Exhibit 5, Email Chain, Follow-up on FIBC Application — United States v. Martinez (S.D.N.Y., Dkt. 77-5)
Summary
Exhibit 5, Document 77-5, filed 07/05/23 in United States v. Martinez, Case 1:22-cr-00251-LJL (S.D.N.Y.). It contains a March 2019 email chain between MBE Capital Partners and Export-Import Bank of the United States staff about arranging a call on an FIBC application. It then reproduces MBE Capital Partners, Inc. reviewed financial statements for the year ended December 31, 2018, including a balance sheet showing total assets of $1,315,814,120.04 and a statement of operations showing revenue of $1,319,277,648. The last page is an MBE Capital Partners overview stating that in 2018 the company financed over $1.3 Billion in Fortune 500, city, state and federal debt.
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Cite this document
“Exhibit 5, Email Chain, Follow-up on FIBC Application — United States v. Martinez (S.D.N.Y., Dkt. 77-5).”
Original at storage.courtlistener.com. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/exhibit-5-united-states-v-martinez-dkt-77-5-s-d-n-y-a7ef20233e/
, SHA-256 8334ee1c1fb6e126c3a726e961afea142552d463fab5748d76e11e4edfa6163e.Full text
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Exhibit 5
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@mbecp.com>
Subject: Re: Follow‐up on FIBC Application
Sure My mobile is 202‐ .
Regards,
On Mar 26, 2019, at 4:35 PM, @mbecp.com> wrote:
Dear Messrs. ad
Thank you for being available to speak with Rafael about an FIBC application on Thursday between
11:50‐12:50. Unfortunately, Rafael has had to cancel his trip to Washington; but he would appreciate
the opportunity to speak with you by telephone. If you would be so kind as to give me your mobile
phone numbers, I can arrange for our conference system to call everyone at 12:00PM on Thursday,
March 28th.
We appreciate your consideration.
Sincerely,
From: @exim.gov>
Sent: Tuesday, March 26, 2019 4:08 PM
To: @mbecp.com>
Cc: Rafael Martinez <rmartinez@mbecp.com>; @mbecp.com>;
@exim.gov>
Subject: RE: Follow‐up on FIBC Application
Hi
Since Rafael plans to attend our Annual Conference, I propose we meet in person on Thursday at the
conference. I’ve reached out to one of our FIBC policy experts, (copied); and he is
available to join us. There’s a break from 11:50‐12:50. So let’s plan to meet at noon in the lobby area.
Please let me know if this works for you. Thanks.
Best Regards,
Manager, Minority & Women Owned Business (MWOB) Outreach Group
Office of Small Business
Export-Import Bank of the United States
811 Vermont Ave. NW | Washington, DC 20571
Tel: 202 | @exim.gov
5
Case 1:22-cr-00251-LJL Document 77-5 Filed 07/05/23 Page 7 of 21
Twitter | LinkedIn | YouTube
<image002.png>
From: @mbecp.com]
Sent: Tuesday, March 26, 2019 10:43 AM
To:
Cc: Rafael Martinez;
Subject: FW: Follow-up on FIBC Application
Dear Mr.
Thank you for agreeing to speak with Rafael Martinez about the FIBC application.
Please let me know when he should call you about this. My colleague, , or I will book the
appointment on his schedule.
Sincerely,
VP, Partnership Programs
MBE Capital Partners, LLC
Corporate Headquarters New York Office
One Bridge Plaza North One Penn Plaza
Suite 550 36th Floor
Fort Lee, NJ 07024 New York, NY 10119
(201) 346‐3900 (212) 629‐5400
From: @exim.gov>
Sent: Monday, March 25, 2019 4:08 PM
To: Rafael Martinez <rmartinez@mbecp.com>
Cc: @exim.gov>; @mbecp.com>;
@exim.gov>
Subject: RE: Follow‐up on FIBC Application
Good Afternoon Rafael,
I hope all is well. My apologies for being unresponsive to your messages. We are extremely busy
preparing for our annual conference and it’s great to hear you are attending. Unfortunately, Tammy and
I are attending another conference this week, therefore not available to assist you in person.
That being said, I introduce , Manager of the Minority & Women Owned Business team.
is a fantastic resource in export finance solutions. He will be at the conference ready to assist
6
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you. If you need to contact him prior to your arrival, he can be reached via email:
@exim.gov and phone: .
Thank you for patience and have a great evening.
Best,
| Business Development Specialist
Minority and Women Owned Business & Multiplier Outreach Division
Office of Small Business
Export‐Import Bank of the United States
811 Vermont Ave. NW, | Washington, DC 20571
Office: 202‐ | Mobile: 202‐ | Fax: 202‐
Twitter | LinkedIn | YouTube
<image003.png>
From: @mbecp.com]
Sent: Monday, March 25, 2019 1:25 PM
To: Rafael Martinez
Cc: ;
Subject: Follow-up on FIBC Application
Dear Rafael,
called while you were in a meeting. She and will not be at the EXIM Conference on
Thursday and Friday. (They’ll be attending another conference.) However, will provide an
email introduction to their colleague, , who will be at the EXIM Conference. That way
you and he can speak with or email each other before the Conference with the hope of meeting up
there. Mr. is very familiar with the FIBC application.
Sincerely,
VP, Partnership Programs
MBE Capital Partners, LLC
Corporate Headquarters New York Office
One Bridge Plaza North One Penn Plaza
Suite 550 36th Floor
Fort Lee, NJ 07024 New York, NY 10119
(201) 346‐3900 (212) 629‐5400
m
Register now @ https://www.exim.gov/events/annual‐conferences/2019
7
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Register now @ https://www.exim.gov/events/annual‐conferences/2019
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Register now @ https://www.exim.gov/events/annual‐conferences/2019
8
Case 1:22-cr-00251-LJL Document 77-5 Filed 07/05/23 Page 10 of 21
MBE CAPITAL PARTNERS, INC.
A DIVISION OF REPUBLIC
COMPANIES
REVIEWED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
DECEMBER 31, 2018
Case 1:22-cr-00251-LJL Document 77-5 Filed 07/05/23 Page 11 of 21
Contents
Accountants’ compilation report 1
Financial statements
Balance sheet 2-3
Statement of operations 4
Statement of cash flows 5
Statement of member’s capital 6
Summary of significant accounting policies 7-8
Notes to the financial statements 9
Case 1:22-cr-00251-LJL Document 77-5 Filed 07/05/23 Page 12 of 21
Accountants’ compilation report
To the Members
MBE Capital Partners, Inc.
New York, New York
We have reviewed the accompanying balance sheet of MBE Capital Partners, Inc. as of December 31, 2016, and
the related statements of operations, and member’s capital, and cash flows for the year then ended, which is
presented only for supplementary analysis purposes, in accordance with Statements on Standards for
Accounting and Review Services issued by the American Institute of Certified Public Accountants.
A review is limited to presenting in the form of financial statements information that is the representation of our
findings. We have reviewed but not audited the accompanying consolidated financial statements and,
accordingly, do not express an opinion or any other form of assurance on them.
Madison Avenue
Floor
New York, NY 10016
Certified Public Accountants
February 10, 2018
1
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MBE CAPITAL PARTNERS, INC.
BALANCE SHEET DECEMBER 31, 2018
Assets
Current assets 2018 2017
Cash $ 9,236,251.96 5,631,839
Accounts receivable 1,299,599,963.28 792,439,002
Long term receivables 5,393,184.28 3,288,527
Total current assets 1,314,229,399.52 801,359,368
Property and equipment
Furniture and fixtures 1,432,767.96 873,639
Computers 145,510.64 88,726
1,578,278.60 962,365
Less: accumulated depreciation 315,818.08 192,572
Net fixed assets 1,262,460.52 769,793
Other assets
Security deposits 322,260.00 196,500
Total other assets 322,260.00 196,500
Total assets $1,315,814,120.04 802,325,661
See accountants’ compilation report, the notes to the financial statements, and the summary of significant
accounting policies.
2
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MBE CAPITAL PARTNERS, INC.
BALANCE SHEET DECEMBER 31, 2018
Liabilities and Member’s Capital
Current liabilities
Accounts and accrued expenses payable $1,296,076,872.64 790,290,776
Deferred income taxes 465,661.60 283,940
Total current liabilities 1,296,542,534.24 790,574,716
Total liabilities 1,296,542,534.24 790,574,716
Member’s capital 13,643,530.64 8,319,226
Total liabilities and member’s capital $1,310,186,064.88 798,893,942.00
See accountants’ compilation report, the notes to the financial statements, and the summary of significant
accounting policies.
3
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MBE CAPITAL PARTNERS,
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED
DECEMBER 31, 2018
Revenue $1,319,277,648 802,325,661
Direct costs 1,310,186,064.88 798,893,942
Gross margin 9,091,583.12 3,431,719
Operating expenses
Third Party Commissions 1,413,010.88 861,592
Professional fees 301,376.24 183,766
Rent 352,498.32 214,938
Travel and entertainment 240,091.08 143,397
Office expenses 167,053.68 101,862
Depreciation expense 315,818.08 192,572
Postage and delivery 88,537.04 53,986
Repairs and maintenance 302,863.72 184,673
Telephone 27,978.40 17,090
Dues and subscriptions 22,468 13,700
Bank charges 15,350.40 9,360
Utilities 14,681.28 8,952
Miscellaneous 28,503.20 17,380
Total operating expense 3,290,260.32 2,006,238
Income from operations 5,801,352.80 1,425,481
Other income (expense)
Other income 0 0
Interest expense (110,386.76) (67,309)
Total other income (expense) (110,386.76) (67,309)
Income before provision for income taxes 5,690,966.04 1,358,172
Provision for income taxes
Current
Deferred (185,616.84) (113,181)
Total provision for income taxes (185,616.84) (113,181)
Net income $ 5,505,349.20 1,244,991
See accountants’ compilation report, the notes to the financial statements, and the summary of significant
accounting policies.
4
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MBE CAPITAL PARTNERS, Inc.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED
DECEMBER 31, 2018
Cash flows from operating activities
Net income $ 5,505,349.20 $ 1,24,991.00
Adjustments to reconcile net income to net cash used in operating
activities
Depreciation 137,020.36 83,549.00
Changes in operating assets and liabilities
Increase in accounts receivable (22,766,488.20) (13,882,005)
Increase in long term receivables (1,982.76) (1,209)
Increase in security deposits (45,920) (28,000)
Increase in accounts and accrued expenses payable 2,469,974.48 1,506,092
Increase in deferred income taxes 307,162.16 187,294
Net cash used in operating activities (14,394,884.76) (10,889,288)
Cash flows from investing activities
Purchases of furniture and fixtures (316,313.36) (192,874)
Purchases of computers (141,830,48) (86,492)
Net cash used in investing activities (458,143.84) (279,366)
Cash flows from financing activities
Capital contributions 15,264,992.08 9,307,922
Net cash provided by financing activities 15,264,992.08 9,307,922
Increase in cash 1,153,067.60 703,090.00
Cash, beginning of year 217,741.16 132,769
Cash, end of year $ 1,370,808.76 835,859.00
Supplementary disclosures of cash flow information
Cash paid during the year for:
Income taxes $ -
Interest expense 7,409,957 93,406
See accountants’ compilation report, the notes to the financial statements, and the summary of significant
accounting policies.
5
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MBE CAPITAL PARTNERS, Inc.
STATEMENT OF MEMBER’S CAPITAL
FOR THE YEAR ENDED
DECEMBER 31, 2018
Member’s capital, beginning $ 12,784,910.28 7,795,677
Capital contributions 1,763,000 1,075,000
Net income 5,505,349.20 1,244,991
Member’s capital, ending $ 20,053,259.48 10,115,668
See accountants’ compilation report, the notes to the financial statements, and the summary of significant
accounting policies.
6
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MBE CAPITAL PARTNERS, Inc.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
MBE Capital Partners, Inc. (“the Company”) was formed in July 2013 in the State of New York as a sub
division of Republic Companies. The Company is a corporation company. The Company makes loans against
receivables and assets.
Accounting basis
The Company uses the accrual basis of accounting for financial statement reporting. Accordingly, revenues
are recognized when services are rendered and expenses are realized when the obligation is incurred. For tax
purposes, the Company uses the cash basis.
Cash and cash equivalents
The Company considers all highly liquid investments with a maturity of three months or less when purchased
to be cash equivalents. Cash equivalents are carried at cost, which approximates market value.
Inventories
Inventories consist of paper which is stated at the lower of cost (determined using the first-in, first-out
method) or market value.
Property and equipment
Property and equipment are stated at cost. Depreciation expense is computed using the straight-line method
over the following useful lives:
Estimated
Description useful life
Furniture and fixtures 7
Computers 3
Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reported period. Actual results may differ from these estimates.
See accountants’ report and the accompanying notes to the financial statements. 7
Case 1:22-cr-00251-LJL Document 77-5 Filed 07/05/23 Page 19 of 21
MBE CAPITAL PARTNERS, Inc.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Income taxes
The Company is taxed as a disregarded entity for federal income tax purposes and, thus, no income tax
expense has been recorded in the financial statements. Taxable income of the Company is reported on the
individual tax return of its sole member. However, the Company is subject to New York City
Unincorporated business taxes.
The Company accounts for income taxes using the asset and liability method as required by Statement of
Financial Accounting Standards No. 109, under which deferred tax assets and liabilities are determined based
upon the differences between financial statement carrying amounts and the tax bases of existing assets and
liabilities. Deferred tax liabilities represent the tax effects of taxable and deductible temporary differences in
book and tax reporting. The taxable temporary difference primarily consists of the use of the accrual method
for financial statement reporting purposes and the cash method for tax reporting purposes.
See accountants’ report and the accompanying notes to the financial statements. 8
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MBE CAPITAL PARTNERS, Inc.
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1 – INCOME TAXES
Deferred tax liabilities represent the tax effects of taxable and deductible temporary differences in book and
tax reporting. The taxable temporary difference primarily consists of the use of the accrual method for
financial statement reporting purposes and the cash method for tax reporting purposes.
This amount has been presented in the Company’s financial statements as follows:
Deferred tax liabilities, current $ 83,578.14
NOTE 2 – OPERATING LEASE
The Company rents its operating facilities under an operating lease. The future minimum rental payments for
these obligations are as follows:
December 31, 2018 $ 209,004
2019 213,425
2020 225,832
2021 230,066
See accountants’ report and the accompanying summary of significant accounting policies.
9
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MBE CAPITAL PARTNERS’ COMPREHENSIVE SOLUTIONS
In 2018 MBE Capital Partners (MBECP) financed over $1.3 Billion in Fortune 500, city, state and federal debt.
Backed by over 30 years of industry experience, MBECP focuses on providing a full range of financial
solutions that allow small and diverse businesses to grow by managing cash flow effectively. Our signature
product, Reseevables.com, is the leading electronic exchange for Fortune 500 vendor accelerated payments.
Transactions over the exchange are structured to result in a "true sale" of the receivables, thus offering balance
sheet benefits to sellers and attractive risk-adjusted returns to buyers.
Accessible from anywhere with just a web browser, Reseevables.com protects suppliers and buyers by
providing complete transparency into their program. Here, suppliers accelerate accounts receivable payments,
while funders choose which accounts receivables to finance. Easy, automated and intuitive, Reseevables.com is
the ultimate way to optimize your working capital.
MBECP also provides traditional accounts receivable, purchase order and inventory financing paired with our
finance programs.
COMPREHENSIVE SOLUTIONS
• Reseevables.com
• Managed Supplier Services
• Accounts Receivable Financing
• Purchase Order Financing
• Inventory Financing
• ARCFO (Accounts Receivables Cash Flow Optimizer) – a small business tool that
helps predict cash flow
FINANCIAL IMPACT
• Committed Capacity $4.2 Billion
• Accounts Receivable Financed $1.37 Billion in 2018
• MBE Client Growth 31% Annually on Average
AWARDS
• US MBDA Access to Capital Award 2018
https://www.youtube.com/watch?v=gRHeQ2rc064
• Houston MBDA Business Center’s Corporate Advocate of the Year Award 2017
1 Penn Plaza, Suite 3663, New York, NY 10119 Tel. (212) 629-5400 Fax. (888) 833-7375
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