Indictment — United States v. Isaac Osei Afoakwa, District of North Dakota (Document 2)
Summary
A grand jury indictment in United States of America v. Isaac Osei Afoakwa, filed June 4, 2025 as Document 2 in No. 1:25-cr-00131-DMT in the U.S. District Court for the District of North Dakota. It charges wire fraud under 18 U.S.C. § 1343, aggravated identity theft under 18 U.S.C. § 1028A, aiding false tax returns under 26 U.S.C. § 7206(2), and health care false statements under 18 U.S.C. § 1035(a)(2). The indictment alleges that Afoakwa, a self-employed pastor in Bismarck, caused applications for approximately thirty-four PPP loans and eight EIDLs totaling $1,615,944, supported by false documents, and failed to report the proceeds, leaving $203,782 in tax due. It also alleges false Medicaid transportation claims by Bismarck Transportation Service. The signature block names Acting United States Attorney Jennifer Klemetsrud Puhl.
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“Indictment — United States v. Isaac Osei Afoakwa, District of North Dakota (Document 2).”
Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/indictment-no-1-25-cr-00131-dkt-2-d-n-d-f17a10115f/
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Case 1:25-cr-00131-DMT Document 2 Filed 06/04/25 Page 1 of 19
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NORTH DAKOTA
UNITED STATES OF AMERICA INDICTMENT
Case No. ______________________
v.
Violations: 18 U.S.C. §§ 1028A,
ISAAC OSEI AFOAKWA 1035(a)(2), and 1343; 26 U.S.C. § 7206(2)
Background
1. ISAAC OSEI AFOAKWA (“AFOAKWA”) is a self-employed pastor and
entrepreneur who resided in Bismarck, North Dakota, within the District of North
Dakota, at all times pertinent to this Indictment. AFOAKWA reported modest income to
the IRS on his Form 1040 in tax years 2020 and 2021.
2. From March 2020 through the date of this indictment, AFOAKWA
knowingly devised, and intended to devise, and participated in a scheme to defraud in
which he caused to be transmitted in interstate commerce applications for approximately
thirty-four Paycheck Protection Program loans and another eight Economic Injury
Disaster loans for various businesses, altogether totaling $1,615,944. The applications
were supported by false and fraudulent documents, and the businesses appeared designed
primarily to accept PPP loan deposits. The entire amount of the funds were disbursed into
accounts belonging to, maintained, or controlled by AFOAKWA. AFOAKWA failed to
report the illicit PPP and EIDL proceeds on his tax year 2020 and 2021 Forms 1040,
resulting in a total tax due and owing of $203,782 for both years. AFOAKWA took steps
to conceal and obscure the source of the scheme proceeds.
Case 1:25-cr-00131-DMT Document 2 Filed 06/04/25 Page 2 of 19
PPP: The Paycheck Protection Program
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. As
part of this effort, the SBA enabled and provided for loans through banks, credit unions,
and other lenders. These loans have government-backed guarantees.
4. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was
a federal law enacted in March 2020 and was designed to provide emergency financial
assistance to the millions of Americans who were suffering the economic effects caused
by the COVID-19 pandemic. Two sources of relief provided by the CARES Act were the
authorization of forgivable loans to small businesses for job retention and certain other
expenses, through a program referred to as the Paycheck Protection Program (“PPP”).
The other was in the form of Economic Injury Disaster Loans (“EIDL”) made available
to assist small businesses and nonprofit organizations meet financial obligations and
operating expenses that could have been met had the disaster not occurred.
5. 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 to make certain affirmative certifications in order to
be eligible to obtain the PPP loan. In the PPP loan application (SBA Form 2483), the
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small business (through its authorized representative) was required to certify, among
other things: (a) that the small business was in operation on February 15, 2020;
(b) average monthly payroll expenses; and (c) number of employees. These figures were
used to calculate the amount of money the small business was eligible to receive under
the PPP. In addition, businesses applying for a PPP loan were required to provide
documentation showing their payroll expenses.
6. A PPP loan application was processed by a participating lender. If a PPP
loan application was approved, the participating lender funded the PPP loan using its own
monies, which were guaranteed by the SBA. Data from the application, including the
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.
7. PPP loan proceeds were required to be used 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 is eligible
for forgiveness if the business spent the loan proceeds on these expense items within a
designated period of time and used a certain portion of the loan towards payroll expenses.
BTS Non-Emergency Medical Transportation
8. One of AFOAKWA’s businesses is Bismarck Transportation Service
(“BTS”). AFOAKWA was the owner and director of BTS, which made numerous
materially false, fictitious, and fraudulent statements or representations to North Dakota
Medicaid in connection with the delivery of or payment for health care benefits or
services in 2022 and 2023. The false, fictitious, and fraudulent statements include billing
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for transportation that was not provided, up charging for the type of vehicle used, and
billing for rides for no corresponding medical appointment. The false and fraudulent
statements resulted in North Dakota Medicaid overpaying BTS approximately $100,000.
9. BTS is enrolled as a provider with North Dakota to provide non-emergency
medical transportation (“NEMT”) for North Dakota Medicaid members. BTS picks up
Medicaid members as needed, transports the members to medical appointments for
covered services, and returns the members back to their home or pickup location, as
needed. In return, North Dakota Medicaid reimburses BTS according to an established
fee schedule. The reimbursement rate depends on a number of factors, including the type
of vehicle, whether the member is ambulatory, the length of trip, and whether a portion of
the trip is unloaded.
10. Blue Cross Blue Shield of North Dakota administers the North Dakota
Medicaid Expansion Program (“North Dakota Medicaid”).
Wire Fraud Scheme
11. AFOAKWA devised or intended to devise a scheme to defraud the Small
Business Administration by applying for PPP loans for numerous businesses in order to
obtain money by false and fraudulent pretenses, representations, or promises.
Manner and Means
12. It was part of the scheme to defraud that AFOAKWA applied for PPP loans
for businesses that were created to receive PPP loans and also for businesses that were
not in operation.
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13. It was further part of the scheme to defraud that AFOAKWA used his own
identity, as well as the identities of other people, to apply for loans for businesses that he
owned. AFOAKWA used the identities of other people both with and without permission.
AFOAKWA also applied for PPP loans for business owned or controlled by other people.
14. It was further part of the scheme to defraud that AFOAKWA used
identification of other individuals to apply for PPP loans.
15. It was further part of the scheme to defraud that AFOAKWA opened bank
accounts for the purpose of applying for PPP loans and receiving PPP loan funds.
16. It was further part of the scheme to defraud that PPP and EIDL loan
applications were supported with false and fraudulent tax forms, Secretary of State
documents, and/or bank statements. The false and fraudulent forms, documents, and
statements were electronically transmitted to lenders and the SBA using IP addresses
associated with AFOAKWA’s residence.
17. It was further part of the scheme to defraud that AFOAKWA reproduced
false and fraudulent forms, documents, and statements in whole or in part so that the
same numbers repeated on numerous applications.
18. It was further part of the scheme to defraud that AFOAKWA received
hundreds of thousands of dollars of illicit funds into his bank accounts, regardless of the
identity of the applicant or the business applying for a loan.
19. It was further part of the scheme to defraud that AFOAKWA took steps to
conceal and obscure the source of his illicit gains.
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Case 1:25-cr-00131-DMT Document 2 Filed 06/04/25 Page 6 of 19
COUNT ONE
Wire Fraud
The Grand Jury Charges:
Paragraphs 1–19 are reincorporated here by reference.
On or about August 25, 2020, in the District of North Dakota and elsewhere,
ISAAC OSEI AFOAKWA,
for the purpose of executing the wire fraud scheme described above, and attempting to do
so, caused to be transmitted by means of wire communication in interstate commerce an
application for a PPP loan for Afoakwa and Sons LLC from his residence in Bismarck,
North Dakota, to MBE Capital Partners LLC in New Jersey;
In violation of Title 18, United States Code, Section 1343.
6
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COUNT TWO
Wire Fraud
The Grand Jury Further Charges:
Paragraphs 1–19 are reincorporated here by reference.
On or about August 25, 2020, in the District of North Dakota and elsewhere,
ISAAC OSEI AFOAKWA,
for the purpose of executing the wire fraud scheme described above, and attempting to do
so, caused to be transmitted by means of wire communication in interstate commerce an
application for a PPP loan for Afoakwa Ventures LLC from his residence in Bismarck,
North Dakota, to MBE Capital Partners LLC in New Jersey;
In violation of Title 18, United States Code, Section 1343.
7
Case 1:25-cr-00131-DMT Document 2 Filed 06/04/25 Page 8 of 19
COUNT THREE
Wire Fraud
The Grand Jury Further Charges:
Paragraphs 1–19 are reincorporated here by reference.
On or about March 26, 2021, in the District of North Dakota and elsewhere,
ISAAC OSEI AFOAKWA,
for the purpose of executing the wire fraud scheme described above, and attempting to do
so, caused to be transmitted by means of wire communication in interstate commerce an
application for a PPP loan for Bismarck Christian Home Care from his residence in
Bismarck, North Dakota, to ReadyCap Lending, LLC, in New Jersey;
In violation of Title 18, United States Code, Section 1343.
8
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COUNT FOUR
Wire Fraud
The Grand Jury Further Charges:
Paragraphs 1–19 are reincorporated here by reference.
On or about March 6, 2021, in the District of North Dakota and elsewhere,
ISAAC OSEI AFOAKWA,
for the purpose of executing the wire fraud scheme described above, and attempting to do
so, caused to be transmitted by means of wire communication in interstate commerce an
application for a PPP loan for Grace Action Chapel Int. from his residence in Bismarck,
North Dakota, to Itria Ventures LLC, in New York;
In violation of Title 18, United States Code, Section 1343.
9
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COUNT FIVE
Wire Fraud
The Grand Jury Further Charges:
Paragraphs 1–19 are reincorporated here by reference.
On or about April 22, 2021, in the District of North Dakota and elsewhere,
ISAAC OSEI AFOAKWA,
for the purpose of executing the wire fraud scheme described above, and attempting to do
so, caused to be transmitted by means of wire communication in interstate commerce an
application for a PPP loan for P & U LLC from his residence in Bismarck, North Dakota,
to MBE Capital Partners, in New Jersey;
In violation of Title 18, United States Code, Section 1343.
10
Case 1:25-cr-00131-DMT Document 2 Filed 06/04/25 Page 11 of 19
COUNT SIX
Wire Fraud
The Grand Jury Further Charges:
Paragraphs 1-19 are reincorporated here by reference.
On or about June 4, 2021, in the District of North Dakota and elsewhere,
ISAAC OSEI AFOAKWA,
for the purpose of executing the wire fraud scheme described above, and attempting to do
so, caused to be transmitted by means of wire communication in interstate commerce an
application for a PPP loan for Victory Church of God from his residence in Bismarck,
North Dakota, to Amur Equipment Finance;
In violation of Title 18, United States Code, Section 1343.
11
Case 1:25-cr-00131-DMT Document 2 Filed 06/04/25 Page 12 of 19
COUNT SEVEN
Aggravated Identity Theft
The Grand Jury Further Charges:
Paragraphs 1-19 are reincorporated here by reference.
On or about June 4, 2021, in the District of North Dakota and elsewhere,
ISAAC OSEI AFOAKWA
did knowingly transfer, possess, and use without lawful authority, a means of
identification of another person, including the name and social security number of a
known victim, B.O., during and in relation to activity in connection with wire fraud, a
felony enumerated in Title 18, United States Code, Section 1028A(c);
In violation of Title 18, United States Code, Section 1028A.
12
Case 1:25-cr-00131-DMT Document 2 Filed 06/04/25 Page 13 of 19
COUNT EIGHT
Aiding and Assisting in the Preparation and Presentation of a
False and Fraudulent Tax Return
The Grand Jury Further Charges:
Paragraphs 1-19 are reincorporated here by reference.
On or about May 23, 2021, in the District of North Dakota and elsewhere,
ISAAC OSEI AFOAKWA
willfully aided and assisted in, and procured, counseled, and advised the preparation and
presentation to the Internal Revenue Service of a Form 1040 tax return for calendar year
2020, which was false and fraudulent as to a material matter. That Form 1040 reported
total income of $17,700 and failed to report PPP loan and EIDL proceeds of $257,500,
resulting in a tax refund of $5,511 when AFOAKWA should have paid tax in the amount
of $64,896;
In violation of Title 26, United States Code, Section 7206(2).
13
Case 1:25-cr-00131-DMT Document 2 Filed 06/04/25 Page 14 of 19
COUNT NINE
Aiding and Assisting in the Preparation and Presentation of a
False and Fraudulent Tax Return
The Grand Jury Further Charges:
Paragraphs 1–19 are reincorporated here by reference.
On or about January 27, 2022, in the District of North Dakota and elsewhere,
ISAAC OSEI AFOAKWA
willfully aided and assisted in, and procured, counseled, and advised the preparation and
presentation to the Internal Revenue Service of a Form 1040 tax return for calendar year
2021, which was false and fraudulent as to a material matter. That Form 1040 reported
total income of $16,465 and failed to report PPP loan and EIDL proceeds of $412,877,
resulting in a tax refund of $6,654 when AFOAKWA should have paid tax in the amount
of $122,044;
In violation of Title 26, United States Code, Section 7206(2).
14
Case 1:25-cr-00131-DMT Document 2 Filed 06/04/25 Page 15 of 19
COUNT TEN
False Statements Relating to a Health Care Benefit Program
The Grand Jury Further Charges:
Paragraphs 1–19 are reincorporated here by reference.
On or about May 20, 2024, in the District of North Dakota,
ISAAC OSEI AFOAKWA,
in a matter involving a health care benefit program, knowingly and willfully made a
materially false, fictitious, and fraudulent statement and representation, or made a
materially false writing or document knowing the same to contain any materially false,
fictitious, or fraudulent statement or entry, to wit: AFOAKWA submitted a claim to Blue
Cross Blue Shield of North Dakota for providing round-trip non-emergency medical
transport for K.L. on October 23, 2023, October 24, 2023, and October 25, 2023, from
K.L.’s residence in Bismarck, North Dakota, to a treatment center in Bismarck, North
Dakota, when the claim was materially false in several respects: 1) the Medicaid
beneficiary, K.L., was incarcerated and not at her residence; and 2) the treatment
appointments did not take place;
In violation of Title 18, United States Code, Section 1035(a)(2).
15
Case 1:25-cr-00131-DMT Document 2 Filed 06/04/25 Page 16 of 19
COUNT ELEVEN
False Statements Relating to a Health Care Benefit Program
The Grand Jury Further Charges:
Paragraphs 1–19 are reincorporated here by reference.
On or about June 28, 2022, in the District of North Dakota,
ISAAC OSEI AFOAKWA,
in a matter involving a health care benefit program, knowingly and willfully made a
materially false, fictitious, and fraudulent statement and representation, or made a
materially false writing or document knowing the same to contain any materially false,
fictitious, or fraudulent statement or entry, to wit: AFOAKWA submitted a claim to Blue
Cross Blue Shield of North Dakota for providing round-trip non-emergency medical
transport for D.R. on April 17, 2022, and April 18, 2022, from D.R.’s residence in New
Salem, North Dakota, to a treatment center in Bismarck, North Dakota, when the claim
was materially false in several respects: 1) the claim charged transportation in a mini-bus
(defined as a bus with capacity between 8 and 15 passengers) when in fact transportation
was provided in a vehicle that qualified for a lower billing rate; 2) the Medicaid
beneficiary, D.R., was incarcerated and not at her residence; and 3) the treatment
appointments did not take place;
In violation of Title 18, United States Code, Section 1035(a)(2).
16
Case 1:25-cr-00131-DMT Document 2 Filed 06/04/25 Page 17 of 19
COUNT TWELVE
False Statements Relating to a Health Care Benefit Program
The Grand Jury Further Charges:
Paragraphs 1–19 are reincorporated here by reference.
On or about October 7, 2022, in the District of North Dakota,
ISAAC OSEI AFOAKWA,
in a matter involving a health care benefit program, knowingly and willfully made a
materially false, fictitious, and fraudulent statement and representation, or made a
materially false writing or document knowing the same to contain any materially false,
fictitious, or fraudulent statement or entry, to wit: AFOAKWA submitted a claim to Blue
Cross Blue Shield of North Dakota for providing round-trip non-emergency medical
transport for B.W. on April 17, 2022, and April 18, 2022, from B.W.’s residence in New
Salem, North Dakota, to a treatment center in Bismarck, North Dakota, when the claim
was materially false in several respects: 1) the claim charged transportation in a mini-bus
(defined as a bus with capacity between 8 and 15 passengers) when in fact transportation
was provided in a vehicle that qualified for a lower billing rate; 2) the Medicaid
beneficiary, B.W., was incarcerated and not at his residence; and 3) the treatment
appointment did not take place;
In violation of Title 18, United States Code, Section 1035(a)(2).
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Case 1:25-cr-00131-DMT Document 2 Filed 06/04/25 Page 18 of 19
FORFEITURE NOTICE
Upon conviction of any Counts 1–6 and 10–12, charged in this Indictment,
ISAAC OSEI AFOAKWA
shall forfeit to the United States, pursuant to 18 U.S.C. § 982(a)(7), 18
U.S.C. § 981(a)(1)(D), and 28 U.S.C. § 2461(c), all of his right, title, and interest in any
property, real or personal, which constitutes or is derived from proceeds traceable to a
violation of 18 U.S.C. § 1035 or 18 U.S.C. §1343, respectively, including but not limited
to:
A sum of United States currency in the form of a Money Judgment representing
the amount of proceeds obtained as a result of the offenses.
If any of the assets described above as being subject to forfeiture, pursuant to
18 U.S.C. § 1035 or 18 U.S.C. § 1343, as a result of any act or omission of ISAAC OSEI
AFOAKWA,
a. Cannot be located upon the exercise of due diligence;
b. Has been transferred to, 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
difficultly,
it is the intent of the United States, pursuant to 21 U.S.C. § 853(p), as incorporated by
28 U.S.C. § 2461(c), to seek forfeiture of any other property of said defendants up to the
value of said property described above as being subject to forfeiture.
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A TRUE BILL:
_________________________________
/s/ Foreperson
Foreperson
/s/ Jennifer Klemetsrud Puhl
JENNIFER KLEMETSRUD PUHL
Acting United States Attorney
MDG/ak
19
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