Indictment — United States v. Dondre Charles Jackson, Eastern District of Washington (ECF No. 1)

Summary

A grand jury indictment in United States of America v. Dondre Charles Jackson, No. 2:22-CR-89-TOR, filed July 19, 2022 as ECF No. 1 in the U.S. District Court for the Eastern District of Washington. Counts 1-4 charge wire fraud under 18 U.S.C. § 1343 and Counts 5-6 charge false claims under 18 U.S.C. § 287. The indictment alleges that Jackson applied for PPP Loan No. 4715988810 on April 15, 2021 and PPP Loan No. 5458679004 on May 20, 2021 for a purported catering business, each claiming one employee and 2019 gross income of $103,208.00 supported by a false Schedule C. It alleges disbursements of $20,833.00 from Benworth Capital and $29,166.00 from Harvest Small Business Finance, LLC. The forfeiture allegation seeks a money judgment of $49,999.00, and the caption names United States Attorney Vanessa R. Waldref.

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Case 2:22-cr-00089-TOR ECFNo.1. filed "'® Pagel aeye of 8

FILED IN THE

Vanessa R. Waldref cASTERW BIS TRICY OF WASHINGTON
United States Attorney
Eastern District of Washington Jul 1 9, 2022
Dan Fruchter SEAN F. MCAVOY, CLERK
Tyler H.L. Tornabene .
Assistant United States Attorneys
Post Office Box 1494
Spokane, WA 99210-1494
Telephone: (509) 353-2767
UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF WASHINGTON
UNITED STATES OF AMERICA,
2:22-CR-89-TOR
Plaintiff, INDICTMENT -
V. Vio: -18 U.S.C. § 1343
Wire Fraud
DONDRE CHARLES JACKSON, (Counts 1-4)
Defendant. 18 U.S.C. § 287
False, Fictitious, or Fraudulent
Claims
(Counts 5-6)
18 U.S.C. § 981
28 U.S.C. § 2461
Forfeiture Allegations
The Grand J ury charges:
General Allegations
l. At all times relevant to this Indictment, Defendant DONDRE
CHARLES JACKSON (“Defendant”), was a resident of Moses Lake, Washington,

in the Eastern District of Washington.
2. The Coronavirus Aid, Relief, and Economic Security Act (““CARES”

Act) was a federal law enacted on March 27, 2020, designed to provide emergency

INDICTMENT - 1.
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financial assistance to the millions of Americans who were suffering the economic
effects caused by the COVID-19 pandemic. One source of relief provided by the
CARES Act was the authorization of forgivable loans to small businesses for job
retention and other certain expenses, through a program referred to as the Paycheck
Protection Program (“PPP”).

3. Jn order to obtain a PPP loan, a qualifying business was required to
submit a PPP loan application signed by an authorized representative of the
business. The PPP loan application required the business (through its authorized
representative) to acknowledge the program rules and make certain affirmative
certifications in order to be eligible to obtain the PPP loan. In the PPP loan
application, the applicant (through its authorized representative) was required to
state, among other things: (a) its average monthly payroll expenses; and (b) its
number of employees. If the applicant had no employees other than the owner, the
applicant was required to provide the gross income amount from a 2019 or 2020
IRS Form 1040, Schedule C. These figures were used to calculate the amount of
money the small business was eligible to receive under the PPP. Additionally, the
applicant was required to certify that they were in operation as of February 15,
2020. The applicant was also required to certify that the information in the
application was true and correct to the best of the applicant’s knowledge.

4. A business’s PPP loan application was received and processed, in the
first instance, by a participating lender. If a PPP loan application was approved,
the participating lender funded the PPP loan using its own monies. Data from the
application, including information about the borrower, the total amount of the loan,
the listed number of employees, and the gross income amount, was transmitted by
the lender to the Small Business Administration (“SBA”), an agency of the United
States, in the course of processing the loan. ,

5. PPP applications are received in cloud-based platforms. The location

of the server through which the PPP application is submitted is based on the date

INDICTMENT — 2
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the application was processed by the SBA and the application number. During the
time period relevant to this Indictment, all PPP applications were received through
the Summit platform, a cloud-based platform utilizing the AWS GOV cloud
servers located in Oregon. PPP lenders submitted disbursement details into the
SBA E-Tran system in Sterling, Virginia. E-Tran transmitted the PPP processing
fee to the lender through the FMS system to the Treasury. The primary server for
FMS is in Sterling, Virginia.

The Scheme

6. The allegations in paragraphs 1 through 5 of this Indictment are
incorporated as though realleged herein.

7. Beginning no later than on or about April 15, 2021, and continuing
through at least June 30, 2021, in the Eastern District of Washington and
elsewhere, Defendant devised and intended to devise a scheme to defraud the SBA,
and to obtain money and property by means of materially false and fraudulent
pretenses, representations, and promises. |

8. Specifically, Defendant applied for and received two PPP loans using
false information about his purported company, “Dondre Jackson,” with the intent
to defraud, steal, and convert the proceeds of the PPP loans for Defendant’s
personal use and without any intent to use the proceeds thereof for any authorized
purpose, or any intent to repay the PPP loans.

Manner and Means

Application for PPP Loan No. 4715988810

It was part of this scheme that:

9. Onor about April 15, 2021, Defendant submitted an application for
PPP Loan No. 4715988810 to the SBA under the name of his purported catering
business in his own name, that is, “Dondre Jackson.” In the application, Defendant
listed the “business address” of the purported business as his own persona! address

as found on his Washington State Driver’s License.

INDICTMENT — 3
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10. Defendant falsely stated inthe application that the business was
established on January 1, 2019, that it had one employee, and that it had a gross
income of $103,208.00 in calendar year 2019. Defendant further submitted a false,
fraudulent, and fictitious IRS Form 1040, Schedule C in support of his application,
which falsely set forth purported gross business income of $103,208 for 2019.

11. Defendant certified that the information in the application was true
and accurate, subject to criminal penalties for knowingly making false statements.

12. The representations and certifications made by Defendant on the
application for PPP Loan No. 4715988810 were materially false and Defendant
knew they were false at the time they were made. During all time periods relevant
to this Indictment, Defendant did not have a registered, active, or legitimate
business, and did not have business income of $103,208.00, or any business
income, during 2019, as falsely set forth in his PPP application as well as the
fraudulent IRS Form 1040, Schedule C, that Defendant submitted in support of his
PPP application. Accordingly, neither Defendant nor his fictitious catering
business were eligible for any PPP funding.

13. Using the above materially false information on the application for
PPP Loan No. 4715988810, Defendant applied for a PPP loan of $20,833.00
through lender Benworth Capital. As a result of the fraud and relying on the
materially false and fraudulent representations and certifications made by
Defendant, on or about April 16, 2021, the lender approved Defendant’s PPP loan
for $20,833.00.

14. On April 16, 2021, as a result of the fraudulent scheme described
above, and the materially false and fraudulent information supplied by Defendant
the SBA approved the requested PPP Loan No. 4715988810. On or about June 30,
2021, Benworth Capital, in the State of Florida, electronically disbursed
$20,833.00 in PPP funding using interstate wires to Defendant’s account with

INDICTMENT - 4
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Sutton Bank with account number ending in 8460, linked to his mobile Square
account in the Eastern District of Washington.

Application for PPP Loan No. 5458679004

It was further part of the scheme that:

15. Onor about May 20, 2021, after PPP Loan No. 4715988810 had been
approved, but before it had been disbursed, Defendant submitted an additional PPP
loan application, for PPP Loan No. 5458679004, to the SBA for his purported

catering business in his own name. In the application, Defendant listed the
“business address” of the purported business as his own personal address as found
on his Washington State Driver’s License. .

16. Defendant falsely stated in the application that the business was
established on January 1, 2019, that it had one employee, and that it had a gross
income of $103,208.00 in calendar year 2019. Defendant further submitted a false,
fraudulent, and fictitious IRS Form 1040, Schedule C in support of his application,
which falsely set forth purported gross business income of $103,208 for 2019.

17. Defendant certified that the information in the application was true
and accurate, subject to criminal penalties for knowingly making false statements.

18. The representations and certifications made by Defendant on the
application for PPP Loan No. 5458679004 were materially false and Defendant
knew they were false at the time they were made. During all time periods relevant
to this Indictment, Defendant did not have a registered, active, or legitimate
business, and did not have business income of $103,208.00, or any business
income, during 2019, as falsely set forth in his PPP application as well as the
fraudulent IRS Form 1040, Schedule C, that Defendant submitted in support of his
PPP application. Accordingly, neither Defendant nor his fictitious catering
business were eligible for any PPP funding.

19. Onor about May 22, 2021, as aresult of the fraudulent scheme

described above, and the materially false and fraudulent information supplied by

INDICTMENT — 5
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Defendant, the SBA approved the requested PPP Loan No. 5458679004. On or
about June 3, 2021, Harvest Small Business Finance, LLC, disbursed $29,166.00
to Defendant’s Eastern District of Washington bank account with JP Morgan
Chase ending in 9518. At the time of disbursement of this PPP Loan, the JP
Morgan Chase Account held less than two dollars.
= Counts 1-4

20. The allegations in paragraphs | through 19 of this Indictment are
incorporated as though realleged herein.

21. Onor about each of the dates set forth below, in the Eastern District
of Washington and elsewhere, Defendant, for the purpose of executing the scheme
described above, caused to be transmitted by means of wire communication in

interstate commerce the signals and sounds described below for each count, each

transmission constituting a separate count:

Count Date Description

PPP Loan Application for PPP Loan No. 4715988810,
1 April 15, 2021 | electronically submitted from the Eastern District of
Washington to the SBA in Oregon.

PPP Loan Application for PPP Loan No. 5458679004,
2 May 20, 2021 | electronically submitted from the Eastern District of
Washington to the SBA in Oregon.

EFT payment in the amount of $29,166.00 for PPP
Loan No. 5458679004 from Harvest Small Business

3 June 3, 2021 | Finance, LLC, in the State of California to Defendant’s
JP Morgan Chase Account in the Eastern District of
Washington ending in 9518.

EFT payment in the amount of $20,833.00 for PPP
Loan No. 4715988810 from Benworth Capital, in the
State of Florida to Defendant’s account with Sutton
Bank with account number ending in 8460, linked to his
mobile Square account in the Eastern District of
Washington.

4 June 30, 2021

All in violation of 18 U.S.C. § 1343.

INDICTMENT — 6
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Counts 5-6

22. The allegations in paragraphs 1 through 21 of this Indictment are
incorporated as though realleged herein.

23. Onor about each of the dates set forth below, in the Eastern District
of Washington and elsewhere, Defendant made and presented to the United States
Smail Business Administration (“SBA”) claims concerning PPP applications,
knowing said claims were false and fraudulent, and knowing the information
submitted was materially false and fraudulent, described below for each count,

each claim constituting a separate count:

J

Count Date Description

PPP application for PPP Loan No.
4715988810 for a PPP loan in the amount
5 April 15, 2021 of $20,833.00, including false and
fraudulent IRS Form 1040, Schedule C
submitted therewith.

PPP application number for PPP Loan No.
_ | 5458679004 for a PPP loan in the amount
6 May 20, 2021 of $29,166.00, including false and
fraudulent IRS Form 1040, Schedule C
submitted therewith.

All in violation of 18 U.S.C. § 287.
NOTICE OF FORFEITURE ALLEGATIONS

The allegations contained in this Indictment are hereby realleged and
incorporated herein by this reference for the purpose of alleging forfeitures.
Pursuant to 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c), upon conviction of
an offense in violation of 18 U.S.C. § 1343, as alleged in Counts | through 4 of
this Indictment, Defendant shall forfeit to the United States any property, real or
personal, which constitutes or is derived from proceeds traceable to the offense.

The property to be forfeited includes, but is not limited to, the following:

INDICTMENT — 7
to

Dan Fruchtgy
Assistant p

Case 2:22-cr-00089-TOR ECFNo.1 filed 07/19/22 PagelD.8 Page 8of8

MONEY JUDGMENT

A sum of money equal to $49,999.00 in United States currency,
representing the amount of proceeds obtained by Defendant from the
wire fraud violations.

If any of the property described above, as the result of any act or omission of
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 difficulty,

the United States shall be entitled to forfeiture of substitute property pursuant to 21
U.S.C. § 853(p), as incorporated by 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C.
§ 2461(c).
DATED this (9 Cray of July, 2022.

anessa R. Waldref h
ited Statey Attorney

er H.

Assistaftt United States Attorney

INDICTMENT — 8


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