Indictment — United States v. Sherry Joseph, Southern District of Florida (Document 1)

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An Indictment in United States of America v. Sherry Joseph, a/k/a Mia Santos, Case No. 22-60162-CR-DIMITROULEAS/HUNT, in the U.S. District Court for the Southern District of Florida, entered on the docket July 21, 2022 as Document 1. Count 1 charges conspiracy to commit wire fraud under 18 U.S.C. §§ 1349 and 3147, and Counts 2-7 charge wire fraud under 18 U.S.C. §§ 1343 and 3147, as offenses committed while on pretrial release. The grand jury alleges that from about May 2020 through April 2021 the defendant recruited borrowers for fraudulent PPP loan applications with falsified bank statements and payroll tax forms, in return for kickbacks. It alleges lenders disbursed millions of dollars, including approximately $463,530 to LBRNO, approximately $409,735 to the Thames Foundation and approximately $454,272 to Vennings Liquor. A penalty sheet lists a maximum of 30 years per count.

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Case 0:22-cr-60162-WPD Document 1 Entered on FLSD Docket 07/21/2022

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA

22-60162-CR-DIMITROULEAS/HUNT

Jul 20, 2022

ANGELA E. NOBLE
CLERK U.S. DIST. CT.
$.D. OF FLA. - MIAMI

Case No.
18 U.S.C. § 1349
18 U.S.C. § 1343
18 U.S.C. § 3147
18 U.S.C. § 982
UNITED STATES OF AMERICA
VS.
SHERRY JOSEPH,
a/k/a “Mia Santos,”
a/k/a “Gray,”
a/k/a “Grey,”
Defendant.
/
INDICTMENT
The Grand Jury charges that:
GENERAL ALLEGATIONS

At all times material to this Indictment:

The Paycheck Protection Program

1. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal

law enacted in or around 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 forgivable

loans to small businesses for job retention and certain other expenses, through a program referred

to as the Paycheck Protection Program (“PPP”).

2. Inorder to obtain a PPP loan, a qualifying business submitted a PPP loan application,

which was signed by an authorized representative of the business. The PPP loan application
Case 0:22-cr-60162-WPD Document 1 Entered on FLSD Docket 07/21/2022 Page 2 of 13

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 (Small Business Administration (“SBA”) Form 2483), the small business (through
its authorized representative) was required to provide, among other things, its: (a) average monthly
payroll expenses; and (b) number of employees. These figures were used to calculate the amount
of money the small business was eligible to receive under the PPP. In addition, businesses
applying for a PPP loan were required to provide documentation confirming their payroll expenses.

3. A PPP loan application was processed by a participating lender. If a PPP loan
application was approved, the participating lender funded the PPP loan using its own monies.
While it was the participating lender that issued the PPP loan, the loan was 100% guaranteed by
the SBA. Data from the application, including information about the borrower, the total amount
of the loan, and the listed number of employees, was transmitted by the lender to the SBA in the
course of processing the loan.

4. PPP loan proceeds were required to be used by the business 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 and used a defined portion of the PPP loan
proceeds on payroll expenses.

The Defendant, Related Entities and Individuals

5. Defendant SHERRY JOSEPH, a/k/a “Mia Santos,” a/k/a “Gray,” a/k/a
“Grey,” a resident of New York County, New York, was on pretrial release pursuant to an order

dated October 23, 2019, from the United States District Court for the District of New Jersey, Case
Case 0:22-cr-60162-WPD Document 1 Entered on FLSD Docket 07/21/2022 Page 3 of 13

No. 21-649-CR, which notified the defendant of the potential effect of committing an offense while

on pretrial release.

6. James Stote was a resident of Broward County, Florida.
7. Andre Clark was a resident of Broward County, Florida.
8. Jericca Rosado was a resident of Contra Costa County, California, and

Mecklenburg County, North Carolina.

9. MeMiller Enterprises LLC (“McMiller Enterprises”) was a North Carolina limited
liability company with its registered address in Greensboro, North Carolina.

10. Eric Alexander McMiller, the registered agent and owner of McMiller Enterprises,
was a resident of Guilford County, North Carolina.

11. LBRNOLLC (“LBRNO”) was a North Carolina limited liability company with its
registered address in Charlotte, North Carolina.

12. Joseph Marsell Cartlidge, the registered agent and owner of LBRNO, was a resident
of Guilford County, North Carolina,

13. The Berneta E. Thames Foundation LLC (the “Thames Foundation”) was a South
Carolina limited liability company and charitable organization with its registered address in
Hollywood, South Carolina.

14. | Devonte Demond Thames, the registered agent and owner of the Thames
Foundation, was a resident of Charleston County, South Carolina.

15. | Vennings Liquor and Spirits LLC (“Vennings Liquor”) was a South Carolina
limited liability company with its registered address in Charleston, South Carolina.

16. Gary A. Venning, a close relative of the registered agent and owner of Vennings

Liquor, was a resident of Dorchester County, South Carolina.
Case 0:22-cr-60162-WPD Document 1 Entered on FLSD Docket 07/21/2022 Page 4 of 13

17. Company 1 was a California company with its registered address listed in
Inglewood, California.
18. Individual 1, the registered agent and owner of Company 1, was a resident of Los
Angeles County, California.
19. Bank 1, a financial institution based in Salt Lake City, Utah, was an approved SBA
PPP lender that contracted with a financial technology company to process PPP loan applications.
COUNT 1
Conspiracy to Commit Wire Fraud
(18 U.S.C. §§ 1349 and 3147)
1. The General Allegations section of this Indictment is re-alleged and incorporated
by reference as though fully set forth herein.
2. From in or around May 2020, through in or around April 2021, in Miami-Dade and
Broward Counties, in the Southern District of Florida, and elsewhere, the defendant,
SHERRY JOSEPH,
a/k/a “Mia Santos,”

a/k/a “Gray,”
a/k/a “Grey,”

did willfully, that is, with the intent to further the objects of the conspiracy, and knowingly
combine, conspire, confederate, and agree with James Stote, Andre Clark, Jericca Rosado, Eric
Alexander McMiller, Joseph Marsell Cartlidge, Devonte Demond Thames, Gary A. Venning,
Individual 1, and others, to commit an offense against the United States, that is, to knowingly, and
with intent to defraud, devise, and intend to devise, a scheme and artifice to defraud, and to obtain
money and property by means of materially false and fraudulent pretenses, representations, and
promises, knowing that the pretenses, representations, and promises were false and fraudulent
when made, and, for the purpose of executing the scheme and artifice, did knowingly transmit and

cause to be transmitted, by means of wire communication in interstate commerce, certain writings,

4
Case 0:22-cr-60162-WPD Document 1 Entered on FLSD Docket 07/21/2022 Page 5 of 13

signs, signals, pictures, and sounds, in violation of Title 18, United States Code, Sections 1343 and
3147.

PURPOSE OF THE CONSPIRACY

3. It was the purpose of the conspiracy for the defendant and her co-conspirators to
unlawfully enrich themselves by, among other things: (a) submitting and causing the submission
of false and fraudulent applications for loans made available through the SBA to provide relief for
the economic effects caused by the COVID-19 pandemic, including PPP loans; (b) offering,
paying, and receiving kickbacks in return for referring other individuals for the submission of false
and fraudulent loan applications; and (c) diverting fraud proceeds for the defendant’s and co-
conspirators’ personal use, the use and benefit of others, and to further the conspiracy.

MANNER AND MEANS OF THE CONSPIRACY

The manner and means by which the defendant and her co-conspirators sought to
accomplish the object and purpose of the conspiracy included, among others, the following:

4. SHERRY JOSEPH, a/k/a “Mia Santos,” a/k/a “Gray,” a/k/a “Grey,” James
Stote, Andre Clark, Jericca Rosado, Eric Alexander McMiller, Joseph Marsell Cartlidge, Devonte
Demond Thames, Gary A. Venning, Individual 1, and others submitted and caused to be submitted
fraudulent PPP loan applications for McMiller Enterprises, LBRNO, the Thames Foundation,
Vennings Liquor, Company 1, and other entities via interstate wire communications, seeking
funding from approved SBA PPP lenders.

5. Before the submission of these fraudulent PPP loan applications, SHERRY
JOSEPH, a/k/a “Mia Santos,” a/k/a “Gray,” a/k/a “Grey,” recruited, via Jeticca Rosado and
others, Eric Alexander McMiller, Joseph Marsell Cartlidge, Devonte Demond Thames, Gary A.

Venning, Individual 1, and others, to apply for fraudulent PPP loans as part of the scheme, and to
Case 0:22-cr-60162-WPD Document 1 Entered on FLSD Docket 07/21/2022 Page 6 of 13

agree to provide the defendant kickbacks from their PPP loan proceeds.

6. Using aliases, SHERRY JOSEPH, a/k/a “Mia Santos,” a/k/a “Gray,” a/k/a
“Grey,” relayed via interstate wire communications the information she collected from these
recruits to James Stote and other co-conspirators, who used this information to prepare fraudulent
PPP loan applications which included falsified bank statements and payroll tax forms, among other
things, and falsely and fraudulently represented the borrowing entities’ number of employees and
amount of monthly payroll.

7. As a result of the false and fraudulent PPP loan applications submitted as part of
this scheme, Bank 1 and other financial institutions participating in the PPP disbursed millions of
dollars in PPP loan proceeds via interstate wire transmissions, including approximately $463,530
to LBRNO, approximately $409,735 to the Thames Foundation, and approximately $454,272 to
Vennings Liquor.

8. As compensation for facilitating the fraudulent PPP loans, SHERRY JOSEPH,
a/k/a “Mia Santos,” a/k/a “Gray,” a/k/a “Grey,” demanded and attempted to coordinate the
payment of kickbacks to herself, Jericca Rosado, James Stote, and Andre Clark from individuals
whom she believed had received fraudulent PPP loans through the scheme.

9. SHERRY JOSEPH, a/k/a “Mia Santos,” a/k/a “Gray,” a/k/a “Grey,” and other
co-conspirators used the proceeds from the fraud scheme to enrich themselves and others, and to
further the conspiracy.

All in violation of Title 18, United States Code, Sections 1349 and 3147.
Case 0:22-cr-60162-WPD Document 1 Entered on FLSD Docket 07/21/2022 Page 7 of 13

COUNTS 2-7

Wire Fraud
(18 U.S.C. §§ 1343 and 3147)

1. The General Allegations section of this Indictment is re-alleged and incorporated
by reference as though fully set forth herein.
2. On or about the dates specified below, in Broward County, in the Southern District
of Florida, and elsewhere, the defendant, .
SHERRY JOSEPH,
a/k/a “Mia Santos,”
a/k/a “Gray,”
a/k/a “Grey,”
did knowingly, and with the intent to defraud, devise, and intend to devise, a scheme and artifice
to defraud, and to obtain money and property by means of materially false and fraudulent
pretenses, representations, and promises, knowing that the pretenses, representations, and
promises were false and fraudulent when made, and, for the purpose of executing the scheme and
artifice, did knowingly transmit and cause to be transmitted, by means of wire communication in
interstate commerce, certain writings, signs, signals, pictures, and sounds, in violation of Title 18,

United States Code, Section 1343.

PURPOSE OF THE SCHEME AND ARTIFICE

3. It was the purpose of the scheme and artifice for the defendant and her accomplices
to unlawfully enrich themselves by, among other things: (a) submitting and causing the submission
of false and fraudulent applications for loans made available through the SBA to provide relief for
the economic effects caused by the COVID-19 pandemic, including PPP loans; (b) offering,
paying, and receiving kickbacks in return for referring other individuals for the submission of false
and fraudulent loan applications; and (c) diverting fraud proceeds for the defendant’s and

accomplices’ personal use, the use and benefit of others, and to further the scheme and artifice.

7
Case 0:22-cr-60162-WPD Document1 Entered on FLSD Docket 07/21/2022 Page 8 of 13

THE SCHEME AND ARTIFICE

4, The Manner and Means section of Count 1 of this Indictment is re-alleged and
incorporated by reference as though fully set forth herein as a description of the scheme and
artifice.

USE OF WIRES

5. On or about the dates below, in the Southern District of Florida, and elsewhere,

executing and in furtherance of the aforesaid scheme and artifice to defraud, and to obtain money .
and property by means of materially false and fraudulent pretenses, representations, and promises,
knowing that the pretenses, representations, and promises were false and fraudulent when made,
did knowingly transmit and cause to be transmitted in interstate and foreign commerce, by means

of wire communication, certain writings, signs, pictures, and sounds, as described below:

COUNT APPROXIMATE DATE DESCRIPTION OF WIRE
Email transmission from SHERRY
JOSEPH, a/k/a “Mia Santos,” a/k/a
“Gray,” a/k/a “Grey,” from outside
of Florida to James Stote, in the
Southern District of Florida,
requesting fraudulent PPP loan for
McMiller Enterprises.

Email transmission from SHERRY
JOSEPH, a/k/a “Mia Santos,” a/k/a
3 June 1, 2020 “Gray,” a/k/a “Grey,” from outside
of Florida to James Stote, in the
Southern District of Florida, attaching
voided check for LBRNO.

Wire transfer in the amount of
$61,460 from the Wells Fargo account
ending in 0827, belonging to the
Thames Foundation, from outside of
Florida to the Citibank account ending
in 6828, belonging to James Stote, in
the Southern District of Florida.

|
SHERRY JOSEPH, a/k/a “Mia Santos,” a/k/a “Gray,” a/k/a “Grey,” for the purpose of

2 June 1, 2020

4 June 5, 2020
Case 0:22-cr-60162-WPD Document 1 Entered on FLSD Docket 07/21/2022 Page 9 of 13

COUNT APPROXIMATE DATE DESCRIPTION OF WIRE
Text message from SHERRY
JOSEPH, a/k/a “Mia Santos,” a/k/a
“Gray,” a/k/a “Grey,” from outside
of Florida to James Stote, in the
Southern District of Florida,
indicating Gary Venning’s full
payment of a kickback in relation to
fraudulent PPP loan disbursed to
Vennings Liquor.

Text message from SHERRY
JOSEPH, a/k/a “Mia Santos,” a/k/a
“Gray,” a/k/a “Grey,” from outside
of Florida to James Stote, in the
Southern District of Florida, stating
she had informed Individual 1 of the
“25%” kickback Individual 1 owed
Stote in relation to a fraudulent PPP
loan disbursed to Company 1.

Text message from SHERRY
JOSEPH, a/k/a “Mia Santos,” a/k/a
“Gray,” a/k/a “Grey,” from outside
7 June 16, 2020 of Florida to James Stote, in the
Southern District of Florida,
requesting fraudulent tax forms in
support of fraudulent PPP loan
applications.

5 June 9, 2020

June 10, 2020

In violation of Title 18, United States Code, Sections 1343, 3147, and 2(a).

FORFEITURE ALLEGATIONS

1. The allegations contained in this Indictment are re-alleged and incorporated by
reference as though fully set forth herein for the purpose of alleging forfeiture to the United States
of certain property in which the defendant, SHERRY JOSEPH, a/k/a “Mia Santos,” a/k/a
“Gray,” a/k/a “Grey,” has an interest.

2. Upon conviction of a violation, or a conspiracy to commit a violation, of Title 18,
United States Code, Section 1343, as alleged in this Indictment, the defendant shall forfeit to the

United States any property constituting, or derived from, any proceeds the defendant obtained,
Case 0:22-cr-60162-WPD Document1 Entered on FLSD Docket 07/21/2022 Page 10 of 13

directly or indirectly, as the result of such violation pursuant to Title 18, United States Code,

Section 982(a)(2)(A).
3. If any of the property subject to forfeiture, as a result of any act or omission of the
defendant:

a. cannot be located upon the exercise of due diligence;

b. has been transferred or sold to, or deposited with, a third party;

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 divided without difficulty,
the United States shall be entitled to the forfeiture of substitute property under the provisions of
Title 21, United States Code, Section 853(p).

All pursuant to Title 18, United States Code, Section 982(a)(2)(A), and the procedures set
forth in Title 21, United States Code, Section 853, as incorporated by Title 18, United States Code,
Section 982(b)(1).

A TRUE BILL

JUANANTONIO GONSALEZ AALORINDA I. LARYEA

UNITED STATES ATTORNEY ACTING CHIEF, FRAUD SECTION
KIRAN BHAT PHILIP B. TROUT

ASSISTANT UNITED STATES ATTORNEY TRIAL ATTORNEY, FRAUD SECTION

10
Case 0:22-cr-60162-WPD Document 1 Entered on FLSD Docket 07/21/2022 Page 11 of 13

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA

UNITED STATES OF AMERICA CASE NO.:

v.

SHERRY JOSEPH, CERTIFICATE OF TRIAL ATTORNEY*
a/k/a "Mia Santos," a/k/a "Gray,"
alk/a "Grey, / Superseding Case Information:

Defendant.

Court Division (select one) New Defendant(s) (Yes or No)
Miami Key West FTP Number of New Defendants
FTL WPB Total number of New Counts

I do hereby certify that:

{. | have carefully considered the allegations of the indictment, the number of defendants, the number of probable
witnesses and the legal complexities of the Indictment/Information attached hereto.

2. 1 am aware that the information supplied on this statement will be relied upon by the Judges of this Court in setting
their calendars and scheduling criminal trials under the mandate of the Speedy Trial Act, Title 28 U.S.C. §3161.

3. Interpreter: (Yes or No) No
List language and/or dialect:

4. This case will take 14 days for the parties to try.

5. Please check appropriate category and type of offense listed below:

(Check only one) (Check only one)
I [£1 Oto 5 days [1] Petty

Tl £1 6to 10 days . [ Minor

TI [111 to 20 days Misdemeanor
IV E?1 to 60 days Felony

V__ E161 days and over

6. Has this case been previously filed in this District Court? (Yes or No) No
If yes, Judge Case No.
7. Has a complaint been filed in this matter? (Yes or No) No
If yes, Magistrate Case No.
8. Does this case relate to a previously filed matter in this District Court? (Yes or No) Yes
If yes, Judge Case No. SEE ATTACHED STATEMENT
9. Defendant(s) in federal custody as of Oct. 10, 2019, in 21-649-CR (D.N.J.)
10. Defendant(s) in state custody as of
11. Rule 20 from the District of
12. Is this a potential death penalty case? (Yes or No) No
13. Does this case originate from a matter pending in the Northern Region of the U.S. Attorney’s Office
prior to August 8, 2014 (Mag. Judge Shaniek Maynard? (Yes or No) No
14. Does this case originate from a matter pending in the Central Region of the U.S. Attorney’s Office
prior to October 3, 2019 (Mag. Judge Jared Strauss? (Yes or No) No

By: <-<_-rc-.

Kiran N. Bhat
Assistant United States Attorney
FL Bar No. 1008370
Case 0:22-cr-60162-WPD Document 1 Entered on FLSD Docket 07/21/2022

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA

Case No.

UNITED STATES OF AMERICA
VS.

SHERRY JOSEPH,
a/k/a “Mia Santos,”
a/k/a “Gray,”
a/k/a “Grey,”

Defendant.
/

STATEMENT OF RELATED CASES

United States v. Rosado, 21-6021 1-CR-Martinez
United States v. Thames, 21-60125-CR-Altman
United States v. Clark, 21-60029-CR-Dimitrouleas
United States v. Walker, 20-60159-CR-Ruiz

United States v. Bostic, et al., 20-60139-CR-Dimitrouleas
United States v. Kelly, 22-20168-CR-Scola

United States v. Smith, 21-20001-CR-Cooke

United States v. Johnson, 21-60017-CR-Altman
United States v. Arnold, 21-20331-CR-Bloom
United States v. Denton, 21-60171-CR-Smith
United States v. Garcia, 21-60146-CR-Altman
United States v. Bain, 21-60200-CR-Middlebrooks
United States v. Bellamy, 21-60064-CR-Altman
United States v. Pierre, 21-60288-CR-Dimitrouleas
United States v. Duhart, 21-60254-CR-Dimitrouleas
United States v. Venning, 22-60001-CR-Singhal
United States v. Blanco, 22-60085-CR-Ruiz

Page 12 of 13
Case 0:22-cr-60162-WPD Document 1 Entered on FLSD Docket 07/21/2022 Page 13 of 13

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA

PENALTY SHEET

Defendant's Name: SHERRY JOSEPH, a/k/a “Mia Santos,” a/k/a “Gray,” a/k/a “Grey”

Case No:

Count #: 1

Conspiracy to Commit Wire Fraud, Offense Committed While on Pre-Trial Release

Title 18, United States Code, Sections 1349 and 3147
* Max. Term of Imprisonment: 30 years
* Mandatory Min. Term of Imprisonment (if applicable): N/A
* Max. Supervised Release: 5 years
* Max. Fine: $250,000

Counts #: 2-7

Wire Fraud Offense Committed While on Pre-Trial Release

Title 18, United States Code, Sections 1343 and 3147
* Max. Term of Imprisonment: 30 years
* Mandatory Min. Term of Imprisonment (if applicable): N/A
* Max. Supervised Release: 5 years
* Max. Fine: $250,000

*Refers only to possible term of incarceration, supervised release and fines; does not include
restitution, special assessments, parole terms, or forfeitures that may be applicable.


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