Criminal Indictment — United States v. Roderick B. Billingslea (N.D. Ga., Document 1, February 6, 2024)
Summary
A grand jury indictment in United States v. Roderick B. Billingslea, Case 1:24-cr-00043-LMM-CMS, in the U.S. District Court for the Northern District of Georgia, Atlanta Division, filed February 6, 2024 as Document 1. Counts One and Two charge wire fraud, and later counts cite Title 18, United States Code, Section 1519 over false answers on FMCSA registration forms. The indictment alleges that after the Federal Motor Carrier Safety Administration ordered Billingslea, Inc. to cease operations on or about January 7, 2020, Billingslea applied to Kabbage on or about June 17, 2020 for a PPP loan, falsely answering the debarment question and claiming 25 employees and a monthly payroll of $225,746. It states that Kabbage approved a loan for $564,363.00, transferred on or about June 19, 2020. It also describes trucking companies registered with the FMCSA under other names and addresses.
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“Criminal Indictment — United States v. Roderick B. Billingslea (N.D. Ga., Document 1, February 6, 2024).”
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,f Case 1:24-cr-00043-LMM-CMS Document 1 Filed 02/06/24 Page 1 of 14
ORIGINAL
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION
UNITED ST A TES OF AMERICA
V.
Criminal Indictment
No.
RODERICK B. BILLINGSLEA
1=24-CR-043
THE GRAND JURY CHARGES THAT:
Counts One and Two
Wire Fraud
1. Beginning in or about June 2020 and continuing until in or about April
2022, in the Northern District of Georgia and elsewhere, Defendant RODERICK
B. BILLINGSLEA, aided and abetted by others unknown to the Grand Jury, did
knowingly devise and intend to devise a scheme and artifice to defraud, and for
the purpose of obtaining money and property by means of materially false and
fraudulent pretenses, representations, and promises, and by omissions of
material fact, knowing and having reason to know that the pretenses,
representations, promises, and omissions were and would be false and
fraudulent when made and caused to be made, and that said pretenses,
representations, promises, and omissions were and would be material.
Relevant Entities
The Federal Motor Carrier Safety Administration
2. The Federal Motor Carrier Safety Administration ("FMCSA") is an agency
of the United States that is part of the Department of Transportation ("DOT").
Case 1:24-cr-00043-LMM-CMS Document 1 Filed 02/06/24 Page 2 of 14
The FMCSA was charged with, among other things, prescribing and enforcing
safety regulations involving the use of commercial motor vehicles ("CMVs") in
interstate commerce to transport passengers or property, and was responsible
for, among other things, the regulations of both CMV carriers and their drivers.
3. A motor carrier is forbidden from operating unless the motor carrier is
registered in accordance with the requirements mandated by the Secretary of
Transportation (as delegated to the FMCSA), pursuant to 49 U.S.C. § 13901 &
13902. The FMCSA registers motor carriers by issuing certificates to operate
pursuant to 49 C.F.R. § 365.101. The application process requires the motor
carrier representative to complete an application form, MSCA-1, and submit that
form under penalty of perjury. The application may be completed and
submitted through an online official website.
4. FMCSA is required to revoke the registration/ certificate to operate when a
motor carrier receives an unsatisfactory safety rating. In the event that violations
are determined to pose an imminent hazard, the FMCSA may immediately place
a motor carrier out of service, which makes it a violation for the motor carrier to
operate commercial motor vehicles in interstate and intrastate commerce.
5. When the FMCSA places a motor carrier out of service, the carrier is
prohibited from operating under another name or creating another business
entity to avoid the impact of the out-of-service order.
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Defendant and His Business Entities
6. Defendant BILLINGSLEA, a resident of Acworth, Georgia, was the sole
owner and officer of Billingslea, Inc. ("Billingslea, Inc.").
7. On or about June 27, 2018, Defendant BILLINGSLEA filed Articles of
Incorporation with Florida's Division of Corporations for Billingslea, Inc. The
incorporation documents list the principal place of business as 11 Harmony Rd.,
Acworth, Georgia and identify Defendant BILLINGSLEA as the President of the
business.
8. Billingslea, Inc. was a trucking company regulated by the FMCSA.
9. On or about September 24, 2018, Defendant BILLINGSLEA registered
Billingslea, Inc. with FMCSA by completing Form MCSA-1. In that form, he
listed Billingslea, Inc.' s principal place of business as 4312 Ellipse Drive,
Jacksonville, Florida, and identified himself as the President of the company.
10. On or about July 31, 2019, Defendant BILLINGSLEA registered his
business Freight Angels LLC, a trucking company he owned and operated, with
FMCSA by completing Form MCSA-1. In that form, he listed Freight Angels
LLC' s principal place of business as 4312 Ellipse Drive, Jacksonville, Florida, and
its mailing address as 11 Harmony Grove Parkway, Acworth, Georgia.
Defendant BILLINGSLEA answered "yes" to Question 47 of the form which
asked, "Do you currently have, or have you had within the last 3 years of the
date of filing this application, relationships involving common stock, common
ownership, common management, common control, or familial relationships
with any FMCSA-regulated entities?" and identified Billingslea, Inc.
3
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11. On or about October 19, 2019, Defendant BILLINGSLEA registered Wild
Bill's Heavy Haul LLC, a trucking company he owned and operated, with the
FMSCA by completing Form MCSA-1. In that form, he listed Wild Bill's Heavy
Haul LLC's principal place of business as 11 Harmony Grove Parkway, Acworth,
Georgia, identified himself as the primary contact person for the business, and
listed his address as PO Box 1000, Grain Valley, Missouri. Defendant
BILLINGSLEA answered "yes" to Question 47 of the form which asked, "Do you
currently have, or have you had within the last 3 years of the date of filing this
application, relationships involving common stock, common ownership,
common management, common control, or familial relationships with any
FMCSA-regulated entities?" and identified Billingslea, Inc. and Freight Angels
LLC.
12. On or about June 26, 2020, Defendant BILLINGSLEA registered E Cargo,
a trucking company that he owned and operated, with the FMCSA by
completing Form MCSA-1. In that form, he listed E Cargo's principal place of
business as 243 Reynoldsburg New Albany Road, Blacklick, Ohio, and identified
himself as the business owner. Defendant BILLINGSLEA answered "no" to
Question 47 of the form which asked, "Do you currently have, or have you had
within the last 3 years of the date of filing this application, relationships
involving common stock, common ownership, common management, common
control, or familial relationships with any FMCSA-regulated entities?"
13. On or about November 3, 2020, Defendant BILLINGSLEA, or someone
acting on his behalf, registered Hidden Valley Transport, a trucking company
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that Defendant BILLINGSLEA owned and operated, with the FMCSA by
completing Form MCSA-1. In that form, Hidden Valley Transport's principal
place of business address was listed as 3 Summer Court, Edgewood, New
Mexico, an individual with the initials M.C. was listed as the representative of
the business, and the answer "no" was checked in response to Question 47 which
asked, "Do you currently have, or have you had within the last 3 years of the
date of filing this application, relationships involving common stock, common
ownership, common management, common control, or familial relationships
with any FMCSA-regulated entities?"
14. On or about November 4, 2020, Defendant BILLINGSLEA, or someone
acting on his behalf, registered US Transport, a trucking company that Defendant
BILLINGSLEA owned and operated, with the FMCSA by completing Form
MCSA-1. In that form, US Transport's principal place of business was listed as
121 Mechanic Street, Harrington, Delaware, an individual with the initials L.G.
was listed as the manager of the business, and "no" was checked in response to
Question 47 which asked, "Do you currently have, or have you had within the
last 3 years of the date of filing this application, relationships involving common
stock, common ownership, common management, common control, or familial
relationships with any FMCSA-regulated entities?"
15. On or about November 11, 2020, Defendant BILLINGSLEA, or someone
acting on his behalf, registered Midwest Express, a trucking company that
Defendant BILLINGSLEA controlled, with the FMCSA by completing Form
MCSA-1. In that form, Midwest Express's principal place of business was listed
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as 4 Ruby Lane, Moorcroft, Wyoming, an individual with the initials M.J. was
listed as the manager of the business, and "no" was checked to Question 47
which asked, "Do you currently have, or have you had within the last 3 years of
the date of filing this application, relationships involving common stock,
common ownership, common management, common control, or familial
relationships with any FMCSA-regulated entities?"
16. On or about October 19, 2022, Defendant BILLINGSLEA, or someone
acting on his behalf, registered Dispatch USA, a trucking company that
Defendant BILLINGSLEA controlled, with the FMCSA by completing Form
MCSA-1. In that form, Dispatch USA' s principal place of business was listed as
190 6th Avenue N, Birmingham, Alabama, an individual with the initials D.W.
was listed at the business representative, and "no" was checked to Question 47
which asked, "Do you currently have, or have you had within the last 3 years of
the date of filing this application, relationships involving common stock,
common ownership, common management, common control, or familial
relationships with any FMSCA-regulated entities?"
The Small Business Administration
17. The United States Small Business Administration ("SBA") is an executive
branch agency of the United States government that provides support to
entrepreneurs and small businesses. The mission of the SBA is to maintain and
strengthen the nation's economy by enabling the establishment and viability of
small businesses and by assisting in the economic recovery of communities after
disasters.
6
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18. As part of this effort, the SBA enables and provides for loans through
banks, credit unions, and other lenders. These loans have government-ba cked
guarantees.
The Paycheck Protection Program
19. 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 were 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.
20. In order to obtain a PPP loan, a qualifying business had 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,
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businesses applying for a PPP loan had to provide documentation showing their
payroll expenses.
21. PPP loan applications were processed by participating lenders. If a PPP
loan application was approved, the lender funded the PPP loan using its own
monies, which were 100% guaranteed by the SBA. Data from the application,
including information about the borrower, the total amount of the loan, and the
listed number of employees, were transmitted by the lender to the SBA in the
course of processing the loan.
22. Businesses were required to use PPP loan proceeds on certain permissible
expenses- payroll costs, interest on mortgages, rent, and utilities. The PPP
allowed the interest and principal on the PPP loan to be entirely forgiven if the
business spent the loan proceeds on these expense items within a designated
period of time after receiving the proceeds and used a certain amount of the PPP
loan proceeds on payroll expenses.
23. In order to get the loan forgiven, borrowers were required to complete an
online forgiveness application that was submitted to the lender for approval.
After the forgiveness application was approved, the borrower was no longer
responsible to pay back the PPP loan to the lender.
24. 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, were issued by private approved lenders (most commonly,
banks and credit unions), which received and processed PPP applications and
supporting documentation, and then made loans using the lenders' own funds.
8
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Relevant Financial Entities
25. Kabbage, Inc. ("Kabbage") was an online financial technology company
based in Atlanta, Georgia. The company provided funding directly to small
businesses and consumers through an automated lending platform. Kabbage was
an SBA-approved lender and participated in the PPP program. Kabbage' s
servers were located in Virginia.
26. At all times relevant to these charges, Wells Fargo Bank was a financial
institution based in San Francisco, California that was insured by the FDIC.
Kabbage maintained a bank account ending 2197 at Wells Fargo, from which
Kabbage disbursed all PPP loans.
27. Navy Federal Credit Union ("NFCU") is a financial institution based in
Vienna, Virginia that is insured by the National Credit Union Administration.
Defendant BILLINGSLEA maintained multiple bank accounts with NFCU
including a business checking account ending 5085 for Billingslea, Inc.
The Scheme to Defraud
28. By submitting false and fraudulent information about his business
Billingslea, Inc., Defendant BILLINGSLEA unlawfully obtained a PPP loan from
Kabbage, and then submitted false and fraudulent information in order to induce
the loan to be forgiven.
Manner and Means
29. On or about November 20, 2019, FMCSA completed a compliance review
of Billingslea, Inc. which discovered serious violations of the FMCSA' s
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regulations and the hazardous material regulations, and gave Billingslea, Inc. 60
days to correct the violations.
30. On or about January 7, 2020, FMCSA issued a final order ("the Final
Order") to Billingslea, Inc. to cease and desist all transportation in interstate and
intrastate commerce, and revoked Billingslea Inc.' s registration effective January
20, 2020.
31. The Final Order applied to Billingslea, Inc. and to any successor entities,
including any motor carrier entity or entities established or used to avoid the
consequences of the "final" unsatisfactory safety rating.
32. On or about June 17, 2020, Defendant BILLINGSLEA filed an online
application with Kabbage for a PPP loan on behalf of Billingslea, Inc. knowing
that FMCSA had ordered Billingslea, Inc. to cease operating.
33. On the application form, Defendant BILLINGSLEA falsely answered "No"
to the question "Is the Applicant or any owner of the Applicant presently
suspended, debarred, proposed for debarment, declared ineligible, voluntarily
excluded from participation in this transaction by any Federal department or
agency, or presently involved in any bankruptcy?" knowing that Billingslea, Inc.
had been ordered to cease and desist all operations.
34. On the application form, Defendant BILLINGSLEA also falsely claimed
that Billingslea, Inc. had 25 employees and a monthly payroll of $225,746.
35. Based on the false information, Kabbage approved a loan for $564,363.00.
36. On or about June 19, 2020, Wells Fargo transferred $564,363.00 from
Kabbage's account ending 2197 to Billingslea, Inc.'s NFCU account ending 5085.
10
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37. Defendant BILLINGSLEA used the funds for personal gain and to
continue to operate illegal trucking businesses including Billingslea, Inc., Freight
Angels, LLC, Wild Bill's Heavy Haul, E Cargo, Hidden Valley Transport, US
Transport, Midwest Express and Dispatch USA.
38. In or about February and March 2022, Defendant BILLINGSLEA applied
to have his PPP loan forgiven. In connection with his forgiveness application,
false and fraudulent documents that Defendant BILLINGSLEA submitted to
Kabbage and its assignees were transmitted to the SBA. Specifically, false and
fraudulent payroll lists, a false W-3 tax document, and a false Georgia
Department of Labor Employer's Quarterly Tax & Wage Report were submitted
to the SBA in support of Defendant BILLINGSLEA' s forgiveness application.
39. On or about April 19, 2022, Defendant BILLINGSLEA' s PPP loan was
forgiven in its entirety.
Execution of the Scheme
40. On or about dates listed below, in the Northern District of Georgia and
elsewhere, Defendant RODERICK B. BILLINGSLEA, aided and abetted by others
unknown to the Grand Jury, for the purpose of executing and attempting to
execute the aforesaid scheme and artifice to defraud, with intent to defraud,
caused the wire communications identified below to be transmitted in interstate
commerce.
Count Date Wire Communication
1 02/01 / 2022 False GA DOL Employer's
Quarterly Tax & Wage report (Form
DOL-4N) submitted to SBA
11
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Count Date Wire Communication
2 02/14/2022 False 2019 Form W3 document
submitted to SBA
All in violation of Title 18, United States Code, Section 1343 and Section 2.
Counts Three through Seven
Falsification of records
41. The Grand Jury re-alleges and incorporates by reference the factual
allegations set forth in Paragraphs Two through Sixteen of this Indictment as if
fully set forth herein.
42. On or about the dates listed below, in the Northern District of Georgia and
elsewhere, Defendant RODERICK B. BILLINSGLEA, aided and abetted by others
unknown to the Grand Jury, knowingly made the false entries identified below
on Form MCSA-1, a form required to operate a motor carrier entity in the United
States, knowing that Defendant BILLINGSLEA controlled the motor carrier
entity and had been ordered by FMCSA to cease and desist operating as any
carrier, with the intent to impede, obstruct, and influence the proper
administration of a matter that was within the jurisdiction of the United States
Department of Transportation, a department and agency of the United States:
Count Date Business Entity False Entry
3 06/26/2020 E Cargo False Business Address
False Answer to Question 47
4 11/03/2020 Hidden Valley False Business Owner
False Business Address
False Answer to Question 47
5 11/04/2020 US Transport False Business Owner
False Business Address
False Answer to Question 47
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Count Date Business Entity False Entry
6 11/11/2020 Midwest False Business Owner
Express False Business Address
False Answer to Question 47
7 10/19/2022 Dispatch USA False Business Owner
False Business Address
False Answer to Question 47
All in violation of Title 18, United States Code, Section 1519 and Section 2.
Forfeiture
43. Upon conviction of any of the offenses alleged in this Criminal Indictment,
the defendant shall forfeit to the United States, pursuant to Title 18, United States
Code, Section 981(a)(l)(C) and Title 28, United States Code, Section 2461(c), any
property constituting or derived from proceeds obtained directly or indirectly as
a result of said violations.
44. Upon conviction of any of the offenses alleged in this Criminal Indictment,
the defendant shall forfeit to the United States, pursuant to Title 18, United States
Code, Section 982(a)(1), all property real or personal, involved in such offense
and all property traceable to such offenses.
45. If, as a result of any act or omission of the defendant, 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 person;
c. Has been placed beyond the jurisdiction of the Court;
d. Has been substantially diminished in value; or
e. Has been commingled with other property which cannot be subdivided
without difficulty;
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Case 1:24-cr-00043-LMM-CMS Document 1 Filed 02/06/24 Page 14 of 14
the United States intends, pursuant to Title 18, United States Code, Section 982(b)
and Title 21, United States Code, Section 853(p), and Title 28, United States Code,
Section 2461(c), to seek forfeiture of any property of the defendants up to the
value of the forfeitable property.
A BILL
RYAN K. BUCHANAN
{
DIANE C. SCHULMAN
Special Assistant United States Attorney
Georgia Bar No. 497764
600 U.S. Courthouse
75 Ted Turner Drive SW
Atlanta, GA 30303
404-581-6000; Fax: 404-581-6181
14
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