A FFIDA W T IN SUPPO RT OF CR IM INAL CO M PLM N T
Y ourAffiant,Kelly D ipietrantonio,having been duly sworn,doeshereby depose and say:
IN TR O DUC TION AND A G EN T BACK GR O UND
1am a SpecialAgentwiththeFederalBureau ofInvestigation CTB1'')assigned to
the M iam iD ivision. A s such,lam an investigative and 1aw enforcem ent oftk erof the United
States em powered by law to conduct investigations of,and to m ake arrests for,certain federal
crim inalviolations including,in pazt violations ofthe w ire fraud statute. 1 have been a Special
Agentwith theFB1sinçeM ay 2018 and am currently assigned to aPublic Conuption Squad in
M iamiwhere1conductinvestigationsinvolvingbribery,PaycheckProtectionProgram (PPP)loan
fraud,EconomiclnjuryandDisasterLoan(EIDL)fraud,electioncrimes,andmoneylaundering.
2. Through my training and experience,lbecam e fam iliarw ith the types ofrecords,
electronic and financial,thatthese schem es generate,and the m çthodologies used to perpetrate
. such schem es.M uch of m y w ork involved analyzing these types of records to determ ine the
existenceofcriminalactivityandtodevelopevidence.Ihavealsoreceivedformalandon-the-job
training in crim inal investigation procedures and crim inal law . 1 have personally conducted
num erousphysicaland othersurveillances,including w ireand electronic surveillance.
The inform ation contained in this affidavit is based on,am ong otherthings,m y
participation in the investigation described herein,consensualw itness interview s,m y review of
relevant docum ents and electronic com m unications, inform ation from other 1aw enforcem ent
officersand otherindividuals,and know ledge gained from m y personaltraining and experience.
lm ake thisaffidavitin jupportof a criminalcomplaintcharging STEPHANIE
DIANE SMITH (hereinafter,GCSMITH'')withviolationsofTitle 18,UnitedStatesCode,Section
1343,thatis,w ire fraud. Based upon the factssetforth herein,there isprobable cause to believe
Case 0:23-cr-60203-BB Document 3 Entered on FLSD Docket 10/11/2023 Page 4 of 16
that,on or aboutM arch 29,2021,and continuing through in or around Novem ber 1,2021,in
Brow ard County,in the Southern DistrictofFlorida,and elsew here,SM ITH did know ingly,and
w ith the intentto defraud,devise,and intend to devise,a schem e and artifice to defraud,and to
obtain m oney and property by m eansofm aterially false and fraudulentpretenses,representations,
andprom ises,know ing thatthepretenses,representations,and prom isesw ere falseand fraudulent
whenmade,and,forthepurposeofexecutingtheschemeandartitsce,did knowinglytransmitand
causeto be transm itted,by m eansofw irecom m unication in interstate com m erce,certain writings,
signs,signals,pictures,and sounds,in violation ofTitle 18,United Sàtes Code,Section 1343.
Because l subm it this affdavit for the lim ited purpose of establishing probable
cause,itdoes notinclude a1lthe factsthat1have leam ed dtlring the course ofthe governm ent's
investigation.
BACK GR O UND
TheSm allBusinessA dminlstration
The United States SmallBusiness Administration (ççSBA'') was an executive
branch agency ofthe U nited States governm entthatprovided supportto entrepreneurs and sm all
businesses. The m ission ofthe SBA w as to m aintain and strengthen the nation's econom y by
enabling the establishm ent and viability of sm all businesses and by assisting in the econom ic
recovery ofcom m unitiesafterdisasters.
Aspartofthisefforq the SBA enabled andprovided loansthrough banks,credit
unions,and otherlenders. These loanshad govem m ent-backed guarantees.
ThePaycheck Protection Program
8. TheCoronavirusAid,Relief,andEconomicSecurityCSCARES'')Actwasafederal
1aw enacted in oraround M arch 2020,designed to provide em ergency financialassistance to the
m illionsofA mericans who w ere suffering from the econom ic effectscaused by the COV lD -19
Case 0:23-cr-60203-BB Document 3 Entered on FLSD Docket 10/11/2023 Page 5 of 16
pandem ic. One source of relief that the CA RES A ct provided was the Paycheck Protection
Program CTPP''),which authorized forgivableloansto smallbusinessesforjob retention and
certain otherexpenses.
9. The SBA prom ulgated regulationsconcerning eligibility foraPPP loan.To obtain
a PPP loan,aqualifying businessw asrequired to subm itaPPP loan application,which w assigned
by an authorized representative ofthe business. The PPP loan application required the business
(through its authorized representative) to acknowledge the program rules and make certain
affirm ative certificationsto be eligible to obtain the PPP loan,including thatthe business wasin
operation on Februaly 15,2020,and eitherhad employees for whom itpaid salariesand payroll
taxesorpaid independentcontractors. Paym entsto independentcontractorsaretypically reported
totheInternalRevenue Service(Eû1RS'')on aGdForm 1099-M1SC.''lnthePPP loanapplication
(SBA Form 2483),thesmallbusiness(throughitsauthorizedrepresentative)wasrequiredtostate,
among otherthings,its:(a)average monthly payrollexpenses;and (b)numberofemployees
(includingowners).Thesefigureswereusedtocalculatetheamountofmoneythesmallbusiness
w aseligible to receive underthe PPP.
10. In addition, a business applying for a PPP loan w as required to provide
docum entation show ing its payroll expenses. This payroll inform ation was m aterial to the
application because,pursuantto sàtutory requirem entsand im plem enting regulations,the am ount
ofthe loan thattypically could be approved w as a function of the applicant's historicalpayroll
costs,consisting of compensation to its em ployees whose principalplace of residence w as the
UnitedStates,subjecttocertainexclusions.
lndividuals who operated a business under a ûtsole proprietorship'' business
structure w ere eligible for a PPP loan. To qualify forsuch a PPP loan,individualshad to report
Case 0:23-cr-60203-BB Document 3 Entered on FLSD Docket 10/11/2023 Page 6 of 16
and docum ent their incom e and expenses from the sole proprietorship. Sole proprietorships
WPiCa11y reporttheirincome and expensesyearly to the 1RS on atTorm 1040,Schedule C.'' As
with other PPP loans,this inform ation and supporting docum entation was used to calculate the
am ountofm oney the individualw as entitled to receive underthe PPP. The m axim um PPP loan
amountforasoleproprietorwith noemployeeswas$20,833.
12. PPP loan applicationsw ere processed by participating lenders and third-party loan
processors. lfa PPP loan application wasapproved,theparticipating lenderfunded the PPP loan
using its own m onies,including by electronic transfer through the A utom ated Clearing House
(ACH)system.W hileitwastheparticipatinglenderthatissuedthePPP loan,theloanwas100%
guaranteed by the SBA .D ata from the application,including inform ation aboutthe borrow er,the
totalam ountofthe loan,and thelisted numberofem ployees,w astransm itted by the lenderto the
SBA in the course ofprocessing the Ioan.
13. A fter the lender funded the PPP loan to the borrow er, the lender subm itted
disbursem entdetailsinto theSBA E-Tran system ,w ith serverslocated in Sterling,VA .The SBA 'S
Denver Finance Center, located in D enver, Colorado, created paym ent files and authorized
paym ents ofthe PPP processing fee to the lenderthrough the FinancialM anagem ent System to
theTreasuty.Theprimary serverfortheFinancialM anagementSystem wasin Sterling,VA.The
PPP processing fee varied depending on the am ountofthe loan. Once created,thepaym entfiles
w ere then transm itted via wire to the U .S.Treasury disbursing office in K ansas City,M issouri,
w hich,in turn,sentinstructionsforpaym entoffundsto theFederalReserveBankA cl-
lprocessing
site in EastRutherford,N ew Jersey.
14. Theproceeds ofa PPP loan could be used only forcertain specified item s,such as
payrollcosts,costsrelated to the continuation ofgroup health care benefits,or m ortgage interest
Case 0:23-cr-60203-BB Document 3 Entered on FLSD Docket 10/11/2023 Page 7 of 16
paym ents for the business. Ihe proceeds of a PPP loan were notperm itted to be used by the
borrowerstopurchaseconsumergoods,automobiles,personalresidences,clothing,orjewelry,to
pay the borrower's personalfederalincom e taxes,orto fund the borrow er'sordinaly day-to-day
living expensesunrelated to the specitsed authorized expenses.
15. The PPP allowed the interestand principalon the PPP loan to be entirely forgiven
ifthe borrow erutilized 60% ofthe loan in the 24 weekspost-disbursem enttow ard payrollcosts
andutilizedtheremaining40% onqualifiedexpenseitems(e.g.,mortgage,rent,andutilities).
16. Applying forPPP loan forgivenessw asa separate process thatrequired additional
affinnationsthatthe applicantsatisfied the eligibility forPPP loan forgiveness.W hateverportion
ofthe PPP loan w asnotforgiven w asserviced asa loan.
InvestigationofcertainBrowardSherW sOm ceEmployeesF/1/ReceivedPPP Loans
D uring the COV1D-19 pandem ic, federal and state law enforcem ent agencies,
including the FBI,the Board of Governors of the FederalReserve System ,Office of lnspector
GeneralCIFRB-OIG''),and theBroward Sheriff'sOftke CçBSO''),became aware thatcertain
currentand form erBSO em ployees,including,butnotlim ited to,sw orn law enforcem entofficers,
had received one orm ore PPP loansw hile they w ere employed by BSO .
18. ln and around M ay 2022,the United States A ttorney's O ftk e for the Southem
DistrictofFloridaCtUSAO''),in coordinationwithFRB-OIG,BSO,andFBI,openedacriminal
investigation to determ inew hetherany currentorform erBSO employee had violated federallaw
in connection w ith obtaining or attem pting to obtain a PPP loan or any other form ofpandem ic
relief authorized underthe CA RES A ct,such asloans and advances m ade available through the
SBA'SEconomiclnjuryDisasterLoan(EIDL)program (hereinafter,theGGlnvestigation'').
Case 0:23-cr-60203-BB Document 3 Entered on FLSD Docket 10/11/2023 Page 8 of 16
SM ITH is one such current BSO employee whom the U SAO and its law
enforcem ent partners investigated after learning that SM ITH had received PPP loans while
employed by B SO. SM ITH has bçen employed by BSO since approxim ately M arch 1996 and
held the title ofDeputy Sheriffin BSO 's Departm entofLaw Enforcem ent.
20. M ore specitk ally,1aw enforcem ent learned from SBA records and other sources
described below thatSM ITH received the follow ing two PPP loanswhile em ployed by BSO :
a. SBA loannumber1892748707 in theam ountof$20.833.00,which wasdisbursed
onoraboutApril1,2021,from aPPPlenderCtender1'')toborrowerédstephanie
Sm ith''as a sole proprietordoing business as ççchildren 1stBasketballTraining''
(hereinafter,theCfhildren 1stPPP Loan'');and
b. SBA loan number7928598808in theamountof$10.275.00,which wasdisbursed
onoraboutMay 11,2021,from aPPPlender(Gtender2'3toborrowerçûstephanie
Smith''asasoleproprietordoingbusinessasGW gape SmithVending''(hereinafter,
theEW gapePPP Loan'').
21. Asmoreparticularlydescribedbelow,pursuanttofederalgrandjurysubpoenas,cx
parte court orders, consensual interview s, and other investigative sources and m ethods, the
Investigation hasobtained evidence establishing probable causeto believethat,in connection w ith
the Children 1stPPP Loan and the A gape PPP Loan,SM ITH com m itted violations ofthe w ire
fraud statute.Thatis,SM ITH knowingly devised and participated in a schem eto defraud in which
SM ITH,amongotherthings:(a)submittedandcausedthesubmissionoffalseandfraudulentPPP
loan applications;(b)caused thedisbursementoffraudulently obtained PPP loan proceedsto
herselfby meansofwirecommunicationtransmittedin interstatecommerce;and (c)submitted
and caused the subm ission offalse and fraudulentapplications forfprgivenessofherPPP loans.
6
Case 0:23-cr-60203-BB Document 3 Entered on FLSD Docket 10/11/2023 Page 9 of 16
PR OBABLE CA USE TH AT SM ITH CO M M ITTED W llèE FR AUD
SM lTH FraudulentlkObtainedtheChildren 1stPPP Loan
22. Loanrecordsobtainedbyfederalgrandjurysubpoenashow that,onoraboutM arch
29,2021,SM ITH caused the subm ission of a PPP loan application to Lender 1 for ç'Stephanie
Smith''(thebusinesslegalname)asasoleproprietordoingbusinessasçichildren 1stBasketball
Training''(hereinafter,theûfhildren 1stPPP Application''). TheChildren 1stPPP Application
included SM ITH 'Ssocialsecurity num ber,hom e address,cellphone num ber,and em ailaddress.
Italso listed CSSTEPHAN IE SM ITH''astheprim ary contact,and SM ITH 'SFloridadriver'slicense
w assubm itted therew ith.
23. The Children 1stPPP Application claim ed that Children 1stBasketballTraining
(hereinafter,GEchildren 1st'')had atotalgrossincomeof$100-000forthetax year2019.Based
upon this claim ed totalgross incom e for the tax year 2019,the Children 1st PPP Application
requestedaPPP loan intheamountof$20,833.32.TheChildren 1stPPP Applicationalsoclaimed
thatthepurposeofthe PPP loan w asforpayrollcosts,rent/m ortgage interest,utilities,and covered
operations expenditures. A s explained below ,evidence show sthatChildren 1stin facthad zero
gross incom e forthetax yar2019.
Subm itted w ith the Children 1stPPP Application wasan 1RS Form 1040 Schedule
C,purportedly forthetax year2019.The nam e oftheproprietoron the Schedule C w asttstephanie
D Sm ith''andthe businessnam ewasçschildren 1stBasketballTraining.''The ScheduleC retlected
in line 7 thatChildren 1sthad $100,236 in grossincome and reflected in line 31a netprofk of
$88,193. Asexplained below,evidence showsthatthe Schedule C submitted with the Children
1stPPP Application w asfabricated and w asn0tfled w ith IRS.
Case 0:23-cr-60203-BB Document 3 Entered on FLSD Docket 10/11/2023 Page 10 of 16
25. Tw
he Children 1st PPP Application w as initialed and signed electronically by
SM ITH via D ocusign. Specifically,a Docusign Certifcate of Com pletion forthe Children 1.
PPP Application showed that CESTEPHAN IE SM ITH ,'' using the em ail address
çssmithsd4l7@ aol.com,''signed the Children 1st PPP Application on March 29, 2021,at
approxim ately 7:19 p.m .
26. Subpoenaed bank records show that, on April 1, 2021, SM ITH received the
proceedsofthe Children 1stPPP Loan in the amountof$20,833. M ore specitk ally,Lender1
funded the Children 1stPPP loan by depositing the loan proceedsinto SM ITH 'Schecking account
ending in 3536 in hernam e atBank 1via ACH transfer. Based on my training and experience and
understanding ofthe A CH system ,and m y review ofrecords obtained in the Investigation,the
disbursem ent of the Children 1st PPP loan to SM ITH caused the transm ission of a w ire
com m unication in interstatecom m erce.
Subpoenaçd loan records furthershow thatSM ITH applied for forgiveness ofthe
Children 1stPPP Loan,and thattheprincipalloan am ountand interestw as forgiven by the SBA .
ln particular,a ETPP Loan Forgiveness Application From 35085 Revised January 19,2021''
produced by Lender 1 bears SM ITH 'S electronic signature and is dated July 19, 2021. The
forgivenessapplication claimedthat$12,499.80 in loan proceedswasspenton payrollcosts,and
certifedthattheborrower(SM ITH)hadcompliedwiththerequirementsofthePPPrules.Lender
1'srecords show thatitreceived the Children 1stPPP Loan'sthen-outstanding principalbalance
($20,833)andinterest($68.49)from theSBA onoraboutJuly29,2021.
28. A s indicated above,the Investigation obt ined evidence by cx parte courtorder,
federalgrandjurysubpoenassandothersources,establishingthatthe2019grossincomeclaimed
8
Case 0:23-cr-60203-BB Document 3 Entered on FLSD Docket 10/11/2023 Page 11 of 16
intheChildren 1stPPP Application($100,000)wasmateriallyfalse,andthatthe1RSForm 1040
Schedule C subm itted therew ith w asa fictitiousdocum entnottsled with the IRS. ln particular:
a. Pursuantto an ex parte Order issued by the United States District Courtfor the
SouthernDistrictofFloridaunderTitle26,UnitedStatesCode,Section6l03(i)(l),
thelRSdisclosed totheUSAO forpumosesoftheInvestigation certain federal1ax
returns and tax rettu.
n inform ation relating to SM ITH . This disclosure included a
copy ofSM ITH 'SlRS From 1040 and ScheduleC thereto forthetax year2019that
wasGledwiththeIRS.Thistax ret'urnshowedthat,forthetaxyear2019,SM ITH
reportedthatChildren'slsthad $0.00ingrossincome(ScheduleC,line7)anda
netlossof-$31,911(ScheduleC,line31).Furthermore,theversionoftheSchedule
C subm itted w ith the Children's 1stPPP Application w as notsled w ith the IRS,
and the lRS had no record ofany separate business tax rem l'
n filed for Children's
1stforthetax years2019 or2020.
b. Bank accountstatem entsforSM ITH 'Schecking accountatBank 1ending in 3536,
which received the proceeds of the Children 1st PPP Loan,do not show any
depositsconsistentwith orotherwisesupporting the purported $100,000 in gross
incom e in 2019 that SM ITH claim ed on the Children 1stPPP Application. Bank
account statem ents for SM ITH 'S savings account at Bank 1 likewise show no
depositsconsistentw ith orotherwise supporting such grossincom e.
c. AspartofheremploymentwithBSO,SM ITH wasrequiredtodisclosetoBjO any
outsideemploymentshehadwhileemployedbyBSO.SM ITH didnotdisctoseto
BSO thatshehad any outside em ploym entrelating to Children lstatany tim e.
9
Case 0:23-cr-60203-BB Document 3 Entered on FLSD Docket 10/11/2023 Page 12 of 16
29. Based on my training and experience,and fam iliarity with PPP loan applications,
thereisprobable causeto believethatSM ITH fraudulently obtainedthe Children 1stPPP loan by,
am ong otherthings,falsely and fraudulently inflating Children lst'sgross incom e forthe tax year
2019,and subm itting a fabricated lRS tax docum entto supportsuch m aterialm isrepresentations.
SMITH FraudulentV ObtainedtheAgapePPP Loan
30. Loanrecordsobtalnedbyfederalgrandjurysubpoenashow that,onoraboutApril
15,2021,SM ITH caused the subm ission of a PPP loan application to Lender 2 for tkstephanie
Smith''(thebusinesslegalname)asasoleproprietordoingbusinessasdW gapeSmithVending''
(hereinafter,the ççAgape PPP Application''). The Agape PPP Application included SMI7'H'S
social security num ber,hom e address, cellphone num ber, and em ail address. lt also listed
Etstephanie Sm ith''asthe prim ary contact.
The Agape PPP Application claimed thatAgape Smith Vending (hereinafter,
(Wgape'')hadatotalgrossincomeof$49.326forthetaxyear2019.Baseduponthisclaimedtotal
grossincom eforthetax year2019,the AgapePPP Application requested aPPP loan in theam ount
of$10,275. TheAgape PPP Application also claim ed thatthepurposeofthePPP loan wasfor
payrollcosts,rent/m ortgage interest,utilities,and covered operationsexpenditures. A sexplained
below,evidenceshowsthatAgapein facthad grossincomeofonly $1.452 forthetax yar2019.
32. Subm itted w ith the A gape PPP Application w as an lRS Form 1040 Schedule C,
purportedly forthe tax year2019. The nam e oftheproprietoron the Schedule C w asççstephanie
D Sm ith''and thebusinessnam e w asEW gape Sm ith V ending LLC.'' The Schedule C reflected in
line7 thatAgapehad$49,326in grossincomeand retlectedin line31anetprofk of$43,172.As
explained below ,evidence show sthatthe Schedule C subm itted w ith the Agape PPP Application
w asfabricated and w asnotfiled w ith IRS.
10
Case 0:23-cr-60203-BB Document 3 Entered on FLSD Docket 10/11/2023 Page 13 of 16
The Agape PPP Application w asinitialed and signed electronically by SM ITH via
Docusign and dated A pril 15,2021. Lender 2's loan file for the Agape PPP Loan showed that
SM ITH 'S identity w as verified through an electronic facial sim ilarity com parison between her
Florida driver license and a photograph ofherselfthat SM ITH provided in connection w ith the
subm ission ofthe A gape PPP Application. Ihave com pared photograph ofthe person subm itted
w ith Agape PPP Application and thepicture on SM ITH 'SFlorida driverlicense,and itappearsto
bethe sam e person.
34. Subpoenaed bank records show that, on M ay 11, 2021, SM ITH received the
proceedsoftheAgapePPP Loan in theamountof$10,275.M orçspecifically,Lender2 funded
theA gape PPP loan by depositingtheproceedsinto achecking accountending in l130 in thenam e
of(W gape Smith Vending LLC''atBank 2 via Automated Clearing House (ACH)transfer.
SM ITH is the sole signatory on this bank account. Based on m y training and experience and
understanding of the A CH system ,and m y review of records obtained in the Investigation,the
disbursem entofthe AgapePPP loan causedthetransm ission ofaw irecom m unication in interstate
com m erce.
35. Subpoenaed loan records further show thatSM ITH applied forforgiveness ofthe
Agape PPP Loan, and that the principal am ount and interest w as forgiven by the SBA . ln
particular,a GT PP Loan ForgivenessApplication From 35085 Revised July 30,2021''received by
Lender2w aselectronically signed by SM ITH viaD ocusign on October18,2021.Theforgiveness
applicationclaimed that$6,365 in loan proceedswasspentonpayrollcosts,and certifedthatthe
bonower(SMITH)hadcompliedwiththerequirementsofthePPPnzles.A noticefrom theSBA
m aintained in Lender2'srecordsshow sthatthe SBA m ade a forgivenesspaym entto Lender2 for
11
Case 0:23-cr-60203-BB Document 3 Entered on FLSD Docket 10/11/2023 Page 14 of 16
theAgapePPP Loan'sthen outstanding principalbalance ($10,275)and interest($51.95)on
Novem ber 1,2021.
A s indicated above,the lnvestigation obtained evidence by ex parte courtorder,
federalgrandjurysubpoenas,andothersources,establishingthatthe2019grossincomeclaimed
in the Agape PPP Application ($49,326)wasmaterially false,and thatthe 1RS Form 1040
Schedule C subm itled therew ith w asa fk titiousdocum entnotGled w ith the IRS. ln particular:
a. SM ITH 'SIRS From 1040 and Schedule C thereto forthe tax year2019 filed w ith
theIRS showsthatSM ITH reported that,forthetaxyear2019,Agapehad $1.452
ingrossincome(ScheduleC,line7)andanetlossof-$32-239(ScheduleC,line
31). Furthermore,theversion oftheSchedule C submittedwiththeAgapePPP
Application w as notfiled w ith the IRS,and the 1R S had no record ofany separate
businesstax return filed forA gape forthetax years2019 or2020.
b. Barlk account statem ents for SM ITH 'S checking account for A gape at Bank 2
ending in 1130,w hich received theproceedsofthe Agape PPP Loan,do notshow
any depositsconsistentwith orotherwisesupportingthepurported$49,326ingross
incom e in 2019 thatw asclaim ed on theA gape PPP Application.
c. A spartofherem ploym entwith BSO,SM ITH w asrequired to discloseto BSO any
outside employm entshehad while employed by B SO. SM ITH did notdisclose to
BSO thatshe had any outside employm entrelated to Agape atany tim e.
37. Based on m y training and experience,and fam iliarity w ith PPP loan applications,
thereisprobablecauseto believethatSM ITH fraudulently obtained theA gape PPP loan by,among
other things,falsely and fraudulently inflating Agape's gross incom e forthe tax year2019,and
subm itting a fabricated 1RS tax docum entto supportsuch m aterialm isrepresentations.
12
Case 0:23-cr-60203-BB Document 3 Entered on FLSD Docket 10/11/2023 Page 15 of 16
SMITHACtedKnowinqlyandWithIntenttoDefraud
O ea She Obtained the Chtldren 1stand theAgape PPP Loans
38. OnA ugust7,2023,FB1specialagentsconducted aconsensualinterview ofSM ITH
in Brow ard County. During that interview , agents show ed SM ITH the Children 1st PPP
Application and the A gape PPP Application. ln response to questions from the interview ing
agents,SM ITH acknowledged that:1)SM ITH had signpd therespective PPP applicationsfor
Children 1stand Agape via Docusign;and 2)SMITH had received the respective PPP loan
proceeds on behalfof Children 1stand A gape. W hen the interviewing agentsasked SM ITH if
the inform ation contained in the Children 1stand A gapePPP Applicationswasaccurate,SM ITH
stated that it was. At the conclusion of the interview ,SM ITH asked the interviewing agents
whethershe(SM ITH)wasintrouble.Basedonmytrainingandexperience,andfamiliaritywith
the evidence obtained in thelnvestigation,1do notbelievethatSM ITH wastruthfulw hen shetold
the FBlthatthe inform ation in the Children 1stand Agape PPP Applicationsw asaccurate.
39. During SM ITH 'SA ugust7 interview ,SM ITH also told the interview ing agentsthat
she had received assistancew ith theChildren 1stand A gape PPP A pplicationsfrom atax preparer
(hereinafter,tdpreparer153.Morespecifically,SM ITH statedthatPreparer1hadcreatedthelRS
docum ents,including the Schedule C form s,thatwere subm itted w ith the Children 1stand A gape
PPP Applications.
40. On Septem ber 22,2023,FBl specialagents conducted a consensualinterview of
Preparer 1 in Brow ard County. During that interview,Preparer 1 stated that SM ITH had told
Preparer 1 the am ountsto liston the Schedule C form sthatw ere subm itted w ith the Children 1st
and A gape PPP Applications. M ore specitk ally,Preparer 1 believed that SM ITH had called
Preparer 1 and provided the inform ation for the Schedule C form s over the phone. Preparer 1
believed thatSM ITH provided such inform ation over the phone because Preparer 1 had m ade
13
Case 0:23-cr-60203-BB Document 3 Entered on FLSD Docket 10/11/2023 Page 16 of 16
handwritten noteson a sheesofpaperrecording the nm otmtsthatwere included in the Schedule C
forms.Preparer1providedthissheetwith thehandw ritten notestotheFBI,which Ihavereviewed.
Among otherthings,the sheetcontainsthe noution t:100,0û0 - Line 77'along with SM l-fl-l's
phone num ber,emailaddress,sotialsecurity number,hom e address,sm ong otherthings.
41. Preparer 1 did not independently verify whether the information that SM II'
H
provided to Preparer 1w asaccurate. Preparer 1 stated thatshe hasneverinetSM ITH in person.
Preparer 1 stated thatshe sentthe completed Schedule C forms (containing the information
provided by SW TH),butcouldnotrememberifshedidsoby emailorm gularmail.
42. Preparer1statedthatshedidnotprepareSM ITH'S2019actualincometax retum
andthatshedid nothaveacppy ofsuchreturn.Baseduponmy review ofSV TH'Sactual2019 .
incometax return,lbelievethatSM ITH 'S2019 incom etmx retum wasprepared by som eone other
than Preparer 1.
C ONCLUSION
43. Based upon the foregolng facts,youram antsubmitsthere isprobable causeto
supporta crim inalcomplaintcharging STEPHAN W DIANE SM ITH w ith violationsofTitle ,
18,
Urïiled States Code,Section 1343,thatis,wirefraud.
FURTHER AFFM T SAW TH NAU GH T.
'
ë p #
KELL DV IETRANTONIO
Sm cialAgent
FederalBureau oflnvestigation
Sworn to and subscribed beforem etelephonicglly this 11thday ofOctobet2023.
PA TRICK M .H UN T
/
UNITED STATES M AGISTM TE JUDGE
14
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