Indictment — United States v. Zsazsa Bouvier Couch, Middle District of Alabama (Document 1)
Summary
An Indictment in United States v. Zsazsa Bouvier Couch in the U.S. District Court for the Middle District of Alabama, Northern Division, filed 04/08/21 as Document 1 in Case 2:21-cr-00185-MHT-SRW, citing 18 U.S.C. § 1344(2), 18 U.S.C. § 1014, 18 U.S.C. § 1957(a) and 18 U.S.C. § 2. Counts 1-5 charge bank fraud. The grand jury alleges that the defendant submitted PPP loan applications to Trustmark for entities including Slim Fit Weight Loss Medical Clinic & Spa I Inc., Trinity Christian Ministry, LLC and Kidz Academy Christian Child Care Center, Inc., each claiming 10 employees and inflated payroll, supported by Form 941s not filed with the IRS. It alleges Trustmark approved the Slim Fit application on or about June 3, 2020 and the Trinity application for $95,625.00. A forfeiture allegation lists seized funds and currency.
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“Indictment — United States v. Zsazsa Bouvier Couch, Middle District of Alabama (Document 1).”
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Case 2:21-cr-00185-MHT-SRW Document 1 Filed 04/08/21 Page 1 of 31
IN THE UNITED STATES DISTRICT COURT
FOR THE MIDDLE DISTRICT OF ALABAMA
NORTHERN DIVISION
UNITED STATES OF AMERICA )
)
V. ) CR.No. ~:ttCll/gs-dA!fr-~
) [18 U.S.C. § 1344(2);
ZSAZSA BOUVIER COUCH ) 18 u.s.c. § 1014
) 18 U.S.C. § 1957(a)
) 18 u.s.c. § 2]
)
) INDICTMENT
The Grand Jury charges:
BACKGROUND
At all times relevant to this indictment:
1. At all times material to the indictment, Defendant ZSAZSA BOUVIER COUCH
was a resident of Montgomery County, Alabama.
A. Overview of the Paycheck Protection Program
2. 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. One source of relief that the CARES Act provided for was the authorization of up to
$349 billion in forgivable loans to small businesses for payroll, mortgage interest, rent/lease, and
utilities, through a program referred to as the Paycheck Protection Program ("PPP").
3. In order to obtain a PPP loan, a qualifying business was required to submit a PPP
loan application to a participating lender. An authorized representative of the business was
required to sign an application. In the PPP loan application, the small business (through its
authorized representative) had to state, among other things, its (a) average monthly payroll
Case 2:21-cr-00185-MHT-SRW Document 1 Filed 04/08/21 Page 2 of 31
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. The amount of a PPP loan that a small
business may be entitled to receive was determined by the number of persons employed by the
business and the business's average monthly payroll costs. In general, the more employees a
business had and the higher its average monthly payroll cost, the larger a PPP loan the business
was eligible to receive. In addition, businesses applying for a PPP loan were required to provide
documentation establishing their payroll expenses.
4. The PPP loan application also required a business (through its authorized
representative) to acknowledge its understanding of the program rules and make certain
affirmative certifications. Businesses were required to use PPP loan proceeds for payroll costs,
interest on mortgages, rent, and utilities. Specifically, in submitting the loan applications, the
business (through its authorized representative) was required to certify, among others, each of the
following representations:
• 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 Internal Revenue Service ("IRS") Form(s) 1099-MISC;
• The funds would be used to retain workers and maintain payroll or make mortgage
interest payments, lease payments, and utility payments, as specified under the
Paycheck Protection Program Rule;
• During the period beginning February 15, 2020 and ending on December 31, 2020,
the Applicant business had not and would not receive another loan under the PPP;
• The information provided in the application and the information provided in all
supporting documents and forms was true and accurate in all material respects.
5. The United States Small Business Administration ("SBA") oversaw the PPP.
However, individual PPP loans were issued by private, SBA-approved lenders who received and
processed PPP applications and supporting documentation, and then made loans using the lenders'
2
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own funds. PPP loans were 100% guaranteed by the SBA. Data from the application, including
information about the borrower, the total amount of the loan, and the listed number of employees,
was transmitted by the lender to the SBA in the course of processing the loan.
B. Relevant Financial Institutions
6. At all times material to the indictment, Regions Bank ("Regions") was a Federal
Deposit Insurance Corporation ("FDIC") insured financial institution headquartered in
Birmingham, Alabama. Regions 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.
7. At all times material to the indictment, Trustmark National Bank ("Trustmark")
was an FDIC insured financial institution headquartered in Jackson, Mississippi. Trustmark
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.
C. Entities Associated With The Defendant
8. From on or about March 26, 2008 and continuing until the present, Trinity Christian
Ministry, LLC (hereinafter "Trinity") was a limited liability company ("LLC") registered with the
Alabama Secretary of State. At all times material to the indictment, COUCH was the registered
agent of Trinity.
9. From on or about June 12, 2007 and continuing until the present, Kidz Academy
Christian Child Care Center, Inc. (hereinafter "Kidz Academy") was a non-profit corporation
registered with the Alabama Secretary of State. At all times material to the indictment, COUCH
was the registered agent and incorporator of Kidz Academy.
10. From on or about January 22, 2008 and continuing until the present, Bouvier Hair
Boutique LLC (hereinafter "Bouvier Hair") was a LLC registered with the Alabama Secretary of
3
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State. At all times material to the indictment, COUCH was the registered agent of Bouvier Hair.
11. From on or about April 7, 2020 and continuing until the present, Slim Fit Weight
Loss Medical Clinic & Spa I Inc. (hereinafter "Slim Fit") was a domestic corporation registered
with the Alabama Secretary of State. At all times material to the indictment, COUCH was the
registered agent of Slim Fit.
12. On or about May 2, 2020, COUCH filed a name reservation for Zsa Zsa' s Boutique
LLC (hereinafter "Zsa Zsa's Boutique") with the Alabama Secretary of State.
13. At all times material to the indictment, COUCH was associated with each of the
entities listed in paragraphs 8-12 (collectively, the "Couch entities").
D. Bank Accounts Affiliated with the Couch Entities
14. On or about June 25, 2019, Individual 1 opened a checking account ending in 402 1
at Regions for Kidz Academy (" Kidz Academy Regions 4021 account"). On or about July 8, 2019,
COUCH was added as an authorized signer on the account.
15. On or about May 7, 2020, Couch and Individual 1 opened a checking account
ending in 2391 at Regions for Bouvier Hair ("Bouvier Hair Regions 2391 account").
16. On or about April 22, 2020, Couch opened a checking account ending in 5460 at
Trustmark for Slim Fit ("Slim Fit Trustmark 5460 account").
17. On or about May 6, 2020, Couch and Individual 1 opened another checking for
Kidz Academy, this time at Trustmark, with an account number ending in 5643 ("Kidz Academy
Trustmark 5643 account").
COUNTS 1-5
(Bank Fraud)
18. The factual allegations contained in the preceding paragraphs of this indictment are
realleged and incorporated herein as if copied verbatim.
4
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19. On or about the dates set forth below, in Montgomery County, within the Middle
District of Alabama, and elsewhere, the defendant,
ZSAZSA BOUVIER COUCH,
did knowingly execute a scheme and artifice to defraud financial institutions, the deposits of which
were insured by the Federal Deposit Insurance Corporation, and to obtain, by means of materially
false and fraudulent pretenses, representations, and promises, moneys, funds, credits, assets,
securities, and other property owned by and under the custody and control of the financial
institutions, and caused the financial institutions to deposit funds into an account controlled by the
defendant.
MANNER AND MEANS
A. Paycheck Protection Program Applications Filed
20. On or about the dates listed below, COUCH submitted to financial institutions PPP
loan applications for the Couch entities as listed below.
i. PPP Loan Application #1: Slim Fit
21. On or about April 22, 2020, COUCH submitted to Trustmark a PPP loan application
for Slim Fit. In the application, COUCH claimed that Slim Fit had 10 employees and had an
average monthly payroll of $82,416.67. In submitting the application, COUCH sought PPP
funding from Trustmark in the amount of $206,041.68.
22. COUCH falsely and fraudulently inflated the number of employees and average
monthly payroll for Slim Fit on the application. COUCH made these knowing false statements on
the Slim Fit application in order to qualify for more PPP funds.
23. On the Slim Fit application, COUCH electronically signed next to each of the
following certifications:
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a. Slim Fit "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 interest payments, lease payments, and utility payments ... [and]
if the funds are knowingly used for unauthorized purposes, the federal
government may hold [applicant] liable, such as for charges of fraud";
c. " [T]he information provided in the application and the information
provided in all supporting docun1ents and forms is true and accurate in all
material respects."
24. Despite making these certifications, COUCH knew that Slim Fit did not have
employees for whom it paid salaries and payroll taxes or paid independent contractors, as reported
on Form(s) 1099-MISC, as claimed on the application.
25. COUCH falsely and fraudulently represented that the funds she sought in the Slim
Fit application would "be used to retain workers and maintain payroll or make mortgage interest
payments, lease payments, and utility payments" when, in fact, she intended to divert the funds
she obtained from the PPP to her personal use and benefit.
26. In addition, on the application, COUCH falsely answered "No," to the question "Is
the Applicant or any owner of the Applicant an owner of any other business, or have common
management with, any other business?"
27. COUCH electronically signed the Slim Fit application.
28. In connection with the Slim Fit application, on or about April 22, 2020, COUCH
electronically signed a document entitled "Paycheck Protection Program (PPP) Information Sheet:
6
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Borrowers." Specifically, the document stated, "You acknowledge that the lender will calculate
the eligible loan amount using the tax documents you submitted. You affirm that the tax documents
are identical to those you submitted to the IRS."
29. Despite the affirmation, COUCH included w ith the Slim Fit application IRS Form
94 1s (Employer's Quarterly Federal Tax Return) for Slim Fit that contained inflated employee and
payroll information in order to support the number of employees and average monthly payroll
claimed in the PPP application.
30. At the time the Slim Fit application was filed, the Form 941s that COUCH
submitted with the Slim Fit application had not been filed with the IRS.
3 1. At the time the Slim Fit application was filed, the Alabama Department of Labor
("ADOL") did not have any employment records for Slim Fit.
32. On or about June 3, 2020, Trustmark approved the Slim Fit application in the
amount of $248, 125.00.
ii. PPP Loan Application #2: Trinity
33. On or about April 23, 2020, COUCH submitted a PPP loan application to Trustmark
for Trinity. In the application, COUCH claimed that Trinity had 10 employees and had an average
monthly payroll of $48,99 1.67. In submitting the application, COUCH sought PPP funding in the
amount of$ 122,479.18.
34. COUCH falsely and fraudulently inflated the number of employees and average
monthly payroll for Trinity on the application. COUCH made these knowing false statements on
the Trinity application in order to qualify for more PPP funds.
35. On the Trinity application, COUCH electronically initialed next to each of the
following certifications:
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a. Trinity "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 interest payments, lease payments, and utility payments ... [and]
if the funds are knowingly used for unauthorized purposes, the federal
government may hold [applicant] liable, such as for charges of fraud";
c. "[T]he information provided in the application and the information
provided in all supporting documents and forms is true and accurate in all
material respects."
36. Despite making these certifications, COUCH knew that Trinity did not have
employees for whom it paid salaries and payroll taxes or paid independent contractors, as reported
on Form(s) 1099-MISC, as claimed on the application.
37. COUCH falsely and fraudulently represented that the funds she sought in the
Trinity application would "be used to retain workers and maintain payroll or make mortgage
interest payments, lease payments, and utility payments" when, in fact, she intended to divert the
funds she obtained from the PPP to her personal use and benefit.
38. In addition, on the application, COUCH falsely answered "No," to the question "Is
the Applicant or any owner of the Applicant an owner of any other business, or have common
management with, any other business?"
39. COUCH electronically signed the Trinity application.
40. In connection with the Trinity application, on or about April 23, 2020, COUCH
electronically signed a document entitled "Paycheck Protection Program (PPP) Information Sheet:
8
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Borrowers". Specifically, the document stated, "You acknowledge that the lender will calculate
the eligible loan amount using the tax documents you submitted. You affirm that the tax documents
are identical to those you submitted to the IRS."
41. Despite the affirmation, COUCH included with the Trinity application IRS Form
941s for Trinity that contained inflated employee and payroll information in order to support the
number of employees and average monthly payroll claimed in the PPP application.
42. At the time the Trinity application was filed, the Form 941s that COUCH submitted
with the Trinity application had not been filed with the IRS.
43. At the time the Trinity application was filed, the ADOL did not have any
employment records for Trinity.
44. On or about May 4, 2020, Trustmark approved the Trinity application in the amount
of $95,625.00.
iii. PPP Loan Application #3: Kidz Academy
45. On or about April 23, 2020, COUCH submitted to Trustmark a PPP loan application
for Kidz Academy. In the application, COUCH claimed that Kidz Academy had 10 employees
and had an average monthly payroll of $74,665.75. In submitting the application, COUCH sought
PPP funding in the amount of $186,664.38 from Trustmark.
46. COUCH falsely and fraudulently inflated the number of employees and average
monthly payroll for Kidz Academy on the application. COUCH made these knowing false
statements on the Kidz Academy application in order to qualify for more PPP funds.
47. On the Kidz Academy application, COUCH electronically initialed next to each of
the following certifications:
a. Kidz Academy "was in operation on February 15, 2020 and had employees
9
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for whom it paid salaries and payroll taxes or paid independent contractors,
as reported on Form(s) I 099-MISC";
b. "The funds will be used to retain workers and maintain payroll or make
mortgage interest payments, lease payments, and utility payments ... [and]
if the funds are knowingly used for unauthorized purposes, the federal
government may hold [applicant] liable, such as for charges of fraud";
c. "During the period beginning on February 15, 2020 and ending on
December 31, 2020, the Applicant business has not and will not receive
another loan under the Paycheck Protection Program"; and
d. " [T]he information provided in the application and the information
provided in all supporting documents and forms is true and accurate in all
material respects."
48. Despite making these certifications, COUCH knew that Kidz Academy did not
have employees for whom it paid salaries and payroll taxes or paid independent contractors, as
reported on Form(s) 1099-MISC, as claimed on the application.
49. COUCH falsely and fraudulently represented that the funds she sought in the Kid z
Academy application would "be used to retain workers and maintain payroll or make mortgage
interest payments, lease payments, and utility payments" when, in fact, she intended to divert the
funds she obtained from the PPP to her personal use and benefit.
50. Furthennore, COUCH did not disclose that she had applied for another PPP loan
for Kidz Academy at Regions.
51. In addition, on the application, COUCH falsely answered "No," to the question "Is
the Applicant or any owner of the Applicant an owner of any other business, or have common
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management with, any other business?"
52. COUCH electronically signed the Kidz Academy application.
53. In connection with the Kidz Academy application, on or about April 23, 2020,
COUCH electronically signed a document entitled "Paycheck Protection Program (PPP)
Inf01mation Sheet: Borrowers," explaining the terms of the PPP. Specifically, the document stated,
" You acknowledge that the lender will calculate the eligible loan amount using the tax documents
you submitted. You affirm that the tax documents are identical to those you submitted to the IRS."
54. Despite the affirmation, COUCH included with the Kidz Academy application
IRS Form 941s for Kidz Academy that contained inflated employee and payroll information in
order to support the number of employees and average monthly payroll claimed in the PPP
application.
55. At the time the Kidz Academy application was filed with Trustmark, the Form
941 s that COUCH submitted with the Kids Academy application had not been filed with the IRS.
56. At the time the Kidz Academy application was filed with Trustmark, the ADOL
did not have any employment records for Kidz Academy.
57. On or about May 11 , 2020, Trustmark approved the Kidz Academy application in
the amount of $83,437.47.
iv. PPP Loan Application #4: Zsa Zsa's Boutique
58. On or about May 2, 2020, COUCH submitted a PPP loan application to Trustmark
for Zsa Zsa's Boutique. In the application, COUCH claimed that Zsa Zsa's Boutique had 30
employees and had an average monthly payroll of $385,748.75. In submitting the application,
COUCH sought PPP funding in the amount of $964,371.88 from Trustmark.
59. COUCH falsely and fraudulently inflated the number of employees and average
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monthly payroll for Zsa Zsa's Boutique on the application. COUCH made these knowing false
statements on the Zsa Zsa' s Boutique application in order to qualify for more PPP funds.
60. On the Zsa Zsa's Boutique application, COUCH electronically initialed next to
each of the following certifications:
a. Zsa Zsa's Boutique "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 interest payments, lease payments, and utility payments ... [and]
if the funds are knowingly used for unauthorized purposes, the federal
government may hold [applicant] liable, such as for charges of fraud" ;
c. " [T]he information provided in the application and the information
provided in all supporting documents and forms is true and accurate in all
material respects."
61. Despite making these certifications, COUCH knew that Zsa Zsa' s Boutique did not
have employees for whom it paid salaries and payroll taxes or paid independent contractors, as
reported on Form( s) 1099-MISC, as claimed on the application.
62. COUCH falsely and fraudulently represented that the funds she sought in the Zsa
Zsa' s Boutique application would "be used to retain workers and maintain payroll or make
mortgage interest payments, lease payments, and utility payments" when, in fact, she intended to
divert the funds she obtained from the PPP to her personal use and benefit.
63. In addition, on the application, COUCH falsely answered "No," to the question "ls
the Applicant or any owner of the Applicant an owner of any other business, or have common
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management with, any other business?"
64. COUCH electronically signed the Zsa Zsa's Boutique application.
65. In connection with the Zsa Zsa' s Boutique application, on or about May 2, 2020,
COUCH electronically signed a document entitled "Paycheck Protection Program (PPP)
Information Sheet: Borrowers," explaining the terms of the PPP. Specifically, the document stated,
"You acknowledge that the lender will calculate the eligible loan amount using the tax docwnents
you submitted. You affirm that the tax documents are identical to those you submitted to the IRS."
66. Despite this affirmation, COUCH included with the Zsa Zsa's Boutique application
IRS Form 941 s for Zsa Zsa's Boutique that contained inflated employee and payroll information
in order to support the number of employees and average monthly payroll claimed in the PPP
application.
67. At the time the Zsa Zsa' s Boutique application was filed, the Form 941s that
COUCH submitted with the Zsa Zsa's Boutique application had not been filed with the IRS.
68. At the time the Zsa Zsa's Boutique application was filed, the ADOL did not have
any employment records for Zsa Zsa's Boutique.
69. On or about May 4, 2020, a Trustrnark representative assigned to the Zsa Zsa' s
Boutique application requested that COUCH provide additional information. That same day,
COUCH responded to " [i]ust withdraw application." The application was then fully cancelled.
v. PPP Loan Application #5: Kidz Academy
70. On or about May 5, 2020, COUCH submitted a PPP loan application to Regions
for Kidz Academy. In the application, COUCH claimed that Kidz Academy had 15 employees
and had an average monthly payroll of $120,000.00. In submitting the application, COUCH
sought PPP funding in the amount of $66,700.00 from Regions.
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71. COUCH falsely and fraudulently inflated the number of employees and average
monthly payroll for Kidz Academy on the application. COUCH made these knowing false
statements on the Kidz Academy application in order to qualify for more PPP funds.
72. On the Kidz Academy application, COUCH electronically initialed next to each of
the following certifications:
a. Kidz Academy "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 interest payments, lease payments, and utility payments ... [and]
if the funds are knowingly used for unauthorized purposes, the federal
government may hold [applicant] liable, such as for charges of fraud" ;
c. "During the period beginning on February 15, 2020 and ending on
December 31, 2020, the Applicant business has not and will not receive
another loan under the Paycheck Protection Program"; and
d. " [T]he information provided in the application and the information
provided in all supporting documents and forms is true and accurate in all
material respects."
73. Despite making these certifications, COUCH knew that Kidz Academy did not
have employees for whom it paid salaries and payroll taxes or paid independent contractors, as
reported on Form(s) 1099-MISC, as claimed on the application.
74. COUCH falsely and fraudulently represented that the funds she sought in the Kidz
Academy application would "be used to retain workers and maintain payroll or make mortgage
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interest payments, lease payments, and utility payments" when, in fact, she intended to divert the
funds she obtained from the PPP to her personal use and benefit.
75. Moreover, COUCH did not disclose that she had filed another PPP application for
Kidz Academy at Trustmark.
76. In addition, on the application, COUCH falsely answered "No," to the question "Is
the Applicant or any owner of the Applicant an owner of any other business, or have common
management with, any other business?"
77. COUCH electronically signed the Kidz Academy application.
78. COUCH included with the Kidz Academy application IRS Form 941s for Kidz
Academy that contained inflated employee and payroll information in order to support the number
of employees and average monthly payroll claimed in the PPP application.
79. At the time the Kidz Academy application was filed with Regions, the Form 94 1s
that COUCH submitted with the Kidz Academy application had not been filed with the IRS.
80. At the time the Kidz Academy application was filed with Regions, the ADOL did
not have any employment records for Kidz Academy.
81. On or about May 5, 2020, Regions approved the Kidz Academy application and
entered into a loan with COUCH for $66,700.00.
vi. PPP Loan Application #6: Bouvier Hair
82. On or about June 3, 2020, COUCH submitted a PPP loan application to Regions
for Bouvier Hair. In the application, COUCH claimed that Bouvier Hair had 10 employees and
had an average monthly payroll of $183,600.00. In submitting the application, COUCH sought
PPP funding in the amount of $11 5,800.00 from Regions.
83. COUCH falsely and fraudulently inflated the number of employees and average
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monthly payroll for Bouvier Hair on the application. COUCH made these knowing false
statements on the Bouvier application in order to qualify for more PPP funds.
84. On the Bouvier Hair application, COUCH electronically initialed next to each of
the following ce1tifications:
a. Bouvier Hair "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 interest payments, lease payments, and utility payments ... [and]
if the funds are knowingly used for unauthorized purposes, the federal
government may hold [applicant] liable, such as for charges of fraud";
c. "[T]he information provided in the application and the information
provided in all supporting documents and forms is true and accurate in all
material respects."
85. Despite making these certifications, COUCH knew that Bouvier Hair did not have
employees for whom it paid salaries and payroll taxes or paid independent contractors, as reported
on Form(s) 1099-MISC, as claimed on the application.
86. COUCH falsely and fraudulently represented that the funds she sought in the
Bouvier Hair application would "be used to retain workers and maintain payroll or make mortgage
interest payments, lease payments, and utility payments" when, in fact, she intended to divert the
funds she obtained from the PPP to her personal use and benefit.
87. In addition, on the application, COUCH falsely answered "No," to the question "Is
the Applicant or any owner of the Applicant an owner of any other business, or have common
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management with, any other business?"
88. COUCH electronically signed the Bouvier Hair application.
89. COUCH included with the Bouvier Hair application Form 941s for Bouvier Hair
that contained inflated employee and payroll information in order to support the number of
employees and average monthly payroll claimed in the PPP application.
90. At the time the Bouvier Hair application was filed, the Form 941s that COUCH
submitted with the Bouvier Hair application had not been filed with the IRS.
91. At the time the Bouvier Hair application was filed, the ADOL did not have any
employment records for Bouvier Hair.
92. On or about June 3, 2020, Regions approved the Bouvier Hair application in the
amount of $115,800.00.
B. PPP Loan Disbursement
93. Based on the false and fraudulent representations COUCH made on the PPP loan
applications, discussed above in Section A, the financial institutions that received these
applications funded, at least in part, five of the six PPP applications.
94. On or about May 7, 2020, Trustmark disbursed approximately $95,625.00 m
proceeds of PPP loans was disbursed to Trinity. Trustmark disbursed the funds through an
electronic transfer to the Slim Fit Trustmark 5460 account.
95. On or about May 7, 2020, approximately $66,700.00 in proceeds of PPP loans was
disbursed by Regions to Kidz Academy into the Kidz Academy Regions 4021 account.
96. On or about May 14, 2020, approximately $83,437.47 in proceeds of PPP loans
was disbursed by Trustmark to Kidz Academy into the Kidz Academy Trustmark 5643 account.
97. On or about June 4, 2020, approximately $11 5,800.00 in proceeds of PPP loans
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was disbursed by Regions to Bouvier Hair into the Bouvier Hair Regions 2391 account.
98. On or about June 8, 2020, approximately $248,125.00 in proceeds of PPP loans
was disbursed by Trustmark to Slim Fit into the Slim Fit Trustmark 5460 account.
C. Unauthorized Use of Proceeds of PPP Loans
i. Use ofProceeds ofPPP Loans from Slim Fit Trustmark 5460 Account
99. Trustmark deposited proceeds of PPP loans for Slim Fit and Trinity into the Slim
Fit Trustmark 5460 account.
100. After receiving the :fraudulently obtained proceeds of PPP loans for Trinity into the
Slim Fit Trustmark 5460 account, COUCH used the funds to purchase a vehicle. On or about May
13, 2020, a wire transfer was initiated from the Slim Fit Trustmark 5460 account for approximately
$22,198.00 to an auto dealership, Rusnak Westlake Audi, to purchase a vehicle, specifically, a
2017 Audi Q3. On or about June 2, 2020, COUCH registered the Audi in her name and applied
for a certificate of title to the Alabama Department of Revenue Motor Vehicle Division.
IO I. Drawing from proceeds of PPP loans for Trinity and Slim Fit, between in or about
May 2020 until in or about July 2020, approximately $150,000.00 in checks were written from the
Slim Fit Trustmark 5460 account made payable to COUCH and COUCH's fami ly members. The
memo entry for all of the checks stated "Payroll," but they were not in fact for payroll.
ii. Use ofProceeds ofPPP Loans from Kidz Academy Trustmark
5643 Account
102. Trustmark deposited proceeds of PPP loans for the Kidz Academy application
submitted to Trustmark into the Kidz Academy Trustmark 5643 account.
103. Drawing from proceeds of PPP loans for Kidz Academy, between in or about May
2020 until in or about July 2020, approximately $49,200 in checks were written from the Kidz
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Academy Trustmark 5643 account made payable to COUCH and COUCH's family members. The
memo entry for all of the checks stated "Payroll," but they were not in fact for payroll.
iii. Use ofProceeds ofPPP Loans from Kidz Academy Regions 4021
Account
104. Regions deposited proceeds of PPP loans for the Kidz Academy application
submitted to Regions into the K.idz Academy Regions 4021 account.
105. Drawing from proceeds of PPP loans for Kidz Academy, between in or about May
2020 until in or about June 2020, checks totaling approximately $18,100 were written from the
Kidz Academy Regions 4021 account made payable to COUCH and COUCH's family members.
The memo entry for the checks stated " Payroll" or were left blank. None of the checks were in fact
for payroll.
iv. Use ofProceeds ofPPP Loans from Bouvier Hair Regions 2391
Account
106. Regions deposited proceeds of PPP loans for the Bouvier Hair application
submitted to Regions into the Bouvier Hair Regions 2391 account.
107. Drawing from proceeds of PPP loans for Bouvier Hair, in or about June 2020,
approximately $26,200 in checks were written from the Bouvier Hair Regions 2391 account made
payable to COUCH and COUCH's family members. The memo entry for the checks stated
"Payroll" or were left blank. None of the checks were in fact for payroll.
108. In addition, COUCH used the fraudulently obtained proceeds of PPP funds
intended for Bouvier Hair to purchase a vehicle.
a. On or about June 17, 2020, COUCH authorized a withdrawal from Regions
Bank account ending in 2391 in the amount of $27,007.00.
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b. On or about June 17, 2020, COUCH used the withdrawn funds to purchase
a cashier's check in the amount of $26,997.00, payable to a family member
of COUCH. The "Purchaser I Purchased For" line on the cashier's check
reflected "Zsa Zsa Couch / Payroll".
c. The cashier's check was then deposited back into Bouvier Hair Regions
Bank 2391 account and endorsed "use for purpose not intended."
d. On or about June 25, 2020, COUCH authorized a wire transfer in the
amount of $26,997.00 from Regions Bank account ending in 2391 to
beneficiary AN Texas Region Management, Ltd, Bank of America. The
wrre note stated "PURCHASE VEHICLE VIN#
WDD3G4EBCKW017692."
e. Specifically, COUCH used the funds to purchase a 2019 Mercedes-Benz A-
220 with VIN# WDD3G4EBCKW017692. The vehicle was registered to a
family member of COUCH.
THE CHARGES
109. The factual allegations contained in the preceding paragraphs of this indictment are
realleged and incorporated herein as if copied verbatim.
110. On or about the dates set forth below, in Montgomery County, within the Middle
District of Alabama, and elsewhere, the defendant,
ZSA ZSA BOUVIER COUCH,
did knowingly execute a scheme and artifice to defraud financial institutions, the deposits of which
were each insured by the Federal Deposit Insurance Corporation, and to obtain, by means of
materially false and fraudulent pretenses, representations, and promises, moneys, funds, credits,
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assets, securities, and other property owned by and under the custody and control of the financial
institutions, and caused the following financial institutions to deposit the following funds into an
account controlled by the defendant, each giving rise to a separate count:
FINANCIAL
COUNT DATE AMOUNT DISBURSED
INSTITUTION
1 May 7, 2020 Deposited $95,625.00 into account ending in 5460 Trustrnark
2 May 7, 2020 Deposited $66,700.00 into account ending in 4021 Regions
,.,
.) May 14, 2020 Deposited $83,437.47 into account ending in 5643 Trustmark
4 June 4, 2020 Deposited $115,800.00 into account ending in 2391 Regions
5 June 8, 2020 Deposited $248,125.00 into account ending in 5460 Trustmark
All in violation of Title 18, United States Code, Sections 1344(2) and 2.
COUNT6
(False Statement to a Federally Insured Bank)
111 . The factual allegations contained in the preceding paragraphs of this indictment are
realleged and incorporated herein as if copied verbatim.
112. On or about April 22, 2020, in Montgomery County, within the Middle District of
Alabama, and elsewhere, the defendant,
ZSAZSA BOUVIER COUCH,
knowingly made a false statement and report for the purpose of influencing the actions of
Trustmark National Bank, whose deposits were insured by the Federal Deposit Insurance
Corporation, in connection with a Paycheck Protection Program loan application, in that the
defendant falsely represented and certified on her Paycheck Protection Program application for
Slim Fit Weight Loss Medical Clinic and Spa I Inc. that (a) the funds would be used to retain
workers and maintain payroll or make mortgage interest payments, lease payments, and utility
payments; and (b) the information provided in the application and supporting documents and forms
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was true and accurate in all material respects, when in truth and in fact, as the defendant well knew,
(i) the funds would not be used to retain workers and maintain payroll or to make mortgage interest
payments, lease payments, and utility payments; and (ii) the information provided in the
application and supporting documents and forms was not true in all material respects, because it
included false representations about Slim Fit' s number of employees and average monthly payroll,
and falsified tax documentation.
All in violation of Title 18, United States Code, Sections 1014 and 2.
COUNT7
(False Statement to a Federally Insured Bank)
113. The factual allegations contained in the preceding paragraphs of this indictment are
realleged and incorporated herein as if copied verbatim.
114. On or about April 23, 2020, in Montgomery County, within the Middle District of
Alabama, and elsewhere, the defendant,
ZSAZSA BOUVIER COUCH,
knowingly made a false statement and report for the purpose of influencing the actions of
Trustmark National Bank, whose deposits were insured by the Federal Deposit Insurance
Corporation, in connection with a Paycheck Protection Program loan application, in that the
defendant falsely represented and certified on her Paycheck Protection Program application for
Trinity Christian Ministry, LLC that (a) the funds would be used to retain workers and maintain
payroll or make mortgage interest payments, lease payments, and utility payments; and (b) the
information provided in the application and supporting documents and forms was true and accurate
in all material respects, when in truth and in fact, as the defendant well knew, (i) the funds would
not be used to retain workers and maintain payroll or to make mortgage interest payments, lease
payments, and utility payments; and (ii) the information provided in the application and supporting
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docW11ents and forms was not true in all material respects, because it included false representations
about Trinity Christian Ministry, LLC's number of employees and average monthly payroll, and
falsified tax documentation.
All in violation of Title 18, United States Code, Sections 1014 and 2.
COUNTS
(False Statement to a Federally Insured Bank)
115. The factual allegations contained in the preceding paragraphs of this indictment are
realleged and incorporated herein as if copied verbatim.
11 6. On or about April 23, 2020, in Montgomery CoW1ty, within the Middle District of
Alabama, and elsewhere, the defendant,
ZSA ZSA BOUVIER COUCH,
knowingly made a false statement and report for the purpose of influencing the actions of
Trustmark National Bank, whose deposits were insured by the Federal Deposit Insurance
Corporation, in connection with a Paycheck Protection Program loan application, in that the
defendant falsely represented and certified on her Paycheck Protection Program application for
Kidz Academy Christian Child Care Center, Inc. that (a) the funds would be used to retain workers
and maintain payroll or make mortgage interest payments, lease payments, and utility payments;
and (b) the information provided in the application and supporting documents and forms was true
and accurate in all material respects, when in truth and in fact, as the defendant well knew, (i) the
fund s would not be used to retain workers and maintain payroll or to make mortgage interest
payments, lease payments, and utility payments; and (ii) the information provided in the
application and supporting documents and forms was not true in all material respects, because it
included false representations about Kidz Academy Christian Child Care Center, Inc. ' s number of
employees and average monthly payroll, and falsified tax documentation.
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All in violation of Title 18, United States Code, Sections 1014 and 2.
COUNT9
(False Statement to a Federally Insured Bank)
117. The factual allegations contained in the preceding paragraphs of this indictment are
realleged and incorporated herein as if copied verbatim.
118. On or about May 2, 2020, in Montgomery County, within the Middle District of
Alabama, and elsewhere, the defendant,
ZSAZSA BOUVIER COUCH,
knowingly made a false statement and report for the purpose of influencing the actions of
Trustmark National Bank, whose deposits were insured by the Federal Deposit Insurance
Corporation, in connection with a Paycheck Protection Program loan application, in that the
defendant falsely represented and certified on her Paycheck Protection Program application for
Zsa Zsa's Boutique LLC that (a) the funds would be used to retain workers and maintain payroll
or make mortgage interest payments, lease payments, and utility payments; and (b) the information
provided in the application and supporting documents and forms was true and accurate in all
material respects, when in truth and in fact, as the defendant well knew, (i) the funds would not be
used to retain workers and maintain payroll or to make mo11gage interest payments, lease
payments, and utility payments; and (ii) the information provided in the application and supporting
documents and forms was not true in all material respects, because it included false representations
about Zsa Zsa's Boutique LLC's number of employees and average monthly payroll, and falsified
tax documentation.
All in violation of Title 18, United States Code, Sections 1014 and 2.
COUNT IO
(False Statement to a Federally Insured Bank)
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119. The factual allegations contained in the preceding paragraphs ofthis indictment are
reaI!eged and incorporated herein as if copied verbatim.
120. On or about May 5, 2020, in Montgomery County, within the Middle District of
Alabama, and elsewhere, the defendant,
ZSAZSA BOUVIER COUCH,
knowingly made a false statement and report for the purpose of influencing the actions of Regions
Bank, whose deposits were insured by the Federal Deposit Insurance Corporation, in connection
with a Paycheck Protection Program loan application, in that the defendant falsely represented and
certified on her Paycheck Protection Program application for Kidz Academy Christian Child Care
Center, Inc. that (a) the funds would be used to retain workers and maintain payroll or make
mortgage interest payments, lease payments, and utility payments; (b) the information provided in
the application and supporting documents and forms was true and accurate in all material respects;
and (c) during the period beginning on February 15, 2020 and ending on December 31, 2020, the
applicant has not and will not receive another loan under the Paycheck Protection Program, when
in truth and in fact, as the defendant well knew, (i) the funds would not be used to retain workers
and maintain payroll or to make mortgage interest payments, lease payments, and utility payments;
(ii) the information provided in the application and supporting documents and forms was not true
in all material respects because it included false representations about Kidz Academy Clu-istian
Child Care Center, Inc.' s number of employees and average monthly payroll, and falsified tax
documentation; and (iii) the defendant had applied for another Paycheck Protection Program loan
for Kidz Academy Christian Child Care Center, Inc. from another financial institution.
All in violation of Title 18, United States Code, Sections 1014 and 2.
COUNT 11
(False Statement to a Federally Insured Bank)
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12 1. The factual allegations contained in the preceding paragraphs of this indictment are
realleged and incorporated herein as if copied verbatim.
122. On or about June 3, 2020, in Montgomery County, within the Middle District of
Alabama, and elsewhere, the defendant,
ZSAZSA BOUVIER COUCH,
knowingly made a false statement and report for the purpose of influencing the actions of Regions
Bank, whose deposits were insured by the Federal Deposit Insurance Corporation, in connection
with a Paycheck Protection Program loan application, in that the defendant falsely represented and
certified on her Paycheck Protection Program application for Bouvier Hair Boutique LLC that (a)
the funds would be used to retain workers and maintain payroll or make mortgage interest
payments, lease payments, and utility payments; and (b) the information provided in the
application and supporting documents and forms was true and accurate in all material respects,
when in truth and in fact, as the defendant well knew, (i) the funds would not be used to retain
workers and maintain payroll or to make mortgage interest payments, lease payments, and utility
payments; and (ii) the information provided in the application and supporting documents and forms
was not true in all material respects, because it included false representations about Bouvier Hair
Boutique LLC's number of employees and average monthly payroll, and falsified tax
documentation.
All in violation of Title 18, United States Code, Sections l 014 and 2.
COUNT 12
(Money Laundering)
123. The factual allegations contained in the preceding paragraphs of this indictment are
realleged and incorporated herein as if copied verbatim.
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124. On or about May 13, 2020, in Montgomery County, within the Middle District of
Alabama, and elsewhere, the defendant,
ZSAZSA BOUVIER COUCH,
knowingly engaged in and attempted 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, to wit: in that the defendant
caused $22,198.00 in Paycheck Protection Program loan proceeds to be wire transferred from
Trustmark National Bank account ending in 5460, held in the name of Slim Fit Weight Loss
Medical Clinic & Spa I Inc., to a bank account held in the name of Rusnak Westlake Audi to
purchase a 2017 Audi Q3 vehicle, and that, while conducting and attempting to conduct such
financial transaction, knew that the property involved in the financial transaction had been derived
from a specific unlawful activity, to wit: bank fraud.
All in violation of Title 18, United States Code, Sections l 957(a) and 2.
COUNT 13
(Money Laundering)
125. The factual allegations contained in the preceding paragraphs of this indictment are
realleged and incorporated herein as if copied verbatim.
126. On or about June 25, 2020, in Montgomery County, within the Middle District of
Alabama, and elsewhere, the defendant,
ZSAZSA BOUVIER COUCH,
knowingly engaged in and attempted 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, to wit: in that the defendant
caused $26,997.00 in Paycheck Protection Program loan proceeds to be wire transferred from
27
Case 2:21-cr-00185-MHT-SRW Document 1 Filed 04/08/21 Page 28 of 31
Regions Bank account ending in 2391, held in the name of Bouvier Hair Boutique LLC, to a bank
account held in the name of AN Texas Region Management to purchase a 2019 Mercedes-Benz
A-220 vehicle bearing VIN: WDD3G4EBCKW017692, and that, while conducting and attempting
to conduct such financial transaction, knew that the property involved in the financial transaction
had been derived from a specific unlawful activity, to wit: bank fraud.
All in violation of Title 18, United States Code, Sections l 957(a) and 2.
FORFEITURE ALLEGATION
A. The allegations contained in Counts 1-13 of this Indictment are hereby realleged
and incorporated by reference for the purpose of alleging forfeitures pursuant to Title 18, United
States Code, Sections 982(a)(l) and (2).
B. Upon conviction of the offenses in violation of Title 18, United States Code,
Sections 1344, 1014, and 1957(a) set forth in Counts 1-13 of this Indictment, the defendant,
ZSAZSA BOUVIER COUCH,
shall forfeit to the United States, pursuant to Title 18, United States Code, Sections 982(a)(l) and
(2), any property, real or personal, involved in such offense, or any property traceable to such
property; and any property constituting, or derived from, proceeds the person obtained directly or
indirectly, as the result of such violation. The property includes, but is not limited to:
1. a 2019 BMW 330, bearing VIN: WBA5R7C52KAJ82032, with all
appurtenances and attachments thereon;
2. a 2007 General Motors Company, Pick-Up Truck bearing VIN:
3GTEC 14X67G23 1789, with all appurtenances and attachments thereon;
3. A 20 19 Mercedes-Benz, A 220, 4-Door Sedan, bearing VIN:
WDD3G4EB6KW017692, with all appwi enances and attachments thereon;
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4. A 2017 Audi, Q3, 4-Door SUV, bearing VIN: WAIJCCFSIHR01088, with
all appurtenances and attachments thereon;
5. 2008 Ford Mustang, GT, bearing VIN: 1ZVHT82H485196449, with all
appurtenances and attachments thereon;
6. $23,100.84 in funds seized from bank account number XXX-XXX-5460 in
the name of Slim Fit Weight Loss Medical Clinic and Spa I, Inc. at
Trustmark National Bank, Jackson, Mississippi;
7. $13,359.98 in funds seized from bank account number XXX-XXX-5643 in
the name of Kidz Academy Christian Child Care Center, Inc. at Trustmark
National Bank, Jackson, Mississippi;
8. $37,209.26 in funds seized from bank account number XX.4874 in the name
of Zsa Zsa Bouvier Couch at Guardian Credit Union, Montgomery,
Alabama;
9. $16,482.50 in funds seized from bank account number XX.4875 in the name
of Jeffery Couch at Guardian Credit Union, Montgomery, Alabama;
10. $6,000.00 in funds seized from bank account number XX.1226 in the name
of Jim Walters Jr. at Guardian Credit Union, Montgomery, Alabama;
11. $20,042.47 in funds seized from bank account number XXXXXX.4021 in
the name of Kidz Academy Christian Chi ld Care Center, Inc. at Regions
Bank, Millbrook, Alabama;
12. $987.30 in funds seized from bank account number XXXXXX2391 in the
name of Bouvier Hair Boutique, LLC at Regions Bank, Millbrook,
Alabama;
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Case 2:21-cr-00185-MHT-SRW Document 1 Filed 04/08/21 Page 30 of 31
13. $6,000.00 in funds seized from bank account number :XXXX3307 in the
name of Hattie Walters at Max Federal Credit Union, Montgomery,
Alabama;
14. $2,402.00 in United States Currency seized from the residence located at
9425 Alpine Park Court, Montgomery, Alabama;
15. $1,180.00 in United States Currency seized from a purse located in the
residence located at 9425 Alpine Park Court, Montgomery, Alabama; and
16. $201.60 in funds seized from bank account number XXXX:402 1 in the name
of Kidz Academy Christian Child Care Center, Inc. at Regions Bank,
Millbrook, Alabama.
C. If any of the property described in this forfeiture allegation, as a result of any act
or omission of the defendant:
(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 shall be entitled to forfeiture of substitute property pursuant to Title 21, United
States Code, Section 853(p), as incorporated by Title 28, United States Code, Section 2461(c).
All pursuant to Title 18, United States Code, Sections 982(a)(l) and (2).
A TRUE BILL:
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Case 2:21-cr-00185-MHT-SRW Document 1 Filed 04/08/21 Page 31 of 31
SANDRA J. STEWART
ACTING UNITED STATES ATTORNEY
. 0
ssistant United tates Attorney
=Ai9 J,
Gregory~Griffin, Jr.
.A:=\~
\ \
Assistant United States Attorney
31
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