Indictment — United States v. Bryan Alan Sparks and Autumn Gail Luna, Western District of Washington

Summary

An indictment filed November 10, 2021 as Document 1 in United States v. Bryan Alan Sparks and Autumn Gail Luna, Case 2:21-cr-00189-JLR, in the U.S. District Court for the Western District of Washington at Seattle. Count 1 charges conspiracy to commit mail and wire fraud under Title 18, United States Code, Section 1349, alleging the defendants used stolen personal identifying information of over 50 Washington State residents to submit fraudulent EIDL applications and unemployment benefit claims. The grand jury charges that the SBA disbursed at least $520,000 in loan proceeds and the Washington Employment Security Department paid at least approximately $500,000 in benefits, and that debit cards were mailed to addresses in the district. Counts 2-6 charge mail fraud under Sections 1341 and 2, and Counts 7-12 charge wire fraud.

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Case 2:21-cr-00189-JLR Document1 Filed 11/10/21 Page 1 of 11

Presented to the Court by the foreman of the
Grand Jury in open Court, in the presence of
the Grand Jury and FILED in the US.
DISTRICT COURT at Seattle, Washington.

Novenbey 10 |

i Sfbramanian, Clerk

av
By. Deputy

UNITED STATES DISTRICT COURT FOR THE
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE:

UNITED STATES OF AMERICA,
Plaintiff,

Vv.

BRYAN ALAN SPARKS and
AUTUMN GAIL LUNA,

Defendants.

The Grand Jury charges that:

COUNT 1

vERSI- 189 JR

INDICTMENT

(Conspiracy to Commit Mail and Wire Fraud)

A. Background

1. Overview. These charges involve a conspiracy by defendants BRYAN
ALAN SPARKS and AUTUMN GAIL LUNA to use stolen personal identifying

information (PII) of over 50 Washington State residents, as well as residents of other

states, to submit fraudulent applications for Small Business Administration (SBA) loans

and unemployment benefits intended to assist workers and businesses suffering from the

Indictment - 1
United States v. Sparks et al.

UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
SEATTLE, WASHINGTON 98101
(206) 553-7970
Oo ON DN BR W PB we

Case 2:21-cr-00189-JLR Document1 Filed 11/10/21 Page 2 of 11

economic impacts of the COVID-19 pandemic. SPARKS and LUNA fraudulently
obtained over $1 million in loan proceeds and benefits by causing SBA to disburse loan
proceeds of at least $520,000 and Washington Employment Security Department (ESD)
to pay out federal and state unemployment benefits of at least approximately $500,000.

2. CARES Act and EIDL Program. On March 27, 2020, the United States
enacted into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The
CARES Act authorized approximately $2 trillion in aid to American workers, families,
and businesses to mitigate the economic consequences of the COVID-19 pandemic.

3. The SBA administers the Economic Injury Disaster Loan (EIDL) program.
EIDL provides low-interest financing to small businesses and non-profit organizations in
regions affected by declared disasters. The CARES Act authorized the SBA to provide
EIDLs of up to $2 million to eligible small businesses experiencing substantial financial
disruption due to the COVID-19 pandemic. EIDL funds can be used for payroll
expenses, sick leave, production costs, and business obligations, such as debts, rent, and
mortgage payments.

4, A qualifying business applying for an EIDL must submit an application to
the SBA and provide information about its operations, such as the number of employees,
gross revenues for the 12-month period preceding the disaster, and cost of goods sold in
the 12-month period preceding the disaster. The applicant must also certify that all of the
information in the application is true and correct to the best of the applicant’s knowledge.

5. Applicants submit EIDL applications directly to the SBA for processing.
SBA directly disburses funds issued under an EIDL to an account identified by the
applicant. Since July 11, 2020, when an applicant submits an EIDL application online,
SBA receives it at a server outside the State of Washington. Therefore, every EIDL
application submitted online from Washington State since July 11, 2020, results in an

interstate wire communication that originates in Washington State and travels to another

state.
Indictment - 2 UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
United States v. Sparks et al. SEATTLE, WASHINGTON 98101

(206) 553-7970
So ON DWH BRB W PHO we

Case 2:21-cr-00189-JLR Document1 Filed 11/10/21 Page 3 of 11

6. CARES Act Unemployment Benefits. The CARES Act also funded and
authorized each state to administer new unemployment benefits. These benefits included:
(1) Federal Pandemic Unemployment Compensation, which provided a benefit of $600
per week per unemployed worker in addition to existing benefits; (2) Pandemic
Unemployment Assistance, which extended benefits to self-employed persons,
independent contractors, and others; and (3) Pandemic Emergency Unemployment
Assistance, which extended benefits for an additional 13 weeks after regular
unemployment benefits were exhausted.

de CARES Act unemployment benefits are funded by the United States
government through the Department of Labor and administered at the state level by state
agencies known as state workforce agencies (SWAs). ESD is the SWA for the State of
Washington and headquartered in Olympia, Washington.

8. ESD’s Unemployment Tax and Benefit System. Applicants for
unemployment benefits may submit and manage their applications using ESD’s
Unemployment Tax and Benefit (UTAB) system via an online portal called eServices.
The UTAB system is hosted at the State Data Center in Olympia, Washington.

9. UTAB requires an applicant to provide his or her PII, including name, date
of birth, and Social Security number. If ESD confirms that the information matches the
PII of a person in ESD’s records, ESD will pay out benefits via wire (ACH) transfer to a
bank or financial account identified by the applicant. An applicant may also request that
the benefits be loaded onto a KeyBank-issued debit card and mailed to an address
provided by the applicant.

10. | When ESD disburses unemployment benefits, ESD sends an interstate wire
communication from Olympia, Washington, to a KeyBank processing center, directing
KeyBank to make the benefit payment. KeyBank does not have any processing centers
within Washington State. Therefore, every ESD benefits payment results in an interstate

wire communication that originates in Washington and travels to another state.

Indictment - 3 UNITED STATES ATTORNEY
; 700 STEWART STREET, SUITE 5220
United States v. Sparks et al. SEATTLE, WASHINGTON 98101

(206) 553-7970
Case 2:21-cr-00189-JLR Document1 Filed 11/10/21 Page 4 of 11

11. Disaster Declarations. CARES Act unemployment benefits and EIDLs
related to COVID-19 relief are authorized, transferred, disbursed, and paid in connection
with a nationwide emergency declared by Presidential Proclamation 9994 (effective as of
March 1, 2020) and a Presidential declaration of a major disaster for the State of
Washington concerning the COVID-19 pandemic that was issued on March 22, 2020.

B. The Conspiracy
12. Beginning at a time unknown, but no later than March 14, 2020, and

continuing through at least January 1, 2021, in King, Snohomish, and Thurston Counties,
within the Western District of Washington, and elsewhere, BRIAN ALAN SPARKS and
GAIL AUTUMN LUNA, and others known and unknown to the Grand J ury, did

conspire, confederate and agree, together and with each other, to commit the offenses of
mail and wire fraud in violation of Title 18, United States Code, Sections 1341 and 1343.

13. That is, SPARKS and LUNA, together with others known and unknown,
with intent to defraud, knowingly devised a scheme and artifice to defraud, and to obtain
money and property, by means of materially false and fraudulent pretenses,
representations, and promises. To execute and attempt to execute the scheme and artifice
to defraud, SPARKS and LUNA, and others known and unknown to the Grand Jury,
knowingly caused to be delivered by mail according to the direction thereon, bank debit
cards; and caused to be transmitted, by wire communication in interstate and foreign
commerce, writings, signs, signals, pictures, and sounds.

14. The object of the conspiracy was to use the stolen PII of residents of
Washington State and other states to fraudulently obtain government benefits, namely,
pandemic-related EIDL funds and unemployment benefits.

C. Manner and Means
The following conduct was part of the conspiracy:
15. | The defendants SPARKS and LUNA, and their co-conspirators, unlawfully

obtained and possessed stolen PII, to include names, dates of birth, and Social Security

numbers of residents of Washington State and other states.

Indictment - 4 UNITED STATES ATTORNEY
. 700 STEWART STREET, SUITE 5220
United States v. Sparks et al. SEATILE, WASHINGTON 98101

(206) 553-7970
SOND WN BP W PPO we

Case 2:21-cr-00189-JLR Document1 Filed 11/10/21 Page 5 of 11

16. Using the stolen PII, the defendants and their co-conspirators opened bank
accounts, obtained debit and credit cards, created counterfeit driver’s licenses, or
obtained fraudulent driver’s licenses from the Washington Department of Licensing. In
furtherance of their conspiracy to defraud, the defendants and their co-conspirators
maintained over a dozen phone numbers on as many cell phones, each of which were
labeled with the phone number and names of stolen identities. The defendants also
maintained detailed ledgers and electronic files of stolen PII, credit card numbers, and
financial transactions associated with each stolen identity.

17. | When opening bank accounts using other peoples’ stolen PII, SPARKS and
LUNA listed, as the account addresses, several addresses in the Western District of
Washington, including addresses in Seattle, Des Moines, Federal Way, Auburn, and
Lynnwood. SPARKS and LUNA caused the financial institutions to mail fraudulent
identity and financial documents to those addresses by U.S. Mail. SPARKS and LUNA
also used these same addresses on counterfeit and fraudulent driver’s licenses.

18. Using the stolen PII and fraudulent identity documents, SPARKS and
LUNA and their co-conspirators accessed SBA’s website and submitted, by interstate
wire transmission, fraudulent EIDL applications to SBA. In the loan applications,
defendants requested that the loan proceeds be paid to the bank accounts that the
defendants and their co-conspirators had fraudulently opened using stolen PII. After
SBA paid out the loan proceeds, the defendants and their co-conspirators accessed the
funds using the debit cards associated with the fraudulent bank accounts. The defendants
and their co-conspirators also transferred funds between and among the fraudulent bank
accounts.

19. SPARKS and LUNA and their co-conspirators also used the stolen PII and
fraudulent identity documents to submit fraudulent unemployment benefit claims to ESD,
which ESD then paid out by means of interstate wire communications. For the fraudulent
unemployment claims, SPARKS and LUNA and their co-conspirators used many of the

same stolen identities that they used to file EIDL loan applications. In some instances,

Indictment - 5 UNITED STATES ATTORNEY
- 700 STEWART STREET, SUITE 5220
United States v. Sparks et al. SEATTLE, WASHINGTON 98101

(206) 553-7970
Case 2:21-cr-00189-JLR Document1 Filed 11/10/21 Page 6 of 11

the defendants and their co-conspirators directed the benefits to be paid to KeyBank debit
cards that were then mailed by U.S. Mail to addresses within the Western District of
Washington. The defendants or their co-conspirators then retrieved the cards from
mailboxes that they could access. In other instances, the benefits were paid to bank
accounts that the defendants fraudulently opened in furtherance of the conspiracy, and the
defendants accessed the funds using the debit cards associated with those accounts. On
many occasions, the defendants withdrew funds from those accounts from automated
teller machines (ATMs) in Seattle and elsewhere within the Western District of
Washington.

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

COUNTS 2-6
(Mail Fraud)

20. Paragraphs 1-19 of this Indictment are incorporated by reference as if fully
set forth herein.

21. Beginning at a time unknown, but no later than on or about March 14,
2020, until at least on or about January 1, 2021, BRIAN ALAN SPARKS and GAIL
AUTUMN LUNA, and others known and unknown to the Grand Jury, with the intent to
defraud, devised and willfully participated in, with knowledge of its fraudulent nature a
scheme and artifice to defraud and obtain money by materially false and fraudulent
pretenses, representations, and promises, as further described below.

22. The essence of the scheme was to use the stolen PII of residents of
Washington State and other states to fraudulently obtain government benefits, namely,
pandemic-related EIDL funds and unemployment benefits.

23. | The manner and means of the scheme and artifice to defraud included the
conduct set forth in Paragraphs 15 through 19 of Count 1.

24. On or about the dates set forth below, in King and Snohomish Counties,

within the Western District of Washington, and elsewhere, for the purpose of executing

Indictment - 6 UNITED STATES ATTORNEY
. 700 STEWART STREET, SUITE 5220
United States v. Sparks et al. SEATTLE, WASHINGTON 98101

(206) 553-7970
onrANI DY FY NY F DO ODN DWN BW BO HS

Case 2:21-cr-00189-JLR Document1 Filed 11/10/21 Page 7 of 11

or attempting to execute the above-described scheme and artifice to defraud and deceive,
SPARKS and LUNA, and others known and unknown to the Grand Jury, knowingly
caused to be delivered by mail according to the direction thereon bank debit cards, each
mailing of which constitutes a separate count of this Indictment. Each of these debit
cards was associated with an account used to receive proceeds of a fraudulent EIDL loan
application or claim for unemployment benefits, and each card was used to access the
proceeds of the fraud. Each of the following offenses was committed in furtherance of,
and was a foreseeable part of, the conspiracy charged in Count 1 of this Indictment.

Approximate Applicant
Count Date of Mailing Initials Mailing
KeyBank debit card to Lynnwood,

2 06/17/20 SF. Washington via U.S. Postal Service
KeyBank debit card to Seattle,
3 R.B.
07/13/20 Washington via U.S. Postal Service
Stride Bank Chime debit card to Des
4 08/01/20 B.P. Moines, Washington via U.S. Postal
Service
Comerica debit card to Des Moines
2 S. °
° 08/06/20 DS Washington via U.S. Postal Service
Stride Bank Chime debit card to
6 08/06/20 S.S. Auburn, Washington via U.S. Postal

Service

All in violation of Title 18, United States Code, Sections 1341 and 2.

COUNTS 7-12
(Wire Fraud)
25. Paragraphs 1-24 of this Indictment are incorporated by reference as if fully

set forth herein.

26. Beginning at a time unknown, but no later than March 14, 2020, and
continuing through at least January 1, 2021, BRIAN ALAN SPARKS and GAIL
AUTUMN LUNA, and others known and unknown to the Grand Jury, with intent to

Indictment - 7 UNITED STATES ATTORNEY
A 700 STEWART STREET, SUITE 5220
United States v. Sparks et al. SEATTLE WASHINGTON 98101

(206) 553-7970
So ON DN BR W wp we

Case 2:21-cr-00189-JLR Document1 Filed 11/10/21 Page 8 of 11

defraud, knowingly devised a scheme and artifice to defraud, and to obtain money and
property by means of materially false and fraudulent pretenses, representations, and
promises, as further described below.

27. The essence of the scheme was to use the stolen PII of residents of
Washington State and other states to fraudulently obtain government benefits, namely,
pandemic-related EIDL funds and unemployment benefits.

28. The manner and means of the scheme and artifice to defraud included the
conduct set forth in Paragraphs 15 through 19 of Count 1.

29. On or about the dates set forth below, in King, Snohomish, and Thurston
Counties, within the Western District of Washington, and elsewhere, for the purposes of
executing this scheme and artifice to defraud, and attempting to do so, BRIAN ALAN
SPARKS and GAIL AUTUMN LUNA, and others known and unknown to the Grand
Jury, did knowingly transmit and cause to be transmitted by wire communication in
interstate and foreign commerce, writings, signs, signals, pictures and sounds, each
transmission of which constitutes a separate count of this Indictment. Each of the
following offenses was committed in furtherance of, and was a foreseeable part of, the

conspiracy charged in Count 1 of this Indictment.

//
//
Indictment - 8 UNITED STATES ATTORNEY
. 700 STEWART STREET, SUITE 5220
United States v. Sparks et al. SEATTLE, WASHINGTON 98101

(206) 553-7970
Case 2:21-cr-00189-JLR Document1 Filed 11/10/21 Page 9 of 11

Approximate Applicant

Count Date Initials Wire Transmission
Wire from Washington to another state
a 06/26/20 R.H. to initiate ACH transfer of
approximately $13,900 in ESD benefits
Wire from Washington to another state
8 07/12/20 D.B. to initiate ACH transfer of
approximately $16,296 in ESD benefits
Wire from Washington to another state
9 07/22/20 CLR. to initiate ACH transfer of
approximately $18,070 in ESD benefits
Wire from Washington to another state
0 4/2 S.
1 08/04/20 Ws to submit an EIDL application to SBA
Wire from Washington to another state
1 08/07/20 AF,
1 ov to submit an EIDL application to SBA
n 10/26/20 AB. Wire from Washington to another state

to submit an EIDL application to SBA

All in violation of Title 18, United States Code, Sections 1343 and 2.
COUNTS 13-16

30.

set forth herein.

31.

(Aggravated Identity Theft)

Paragraphs 1-29 of this Indictment are incorporated by reference as if fully

On or about the dates set forth below, in King and Snohomish Counties,

within the Western District of Washington, and elsewhere, defendants BRIAN ALAN
SPARKS and GAIL AUTUMN LUNA, and others known and unknown to the Grand

Jury, knowingly transferred, possessed, and used, without lawful authority, a means of

identification of another person, in that SPARKS and LUNA submitted claims to the

Washington Employment Security Department using the names, dates of birth, and Social

Security numbers of the persons with the initials listed below, during and in relation to a

felony listed in Title 18, United States Code, Section 1028A(c), that is, conspiracy to

Indictment - 9

United States v. Sparks et al.

UNITED STATES ATTORNEY
700 STEWART STREET, SUITE 5220
SEATTLE, WASHINGTON 98101
(206) 553-7970
Case 2:21-cr-00189-JLR Document1 Filed 11/10/21 Page 10 of 11

commit mail and wire fraud in violation of Title 18, United States Code, Section 1349:
mail fraud, in violation of Title 18, United States Code, Section 1341; and wire fraud, in

violation of Title 18, United States Code, Section 1343.

Count Date Initials of Victim
13 06/24/20 R.H.
14 07/09/20 R.B.
15 07/10/20 DB.
16 07/18/20 C.R.

All in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.

FORFEITURE ALLEGATION

The allegations contained in Counts 1 — 12 of this Indictment are hereby realleged

and incorporated by reference for the purpose of alleging forfeiture. Upon conviction of
any of the offenses alleged in Counts 1 — 12, BRYAN ALAN SPARKS and AUTUMN
GAIL LUNA shall forfeit to the United States, pursuant to Title 18, United States Code,
Section 981(a)(1)(C), by way of Title 28, United States Code, Section 2461(c), any
property that constitutes or is traceable to proceeds of the offense. This property includes,
but is not limited to, a sum of money reflecting the proceeds the defendant personally
obtained from the offense.
Substitute Assets. If any of the property described above, as a result of any act or

omission of the defendant:

a cannot be located upon the exercise of due diligence;

b. has been transferred or sold to, or deposited with, a third party;

C. has been placed beyond the jurisdiction of the court;

d. has been substantially diminished in value; or,

e. has been commingled with other property which cannot be divided

without

UNITED STATES ATTORNEY

Indictment - 10
United States v. Sparks et al 700 STEWART STREET, SUITE 5220
-P . SEATTLE, WASHINGTON 98101

(206) 553-7970
So OND NH BW wp we

Case 2:21-cr-00189-JLR Document1 Filed 11/10/21 Page 11 of 11

difficulty,

it is the intent of the United States to seek the forfeiture of any other property of the
defendant, up to the value of the above-described forfeitable property, pursuant to Title
21, United States Code, Section 853(p).

A TRUE BILL:

[Signature of Foreperson redacted pursuant
to the policy of the Judicial Conference of
the United States]

FOREPERSON

16

NEBOLAS W. BROWN
te) States Attorney

17 || ANDREW C. FRIEDMAN
1g || Assistant United States Attorney

CINDY CHAING

21]! Assistant Unjted States Atto

22

74 || SETH WILKINSON aN
Assistant United States Attorney

25

26

27

28

UNITED STATES ATTORNEY

Indictment - 11
United States v Sp arks et al 700 STEWART STREET, SUITE 5220
, , SEATTLE, WASHINGTON 98101

(206) 553-7970


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