Criminal Indictment — United States v. Richard Mahee et al., Northern District of Georgia (Document 1)
Summary
A sealed criminal indictment filed December 15, 2021 as Document 1 in United States v. Richard Mahee et al., Case 1:21-cr-00494-UNA, in the U.S. District Court for the Northern District of Georgia, Atlanta Division, against Richard Mahee, Kristen Alexander, David Burge, Gina Destito, Jim White, Morgan Brown, Carlos Stephens, Marvin Lewton, Dale Godboldo and Ion Overman. The grand jury charges that PPP loan applications for businesses the defendants claimed to own were submitted to a non-bank lender with falsified IRS Forms 941 and payroll documents, including an application for ARG Media LLC funded at approximately $361,710.00 on or about May 14, 2020. It states that success fees of two to five percent were paid from the loan proceeds. Count One charges Mahee and Alexander with conspiracy to commit wire fraud under 18 U.S.C. § 1349.
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“Criminal Indictment — United States v. Richard Mahee et al., Northern District of Georgia (Document 1).”
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Case 1:21-cr-00494-UNA Document 1 Filed 12/15/21 Page 1 of 61
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
FILED IN
ATLANTA DIVISION OPEN
COURT
- Atlanta
DEC 5
UNITED STATES OF AMERICA 2
k 1p
Ej 4 . / R
WEM
V. Criminal Indictment iqo7 CIerk
erk
RICHARD MAHEE, No.
KRISTEN ALEXANDER,
DAVID BURGE, UNDER SEAL
GINA DESTITO,
JIM WHITE,
MORGAN BROWN,
CARLOS STEPHENS,
MARVIN LEWTON,
a/k/a "Shadi Powers,"
DALE GODBOLDO, and
ION OVERMAN
THE GRAND JURY CHARGES THAT:
Background
At times relevant to this Indictment:
The Defendants
1. DAVID BURGE ("BURGE") was an individual residing in the state of
Tennessee who claimed to be an owner and the Chief Executive Officer
and President of Elemental Comfort, LLC, a Tennessee corporation.
2. GINA DESTITO ("DESTITO") was an individual residing in the state
of California who claimed to be the owner of HomePoppins.com LLC, a
Nevada corporation.
Case 1:21-cr-00494-UNA Document 1 Filed 12/15/21 Page 2 of 61
3. JIM WHITE ("WHITE") was an individual residing in the state of
New Jersey who claimed to be an owner of AJW Home Services and
Design LLC, a New Jersey corporation.
4. RICHARD MAHEE ("MAHEE") was an individual residing in the state of New
Jersey who claimed to be the owner and President of ARG Media LLC, a
California corporation.
5. KRISTEN ALEXANDER ("ALEXANDER") was an individual residing in the
state of Colorado.
6. MORGAN BROWN ("BROWN") was an individual residing in the state
of Tennessee who claimed to be an owner and the Chief Executive
Officer of BHG LLC, a Tennessee corporation.
7. CARLOS STEPHENS ("STEPHENS") was an individual residing in the
state of Louisiana who claimed to be the owner and Manager of 31
Minds LLC, a Louisiana corporation.
8. MARVIN LEWTON, A/K/A "SHADI POWERS" ("LEWTON") was an
individual residing in the Northern District of Georgia who claimed to
be the owner of Powers Transport Group LLC and DirtySouthHipHop
Online Media Group LLC, which were Georgia corporations.
9. DALE GODBOLDO ("GODBOLDO") was an individual residing in the
state of California who claimed to be the owner and President of
Mahout Star LLC, a California corporation.
2
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10.ION OVERMAN ("OVERMAN") was an individual residing in the state
of California who claimed to be the owner of Bryanston Square Inc., a
California corporation.
Unindicted Co-Conspirator
11.Mark Mason ("Mason") was an individual residing in the Northern
District of Georgia who claimed ownership of M&N Enterprise, LLC, a Georgia
corporation, doing business as Atlanta Business Capital.
The Small Business Administration
12.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.
13.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.
The Paycheck Protection Program
14.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.
Case 1:21-cr-00494-UNA Document 1 Filed 12/15/21 Page 4 of 61
15.One source of relief that the CARES Act provided 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.
16.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.
17.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.
18.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 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
4
Case 1:21-cr-00494-UNA Document 1 Filed 12/15/21 Page 5 of 61
applying for a PPP loan had to provide documentation showing their payroll
expenses.
19.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, were transmitted by the lender to the SBA in the course of
processing the loan.
Background on Financial Institution 1
20.Financial Institution 1 was a non-bank financial institution headquartered
in Laguna Hills, California. Financial Institution 1 participated in the SBA's PPP
as a lender, and as such, was authorized to lend funds to eligible borrowers
under the terms of the PPP.
The Fraudulent PPP Loan Applications and Supporting Documentation
21.On or about the dates listed below, the defendants identified below
submitted, or assisted in the submission of, a PPP loan application for the
businesses identified below with the reported average monthly payroll and
number of employees listed below, to Financial Institution 1 to issue PPP loans:
Defendants Business Date Signed Avg. Employees
(on or about) Monthly
Payroll
BURGE, Elemental Comfort LLC April 7, 2020 $29,500 4
MAHEE,
ALEXANDER
5
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DESTITO, HomePoppins.com LLC April 8, 2020 S31,893 5
MAHEE
WHITE, AJW Home Services and April 10, 2020 S19,360 5
MAHEE Design LLC
MAHEE, ARG Media LLC April 11, 2020 S144,685 20
ALEXANDER
BROWN, BHG LLC April 15, 2020 S17,500 6
MAHEE,
ALEXANDER
STEPHENS, 31 Minds LLC May 7, 2020 S23,833 4
MAHEE
LEWTON, Powers Transport Group May 24, 2020 S23,169 4
MAHEE LLC
GODBOLDO, Mahout Star LLC June 9, 2020 S123,759 15
MAHEE,
ALEXANDER
OVERMAN, Bryanston Square Inc. June 9, 2020 S90,426 11
GODBOLD°,
MAHEE,
ALEXANDER
LEWTON, DirtySouthHipHop August 5, 2020 S154,585 15
MAHEE Online Media Group LLC
22. Each PPP Borrower Application Form was manually or electronically
signed on or about the dates listed in paragraph 21.
23.1n addition, the loan applications contained the respective initials of each
purported business owner to certify each of the following representations:
a. The Applicant business was in operation on February 15, 2020 and
had employees for whom it paid salaries and payroll taxes or paid
independent contractors, as reported on Form(s) 1099-MISC;
b. The funds will be used to retain workers and maintain payroll or
make mortgage payments, lease payments, and utility payments;
and
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c. The information provided in the application and the information
provided in all supporting documents and forms is true and
accurate in all material respects.
24. The PPP loan applications listed in paragraph 21 each included falsified
Internal Revenue Service (IRS) Forms 941 for multiple quarters of 2019 and/or
2020. The IRS Form 941 is the Employer's Quarterly Federal Tax Return. This
form is used by employers to report income taxes, FICA taxes, Social Security
tax, or Medicare tax withheld from employees' paychecks, and to pay the
employer's portion of Social Security or Medicare tax. Generally, any person or
business that pays wages to an employee must file a Form 941 each quarter and
must continue to do so even if there are no employees during some of the
quarters. The PPP loan applications listed in paragraph 21 included falsified
Forms 941 for the respective businesses as follows:
a. The PPP application for ARG Media LLC included falsified Forms
941 for the third and fourth quarter of 2019.
b. The PPP applications for Elemental Comfort LLC, BHG LLC, and 31
Minds LLC included falsified Forms 941 for each quarter of 2019.
c. The PPP applications for HomePoppins.com LLC, AJW Home
Services and Design LLC, Powers Transport Group LLC, Mahout
Star LLC, and Bryanston Square Inc. included falsified Forms 941 for
each quarter of 2019 and the first quarter of 2020.
7
Case 1:21-cr-00494-UNA Document 1 Filed 12/15/21 Page 8 of 61
d. The PPP application for DirtySouthHipHop Online Media Group
LLC included falsified Forms 941 for each quarter of 2019 and the
first and second quarters of 2020.
25.In addition, the PPP loan applications listed in paragraph 21 each included
falsified payroll documentation, including purported payroll spreadsheets
and/or a purported payroll calculator.
26.For each of the loan applications listed in paragraph 21, the falsified Forms
941 were created and submitted by Mason, at the direction of defendant MAHEE.
Mason also created the purported payroll spreadsheets and/or purported
payroll calculators.
27.The purported business owners knew the Forms 941 filed with their
businesses' respective loan applications were falsified. Defendants MAHEE and
ALEXANDER, and the purported business owners communicated with Mason
about the fraudulent PPP loan applications, as well as the amounts to include on
the Forms 941 and purported payroll spreadsheets submitted with the
applications.
28.None of the Forms 941 included with the PPP loan applications listed in
paragraph 21 was filed with the IRS. With the exception of ARG Media LLC,
none of the businesses listed in paragraph 21 filed any Forms 941 in 2019. ARG
Media LLC filed a Form 941 in 2019, but did not report any wages. In fact, during
the period captured by the Forms 941, the businesses listed in paragraph 21 did
not: (1) pay unemployment tax to the IRS, or (2) withhold federal income tax for
any employee. HomePoppins.com LLC, 31 Minds LLC, Powers Transport Group
8
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LLC, and DirtySouthHipHop Online Media Group LLC did not make any tax
filings with the IRS.
PPP Loan Funding and Transfers of Money
29. Based on fraudulent and false representations and submissions made by
and on behalf of the purported business owners, Financial Institution 1 funded
the PPP loans as follows:
a. On or about May 14, 2020, approximately 94,582.50 in PPP loan
funds was distributed by Financial Institution 1 to Elemental
Comfort LLC.
b. On or about May 14, 2020, approximately S43,750.00 in PPP loan
funds was distributed by Financial Institution 1 to BHG, LLC.
c. On or about May 14, 2020, approximately $361,710.00 in PPP loan
funds was distributed by Financial Institution 1 to ARG Media LLC.
d. On or about May 14, 2020, approximately S59,582.50 in PPP loan
funds was distributed by Financial Institution 1 to 31 Minds LLC.
e. On or about June 4, 2020, approximately 557,922.00 in PPP loan
funds was distributed by Financial Institution 1 to Powers Transport
Group LLC.
f. On or about June 18, 2020, approximately S309,400.00 in PPP loan
funds was distributed by Financial Institution 1 to Mahout Star LLC.
g. On or about June 30, 2020, approximately 48,400.00 in PPP loan
funds was distributed by Financial Institution 1 to AJW Homes
Services and Design LLC.
9
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h. On or about June 30, 2020, approximately S226,065.00 in PPP loan
funds was distributed by Financial Institution 1 to Bryanston Square
Inc.
i. On or about July 2, 2020, approximately S79,725.00 in PPP loan
funds was distributed by Financial Institution 1 to
HomePoppins.com LLC.
30.The loan application submitted for DirtySouthHipHop LLC in the amount
of $386,463.00 was denied and never funded.
31.For their work on the PPP loan applications, Mason and defendant MAHEE
received and expected to receive two to five percent of the funded loan amount
as a "success fee" from each purported business owner. After the PPP loan funds
were distributed, defendants DESTITO, WHITE, BROWN, STEPHENS, LEVVTON,
GODBOLDO, and OVERMAN transferred and directed the transfer of a percentage
of the PPP proceeds for their respective loans to Mason, defendant MAHEE, or
their businesses as a "success fee."
Count One
Conspiracy to Commit Wire Fraud - 18 U.S.C. § 1349
(Defendants MAHEE and ALEXANDER)
32.The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31 of this Indictment as if fully set
forth herein.
33.From at least on or about April 1, 2020 through on or about August 9, 2020,
the exact dates unknown, in the Northern District of Georgia and elsewhere, the
Defendants,
10
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RICHARD MAHEE, and
KRISTEN ALEXANDER,
did knowingly and willfully combine, conspire, confederate, agree, and have a
tacit understanding with each other, Mark Mason, and others known and
unknown to the Grand Jury, to 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, and by the omission of
material facts, well knowing and having reason to know that said pretenses were
and would be false and fraudulent when made and caused to be made and that
said omissions were and would be material, and, in doing so, caused interstate
and foreign wire communications to be made, in furtherance of the scheme and
artifice to defraud, in violation of Title 18, United States Code, Section 1343.
Manner and Means
34.Defendants MAHEE and ALEXANDER, together with Mason and others
known and unknown to the Grand Jury, conspired to submit false materials,
such as false PPP loan applications and false IRS Forms 941 to Financial
Institution 1 to obtain PPP loan funding.
35.It was part of the conspiracy that defendant MAHEE directed MASON to
fabricate documents on behalf of "clients" that defendant MAHEE identified
(defendants BURGE, DESTITO, WHITE, BROWN, STEPHENS, LEWTON, GODBOLDO, and
OVERMAN) so they could apply for and receive PPP loans. Defendant MAHEE also
directed Mason to fabricate IRS Forms 941 to be submitted with defendant
MAHEE'S own PPP loan application for the business ARG Media LLC. The
purpose of the false Forms 941 was to circumvent Financial Institution l's
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requirement that prospective borrowers submit Forms 941 to support the payroll
figures that served as the basis for PPP loan amounts. Mason created the
falsified Forms 941 on behalf of the purported business owners. The Forms 941
that Mason created, which had never been filed with the IRS, were submitted in
support of the PPP loan applications set forth in paragraph 21.
36.It was also part of the conspiracy that defendant ALEXANDER assisted in
the preparation of the loan documents for submission to Financial Institution 1
on behalf of defendant MAHEE'S clients, which she knew included false tax
information in the form of the fabricated Forms 941. Defendant ALEXANDER also
assisted in the collection of the "success fees" charged by Mason and defendant
MAHEE in exchange for their roles in creating and submitting the falsified loan
applications.
37.Throughout the conspiracy, defendants MAHEE and ALEXANDER, together
with Mason, utilized interstate wires to submit, assist in the submission, and
communicate with each other and the purported business owners about the
submission of false documents to Financial Institution 1 when applying for a PPP
loan, including fabricated IRS Forms 941 listing falsified payroll information and
false loan documentation that listed false payroll information, false employment
information, and a false purpose for the loan funding.
All in violation of Title 18, United States Code, Section 1349.
12
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Count Two
Conspiracy to Commit Wire Fraud - 18 U.S.C. § 1349
(Defendants MAHEE, BURGE, and ALEXANDER)
38.The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31 and 34 through 37, of this
Indictment as if fully set forth herein.
39.From on or about April 4, 2020 through on or about May 20, 2020, the exact
dates unknown, in the Northern District of Georgia and elsewhere, the
Defendants,
RICHARD MAHEE,
DAVID BURGE, and
KRISTEN ALEXANDER,
did knowingly and willfully combine, conspire, confederate, agree, and have a
tacit understanding with each other, Mark Mason, and others known and
unknown to the Grand Jury, to 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, and by the omission of
material facts, well knowing and having reason to know that said pretenses were
and would be false and fraudulent when made and caused to be made and that
said omissions were and would be material, and, in doing so, caused interstate
and foreign wire communications to be made, in furtherance of the scheme and
artifice to defraud, in violation of Title 18, United States Code, Section 1343.
Manner and Means
40.Defendants MAHEE, BURGE, and ALEXANDER, together with Mason and
others known and unknown to the Grand Jury, conspired to submit false
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materials, such as a false PPP loan application and false IRS Forms 941, to
Financial Institution 1 to obtain PPP loan funding.
41.As part of the conspiracy, defendants MAHEE, BURGE, and ALEXANDER,
together with Mason, submitted false documents to Financial Institution 1 when
applying for a PPP loan on behalf of Elemental Comfort LLC, including
fabricated IRS Forms 941 listing falsified payroll information. Mason created the
falsified Forms 941 on behalf of defendant BURGE. The Forms 941 that Mason
created, which had never been filed with the IRS, were submitted in support of
the PPP loan application. The purpose of the false Forms 941 was to circumvent
Financial Institution l's requirement that prospective borrowers submit Forms
941 to support the payroll figures that served as the basis for PPP loan amounts.
42.The fabricated Forms 941 reflected the following payroll figures for 2019:
Business Q1 2019 Q2 2019 Q3 2019 Q4 2019
Jan - Mar Apr - Jun Jul - Sep Oct - Dec
ELEMENTAL 4 employees 4 employees 4 employees 4 employees
COMFORT LLC S88,500.00 S88,500.0O S88,500.00 S88,500.00
43.In fact, in 2019, Elemental Comfort LLC did not: (1) file any Forms 941
with the IRS, (2) pay unemployment tax to the IRS, or (3) withhold federal
income tax for any employee.
44.In addition, Mason created and submitted falsified payroll documentation
for Elemental Comfort LLC, including a purported payroll calculator listing
Elemental Comfort LLC's average monthly payroll as S37,833 and the requested
loan amount as S94,583.
14
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45.When the PPP loan application for Elemental Comfort LLC was submitted,
defendants MAHEE, BURGE, and ALEXANDER, together with Mason, knew that the
application attached Forms 941 that had never been filed with the IRS.
46.Throughout the conspiracy, defendants MAHEE, BURGE, and ALEXANDER,
together with Mason, utilized interstate wires to submit, assist in the submission,
and communicate about the submission of false documents to Financial
Institution 1 when applying for a PPP loan, including fabricated IRS Forms 941
listing falsified payroll information and false loan documentation that listed false
payroll information, false employment information, and a false purpose for the
loan funding.
47.As a result of and based on the fraudulent and false representations and
submissions made by defendants MAHEE, BURGE, and ALEXANDER, together with
Mason, Financial Institution 1 distributed the loan proceeds of the Elemental
Comfort LLC loan as described in paragraph 29.
All in violation of Title 18, United States Code, Section 1349.
Counts Three through Eight
Wire Fraud - 18 U.S.C. § 1343
(Defendants MAHEE, BURGE, and ALEXANDER)
48.The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31,34 through 37, and 40 through
47, of this Indictment as if fully set forth herein.
49.On or about the dates listed in Column C, in the Northern District of
Georgia and elsewhere, the defendants listed in Column B, aided and abetted by
each other, Mark Mason, and other persons known and unknown to the Grand
15
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Jury, for the purpose of executing and attempting to execute the aforementioned
scheme and artifice to defraud, and to obtain money and property by means of
materially false and fraudulent pretenses, representations, and promises, and by
omission of material facts, knowing and having reason to know that the pretense,
representation, promise, and omission was and would be material, did, with
intent to defraud, cause to be transmitted by means of a wire communication in
interstate and foreign commerce certain writings, signs, and signals - that is, the
electronic transmissions listed in Column D.
A B C D
Count Defendant(s) Date Description of Wire Transmission
(on or about)
Three MAHEE April 4, 2020 Email from defendant MAHEE to
BURGE Mason and defendant BURGE, Bcc:
ALEXANDER defendant ALEXANDER, with the
subject "Fwd: Dirty South Hip Hop
SSS," in which defendant MAT-TEE
provided figures for the monthly
payroll costs for Elemental Comfort
LLC and attached a blank PPP
borrower application form.
Four MAHEE April 7, 2020 Email from defendant BURGE to Mason
BURGE and defendant MAHEE, with the
subject "Re: Updated Form," in which
defendant BURGE attached a
completed PPP Borrower Form
application for Elemental Comfort
LLC.
Five MAHEE April 10, 2020 Email from Mason to defendant
MAHEE, with the subject "941 for
Elemental Comfort," in which Mason
attached a blank, fillable Form 941 and
16
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a spreadsheet labeled "Elemental
Comfort Payroll.xlsx."
Six MAHEE April 11, 2020 Email from defendant MAHEE to
ALEXANDER Mason, Bcc: defendant ALEXANDER
and others, with the subject
"Elemental Comfort f941 2020 Q1-2,
2019 Q2-4," in which defendant
MAHEE attached Forms 941 created for
Elemental Comfort.
Seven BURGE April 13, 2020 Email from Mason to defendant
BURGE, with the subject "Re:
HIGHEST PRIORITY David Burge
Family," in which Mason asked
defendant BURGE to forward the email
he was about to receive from Financial
Institution 1 to access the online
application portal.
Eight BURGE April 13, 2020 Email from defendant BURGE to
Mason, with the subject "Fwd: Your
Application," in which defendant
BURGE forwarded the link to the
Financial Institution 1 online
application portal.
All in violation of Title 18, United States Code, Section 1343 and Section 2.
Count Nine
Conspiracy to Commit Wire Fraud - 18 U.S.C. § 1349
(Defendants MAHEE and DESTITO)
50. The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31 and 34 through 37 of this
Indictment as if fully set forth herein.
17
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51.From on or about April 3, 2020 through on or about July 3, 2020, the exact
dates unknown, in the Northern District of Georgia and elsewhere, the
Defendants,
RICHARD MAHEE, and
GINA DESTITO,
did knowingly and willfully combine, conspire, confederate, agree, and have a
tacit understanding with each other, Mark Mason, and others known and
unknown to the Grand Jury, to 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, and by the omission of
material facts, well knowing and having reason to know that said pretenses were
and would be false and fraudulent when made and caused to be made and that
said omissions were and would be material, and, in doing so, caused interstate
and foreign wire communications to be made, in furtherance of the scheme and
artifice to defraud, in violation of Title 18, United States Code, Section 1343.
Manner and Means
52.Defendants MAHEE and DESTITO, together with Mason and others known
and unknown to the Grand Jury, conspired to submit false materials, such as a
false PPP loan application and false IRS Forms 941, to Financial Institution 1 to
obtain PPP loan funding.
53.As part of the conspiracy, defendants MAHEE and DESTITO, together with
Mason, submitted false documents to Financial Institution 1 when applying for a
PPP loan on behalf of HomePoppins.com LLC, including fabricated IRS Forms
941 listing falsified payroll information. Mason created the falsified Forms 941 on
18
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behalf of defendant DESTITO. The Forms 941 that Mason created, which had
never been filed with the IRS, were submitted in support of the PPP loan
application. The purpose of the false Forms 941 was to circumvent Financial
Institution l's requirement that prospective borrowers submit Forms 941 to
support the payroll figures that served as the basis for PPP loan amounts.
54. The fabricated Forms 941 reflected the following payroll figures for 2019
and 2020:
Business Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
Jan - Mar Apr - Jun Jul - Sep Oct - Dec Jan - Mar
HONEEPOPPINS.COM 3 employees 3 employees 3 employees 3 employees 2 employees
LLC $94,791.00 $96,061.00 $96,670.00 $96,189.00 $85,624.00
55.In fact, in 2019 and 2020, HomePoppins.com LLC did not: (1) make any tax
filings with the IRS, (2) pay unemployment tax to the IRS, or (3) withhold federal
income tax for any employee.
56. In addition, Mason created and submitted falsified payroll documentation
for HomePoppins.com LLC, including purported payroll spreadsheets and a
purported payroll calculator.
57.When the PPP loan application for HomePoppins.com LLC was submitted,
defendants MAHEE and DESTITO, together with Mason, knew that the application
attached Forms 941 that had never been filed with the IRS.
58. Throughout the conspiracy, defendants MAHEE and DESTITO, together with
Mason, utilized interstate wires to submit, assist in the submission, and
communicate about the submission of false documents to Financial Institution 1
when applying for a PPP loan, including fabricated IRS Forms 941 listing
19
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falsified payroll information and false loan documentation that listed false
payroll information, false employment information, and a false purpose for the
loan funding.
59.As a result of and based on the fraudulent and false representations and
submissions made by defendants MAHEE and DESTITO, together with Mason,
Financial Institution 1 distributed the loan proceeds of the Home Poppins LLC
loan as described in paragraph 29.
All in violation of Title 18, United States Code, Section 1349.
Counts Ten Through Thirteen
Wire Fraud - 18 U.S.C. § 1343
(Defendants MAHEE and DESTITO)
60.The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31,34 through 37, and 52 through
59 of this Indictment as if fully set forth herein.
61.On or about the dates listed in Column C, in the Northern District of
Georgia and elsewhere, the defendants listed in Column B, aided and abetted by
each other, Mark Mason, and other persons known and unknown to the Grand
Jury, for the purpose of executing and attempting to execute the aforementioned
scheme and artifice to defraud, and to obtain money and property by means of
materially false and fraudulent pretenses, representations, and promises, and by
omission of material facts, knowing and having reason to know that the pretense,
representation, promise, and omission was and would be material, did, with
intent to defraud, cause to be transmitted by means of a wire communication in
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interstate and foreign commerce certain writings, signs, and signals - that is, the
electronic transmissions listed in Column D.
A B C D
Count Defendant(s) Date Description of Wire Transmission
(on or about)
Ten MAHEE April 3, 2020 Email from defendant MAHEE to
DESTITO Mason and defendant DESTITO,
with the subject "Fwd: PPP New
Changed and Application," in
which defendant MAHEE
introduced defendant DESTITO to
Mason for a PPP loan and attached
a blank PPP application.
Eleven DESTITO April 6, 2020 Email from Mason to defendant
DESTITO, with the subject "RE: IRS
FIN Form or other," in which
Mason wrote, "Ok, we will find a
work around," and requested
additional documents to support
the PPP loan application.
Twelve MAHEE April 8, 2020 Email from defendant DESTITO to
DESTITO Mason, and defendant MAHEE,
with the subject "Latest Form for
SBA," in which defendant DESTITO
attached a document labeled "PPP
Borrower Application Form
REVISED 4-6-20 copy.pdf."
Thirteen DESTITO April 17, 2020 Email from defendant DESTITO to
Mason, with the subject "Re: PPP
Link" in which defendant DESTITO
forwarded the link to the Financial
Institution 1 online application
portal.
All in violation of Title 18, United States Code, Section 1343 and Section 2.
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Count Fourteen
Conspiracy to Commit Wire Fraud - 18 U.S.C. § 1349
(Defendants MAHEE and WHITE)
62.The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31 and 34 through 37, of this
Indictment as if fully set forth herein.
63.From on or about April 7, 2020 through on or about July 7, 2020, the exact
dates unknown, in the Northern District of Georgia and elsewhere, the
Defendants,
RICHARD MAHEE, and
JIM WHITE
did knowingly and willfully combine, conspire, confederate, agree, and have a
tacit understanding with each other, Mark Mason, and others known and
unknown to the Grand Jury, to 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, and by the omission of
material facts, well knowing and having reason to know that said pretenses were
and would be false and fraudulent when made and caused to be made and that
said omissions were and would be material, and, in doing so, caused interstate
and foreign wire communications to be made, in furtherance of the scheme and
artifice to defraud, in violation of Title 18, United States Code, Section 1343.
Manner and Means
64.Defendants MAHEE and WHITE, together with Mason and others known
and unknown to the Grand Jury, conspired to submit false materials, such as a
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false PPP loan application and false IRS Forms 941, to Financial Institution 1 to
obtain PPP loan funding.
65.As part of the conspiracy, defendants MAHEE and WHITE, together with
Mason, submitted false documents to Financial Institution 1 when applying for a
PPP loan on behalf of AJW Home Services and Design LLC, including fabricated
IRS Forms 941 listing falsified payroll information. Mason created the falsified
Forms 941 on behalf of defendant WHITE. The Forms 941 that Mason created,
which had never been filed with the IRS, were submitted in support of the PPP
loan application. The purpose of the false Forms 941 was to circumvent Financial
Institution l's requirement that prospective borrowers submit Forms 941 to
support the payroll figures that served as the basis for PPP loan amounts.
66.The fabricated Forms 941 reflected the following payroll figures for 2019
and 2020:
Business Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar
AJW HOME SERVICES 5 employees 5 employees 5 employees 5 employees 5 employees
AND DESIGN LLC S55,536.00 S55,536.00 $55,536.00 $55,536.00 S49,566.00
67.In fact, in 2019, AJW Home Services and Design LLC did not: (1) file any
Forms 941 with the IRS, (2) pay unemployment tax to the IRS, or (3) withhold
federal income tax for any employee.
68.In addition, Mason created and submitted falsified payroll documentation
for AJW Home Services and Design LLC, including purported payroll
spreadsheets and a purported payroll calculator.
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69.When the PPP loan application for AJW Home Services and Design LLC
was submitted, defendants MAHEE and WHITE, together with Mason, knew that
the application attached Forms 941 that had never been filed with the IRS.
70.Throughout the conspiracy, defendants MAHEE and WHITE, together with
Mason, utilized interstate wires to submit, assist in the submission, and
communicate about the submission of false documents to Financial Institution 1
when applying for a PPP loan, including fabricated IRS Forms 941 listing
falsified payroll information and false loan documentation that listed false
payroll information, false employment information, and a false purpose for the
loan funding.
71.As a result of and based on the fraudulent and false representations and
submissions made by defendants MAHEE and WHITE, together with Mason,
Financial Institution 1 distributed the loan proceeds of the AJW Home Services
and Design LLC loan as described in paragraph 29.
All in violation of Title 18, United States Code, Section 1349.
Counts Fifteen through Twenty
Wire Fraud - 18 U.S.C. § 1343
(Defendants MAHEE and WHITE)
72.The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31,34 through 37, and 64 through
71 of this Indictment as if fully set forth herein.
73.On or about the dates listed in Column C, in the Northern District of
Georgia and elsewhere, the defendants listed in Column B, aided and abetted by
each other, Mark Mason, and other persons known and unknown to the Grand
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Jury, for the purpose of executing and attempting to execute the aforementioned
scheme and artifice to defraud, and to obtain money and property by means of
materially false and fraudulent pretenses, representations, and promises, and by
omission of material facts, knowing and having reason to know that the pretense,
representation, promise, and omission was and would be material, did, with
intent to defraud, cause to be transmitted by means of a wire communication in
interstate and foreign commerce certain writings, signs, and signals - that is, the
electronic transmissions listed in Column D.
A B C D
Count Defendant(s) Date Description of Wire
(on or about) Transmission
Fifteen MAHEE April 7, 2020 Email from defendant MAHEE to
WHITE Mason and defendant WHITE, with
the subject, "Fwd: SBA Follow
Up," in which defendant MAHEE
attached a blank PPP borrower
application form and wrote, "Jim,
fill this out and give me your
payroll amounts. Lets work to get
you some capital. Mark will
assist."
Sixteen MAHEE April 10, 2020 Email from defendant WHITE to
WHITE Mason, defendant MAHEE, and
another individual, with the
subject "Payroll Protection
Program Form," in which
defendant WHITE attached a
completed and signed PPP
borrower application form.
Seventeen MAHEE April 10, 2020 Email from defendant WHITE to
WHITE Mason, defendant MAHEE, and
another individual, with the
subject "Re: Payroll Protection
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Program Form," in which
defendant WHITE wrote, "I never
filed a 914 form. Also the payroll
Numbers I entered on the form
would be for the payroll of the
future project we are working on
with Richard and Michael. Please
advise what I would need to
change on that form or how to
proceed. Thank you very much."
Eighteen MAHEE April 10, 2020 Email from Mason to defendants
WHITE WHITE and MAHEE, and another
individual, with the subject "Re:
Payroll Protection Program Form,"
in which Mason wrote, "We got it.
No worries."
Nineteen MAHEE April 14, 2020 Email from defendant WHITE to
WHITE Mason, defendant MAHEE, and
another individual, with the
subject "Fwd: Your Application,"
in which defendant WHITE
forwarded the link to the Financial
Institution 1 online application
portal.
Twenty WHITE June 9, 2020 Email from defendant WHITE to
Mason, with the subject "Fwd:
Your Application," in which
defendant WHITE forwarded the
link to the Financial Institution 1
online application portal.
All in violation of Title 18, United States Code, Section 1343 and Section 2.
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Count Twenty-One
Conspiracy to Commit Wire Fraud - 18 U.S.C. § 1349
(Defendants MAHEE and ALEXANDER)
74.The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31 and 34 through 37, of this
Indictment as if fully set forth herein.
75.From on or about April 10, 2020 through on or about May 14, 2020, the
exact dates unknown, in the Northern District of Georgia and elsewhere, the
Defendants,
RICHARD MAHEE, and
KRISTEN ALEXANDER
did knowingly and willfully combine, conspire, confederate, agree, and have a
tacit understanding with each other, Mark Mason, and others known and
unknown to the Grand Jury, to 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, and by the omission of
material facts, well knowing and having reason to know that said pretenses were
and would be false and fraudulent when made and caused to be made and that
said omissions were and would be material, and, in doing so, caused interstate
and foreign wire communications to be made, in furtherance of the scheme and
artifice to defraud, in violation of Title 18, United States Code, Section 1343.
Manner and Means
76.Defendants MAHEE and ALEXANDER, together with Mason arid others
known and unknown to the Grand Jury, conspired to submit false materials,
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such as a false PPP loan application and false IRS Forms 941, to Financial
Institution 1 to obtain PPP loan funding.
77.As part of the conspiracy, defendants MAHEE and ALEXANDER, together
with Mason, submitted false documents to Financial Institution 1 when applying
for a PPP loan on behalf of ARG Media LLC, including fabricated IRS Forms 941
listing falsified payroll information. Mason created the falsified Forms 941 on
behalf of defendant MAHEE. The Forms 941 that Mason created, which had never
been filed with the IRS, were submitted in support of the PPP loan application.
The purpose of the false Forms 941 was to circumvent Financial Institution l's
requirement that prospective borrowers submit Forms 941 to support the payroll
figures that served as the basis for PPP loan amounts.
78.The fabricated Forms 941 reflected the following payroll figures for 2019:
Business Q3 2019 Q4 2019
Jul-Sep Oct-Dec
ARG MEDIA LLC 20 employees 20 employees
$514,686.00 S521,556.00
79.In fact, m 2019, ARG Media LLC did not: (1) file any Forms 941 claiming
wages with the IRS, (2) pay unemployment tax to the IRS, or (3) withhold federal
income tax for any employee.
80.When the PPP loan application for ARG Media LLC was submitted,
defendants MAHEE and ALEXANDER, together with Mason, knew that the
application attached Forms 941 that had never been filed with the IRS.
81.Throughout the conspiracy, defendants MAHEE and ALEXANDER, together
with Mason, utilized interstate wires to submit, assist in the submission, and
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communicate about the submission of false documents to Financial Institution 1
when applying for a PPP loan, including fabricated IRS Forms 941 listing
falsified payroll information and false loan documentation that listed false
payroll information, false employment information, and a false purpose for the
loan funding.
82.As a result of and based on the fraudulent and false representations and
submissions made by defendants MAHEE and ALEXANDER, together with Mason,
Financial Institution 1 distributed the loan proceeds of the ARG Media LLC loan
as described in paragraph 29.
All in violation of Title 18, United States Code, Section 1349.
Counts Twenty-Two through Twenty-Six
Wire Fraud - 18 U.S.C. § 1343
(Defendants MAHEE and ALEXANDER)
83.The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31,34 through 37, and 76 through
82, of this Indictment as if fully set forth herein.
84.On or about the dates listed in Column C, in the Northern District of
Georgia and elsewhere, the defendants listed in Column B, aided and abetted by
each other, Mark Mason, and other persons known and unknown to the Grand
Jury, for the purpose of executing and attempting to execute the aforementioned
scheme and artifice to defraud, and to obtain money and property by means of
materially false and fraudulent pretenses, representations, and promises, and by
omission of material facts, knowing and having reason to know that the pretense,
representation, promise, and omission was and would be material, did, with
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intent to defraud, cause to be transmitted by means of a wire communication in
interstate and foreign commerce certain writings, signs, and signals - that is, the
electronic transmissions listed in Column D.
A B C D
Count Defendant(s) Date Description of Wire
(on or about) Transmission
Twenty- MAHEE April 10, 2020 Email from Mason to defendant
Two MAHEE, with the subject "941
Forms for ARG," in which Mason
attached spreadsheets labeled (1)
ARG Media Holdings 84-1803189
Payroll.xlsx; (2) ARG Media
payroll.xlsx; and (3) P3 Mahvrick
82-3469199 Payroll.xlsx.
Twenty- MAHEE April 11, 2020 Email from defendant MAHEE to
Three ALEXANDER Mason, Bcc: defendant
ALEXANDER and others, with the
subject "ARG Holdings 941 Q3 Q4
2019, Q1 Q2 2020," in which
MAHEE attached Forms 941
created for ARG Media for Q3
2019, Q4 2019, Q1 2020, and Q2
2020.
Twenty- MAHEE April 12, 2020 Email from defendant MAHEE to
Four Mason, with the subject "ARG
Media f941," in which defendant
MAHEE attached Forms 941
created for ARG Media for Q1
2020 and Q2 2020.
Twenty- MAHEE April 12, 2020 Email from Mason to defendant
Five MAHEE, with the subject "Sign
PPP App and Return," in which
Mason attached a completed PPP
Application form for ARG Media
that had not been signed or
initialed.
30
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Twenty- MAHEE April 14, 2020 Email from defendant MAHEE to
Six ALEXANDER Mason, Bcc: defendant
ALEXANDER and others, subject
"My [Financial Institution 1] Link
Opens Like I have submitted," in
which defendant MAHEE attached
screenshots from the application
page from Financial Institution 1.
All in violation of Title 18, United States Code, Section 1343 and Section 2.
Count Twenty-Seven
Conspiracy to Commit Wire Fraud - 18 U.S.C. § 1349
(Defendants MAHEE, ALEXANDER, and BROWN)
85.The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31 and 34 through 37 of this
Indictment as if fully set forth herein.
86.From on or about April 2, 2020 through on or about June 3, 2020, the exact
dates unknown, in the Northern District of Georgia and elsewhere, the
Defendants,
RICHARD MAHEE,
KRISTEN ALEXANDER, AND
MORGAN BROWN
did knowingly and willfully combine, conspire, confederate, agree, and have a
tacit understanding with each other, Mark Mason, and others known and
unknown to the Grand Jury, to 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, and by the omission of
material facts, well knowing and having reason to know that said pretenses were
and would be false and fraudulent when made and caused to be made and that
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said omissions were and would be material, and, in doing so, caused interstate
and foreign wire communications to be made, in furtherance of the scheme and
artifice to defraud, in violation of Title 18, United States Code, Section 1343.
Manner and Means
87.Defendants MAT-TEE, ALEXANDER, and BROWN, together with Mason and
others known and unknown to the Grand Jury, conspired to submit false
materials, such as a false PPP loan application and false IRS Forms 941, to
Financial Institution 1 to obtain PPP loan funding.
88.As part of the conspiracy, defendants MAHEE, ALEXANDER, and BROWN,
together with Mason, submitted false documents to Financial Institution 1 when
applying for a PPP loan on behalf of BHG LLC, including fabricated IRS Forms
941 listing falsified payroll information. Mason created the falsified Forms 941 on
behalf of defendant BROWN. The Forms 941 that Mason created, which had never
been filed with the IRS, were submitted in support of the PPP loan application.
The purpose of the false Forms 941 was to circumvent Financial Institution l's
requirement that prospective borrowers submit Forms 941 to support the payroll
figures that served as the basis for PPP loan amounts.
89.The fabricated Forms 941 reflected the following payroll figures for 2019:
Business Q1 2019 Q2 2019 Q3 2019 Q4 2019
Jan - Mar Apr - Jun Jul - Sep Oct - Dec
BHG LLC 6 employees 6 employees 6 employees 6 employees
70,000.00 570,000.00 $70,000.00 S70,000.00
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90.In fact, in 2019, BHG LLC did not: (1) file any Forms 941 with the IRS, (2)
pay unemployment tax to the IRS, or (3) withhold federal income tax for any
employee.
91.In addition, Mason created and submitted falsified payroll documentation
for BHG LLC, including a purported payroll calculator.
92.When the PPP loan application for BHG LLC was submitted, defendants
MAHEE, ALEXANDER, and BROWN, together with Mason, knew that the
application attached Forms 941 that had never been filed with the IRS.
93.Throughout the conspiracy, defendants MAHEE, ALEXANDER, and BROWN,
together with Mason, utilized interstate wires to submit, assist in the submission,
and communicate about the submission of false documents to Financial
Institution 1 when applying for a PPP loan, including fabricated IRS Forms 941
listing falsified payroll information and false loan documentation that listed false
payroll information, false employment information, and a false purpose for the
loan funding.
94.As a result of and based on the fraudulent and false representations and
submissions made by defendants MAHEE, ALEXANDER, and BROWN, together
with Mason, Financial Institution 1 distributed the loan proceeds of the BHG
LLC loan as described in paragraph 29.
All in violation of Title 18, United States Code, Section 1349.
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Counts Twenty-Eight through Thirty-Four
Wire Fraud - 18 U.S.C. § 1343
(Defendants MAHEE, ALEXANDER, and BROWN)
95.The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31,34 through 37, and 87 through
94, of this Indictment as if fully set forth herein.
96.On or about the dates listed in Column C, in the Northern District of
Georgia and elsewhere, the defendants listed in Column B, aided and abetted by
each other, Mark Mason, and other persons known and unknown to the Grand
Jury, for the purpose of executing and attempting to execute the aforementioned
scheme and artifice to defraud, and to obtain money and property by means of
materially false and fraudulent pretenses, representations, and promises, and by
omission of material facts, knowing and having reason to know that the pretense,
representation, promise, and omission was and would be material, did, with
intent to defraud, cause to be transmitted by means of a wire communication in
interstate and foreign commerce certain writings, signs, and signals - that is, the
electronic transmissions listed in Column D
A B C D
Count Defendant(s) Date Description of Wire Transmission
(on or about)
Twenty- MAHEE April 2, 2020 Email from defendant MAHEE to
Eight ALEXANDER Mason, and defendants
BROWN ALEXANDER and BROWN, with the
subject "Fwd: Signed," which
attached an electronically signed
copy of a PPP Application
certifications and signature page.
Twenty- MAHEE April 10, 2020 Email from Mason to defendant
Nine MAHEE, with the subject "941-2019
34
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Quarterly," in which Mason
attached completed Forms 941 for
Atlanta Business Capital, a blank
and fillable Form 941, and a
spreadsheet labeled "Brown House
Group LLC (BHG LLC) Payroll."
Thirty MAHEE April 11, 2020 Email from defendant MAHEE to
ALEXANDER Mason, Bcc: defendant ALEXANDER,
with the subject "BHG LLC," in
which MAHEE attached Forms 941
for BHG LLC for Q4 2019, Q1 2020,
and Q2 2020.
Thirty- BROWN April 15, 2020 Email from defendant BROWN to
One Mason, with the subject "Fwd:
Your Application," in which
defendant BROWN forwarded the
link to the Financial Institution 1
online application portal.
Thirty- BROWN April 15, 2020 Email from Mason to defendant
Two BROWN, with the subject "Re: Email
for PPP," in which Mason attached
a blank PPP borrower application
form and wrote, "Morgan can you
complete this application ASAP."
Thirty- MAHEE April 15, 2020 Email from defendant MAHEE to
Three BROWN Mason and defendant BROWN, with
the subject "BHG Payroll," in
which defendant MAHEE listed
BHG LLC's monthly salaries for six
employees, including himself and
defendants BROWN and
ALEXANDER.
Thirty- BROWN April 15, 2020 Email from defendant BROWN to
Four Mason, with the subject "Re: Email
for PPP," in which defendant
BROWN attached a completed
Borrower Application form for
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BHG LLC labeled "Signed SBA for
Mark."
All in violation of Title 18, United States Code, Section 1343 and Section 2.
Count Thirty-Five
Conspiracy to Commit Wire Fraud - 18 U.S.C. § 1349
(Defendants MAHEE and STEPHENS)
97.The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31 and 34 through 37 of this
Indictment as if fully set forth herein.
98.From on or about April 7, 2020 through on or about May 26, 2020, the exact
dates unknown, in the Northern District of Georgia and elsewhere, the
Defendants,
RICHARD MAHEE, AND
CARLOS STEPHENS
did knowingly and willfully combine, conspire, confederate, agree, and have a
tacit understanding with each other, Mark Mason, and others known and
unknown to the Grand Jury, to 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, and by the omission of
material facts, well knowing and having reason to know that said pretenses were
and would be false and fraudulent when made and caused to be made and that
said omissions were and would be material, and, in doing so, caused interstate
and foreign wire communications to be made, in furtherance of the scheme and
artifice to defraud, in violation of Title 18, United States Code, Section 1343.
36
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Manner and Means
99.Defendants MAHEE and STEPHENS, together with Mason and others known
and unknown to the Grand Jury, conspired to submit false materials, such as a
false PPP loan application and false IRS Forms 941, to Financial Institution 1 to
obtain PPP loan funding.
100. As part of the conspiracy, defendants MAHEE and STEPHENS, together
with Mason, submitted false documents to Financial Institution 1 when applying
for a PPP loan on behalf of 31 Minds LLC, including fabricated IRS Forms 941
listing falsified payroll information. Mason created the falsified Forms 941 on
behalf of defendant STEPHENS. The Forms 941 that Mason created, which had
never been filed with the IRS, were submitted in support of the PPP loan
application. The purpose of the false Forms 941 was to circumvent Financial
Institution l's requirement that prospective borrowers submit Forms 941 to
support the payroll figures that served as the basis for PPP loan amounts.
101. The fabricated Forms 941 reflected the following payroll figures for
2019:
Business Q1 2019 Q2 2019 Q3 2019 Q4 2019
Jan - Mar Apr - Jun Jul - Sep Oct - Dec
31 MINDS LLC 4 employees 4 employees 4 employees 4 employees
46,500.00 S46,500.00 S46,500.00 S46,500.00
102. In fact, in 2019, 31 Minds LLC did not: (1) make any tax filings with the
IRS, (2) pay unemployment tax to the IRS, or (3) withhold federal income tax for
any employee.
37
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103. In addition, Mason created and submitted falsified payroll
documentation for 31 Minds LLC, including a purported payroll calculator
listing 31 Minds LLC's average monthly payroll as S23,833 and the requested
loan amount as $59,583.
104. When the PPP loan application for 31 Minds LLC was submitted,
defendants MAHEE and STEPHENS, together with Mason, knew that the
application attached Forms 941 that had never been filed with the IRS.
105. Throughout the conspiracy, defendants MAHEE and STEPHENS, together
with Mason, utilized interstate wires to submit, assist in the submission, and
communicate about the submission of false documents to Financial Institution 1
when applying for a PPP loan, including fabricated IRS Forms 941 listing
falsified payroll information and false loan documentation that listed false
payroll information, false employment information, and a false purpose for the
loan funding.
106. As a result of and based on the fraudulent and false representations and
submissions made by defendants MAHEE and STEPHENS, together with Mason,
Financial Institution 1 distributed the loan proceeds of the 31 Minds LLC loan as
described in paragraph 29.
All in violation of Title 18, United States Code, Section 1349.
38
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Counts Thirty-Six through Thirty-Eight
Wire Fraud - 18 U.S.C. § 1343
(Defendants MAT-TEE and STEPHENS)
107. The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31,34 through 37, and 99 through
106, of this Indictment as if fully set forth herein.
108. On or about the dates listed in Column C, in the Northern District of
Georgia and elsewhere, the defendants listed in Column B, aided and abetted by
each other, Mark Mason, and other persons known and unknown to the Grand
Jury, for the purpose of executing and attempting to execute the aforementioned
scheme and artifice to defraud, and to obtain money and property by means of
materially false and fraudulent pretenses, representations, and promises, and by
omission of material facts, knowing and having reason to know that the pretense,
representation, promise, and omission was and would be material, did, with
intent to defraud, cause to be transmitted by means of a wire communication in
interstate and foreign commerce certain writings, signs, and signals - that is, the
electronic transmissions listed in Column D.
A B C D
Count Defendant(s) Date Description of Wire Transmission
(on or about)
Thirty- MAHEE April 7, 2020 Email from defendant MAHEE to
Six STEPHENS Mason and defendant STEPHENS,
with the subject "Carlos Stephens,"
in which defendant MAHEE
attached a blank PPP borrower
application form, listed a series of
expenses, and instructed defendant
STEPHENS to complete the form and
return it to Mason and himself.
39
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Thirty- MAHEE April 9, 2020 Email from defendant STEPHENS to
Seven STEPHENS Mason and defendant MAHEE, with
the subject "Re: Carlos Stephens,"
in which defendant STEPHENS
attached a completed and signed
PPP borrower application form and
a letter from the IRS assigning 31
Minds LLC an Employer
Identification Number.
Thirty- STEPHENS April 14, 2020 Email from defendant STEPHENS to
Eight Mason, with the subject "Fwd: Your
Application," in which defendant
STEPHENS forwarded the link to the
Financial Institution 1 online
application portal.
All in violation of Title 18, United States Code, Section 1343 and Section 2.
Count Thirty-Nine
Conspiracy to Commit Wire Fraud - 18 U.S.C. § 1349
(Defendants MAHEE and LEWTON)
109. The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31 and 34 through 37, of this
Indictment as if fully set forth herein.
110. From on or about April 3, 2020 through on or about June 9, 2020, the
exact dates unknown, in the Northern District of Georgia and elsewhere, the
Defendants,
RICHARD MAHEE, AND
MARVIN LEWTON, A/K/A "SHADI POWERS,"
did knowingly and willfully combine, conspire, confederate, agree, and have a
tacit understanding with each other, Mark Mason, and others known and
unknown to the Grand Jury, to devise and intend to devise a scheme and artifice
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to defraud, and to obtain money and property, by means of materially false and
fraudulent pretenses, representations, and promises, and by the omission of
material facts, well knowing and having reason to know that said pretenses were
and would be false and fraudulent when made and caused to be made and that
said omissions were and would be material, and, in doing so, caused interstate
and foreign wire communications to be made, in furtherance of the scheme and
artifice to defraud, in violation of Title 18, United States Code, Section 1343.
Manner and Means
111. Defendants MAHEE and LEWTON, together with Mason and others
known and unknown to the Grand Jury, conspired to submit false materials,
such as a false PPP loan application and false IRS Forms 941, to Financial
Institution 1 to obtain PPP loan funding.
112. As part of the conspiracy, defendants MAHEE and LEVVTON, together
with Mason, submitted false documents to Financial Institution 1 when applying
for a PPP loan on behalf of Powers Transport Group LLC, including fabricated
IRS Forms 941 listing falsified payroll information. Mason created the falsified
Forms 941 on behalf of defendant LEWTON. The Forms 941 that Mason created,
which had never been filed with the IRS, were submitted in support of the PPP
loan application. The purpose of the false Forms 941 was to circumvent Financial
Institution l's requirement that prospective borrowers submit Forms 941 to
support the payroll figures that served as the basis for PPP loan amounts.
113. The fabricated Forms 941 reflected the following payroll figures for
2019 and 2020:
41
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Business Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar
POWERS TRANSPORT 4 employees 4 employees 4 employees 4 employees 2 employees
GROUP LLC $69,508.00 $70,564.00 $68,257.00 $68,257.00 S59,363.00
114. In fact, during 2019 and the first quarter of 2020, Powers Transport
Group LLC did not: (1) make any tax filings with the IRS, (2) pay unemployment
tax to the IRS, or (3) withhold federal income tax for any employee.
115. In addition, Mason created and submitted falsified payroll
documentation for Powers Transport Group LLC, including purported payroll
spreadsheets and a purported payroll calculator.
116. When the PPP loan application for Powers Transport Group LLC was
submitted, defendants MAHEE and LEWTON, together with Mason, knew that the
application attached Forms 941 that had never been filed with the IRS.
117. Throughout the conspiracy, defendants MAHEE and LEWTON, together
with Mason, utilized interstate wires to submit, assist in the submission, and
communicate about the submission of false documents to Financial Institution 1
when applying for a PPP loan, including fabricated IRS Forms 941 listing
falsified payroll information and false loan documentation that listed false
payroll information, false employment information, and a false purpose for the
loan funding.
118. As a result of and based on the fraudulent and false representations and
submissions made by defendants MAHEE and LEwToN, together with Mason,
Financial Institution 1 distributed the loan proceeds of the Powers Transport
Group LLC loan as described in paragraph 29.
All in violation of Title 18, United States Code, Section 1349.
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Counts Forty through Forty-Three
Wire Fraud - 18 U.S.C. § 1343
(Defendants MAHEE and LEwroN)
119. The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31,34 through 37, and 111
through 118 of this Indictment as if fully set forth herein.
120. On or about the dates listed in Column C, in the Northern District of
Georgia and elsewhere, the defendants listed in Column B, aided and abetted by
each other, Mark Mason, and other persons known and unknown to the Grand
Jury, for the purpose of executing and attempting to execute the aforementioned
scheme and artifice to defraud, and to obtain money and property by means of
materially false and fraudulent pretenses, representations, and promises, and by
omission of material facts, knowing and having reason to know that the pretense,
representation, promise, and omission was and would be material, did, with
intent to defraud, cause to be transmitted by means of a wire communication in
interstate and foreign commerce certain writings, signs, and signals - that is, the
electronic transmissions listed in Column D.
A B C D
Count Defendant(s) Date Description of Wire Transmission
(on or about)
Forty MAHEE April 3, 2020 Email from defendant MAHEE to
LEWTON Mason and defendant LEWTON, with
the subject "Re: Dirty South Hip
Hop SSSS," in which defendant
MAHEE wrote, "Mark, this is a white
glove client. DO him at S7500 per
month."
Forty- LEVVTON May 28, 2020 Email from Mason to defendant
One LEVVTON, with the subject "Re:
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URGENT - Your PPP loan
application is missing information,"
in which Mason wrote, "Dont worry
about that one. I am getting you
50K."
Forty- LEWTON May 29, 2020 Email from defendant LEWTON to
Two Mason, with the subject "Fwd: Your
Application," in which defendant
LEWTON forwarded the link to the
Financial Institution 1 online
application portal.
Forty- LEWTON May 30, 2020 Email from defendant LEWTON to
Three Mason, with the subject "EIN
Letter," which attached a letter from
the IRS assigning Powers Transport
Group LLC an Employer
Identification Number.
All in violation of Title 18, United States Code, Section 1343 and Section 2.
Count Forty-Four
Conspiracy to Commit Wire Fraud - 18 U.S.C. § 1349
(Defendants MAHEE, ALEXANDER, and GODBOLDO)
121. The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31 and 34 through 37 of this
Indictment as if fully set forth herein.
122. From on or about April 3, 2020 through on or about June 19, 2020, the
exact dates unknown, in the Northern District of Georgia and elsewhere, the
Defendants,
RICHARD MAHEE,
KRISTEN ALEXANDER, AND
DALE GODBOLDO
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did knowingly and willfully combine, conspire, confederate, agree, and have a
tacit understanding with each other, Mark Mason, and others known and
unknown to the Grand Jury, to 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, and by the omission of
material facts, well knowing and having reason to know that said pretenses were
and would be false and fraudulent when made and caused to be made and that
said omissions were and would be material, and, in doing so, caused interstate
and foreign wire communications to be made, in furtherance of the scheme and
artifice to defraud, in violation of Title 18, United States Code, Section 1343.
Manner and Means
123. Defendants MAHEE, ALEXANDER, and GODBOLDO, together with Mason
and others known and unknown to the Grand Jury, conspired to submit false
materials, such as a false PPP loan application and false IRS Forms 941, to
Financial Institution 1 to obtain PPP loan funding.
124. As part of the conspiracy, defendants MAHEE, ALEXANDER, and
GODBOLDO, together with Mason, submitted false documents to Financial
Institution 1 when applying for a PPP loan on behalf of Mahout Star LLC,
including fabricated IRS Forms 941 listing falsified payroll information. Mason
created the falsified Forms 941 on behalf of defendant GODBOLDO. The Forms 941
that Mason created, which had never been filed with the IRS, were submitted in
support of the PPP loan application. The purpose of the false Forms 941 was to
circumvent Financial Institution l's requirement that prospective borrowers
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submit Forms 941 to support the payroll figures that served as the basis for PPP
loan amounts.
125. The fabricated Forms 941 reflected the following payroll figures for
2019 and 2020:
Business Q1 2019 Q2 2019 Q3 2019 Q42019 Q1 2020
Jan - Mar Apr - Jun Jul - Sep Oct - Dec Jan - Mar
MAHOUT STAR 15 employees 15 employees 15 employees 15 employees 15 employees
LLC $371,277.00 $371,277.00 $371,277.00 $371,277.00 $371,277.00
126. In fact, in 2019 and the first quarter of 2020, Mahout Star LLC did not:
(1) file any Forms 941 with the IRS, (2) pay unemployment tax to the IRS, or (3)
withhold federal income tax for any employee.
127. In addition, Mason created and submitted falsified payroll
documentation for Mahout Star LLC, including purported payroll spreadsheets
and a purported payroll calculator.
128. When the PPP loan application for Mahout Star LLC was submitted,
defendants MAHEE, ALEXANDER, and GODBOLDO, together with Mason, knew
that the application attached Forms 941 that had never been filed with the IRS.
129. Throughout the conspiracy, defendants MAHEE, ALEXANDER, and
GODBOLDO, together with Mason, utilized interstate wires to submit, assist in the
submission, and communicate about the submission of false documents to
Financial Institution 1 when applying for a PPP loan, including fabricated IRS
Forms 941 listing falsified payroll information and false loan documentation that
listed false payroll information, false employment information, and a false
purpose for the loan funding.
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130. As a result of and based on the fraudulent and false representations and
submissions made by defendants --
IvrA HEE, ALEXANDER, and GODBOLDO, together
with Mason, Financial Institution 1 distributed the loan proceeds of the Mahout
Star LLC loan as described in paragraph 29.
All in violation of Title 18, United States Code, Section 1349.
Counts Forty-Five through Forty-Eight
Wire Fraud - 18 U.S.C. § 1343
(Defendants ALEXANDER, and GODBOLDO)
131. The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31,34 through 37, and 123
through 130 of this Indictment as if fully set forth herein.
132. On or about the dates listed in Column C, in the Northern District of
Georgia and elsewhere, the defendants listed in Column B, aided and abetted by
each other, Mark Mason, and other persons known and unknown to the Grand
Jury, for the purpose of executing and attempting to execute the aforementioned
scheme and artifice to defraud, and to obtain money and property by means of
materially false and fraudulent pretenses, representations, and promises, and by
omission of material facts, knowing and having reason to know that the pretense,
representation, promise, and omission was and would be material, did, with
intent to defraud, cause to be transmitted by means of a wire communication in
interstate and foreign commerce certain writings, signs, and signals - that is, the
electronic transmissions listed in Column D.
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A B C D
Count Defendant(s) Date Description of Wire Transmission
(on or about)
Forty- GODBOLDO June 8, 2020 Email from Mason to defendant
Five GODBOLDO, with the subject "Re:
PPP/ Next Phase," in which Mason
attached a blank PPP borrower
application form and instructed
defendant GODBOLDO to complete it
and return it to him.
Forty- ALEXANDER June 9, 2020 Email from Mason to defendants
Six GODBOLDO ALEXANDER and GODBOLDO, as well
as others, with the subject "Re:
PPP/ Next Phase," in which Mason
wrote, "Spoke with Dale last night
and we good to moving forward
with the right plan. He and ION will
be into the system today for PPP
funding once I get the signed
applications and Drivers License for
Dale."
Forty- ALEXANDER June 9, 2020 Email from defendant GODBOLDO to
Seven GODBOLDO Mason, defendant ALEXANDER, and
others, with the subject "Re:
PPP/ Next Phase," which attached
an image of defendant GODBOLDO'S
California driver's license.
Forty- GODBOLDO June 10, 2020 Email from defendant GODBOLDO to
Eight Mason, with the subject "Fwd: Your
Application," in which defendant
GODBOLDO forwarded the link to the
Financial Institution 1 online
application portal.
All in violation of Title 18, United States Code, Section 1343 and Section 2.
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Count Forty-Nine
Money Laundering - 18 U.S.C. § 1957
(Defendant GODBOLDO)
133. The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31,34 through 37, 123 through
130, and 132 of this Indictment as if fully set forth herein.
134. On or about June 19, 2020, in the Northern District of Georgia and
elsewhere, the Defendant,
DALE GODBOLDO,
knowingly engaged in, attempted to engage in, and caused others to engage in a
monetary transaction by, through, and to a financial institution, affecting
interstate and foreign commerce, knowing that such transaction involved
criminally derived property of a value greater than $10,000, such property
having been derived from a specified unlawful activity, that is, wire fraud, in
violation of Title 18, United States Code, 1343, by causing $15,970 in PPP loan
funds to be received by Mason in a Wells Fargo bank account held in the name of
Atlanta Business Capital through a wire transfer from a Chase business checking
account ending in 0818, held in the name of Mahout Star LLC.
All in violation of Title 18, United States Code, Section 1957.
Count Fifty
Conspiracy to Commit Wire Fraud - 18 U.S.C. § 1349
(Defendants MAHEE, ALEXANDER, OVERMAN, and GODBOLDO)
135. The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31,34 through 37, 123 through
130, and 132, of this Indictment as if fully set forth herein.
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136. From on or about April 3, 2020 through on or about July 10, 2020, the
exact dates unknown, in the Northern District of Georgia and elsewhere, the
Defendants,
RICHARD MAHEE,
KRISTEN ALEXANDER,
ION OVERMAN, AND
DALE GODBOLDO
did knowingly and willfully combine, conspire, confederate, agree, and have a
tacit understanding with each other, Mark Mason, and others known and
unknown to the Grand Jury, to 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, and by the omission of
material facts, well knowing and having reason to know that said pretenses were
and would be false and fraudulent when made and caused to be made and that
said omissions were and would be material, and, in doing so, caused interstate
and foreign wire communications to be made, in furtherance of the scheme and
artifice to defraud, in violation of Title 18, United States Code, Section 1343.
Manner and Means
137. Defendants MAHEE, ALEXANDER, OVERMAN, and GODBOLDO, together
with Mason and others known and unknown to the Grand Jury, conspired to
submit false materials, such as a false PPP loan application and false IRS Forms
941, to Financial Institution 1 to obtain PPP loan funding.
138. As part of the conspiracy, defendants MAHEE, ALEXANDER, OVERMAN,
and GODBOLDO, together with Mason, submitted false documents to Financial
Institution 1 when applying for a PPP loan on behalf of Bryanston Square, Inc.,
50
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including fabricated IRS Forms 941 listing falsified payroll information. Mason
created the falsified Forms 941 on behalf of defendant OVERMAN. The Forms 941
that Mason created, which had never been filed with the IRS, were submitted in
support of the PPP loan application. The purpose of the false Forms 941 was to
circumvent Financial Institution l's requirement that prospective borrowers
submit Forms 941 to support the payroll figures that served as the basis for PPP
loan amounts.
139. The fabricated Forms 941 reflected the following payroll figures for
2019 and 2020:
Business Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar
BRYANSTON 11 employees 11 employees 11 employees 11 employees 11 employees
SQUARE INC. S271,350.00 $271,350.00 $271,350.00 $271,350.00 $256,775.00
140. In fact, in 2019 and the first quarter of 2020, Bryanston Square LLC did
not: (1) file any Forms 941 with the IRS, (2) pay unemployment tax to the IRS, or
(3) withhold federal income tax for any employee.
141. In addition, Mason created and submitted falsified payroll
documentation for Bryanston Square Inc., including a purported payroll
calculator.
142. When the PPP loan application for Bryanston Square LLC was
submitted, defendants MAHEE, ALEXANDER, OVERMAN, and GODBOLDO, together
with Mason, knew that the application attached Forms 941 that had never been
filed with the IRS.
143. Throughout the conspiracy, defendants MAHEE, ALEXANDER, OVERMAN,
and GODBOLDO, together with Mason, utilized interstate wires to submit, assist in
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the submission, and communicate about the submission of false documents to
Financial Institution 1 when applying for a PPP loan, including fabricated IRS
Forms 941 listing falsified payroll information and false loan documentation that
listed false payroll information, false employment information, and a false
purpose for the loan funding.
144. As a result of and based on the fraudulent and false representations and
submissions made by defendants MAHEE, ALEXANDER, OVERMAN, and
GODBOLDO, together with Mason, Financial Institution 1 distributed the loan
proceeds of the Bryanston Square LLC loan as described in paragraph 29.
All in violation of Title 18, United States Code, Section 1349.
Counts Fifty-One through Fifty-Three
Wire Fraud - 18 U.S.C. § 1343
(Defendants ALEXANDER, OVERMAN, and GODBOLDO)
145. The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31,34 through 37,123 through
130, 132, and 137 through 144 of this Indictment as if fully set forth herein.
146. On or about the dates listed in Column C, in the Northern District of
Georgia and elsewhere, the defendants listed in Column B, aided and abetted by
each other, Mark Mason, and other persons known and unknown to the Grand
Jury, for the purpose of executing and attempting to execute the aforementioned
scheme and artifice to defraud, and to obtain money and property by means of
materially false and fraudulent pretenses, representations, and promises, and by
omission of material facts, knowing and having reason to know that the pretense,
representation, promise, and omission was and would be material, did, with
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intent to defraud, cause to be transmitted by means of a wire communication in
interstate and foreign commerce certain writings, signs, and signals - that is, the
electronic transmissions listed in Column D.
A B C D
Count Defendant(s) Date Description of Wire Transmission
(on or about)
Fifty-One ALEXANDER June 9,2020 Email from defendant GODBOLDO to
GODBOLDO Mason, defendant ALEXANDER, and
others, with the subject "Re:
PPP/ Next Phase," in which
defendant GODBOLDO attached
partially-completed PPP borrower
application forms for Mahout Star
LLC and Bryanston Square Inc. and
wrote, "I've also attached a form for
actress/producer, Ion Overman's
company called Bryanston Square,
Inc. Please call me to discuss this
opportunity, as well."
Fifty- OVERMAN June 10, 2020 Email from defendant OVERMAN to
Two Mason, with the subject "Fwd: Your
Application," in which defendant
OVERMAN forwarded the link to the
Financial Institution 1 online
application portal.
Fifty- OVERMAN June 22, 2020 Email from Mason to defendants
Three GODBOLDO OVERMAN and GODBOLDO, with the
subject "Suppl Application," in
which Mason wrote "Please have
her sign and return to Harvest." The
email attached a document labeled
"PPP SUPP Form-UPDATED
Bryanston Sq.pdf" which listed
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Bryanston Square Inc.'s business
revenues for 2019 as $835,256.
All in violation of Title 18, United States Code, Section 1343 and Section 2.
Count Fifty-Four
Money Laundering - 18 U.S.C. § 1957
(Defendant OVERMAN)
147. The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31,34 through 37, 123 through
130, 132, 137 through 144, and 146 of this Indictment as if fully set forth herein.
148. On or about July 10, 2020, in the Northern District of Georgia and
elsewhere, the Defendant,
ION OVERMAN,
knowingly engaged in, attempted to engage in, and caused others to engage in a
monetary transaction by, through, and to a financial institution, affecting
interstate and foreign commerce, knowing that such transaction involved
criminally derived property of a value greater than 10,000, such property
having been derived from a specified unlawful activity, that is, wire fraud, in
violation of Title 18, United States Code, 1343, by causing a check for
approximately $11,303.25 in PPP loan funds to be deposited by Mason into a
Wells Fargo bank account held in the name of Atlanta Business Capital, which
was withdrawn from a SAG-AFTRA Federal Credit Union checking account
ending in 588, held in the name of Bryanston Square Inc.
All in violation of Title 18, United States Code, Section 1957.
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Count Fifty-Five
Conspiracy to Commit Wire Fraud - 18 U.S.C. § 1349
(Defendants MAHEE and LEWTON)
149. The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31,34 through 37, 111 through
118, and 120 of this Indictment as if fully set forth herein.
150. From on or about April 3, 2020 through on or about August 9, 2020, the
exact dates unknown, in the Northern District of Georgia and elsewhere, the
Defendants,
RICHARD MAHEE, AND
MARVIN LEWTON, A/K/A "SHADI POWERS,"
did knowingly and willfully combine, conspire, confederate, agree, and have a
tacit understanding with each other, Mark Mason, and others known and
unknown to the Grand Jury, to 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, and by the omission of
material facts, well knowing and having reason to know that said pretenses were
and would be false and fraudulent when made and caused to be made and that
said omissions were and would be material, and, in doing so, caused interstate
and foreign wire communications to be made, in furtherance of the scheme and
artifice to defraud, in violation of Title 18, United States Code, Section 1343.
Manner and Means
151. Defendants MAHEE and LEWTON, together with Mason and others
known and unknown to the Grand Jury, conspired to submit false materials,
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such as a false PPP loan application and false IRS Forms 941, to Financial
Institution 1 to obtain PPP loan funding.
152. As part of the conspiracy, defendants MAHEE and LEVVTON, together
with Mason, submitted false documents to Financial Institution 1 when applying
for a PPP loan on behalf of DirtySouthHipHop Online Media Group LLC,
including fabricated IRS Forms 941 listing falsified payroll information. Mason
created the falsified Forms 941 on behalf of defendant LEwroN. The Forms 941
that Mason created, which had never been filed with the IRS, were submitted in
support of the PPP loan application. The purpose of the false Forms 941 was to
circumvent Financial Institution l's requirement that prospective borrowers
submit Forms 941 to support the payroll figures that served as the basis for PPP
loan amounts.
153. The fabricated Forms 941 reflected the following payroll figures for
2019 and 2020:
Business Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020
Jan - Mar Apr - Jun Jul - Sep Oct - Dec Jan - Mar Apr - Jun
DIRTYSOUTHHIPHOP 21 employees 21 employees 21 employees 21 employees 16 employees 16 employees
ONLINE MEDIA $463,942.00 $463,350.00 $463,350.00 $464,470.00 $409,129.00 $300,482.00
GROUP LLC
154. In fact, during 2019 and the first two quarters of 2020,
DirtySouthHipHop Online Media Group LLC did not: (1) make any tax filings
with the IRS, (2) pay unemployment tax to the IRS, or (3) withhold federal
income tax for any employee.
155. In addition, Mason altered the IRS Notice CF 575 for
DirtySouthHipHop Online Media Group LLC to change the date of the issuance
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of the Employer Identification Number from June 1, 2020 to June 1, 2018. Mason
submitted the altered IRS Notice CF 575 with the loan application.
156. When the PPP loan application for DirtySouthHipHop Online Media
Group LLC was submitted, defendants MAHEE and LEWTON, together with
Mason, knew that the application attached Forms 941 that had never been filed
with the IRS. Defendant LEWTON, together with Mason, knew the application
attached an altered IRS Notice CF 575 to represent that the business was in
operation as of February 15, 2020.
157. Throughout the conspiracy, defendants MAHEE and LEVVTON, together
with Mason, utilized interstate wires to submit, assist in the submission, and
communicate about the submission of false documents to Financial Institution 1
when applying for a PPP loan, including fabricated IRS Forms 941 listing
falsified payroll information and false loan documentation that listed false
payroll information, false employment information, and a false purpose for the
loan funding.
All in violation of Title 18, United States Code, Section 1349.
Count Fifty-Six through Fifty-Eight
Wire Fraud - 18 U.S.C. § 1343
(Defendants MAHEE and LEWTON)
158. The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 31,34 through 37, 111 through
118, 120, and 151 through 157, of this Indictment as if fully set forth herein.
159. On or about the dates listed in Column C, in the Northern District of
Georgia and elsewhere, the defendants listed in Column B, aided and abetted by
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each other, Mark Mason, and other persons known and unknown to the Grand
Jury, for the purpose of executing and attempting to execute the aforementioned
scheme and artifice to defraud, and to obtain money and property by means of
materially false and fraudulent pretenses, representations, and promises, and by
omission of material facts, knowing and having reason to know that the pretense,
representation, promise, and omission was and would be material, did, with
intent to defraud, cause to be transmitted by means of a wire communication in
interstate and foreign commerce certain writings, signs, and signals - that is, the
electronic transmissions listed in Column D.
A B C D
Count Defendant(s) Date Description of Wire Transmission
(on or about)
Fifty-Six MAHEE April 3, 2020 Email from defendant LEWTON to
LEWTON Mason and defendant MAHEE,
with the subject "Re: Dirty South
Hip Hop SSS," in which defendant
LEWTON provided information
about DirtySouthHipHop Online
Media Group LLC and noted,
"DBA will be setup on Monday
and my LLC was reinstated
yesterday so that will take a few
days to process."
Fifty- LEWTON June 1, 2020 Email from defendant LEWTON to
Seven Mason, with the subject
"UpdatedEIN," in which
defendant LEWTON attached the
IRS Notice CF 575 for
DirtySouthHipHop Online Media
Group LLC dated June 1, 2020 and
wrote, "This matches my banking
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and ID. I don't need any more
obstacles."
Fifty- LEVVTON August 4, 2020 Email from defendant LEWTON to
Eight Mason, with the subject "Fwd:
Your Application," in which
defendant LEWTON forwarded the
link to the Financial Institution 1
online application portal.
All in violation of Title 18, United States Code, Section 1343 and Section 2.
Forfeiture
Upon conviction of one or more of the offenses alleged in Counts One
through Forty-Eight, Fifty through Fifty-Three, and Fifty-Five through Fifty-
Eight of this Indictment, the Defendants,
RICHARD MAHEE,
KRISTEN ALEXANDER,
DAVID BURGE,
GINA DESTITO,
JIM WHITE,
MORGAN BROWN,
CARLOS STEPHENS,
MARVIN LEWTON,
A/K/A "SHADI POWERS,"
DALE GODBOLDO, and
ION OVERMAN
shall forfeit to the United States, pursuant to Title 18, United States Code, Section
982(a)(2), any property constituting, or derived from, proceeds obtained directly
or indirectly as the result of such violation, including but not limited to the
following:
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a. MONEY JUDGMENT: A sum of money in United States currency equal
to the amount of proceeds the Defendant obtained as a result of the
offense for which the Defendant is convicted.
Upon conviction of one or more of the offenses alleged in Counts Forty-Nine
and Fifty-Four of this Indictment, the Defendants,
DALE GODBOLD°, and
ION OVERMAN
shall forfeit to the United States, pursuant to Title 18, United States Code, Section
982(a)(1), any property, real or personal, involved in the offense and any
property traceable to such property, including but not limited to the following:
a. MONEY JUDGMENT: A sum of money in United States currency equal
to the amount of proceeds the Defendant obtained as a result of the
offense for which the Defendant is convicted.
If, as a result of any act or omission of a defendant, any property subject to
forfeiture:
(1)cannot be located upon the exercise of due diligence;
(2)has been transferred or sold to, or deposited with, a third party;
(3)has been placed beyond the jurisdiction of the Court;
(4)has been substantially diminished in value; or
(5)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 28, United States Code, Section 2461(c) and Title 18,
60
Case 1:21-cr-00494-UNA Document 1 Filed 12/15/21 Page 61 of 61
United States Code, Section 982(b)(1), to seek forfeiture of any other property of
said defendant up to the value of the forfeitable property.
A BILL
FOREPERSON
KURT R. ERSKINE
United States Attorney
NICHOLAS HARTIGAN
Assistant United States Attorney
Georgia Bar No. 408147
ootzm T Pra-rz
LAUREN T. MACON
Assistant United States Attorney
Georgia Bar No. 763604
600 U.S. Courthouse
75 Ted Turner Drive SW
Atlanta, GA 30303
404-581-6000; Fax: 404-581-6181
61
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