Indictment — United States v. Johnny Narcisse and Johnson Dieujuste, Northern District of Georgia (Document 1)
Summary
A sealed criminal indictment filed December 6, 2023 as Document 1 in United States v. Johnny Narcisse and Johnson Dieujuste, Case 1:23-cr-00397-ELR-CMS, in the U.S. District Court for the Northern District of Georgia, Atlanta Division. Count One charges a wire fraud conspiracy under 18 U.S.C. § 371 from about July 2020 through about April 2021, alleging the defendants submitted PPP and EIDL applications with false employee, payroll, revenue and cost figures, that over $1 million in loans were issued, and that the applicant entities paid the defendants as compensation. Overt acts include a PPP application for Global Landscaping LLC claiming an average monthly payroll of $160,000 and seven employees. Counts Two through Seven charge wire fraud under 18 U.S.C. § 1343 over application transmissions. The forfeiture provision seeks a money judgment.
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“Indictment — United States v. Johnny Narcisse and Johnson Dieujuste, Northern District of Georgia (Document 1).”
Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/indictment-no-1-23-cr-00397-dkt-1-n-d-ga-15fddb54e7/
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Case 1:23-cr-00397-ELR-CMS Document 1 Filed 12/06/23 Page 1 of 14
ofilithlt4 M B ER S
DEC 0 6 2023
IN THE UNITED STATES DISTRICT COURT Kevin P Werner, iert.
By
De iers
FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION
UNITED STATES OF AMERICA Criminal Indictment
V.
JOHNNY NARCISSE AND 1.• 23 - n397
JOHNSON DIEUJUSTE UNDER SEAL
THE GRAND JURY CHARGES THAT:
Background
At all times relevant to this Criminal Indictment:
1. Defendant JOHNNY NARCISSE was a resident of Brookhaven,
Georgia. He owned and controlled US Financial & Tax Services.
2. Defendant JOHNSON DIEUJUSTE was a resident of Dacula, Georgia.
Small Business Administration
3. 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.
Case 1:23-cr-00397-ELR-CMS Document 1 Filed 12/06/23 Page 2 of 14
4. As part of this effort, the SBA issued loans through the U.S. Department
of the Treasury. The SBA also facilitated loans through banks, credits unions,
and other lenders that had government-backed guarantees.
Paycheck Protection Program
5. The Coronavirus Aid, Relief, and Economic Security ("CARES") Act
was a federal law enacted in or about March 2020 and designed to provide
emergency financial assistance to the millions of Americans who were suffering
the economic effects caused by the COVID-19 pandemic. One source of relief
provided by the CARES Act was the authorization of up to $349 billion in
forgivable loans to small businesses for job retention and certain other expenses,
through a program referred to as the Paycheck Protection Program ("PPP"). In
or around April 2020, Congress authorized over $300 billion in additional PPP
funding.
6. To obtain a PPP loan, a qualifying business was required to submit a
PPP loan application, 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 to be eligible to obtain the PPP loan. In the PPP loan application,
the small business (through its authorized representative) was required to state
2
Case 1:23-cr-00397-ELR-CMS Document 1 Filed 12/06/23 Page 3 of 14
its average monthly payroll expenses and its number of employees, among other
things. These figures were used to calculate the amount of money the small
business was eligible to receive under the PPP. In addition, businesses applying
for a PPP loan were required to provide documentation showing their payroll
expenses.
7. A PPP loan application was processed by a participating financial
institution ("lender"). If a PPP loan application was approved, the participating
lender funded the PPP loan using its own monies, which were 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.
8. PPP loan proceeds were required to be used by the business on certain
permissible expenses, including payroll costs, mortgage interest, rent, and
utilities. Under the applicable PPP rules and guidance, the interest and principal
on the PPP loan were eligible for forgiveness if the business was eligible for the
PPP loan it received, spent the loan proceeds on these permissible expense items
within a designated period, and used a certain portion of the loan proceeds for
payroll expenses.
3
Case 1:23-cr-00397-ELR-CMS Document 1 Filed 12/06/23 Page 4 of 14
Economic Injury Disaster Loan Program
9. The Economic Injury Disaster Loan ("EIDL") program was an SBA
program that provided low-interest financing to small businesses, renters, and
homeowners in regions affected by declared disasters.
10.Another source of relief provided by the CARES Act was the
authorization for the SBA to provide EIDLs of up to $2 million to eligible small
businesses experiencing substantial financial disruption due to the COVID-19
pandemic. In addition, the CARES Act authorized the SBA to issue advances of
up to $10,000 to small businesses within three days of applying for an EIDL. The
amount of the advance was determined by the number of employees the
applicant certified having as employees. The EIDL advances did not have to be
repaid.
11.To obtain an EIDL or an EIDL advance for COVID-19 relief, a
qualifying business was required to submit an application to the SBA and
provide information about its operations, such as the number of employees, and
gross revenues and cost of goods sold for the 12-month period preceding January
31, 2020. The applicant was also required to certify that all the information in the
application was true and correct to the best of the applicant's knowledge.
4
Case 1:23-cr-00397-ELR-CMS Document 1 Filed 12/06/23 Page 5 of 14
12.EIDL applications were submitted directly to the SBA and processed by
the agency with support from a government contractor. The amount of the loan,
if the application was approved, was determined based, in part, on the
information provided by the applicant about employment, revenue, and cost of
goods sold, as described above. Any funds issued under an EIDL or advance
were issued directly by the SBA through the United States Treasury. EIDL funds
were required to be used for payroll expenses, sick leave, production costs, and
business obligations, such as debts, rent, and mortgage payments. If the
applicant also obtained a loan under the PPP, the EIDL funds could not be used
for the same purpose as the PPP funds.
Relevant Entities
13.Lender 1 was a financial technology company headquartered in
Redwood City, California that participated in the SBA's PPP as a service
provider. As such, Lender 1 accepted applications for PPP loans and matched
applicants with another lender for loan fund disbursement.
14.Bank 1 was a federally insured financial institution headquartered in
Fort Lee, New Jersey that participated in the SBA's PPP as a lender. At all
relevant times, Bank 1 had a business relationship with Lender 1, through which
Bank 1 disbursed PPP loan funds to approved applicants.
5
Case 1:23-cr-00397-ELR-CMS Document 1 Filed 12/06/23 Page 6 of 14
15.Lender 2 was a company headquartered in New York, New York that
participated in the SBA's PPP as a lender.
Count One
Wire Fraud Conspiracy
(18 U.S.C. § 371)
16.The Grand Jury realleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 15 of this Indictment as if fully set
forth herein.
17.From at least in or around July 2020 through at least in or around April
2021, in the Northern District of Georgia, and elsewhere, the defendants,
JOHNNY NARCISSE and
JOHNSON DIEUJUSTE,
did knowingly and intentionally, that is, with the intent to advance the
conspiracy, combine, conspire, and agree with each other and with other
individuals, known and unknown, to commit certain offenses against the United
States, namely: wire fraud, that is, to knowingly, and with the intent to defraud,
having devised and intending to devise a scheme and artifice to defraud, and to
obtain money and property by means of materially false and fraudulent
pretenses, representations, and promises, knowing such pretenses,
representations, and promises were false and fraudulent when made, transmit
and cause to be transmitted, by means of wire communications in interstate and
6
Case 1:23-cr-00397-ELR-CMS Document 1 Filed 12/06/23 Page 7 of 14
foreign commerce, writings, signs, signals, pictures, and sounds, for the purpose
of executing such scheme and artifice, in violation of Title 18, United States Code,
Section 1343.
Purpose of the Conspiracy
18.It was the purpose of the conspiracy for the defendants and others,
known and unknown the Grand Jury, to unlawfully enrich themselves by,
among other things: (a) submitting and causing the submission of false and
fraudulent PPP and EIDL loan applications to the SBA and SBA-approved
lenders; (b) falsely promising to use the loan proceeds on permitted business
expenses under the PPP and EIDL programs; (c) concealing and causing the
concealment of the scheme; and (d) diverting fraud proceeds for the personal use
and benefit of themselves and others.
Manner and Means of the Conspiracy
19.In furtherance of the conspiracy, and to accomplish its object, the
defendants and others, known and unknown to the Grand Jury, submitted and
caused to be submitted fraudulent PPP and EIDL loan applications to the SBA
and SBA-approved lenders for the purpose of obtaining funds from them.
7
Case 1:23-cr-00397-ELR-CMS Document 1 Filed 12/06/23 Page 8 of 14
20.Throughout the conspiracy, and in connection with the applications for
PPP and EIDL loans, the defendants and others, known and unknown to the
Grand Jury, submitted and caused to be submitted materially false and
fraudulent information to the SBA and SBA-approved lenders, including falsely
and fraudulently representing to lenders: (i) the applicant entities' number of
employees; (ii) the applicant entities' average monthly payroll; (iii) the applicant
entities' gross revenue and cost of goods sold; (iv) the supporting documentation
submitted with the applications; and (v) the truth and accuracy of all the
infounation and documents submitted in or with the applications. As a result of
these false statements, the SBA and lenders issued over $1 million in PPP and
EIDL loans to these various entities.
21.It was further part of the conspiracy that once the applicant entities
received the PPP and EIDL loan proceeds, they made payments to the
defendants as compensation.
Overt Acts in Furtherance of the Conspiracy
22.In furtherance of the conspiracy and to accomplish its objects, the
defendants and others, known and unknown to the Grand Jury, committed
various overt acts in the Northern District of Georgia and elsewhere, including,
but not limited to, the following:
8
Case 1:23-cr-00397-ELR-CMS Document 1 Filed 12/06/23 Page 9 of 14
a. On or about July 7, 2020, the defendants submitted and caused to be
submitted to the SBA an EIDL application in the name of Merlie's
Braids & More, falsely representing that it had $385,462 in gross
revenue, $123,542 in cost of goods sold, and six employees.
b. On or about July 9, 2020, the defendants submitted and caused to be
submitted to the SBA an EIDL application in the name of NuraCode
LLC, falsely representing that it had $389,562 in gross revenue,
$128,543 in cost of goods sold, and ten employees.
c. On or about July 18, 2020, the defendants submitted and caused to
be submitted to Lender 1 a PPP application in the name of Global
Landscaping LLC, falsely representing that it had an average monthly
payroll of $160,000, seven employees, and paid over $1.3 million in
wages to its employees in 2019.
d. On or about July 21, 2020, the defendants submitted and caused to
be submitted to Lender 1 a PPP application in the name of Three
Hearts One Beat Inc., falsely representing that it had an average
monthly payroll of $115,200, six employees, and paid over $1 million
in wages to its employees in 2019.
9
Case 1:23-cr-00397-ELR-CMS Document 1 Filed 12/06/23 Page 10 of 14
e. On or about February 17, 2021, the defendants submitted and caused
to be submitted to Lender 1 a PPP application in the name of
NuraCode LLC, falsely representing that it had an average monthly
payroll of $20,316, seven employees, and paid $230,000 in wages to
its employees in 2020.
f. On or about April 5, 2021, the defendants submitted and caused to
be submitted to Lender 2 a PPP application in the name of Business
and Residential Computer Systems LLC, falsely representing that it had
an average monthly payroll of $35,000, nine employees, and paid
$420,000 in wages to its employees in 2020.
All in violation of Title 18, United States Code, Section 371.
Counts Two through Seven
Wire Fraud
(18 U.S.C. § 1343 and § 2(a))
23.The Grand Jury realleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 15 of this Indictment as if fully set
forth herein.
24.From at least in or around July 2020 through at least in or around April
2021, in the Northern District of Georgia, and elsewhere, the defendants,
JOHNNY NARCISSE and
JOHNSON DIEUJUSTE,
10
Case 1:23-cr-00397-ELR-CMS Document 1 Filed 12/06/23 Page 11 of 14
did knowingly, and with the intent to defraud, having devised and intending
to devise a scheme and artifice to defraud, and to obtain money and property by
means of materially false and fraudulent pretenses, representations, and
promises, knowing such pretenses, representations, and promises were false and
fraudulent when made, transmit and cause to be transmitted, by means of wire
communications in interstate and foreign commerce, writings, signals, pictures,
and sounds, for the purpose of executing such scheme and artifice.
Purpose of the Scheme and Artifice
25.The Grand Jury realleges and incorporates by reference paragraph 18 of
this Indictment as a description of the purpose of the scheme and artifice to
defraud.
Manner and Means of the Scheme
26.The Grand Jury realleges and incorporates by reference paragraphs 19
through 22 of this Indictment as a description of the scheme and artifice to
defraud.
Use of the Wires
27.On or about the dates specified as to each count and as to each
defendant below, the defendants and others, known and unknown to the Grand
11
Case 1:23-cr-00397-ELR-CMS Document 1 Filed 12/06/23 Page 12 of 14
Jury, in the Northern District of Georgia, and elsewhere, for the purpose of
executing the aforesaid scheme and artifice to defraud, and attempting to do so,
and aided and abetted by each other, transmitted and caused to be transmitted
the following wire communications in interstate and foreign commerce:
COUNT DEFENDANT(S) APPROXIMATE DESCRIPTION OF
DATE INTERSTATE WIRE
2 NARCISSE July 7, 2020 Transmission of EIDL
DIEUJUSTE application on behalf of
Merlie's Braids & More from
Georgia to Virginia
3 NARCISSE July 9, 2020 Transmission of EIDL
DIEUJUSTE application on behalf of
Nura Code LLC from Georgia to
Virginia
4 NARCISSE July 18, 2020 Transmission of PPP
DIEUJUSTE application on behalf of Global
Landscaping LLC to Lender 1
from Georgia to West Virginia
5 NARCISSE July 21, 2020 Transmission of PPP
DIEUJUSTE application on behalf of Three
Hearts One Beat Inc. to Lender
1 from Georgia to West
Virginia
6 NARCISSE February 17, Transmission of PPP
DIEUJUSTE 2021 application on behalf of
NuraCode LLC to Lender 1
from Georgia to West Virginia
7 NARCISSE April 5, 2021 Transmission of PPP
DIEUJUSTE application on behalf of
Business and Residential
Computer Systems LLC to
Lender 2 from Georgia to New
York
12
Case 1:23-cr-00397-ELR-CMS Document 1 Filed 12/06/23 Page 13 of 14
All in violation of Title 18, United States Code, Section 1343 and Section 2(a).
Forfeiture Provision
28.Upon conviction of one or more offenses alleged in Counts One
through Seven of this Indictment, the defendants, JOHNNY NARCISSE and
JOHNSON DIEUJUSIE, shall forfeit to the United States, pursuant to Title 18,
United States Code, Section 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:
MONEY JUDGMENT: A sum of money in
United States currency equal to the amount of
proceeds the defendant obtained as a result of
the offenses for which the defendant is
convicted.
29.If, as a result of any act or omission of the defendants, any property
subject to forfeiture: (a) cannot be located upon the exercise of due diligence; (b)
has been transferred or sold to, or deposited with, a third person; (c) has been
placed beyond the jurisdiction of the Court; (d) has been substantially
diminished in value; or (e) has been commingled with other property which
cannot be subdivided without difficulty; the United States intends, pursuant to
Title 21, United States Code, Section 853(p), as incorporated by Title 18, United
States Section 982(b), to seek forfeiture of any other property of the defendants
13
Case 1:23-cr-00397-ELR-CMS Document 1 Filed 12/06/23 Page 14 of 14
up to the value of the forfeitable property or seek a money judgment against said
defendants for any amount that would constitute the proceeds of such violation.
BILL
RYAN K. BUCHANAN
United States Attorney
GLENN S. LEON
Chief Fraud Section, Criminal Division
1.6141,11.k
ALANA R. BLACK
Assistant United States Attorney
Georgia Bar No. 785045
-1'"t -eDLL4y)
( I NNIFER`BILINKAS
Trial Attorney
New York Bar No. 5479522
600 U.S. Courthouse
75 Ted Turner Drive SW
Atlanta, GA 30303
404-581-6000; Fax: 404-581-6181
U.S. Department of Justice
1400 New York Avenue NW
Washington, DC 20005
14
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