Superseding Indictment — United States v. Travis C. Crosby, Northern District of Georgia (Document 125)

Summary

A superseding criminal indictment in United States v. Travis C. Crosby, No. 1:21-cr-00011-LMM-CCB, in the U.S. District Court for the Northern District of Georgia, filed in open court January 4, 2022 as Document 125. The grand jury charges conspiracy to commit bank fraud under 18 U.S.C. § 1349, bank fraud under 18 U.S.C. § 1344, a false statement to a federally insured bank under 18 U.S.C. § 1014, and money laundering under 18 U.S.C. § 1956. It alleges that an SBA Form 2483 PPP loan application submitted May 16, 2020 for Faithful Transport Services, LLC, with IRS Forms 941 reporting $358,819.00 in wages to 16 employees, obtained a $300,000 PPP loan from Financial Institution 1. The forfeiture section lists $88,298.05 in funds from a Faithful Transport Services LLC account at BB&T Bank.

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Cite this document

“Superseding Indictment — United States v. Travis C. Crosby, Northern District of Georgia (Document 125).” Original at ecf.gand.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/indictment-no-1-21-cr-00011-dkt-125-n-d-ga-0dc1df8a6f/, SHA-256 ded8b1d2f9fe2eb0740b547d7ff2f281eaf01316400018ef604fd6e9153eec8b.

Full text

Case 1:21-cr-00011-LMM-CCB Document 125 Filed 01/04/22 Page 1 of 14

FILED IN OPEN COURT
U.S.0.C. -Atlanta

JAN - 4 2022
KEVIN P. WEIMER
IN THE UNITED STATES DISTRICT COURT By: Wvepufy~::rk
FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION

UNITED ST ATES OF AMERICA

V. Superseding Criminal Indictment

TRAVIS C . CROSBY No. 1:21-CR-00011-LMM-CCB

THE GRAND JURY CHARGES THAT:

Background

At times relevant to this Superseding Indictment:

The Defendant and Related Entity

1. The defendant, TRAVIS C. CROSBY ("CROSBY"), was an
individual residing in the District of South Carolina who claimed sole ownership
of Faithful Transport Services, LLC ("Faithful"), a South Carolina Limited
Liability Company.
The Defendant's Co-Conspirator and Other Relevant Individuals

2. Rodericque Jarmaine Thompson a / k/ a Rodriquez Thompson

a/k / a Rodricque Thomas a / k/ a Jammige Troy Thomason a / k/ a Jammie
Troy Thompson a / k/ a Junior Thompson ("Thompson" ) was an individual
residing in the Northern District of Georgia.
3. Micah K. Baisden ("Baisden") was an individual residing in the

Northern District of Georgia who claimed sole ownership of PowerHouse Sports

Academy, LLC ("PowerHouse"), a Georgia Limited Liability Company.
Case 1:21-cr-00011-LMM-CCB Document 125 Filed 01/04/22 Page 2 of 14

4. Keith A . Maloney, Jr. ("Maloney") was an individual residing in

the District of South Carolina who claimed sole ownership of KMJ Transport,

LLC ("KMJ"), a South Carolina Limited Liability Company.

5. Tabronx W. Smith ("Smith") was an individual residing in the

Northern District of Georgia who claimed sole ownership of Market Yourself,

LLC ("Market Yourself"), a Georgia Limited Liability Company.

6. Thomas D. Wilson ("Wilson") was an individual residing in the

Northern District of Georgia who claimed sole ownership of Rare Breed Nation,

LLC ("Rare Breed"), a Georgia Limited Liability Company.

7. Antonio D. Hosey ("Hosey") was an individual residing in the

Northern District of Georgia.

The Small Business Administration
8. The United States Small Business Administration ("SBA") was an
executive branch agency of the United States government that provided support

to entrepreneurs and small businesses. The mission of the SBA was 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.

9. As part of this effort, the SBA enabled and provided for loans

through banks, credit unions, and other lenders. These loans had government-

backed guarantees.

2
Case 1:21-cr-00011-LMM-CCB Document 125 Filed 01/04/22 Page 3 of 14

The Paycheck Protection Program
10. The Coronavirus Aid, Relief, and Economic Security ("CARES") Act

was a federal law enacted in or about March 2020 and was designed to provide

emergency financial assistance to the millions of Americans who are suffering

the economic effects caused by the COVID-19 pandemic.

11. One source of relief that the CARES Act provided for was the

authorization of up to $349 billion in forgivable loans to small businesses for

payroll, mortgage interest, rent/ lease, and utilities, through a program referred

to as the Paycheck Protection Program ("PPP"). In April 2020, Congress

authorized up to $310 billion in additional PPP funding.

12. The PPP allowed qualifying small businesses and other

organizations to receive PPP loans. Businesses must use PPP loan proceeds for

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 certain percentage of the PPP loan proceeds for payroll expenses.
13. The amount of a PPP loan that a small business may have been

entitled to receive was determined by the number of employees employed by the

business and the business's average monthly payroll costs.

14. In order to obtain a PPP loan, a qualifying business was required 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

3
Case 1:21-cr-00011-LMM-CCB Document 125 Filed 01/04/22 Page 4 of 14

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, businesses applying for a PPP loan had to provide documentation

showing their payroll expenses.
15. The SBA oversaw the PPP. However, individual PPP loans were

issued by private, approved lenders who received and processed PPP

applications and supporting documentation, and then made loans using the

lenders' own funds, 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, was transmitted by the lender to the

SBA in the course of processing the loan.

Other Relevant Entities
16. Financial Institution 1 was a financial institution headquartered in
Fort Lee, New Jersey that was insured by the Federal Deposit Insurance

Corporation ("FDIC"). Financial Institution 1 participated in the PPP as a lender,

and as such, was authorized to lend funds to eligible borrowers under the terms

of the PPP.

17. Financial Institution 2 was an FDIC-insured financial institution

headquartered in Salt Lake City, Utah. Financial Institution 2 participated in the

4
Case 1:21-cr-00011-LMM-CCB Document 125 Filed 01/04/22 Page 5 of 14

PPP as a lender, and as such, was authorized to lend funds to eligible borrowers

under the terms of the PPP.

18. Company 1 paired PPP applicants with lenders by collecting

applications, performing underwriting tasks, and submitting approved

applications to SBA-approved lenders such as Financial Institutions 1 and 2 for

funding.

19. Bank 1 was an FDIC-insured financial institution based in San

Francisco, California with branches throughout the United States.
20. Bank 2 was an FDIC-insured financial institution based in Charlotte,

North Carolina with branches throughout the United States.

21. Bank 3 was an FDIC-insured financial institution based in Vienna,

Virginia with branches throughout the United States.

22. Bank 4 was an FDIC-insured financial institution based in Charlotte,
North Carolina with branches throughout the United States.
The Scheme to Fraudulently Obtain PPP Loans

23. Thompson recruited CROSBY, Baisden, Maloney, Wilson, Smith,

and others known and unknown to the Grand Jury, to fraudulently obtain PPP

loans that they were not eligible to receive.

24. Under Thompson's direction, CROSBY, Baisden, Maloney,

Wilson, and Smith, each knowingly submitted, and assisted in the submission

of, SBA Form 2483 PPP Loan Applications to Financial Institutions 1 and 2,

through Company 1, that Thompson had partially completed, bearing their

5
Case 1:21-cr-00011-LMM-CCB Document 125 Filed 01/04/22 Page 6 of 14

respective signatures, and containing false and fraudulent information about

their respective businesses, as set forth in the chart below:

Amount of # of Monthly
Approx. Date
Def endantfBusiness Loan Employees Payroll Lender
of Submission
Requested Indicated Indicated
Financial
Maloney/ KMJ May 4, 2020 $300,000 16 $120,000
Institution 1
Financial
Smith/Market Yourself May 6, 2020 $300,000 16 $120,000
Institution 2
Financial
Wilson/Rare Breed May 8, 2020 $300,000 16 $120,000
Institution 1
Financial
CROSBY /Faithful May 16, 2020 $300,000 16 $120,000
Institution 1
Financial
Baisden/ Powerhouse May 20, 2020 $300,000 16 $120,000
Institution 1

25. As set forth in the chart below, included with each loan

application was a false and fraudulent IRS Form 941 (Employer's

Quarterly Federal Tax Returns) for each business, which falsely

reflected that the business had paid wages, tips, and other compensation

of $358,819.00 to 16 employees in the quarter(s) indicated.

Ql 2019 Q2 2019 Q3 2019 Q42019
DefendantfBusiness
Jan- Mar Apr-Jun Jul- Sep Oct- Dec
Maloney/ KMJ $358,819.00 $358,819.00 $358,819.00 $358,819.00
Smith/Market Yourself N/A $358,819.00 N/A N/A
Wilson/Rare Breed N/A $358,819.00 N/A N/A
CROSBY /Faithful $358,819.00 N/A N/A N/A
Baisden/ Powerhouse $358,819.00 $358,819.00 $358,819.00 N/A

26. Based on the false and fraudulent representations and submissions

in the PPP loan applications, the IRS Forms 941 (Employer's Quarterly Federal

6
Case 1:21-cr-00011-LMM-CCB Document 125 Filed 01/04/22 Page 7 of 14

Tax Returns), and other supporting documentation submitted by CROSBY,

Baisden, Maloney, Wilson, and Smith, with Thompson's assistance and

direction, Financial Institutions 1 and 2 funded the requested PPP loans as

follows:

Approximate Date Amount of PPP Location of
Defendant/Business
Funded Loan Deposit Account
Maloney /KMJ May 4, 2020 $300,000 Bank3
Smith/Market Yourself May 6, 2020 $300,000 Bank3
Wilson/Rare Breed May 8, 2020 $300,000 Bank4
CROSBY /Faithful May 19, 2020 $300,000 Bank2
Baisden/ PowerHouse May 20, 2020 $300,000 Bankl

27. CROSBY, Baisden, Maloney, Wilson, and Smith agreed to pay

Thompson a percentage of the loan amount, after the funds were deposited into

their respective businesses' checking accounts at Banks 1-4.

28. After the PPP loan funds were deposited in their respective

businesses' checking accounts at Banks 1-4, CROSBY, Baisden, Maloney,

Wilson, and Smith used the PPP loan funds for non-qualifying, non-

business-related purposes, including by making checks out to individuals

who did not work for their respective businesses, in violation of the terms of the

PPP loan program.

7
Case 1:21-cr-00011-LMM-CCB Document 125 Filed 01/04/22 Page 8 of 14

Count One
Conspiracy to Commit Bank Fraud
18 U.S.C. § 1349
29. The Grand Jury re-alleges and incorporates by reference the factual

allegations contained in paragraphs 1 through 28 of this Superseding Indictment

as if fully set forth herein.

30. From in or about March 2020 through in or about June 2020, in the

Northern District of Georgia and elsewhere, CROSBY and Thompson did

knowingly and willfully combine, conspire, confederate, agree, and have a tacit

understanding with each other and with others known and unknown to the

Grand Jury, to execute a scheme and artifice to defraud a financial institution, the

deposits of which were insured by the FDIC, and to obtain money, funds, and

credits owned by and under the custody and control of the aforementioned

financial institution by means of materially false and fraudulent pretenses,
representations, and promises and by the omission of material facts, in violation

of Title 18, United States Code, Section 1344.

Object of the Conspiracy

31. The object of the conspiracy was for CROSBY, Thompson, and
others to fraudulently obtain a PPP loan, and to conceal the conspiracy.

Manner and Means

32. The manner and means by which CROSBY, Thompson, and others

sought to accomplish the object of the conspiracy included, among others, the

following:

8
Case 1:21-cr-00011-LMM-CCB Document 125 Filed 01/04/22 Page 9 of 14

33. CROSBY and Thompson conspired to submit and cause to be

submitted false and fraudulent documents, including an SBA Form 2483 PPP

Loan Application and IRS Form 941 (Quarterly Federal Tax Returns), to Financial

Institution 1 to obtain a $300,000 PPP loan for Faithful.

34. As a result of and based on CROSBY and Thompson's false

representations and certifications and falsified supporting documents, Financial

Institution 1, a federally insured lender, issued a $300,000 PPP loan to Faithful.

35. CROSBY and Thompson further conspired to use the PPP loan

funds for non-business expenses, including by making payments to themselves

and individuals who did not work for Faithful, in violation of the terms of the

PPP loan agreement.

All in violation of Title 18, United States Code, Section 1349.

Count Two
Bank Fraud
18 U.S.C. § 1344 and§ 2
36. The Grand Jury re-alleges and incorporates by reference the factual

allegations contained in paragraphs 1 through 28 of this Superseding Indictment

as if fully set forth herein.
37. On or about the date set forth in the chart below, in the Northern

District of Georgia and elsewhere, CROSBY, Thompson, and others known

and unknown to the Grand Jury, did knowingly execute and attempt to execute a

scheme and artifice to defraud Financial Institution 1, the deposits of which were

then insured by the FDIC, and to obtain, by means of materially false and

fraudulent pretenses, representations, and promises, and by omission of material

9
Case 1:21-cr-00011-LMM-CCB Document 125 Filed 01/04/22 Page 10 of 14

facts, certain moneys, funds, credits, assets, secu rities, and other property owned

by and under the custody and control of Financial Institution 1.
Defendant Approximate Date
Count Act of Execution
(Business) of Execution
CROSBY Submission of PPP Loan
2 May 16, 2020
(Faithful) Application

All in violation of Title 18, United States Code, Section 1344 and Section 2.

Count Three
False Statement to a Federally Insured Bank
18 U.S.C. § 1014 and§ 2
38. The Grand Jury re-alleges and incorporates by reference the factual

allegations contained in paragraphs 1 through 28 of this Superseding Indictment

as if fully set forth herein.

39. On or about the date set forth in the chart below, in the North ern

District of Georgia and elsewhere, CROSBY, Thompson, and others, known

and unknown to the Grand Jury, knowingly made, and caused to be made, a

false statement for the purpose of influencing the actions of Financial Institution

1, a financial institution the accounts of which were insured by the FDIC, in
connection with a PPP loan application, as follows:

Count Defendant Approx. False Statement
Date
3 CROSBY May 16, False statements in the PPP Borrower Application Form
2020 and other documents submitted with the Faithful loan
application

All in violation of Title 18, United States Code, Section 1014 and Section 2.

10
Case 1:21-cr-00011-LMM-CCB Document 125 Filed 01/04/22 Page 11 of 14

Count Four
Money Laundering
18 U.S.C. § 1956(a)(l)(B)(i) and§ 2
40. The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 28 of this Superseding Indictment

as if fully set forth herein.

41. On or about the dates set forth in the chart below, in the Northern

District of Georgia and elsewhere, CROSBY, Thompson, and others known and

unknown to the Grand Jury, knowingly conducted and attempted to conduct a

financial transaction affecting interstate commerce, which involved the proceeds

of a specified unlawful activity, that is, bank fraud, in violation of Title 18,

United States Code, Section 1344, knowing that the transaction was designed in

whole and in part to conceal and disguise the nature, location, source,

ownership, and control of the proceeds of specified unlawful activity, and while

conducting and attempting to conduct such financial transaction knowing that

the property involved in the financial transaction represented the proceeds of
some form of unlawful activity:
Count Defendant Approx. Date Description of Transaction
4 CROSBY May 20, 2020 Check number 1100, in the amount of $8,333.33, bearing
Crosby's signature made out to an individual who did
not work for defendant's company was cashed at a bank
in the Northern District of Georgia

All in violation of Title 18, United States Code, Section 1956(a)(l)(B)(i) and
Section 2.

11
Case 1:21-cr-00011-LMM-CCB Document 125 Filed 01/04/22 Page 12 of 14

Forfeiture

Upon conviction of one or more of the offenses alleged in Counts One
through Three of this Indictment, the defendant, CROSBY, shall forfeit to the

United States, pursuant to Title 18, United States Code, Sections 982(a)(2), any

property constituting, or derived from, proceeds the person obtained directly or
indirectly as the result of such violation, including but not limited to the

following:

(a) MONEY JUDGMENT: A sum of money in United States currency,
representing the amount of proceeds obtained as a result of the
offenses alleged in Counts One through Two of this Superseding
Indictment.
(b) FUNDS:

1. $88,298.05 in funds from Bank Account Number ending 2822

held in the name of Faithful Transport Services LLC, at BB&T
Bank, Atlanta, Georgia (20-FBI-004611);
Upon conviction of the offense alleged in Count Four of this Superseding
Indictment, the defendant, CROSBY, shall forfeit to the United States, pursuant
to Title 18, United States Code, Sections 982(a)(l), any property, real or personal,

involved in such offense, or any property traceable to such property, including

but not limited to the following:

(a) MONEY JUDGMENT: A sum of money in United States currency,
representing the amount of proceeds obtained as a result of the

12
Case 1:21-cr-00011-LMM-CCB Document 125 Filed 01/04/22 Page 13 of 14

offenses alleged in Counts One through Two of this Superseding
Indictment.

(b) FUNDS:
1. $88,298.05 in funds from Bank Account Number ending 2822

held in the name of Faithful Transport Services LLC, at BB&T

Bank, Atlanta, Georgia (20-FBI-004611);

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 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 intends, pursuant to Title 21, United States Code, Section
853(p), as incorporated by Title 18, United States Code, Section 982(b)(l), to seek

13
Case 1:21-cr-00011-LMM-CCB Document 125 Filed 01/04/22 Page 14 of 14

forfeiture of any other property of the defendant up to the value of the forfeitable
property.

A - l,rv..£,_ BILL

KURT R. ERSKINE
United States Attorney

CH~zt~-B
__
E
R
___
Assistant United States Attorney
Georgia Bar No. 545627

600 U.S. Courthouse
75 Ted Turner Drive SW
Atlanta, GA 30303
404-581-6000;Fax:404-581-6181

JOSEPH BEEMSTERBOER
Acting Chief, Fraud Section
U.S. Department of Justice

MATTHEW REILLY
Trial Attorney, Fraud Section
U.S. Department of Justice
N .Y. Bar No. 5130935

1400 New York Ave, NW
Bond Building, 3rd Floor
Washington, DC 20005
202-320-8523; Fax: 202-514-3708

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