Indictment — United States v. Reginald Foster, Jr., et al., Central District of California (Document 1)
Summary
A grand jury indictment against Reginald Foster, Jr., Shelece Counts and Isaiah Herbert Lawrence, CR No. 2:24-CR-00367-MCS, in the U.S. District Court for the Central District of California, filed June 18, 2024 as Document 1. It charges conspiracy to commit mail fraud and bank fraud under 18 U.S.C. § 1349, mail fraud under 18 U.S.C. § 1341, bank fraud under 18 U.S.C. § 1344(2), use of unauthorized access devices under 18 U.S.C. § 1029(a)(2) and aggravated identity theft under 18 U.S.C. § 1028A(a)(1). The indictment alleges that from in or around June 2020 to at least October 2020 the defendants filed fraudulent pandemic unemployment applications with the California Employment Development Department and withdrew benefits through EDD debit cards at ATMs and transfers to a Champs Up, LLC account. Its overt acts include transfers of $5,000 and $3,000 to that account.
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“Indictment — United States v. Reginald Foster, Jr., et al., Central District of California (Document 1).”
Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/indictment-no-2-24-cr-00367-dkt-1-c-d-cal-89e46aef94/
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Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 1 of 29 Page ID #:1
1
2
3
4 JUN 18 2024
5 rsm
6
7
8 UNITED STATES DISTRICT COURT
9 FOR THE CENTRAL DISTRICT OF CALIFORNIA
10 January 2024 Grand Jury
11 UNITED STATES OF AMERICA, CR No. 2:24-CR-00367-MCS
12 Plaintiff, I N D I C T M E N T
13 v. [18 U.S.C. § 1349: Conspiracy to
Commit Mail Fraud and Bank Fraud;
14 REGINALD FOSTER, JR., 18 U.S.C. § 1341: Mail Fraud; 18
aka “Reginald Foster II,” U.S.C. § 1344(2): Bank Fraud; 18
15 SHELECE COUNTS, and U.S.C. § 1029(a)(2): Use of
ISAIAH HERBERT LAWRENCE, Unauthorized Access Devices; 18
16 U.S.C. § 1028A(a)(1): Aggravated
Defendants. Identity Theft; 18 U.S.C. §§ 982
17 and 1029: Criminal Forfeiture]
18
19 The Grand Jury charges:
20 COUNT ONE
21 [18 U.S.C. § 1349]
22 [ALL DEFENDANTS]
23 INTRODUCTORY ALLEGATIONS
24 At times relevant to this Indictment:
25 1. The California Employment Development Department (“EDD”)
26 administered the unemployment insurance (“UI”) benefits program for
27 the State of California.
28
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 2 of 29 Page ID #:2
1 2. On March 13, 2020, the President of the United States
2 declared COVID-19 an emergency under the Robert T. Stafford Disaster
3 Relief and Emergency Assistance Act. As a result, Congress passed
4 the Coronavirus Aid, Relief, and Economic Security Act (“CARES
5 Act”), which the President signed into law on March 27, 2020. The
6 CARES Act provided over $2 trillion in economic relief protections
7 to the American people from the public health and economic impacts
8 of COVID-19.
9 3. Prior to the enactment of the CARES Act, to be eligible for
10 UI benefits administered by EDD, a person had to have been employed
11 and worked in California and received at least a certain amount of
12 wages from an employer in the 18 months preceding his/her UI
13 benefits claim. Because of this requirement, self-employed workers,
14 independent contractors, and employees with insufficient earnings
15 were not eligible to receive regular UI benefits.
16 4. The CARES Act established a new program — Pandemic
17 Unemployment Assistance (“PUA”) — to provide UI benefits during the
18 COVID-19 pandemic to people who did not qualify for regular UI
19 benefits, including business owners, self-employed workers,
20 independent contractors, and those with a limited work history, who
21 were out of business or had significantly reduced their services as
22 a direct result of the pandemic. UI benefits provided under the PUA
23 program were sometimes referred to as PUA benefits.
24 5. Under the PUA provisions of the CARES Act, a person who was
25 a business owner, self-employed worker, independent contractor, or
26 gig worker could qualify for PUA benefits administered by EDD if
27 he/she previously performed such work in California and was
28
2
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 3 of 29 Page ID #:3
1 unemployed, partially unemployed, unable to work, or unavailable to
2 work due to a COVID-19-related reason.
3 6. Persons applying for PUA benefits did not need to submit
4 any supporting documents to EDD with their applications. Claimants
5 reported their total income for the 2019 calendar year on the
6 application. The stated income was used to calculate the benefits
7 to be paid, which were at least $167 per week.
8 7. A PUA benefits claimant was required to answer various
9 questions on his/her application to establish his/her eligibility
10 for the benefits. The claimant was required to provide his/her
11 name, Social Security Number, and mailing address. The claimant was
12 also required to identify a qualifying occupational status and
13 COVID-19 related reason for being out of work.
14 8. After it approved an application for UI benefits, including
15 an application submitted pursuant to the PUA program, EDD would
16 create a debit account (“EDD debit account”) with Bank of America, NA
17 (“Bank of America”). An Electronic Bill Payment (“EBP”) debit card
18 linked to the EDD debit account would then be mailed via the United
19 States Postal Service from Bank of America to the claimant at the
20 address the claimant provided as his/her mailing address on his/her
21 UI benefits application.
22 9. EDD would deposit UI benefits, including pandemic benefits,
23 to the EDD debit account. The debit card could then be used to
24 withdraw the benefits from the EDD debit account in cash, using
25 automated teller machines (“ATMs”), including ATMs that Bank of
26 America, Wells Fargo Bank, NA (“Wells Fargo”), Chase Bank, Bank of
27 the West, and HomeStreet Bank, operated, and to pay for purchases.
28
3
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1 10. Bank of America, Wells Fargo, Chase Bank, Bank of the West,
2 and HomeStreet Bank were financial institutions that were each
3 insured by the Federal Deposit Insurance Corporation.
4 11. Defendants REGINALD FOSTER, JR., also known as “Reginald
5 Foster II,” SHELECE COUNTS, and ISAIAH HERBERT LAWRENCE were
6 residents of Los Angeles County, California.
7 12. Defendant FOSTER maintained and was the sole signatory for
8 Chase Bank account X7539 (the “Champs Up Bank Account”), held in Long
9 Beach, California, in the name of Champs Up, LLC, an entity for which
10 defendant FOSTER identified himself as the Chief Executive Officer.
11 THE OBJECTS OF THE CONSPIRACY
12 13. Beginning no later than in or around June 2020 and
13 continuing until at least in or around October 2020, in Los Angeles
14 and Riverside Counties, within the Central District of California,
15 and elsewhere, defendants FOSTER, COUNTS, and LAWRENCE conspired
16 with one another and with others known and unknown to the Grand Jury
17 to commit offenses against the United States, namely: (a) mail
18 fraud, in violation of Title 18, United States Code, Section 1341;
19 and (b) bank fraud, in violation of Title 18, United States Code,
20 Section 1344(2).
21 MANNER AND MEANS OF THE CONSPIRACY
22 14. The objects of the conspiracy were carried out, and were to
23 be carried out, in substance, as follows:
24 a. Defendant FOSTER and other coconspirators would
25 acquire the names, dates of birth, social security numbers, and other
26 personal identifying information (“PII”) of individuals, including
27 identity theft victims, who were not eligible for UI benefits
28 administered by EDD, including pandemic benefits, because they were
4
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 5 of 29 Page ID #:5
1 employed, retired, had never worked in California, or had applied for
2 benefits in a different state.
3 b. Defendant FOSTER and other coconspirators would use
4 the PII to submit fraudulent online applications to EDD for UI
5 benefits, including pandemic benefits (the “fraudulent EDD
6 applications”).
7 c. In order to cause EDD to approve the fraudulent EDD
8 applications, defendant FOSTER and other coconspirators would provide
9 materially false information to EDD on the fraudulent EDD
10 applications, including that the named applicants had been employed
11 in California and had become unemployed as a direct result of the
12 COVID-19 pandemic.
13 d. In order to gain control of the UI benefits that the
14 fraudulent EDD applications were intended to generate, defendant
15 FOSTER and other conspirators would include as the mailing address on
16 the fraudulent EDD applications addresses to which they had access.
17 e. By submitting the fraudulent EDD applications,
18 defendant FOSTER and the other coconspirators would cause EDD to:
19 i. Authorize UI benefits, including pandemic
20 benefits, to be provided via EDD debit accounts established at Bank
21 of America to individuals, including identity-theft victims, who were
22 ineligible for pandemic benefits administered by EDD because, among
23 other reasons, they were employed, retired, had never been employed
24 in California or had applied for benefits in other states; and
25 ii. Cause EBP debit cards, that is, debit cards
26 linked to the EDD debit accounts at Bank of America, to be mailed to
27 the mailing addresses to which defendant FOSTER and other
28 coconspirators had access.
5
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1 f. After EDD approved the fraudulent EDD applications and
2 disbursed the UI funds, including pandemic benefits, to the EDD debit
3 accounts, and Bank of America issued the EDD debit cards linked to
4 those accounts, defendants FOSTER and COUNTS would call Bank of
5 America to activate the EBP debit cards.
6 g. Thereafter, defendants FOSTER, COUNTS, and LAWRENCE,
7 and their coconspirators, would fraudulently assume the identities of
8 the EDD debit account holders and use the corresponding EBP debit
9 cards to make fraudulent cash withdrawals of the benefits, knowing
10 that they were not entitled to the withdrawals. The withdrawals were
11 made by (i) obtaining cash from ATMs, including ATMs that Bank of
12 America, Wells Fargo, Chase Bank and Homestreet operated, in Los
13 Angeles and Riverside Counties and elsewhere; and (ii) electronic
14 transfers, both directly and through Cash App, to the Champs Up Bank
15 Account.
16 OVERT ACTS
17 15. On or about the dates set forth below, in furtherance of
18 the conspiracy, and to accomplish its objects, defendants FOSTER,
19 COUNTS, and LAWRENCE, and others known and unknown to the Grand
20 Jury, committed and willfully caused others to commit the following
21 overt acts, among others, within the Central District of California,
22 and elsewhere:
23 Identity-Theft Victim U.W.
24 Overt Act No. 1: On July 15, 2020, defendant FOSTER
25 electronically filed an application for pandemic assistance benefits
26 in the name of victim U.W., which was approved.
27
28
6
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1 Overt Act No. 2: On July 27, 2020, defendant FOSTER contacted
2 Bank of America to activate the EBP debit card linked to the EDD
3 debit account established to dispense UI benefits to victim U.W.
4 Overt Act No. 3: On July 29, 2020, defendant FOSTER used the
5 EBP debit card issued in the name of U.W. to transfer $5,000 to the
6 Champs Up Bank Account.
7 Overt Act No. 4: On August 14, 2020, defendant LAWRENCE used
8 the EBP debit card issued in the name of U.W. at Bank of America in
9 Northridge, California, to make two ATM withdrawals – for $200 and
10 then for $800 – in rapid succession.
11 Overt Act No. 5: On August 17, 2020, defendant LAWRENCE used
12 the EBP debit card issued in the name of U.W. at Bank of America in
13 Northridge, California, to make two ATM withdrawals – for $200 and
14 then for $800 – in rapid succession.
15 Overt Act No. 6: On August 18, 2020, defendant LAWRENCE used
16 the EBP debit card issued in the name of U.W. at a Bank of America
17 ATM in Chatsworth, California, to withdraw $400.
18 Identity-Theft Victim T.K.
19 Overt Act No. 7: On July 21, 2020, defendant FOSTER
20 electronically filed an application for pandemic assistance benefits
21 in the name of victim T.K., which was approved.
22 Overt Act No. 8: On August 1, 2020, defendant FOSTER
23 contacted Bank of America to activate the EBP debit card linked to
24 the EDD debit account established to dispense UI benefits to victim
25 T.K.
26 Overt Act No. 9: On August 3, 2020, defendant FOSTER used the
27 EBP debit card issued in the name of T.K. to transfer $3,000 to the
28 Champs Up Bank Account.
7
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1 Overt Act No. 10: On August 4, 2020, defendant LAWRENCE used
2 the EBP debit card issued in the name of T.K. at Bank of America in
3 Chatsworth, California, to make two ATM withdrawals in rapid
4 succession, each for $500.
5 Overt Act No. 11: On August 11, 2020, defendant LAWRENCE used
6 the EBP debit card issued in the name of T.K. at Bank of America in
7 Northridge, California, to make two ATM withdrawals – for $100 and
8 then for $800 – in rapid succession.
9 Identity-Theft Victim T.M.
10 Overt Act No. 12: On July 25, 2020, defendant FOSTER
11 electronically filed an application for pandemic assistance benefits
12 in the name of victim T.M., which was approved.
13 Overt Act No. 13: On August 13, 2020, defendant FOSTER
14 contacted Bank of America to activate the EBP debit card linked to
15 the EDD debit account established to dispense UI benefits to victim
16 T.M.
17 Overt Act No. 14: On August 13, 2020, defendant FOSTER used
18 the EBP debit card issued in the name of T.M. to transfer $5,000 to
19 the Champs Up Bank Account.
20 Overt Act No. 15: On August 14, 2020, defendant FOSTER used
21 the EBP debit card issued in the name of T.M. at a Bank of America
22 ATM in Long Beach, California, to withdraw $1,000.
23 Overt Act No. 16: On August 15, 2020, defendant FOSTER used
24 the EBP debit card issued in the name of T.M. at a Bank of America
25 ATM in Long Beach, California, to withdraw $1,000.
26 Overt Act No. 17: On August 21, 2020, defendant LAWRENCE used
27 the EBP debit card issued in the name of T.M. at Bank of America in
28
8
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 9 of 29 Page ID #:9
1 Chatsworth, California, to make two ATM withdrawals – for $200 and
2 then for $800 – in rapid succession.
3 Overt Act No. 18: On August 23, 2020, defendant LAWRENCE used
4 the EBP debit card issued in the name of T.M. at Bank of America in
5 Northridge, California, to make two ATM withdrawals – for $200 and
6 then for $800 – in rapid succession.
7 Overt Act No. 19: On August 24, 2020, defendant LAWRENCE used
8 the EBP debit card issued in the name of T.M. at Bank of America in
9 Northridge, California, to make two ATM withdrawals – for $200 and
10 then for $800 – in rapid succession.
11 Overt Act No. 20: On August 25, 2020, defendant LAWRENCE used
12 the EBP debit card issued in the name of T.M. at Bank of America in
13 Chatsworth, California, to make two ATM withdrawals – for $200 and
14 then for $800 – in rapid succession.
15 Overt Act No. 21: On August 27, 2020, defendant LAWRENCE used
16 the EBP debit card issued in the name of T.M. at Bank of America in
17 Chatsworth, California, to make two ATM withdrawals – for $200 and
18 then for $800 – in rapid succession.
19 Overt Act No. 22: On August 28, 2020, defendant LAWRENCE used
20 the EBP debit card issued in the name of T.M. at Bank of America in
21 Northridge, California, to make two ATM withdrawals - each for $500 -
22 in rapid succession.
23 Overt Act No. 23: On September 2, 2020, defendant LAWRENCE
24 used the EBP debit card issued in the name of T.M. at a Bank of
25 America ATM in Chatsworth, California, to withdraw $800.
26 ///
27 ///
28 ///
9
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 10 of 29 Page ID #:10
1 Identity-Theft Victim G.T.
2 Overt Act No. 24: On July 24, 2020, defendant FOSTER
3 electronically filed an application for pandemic assistance benefits
4 in the name of victim G.T., which was approved.
5 Overt Act No. 25: On August 13, 2020, defendant FOSTER
6 contacted Bank of America to activate the EBP debit card linked to
7 the EDD debit account established to dispense UI benefits to victim
8 G.T.
9 Overt Act No. 26: On August 13, 2020, defendant FOSTER used
10 the EBP debit card issued in the name of G.T. to transfer $5,000 to
11 the Champs Up Bank Account.
12 Overt Act No. 27: On August 21, 2020, defendant COUNTS used
13 the EBP debit card ending issued in the name of G.T. at a Bank of
14 America ATM in Culver City, California, to withdraw $1,000.
15 Identity-Theft Victim J.J.
16 Overt Act No. 28: On July 26, 2020, defendant FOSTER
17 electronically filed an application for pandemic assistance benefits
18 in the name of victim J.J., which was approved.
19 Overt Act No. 29: On August 11, 2020, defendant FOSTER
20 contacted Bank of America to activate the EBP debit card linked to
21 the EDD debit account established to dispense UI benefits to victim
22 J.J.
23 Overt Act No. 30: On August 21, 2020, defendant COUNTS used
24 the EBP debit card issued in the name of J.J., at a Bank of America
25 ATM in Culver City, California, to withdraw $1,000.
26 ///
27 ///
28 ///
10
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 11 of 29 Page ID #:11
1 Identity-Theft Victim J.A.
2 Overt Act No. 31: On July 31, 2020, defendant FOSTER
3 electronically filed an application for pandemic assistance benefits
4 in the name of victim J.A., which was approved.
5 Overt Act No. 32: On August 9, 2020, defendant FOSTER
6 contacted Bank of America to activate the EBP debit card linked to
7 the EDD debit account established to dispense UI benefits to victim
8 J.J.
9 Overt Act No. 33: On August 9, 2020, defendant FOSTER used the
10 EBP debit card issued in the name of J.A. to transfer $5,000 to the
11 Champs Up Bank Account.
12 Overt Act No. 34: On August 10, 2020, defendant FOSTER used
13 the EBP debit card issued in the name of J.A. at a Bank of America
14 ATM in Long Beach, California, to withdraw $1,000.
15 Overt Act No. 35: On August 14, 2020, defendant FOSTER used
16 the EBP debit card issued in the name of J.A. at a Bank of America
17 ATM in Long Beach, California, to withdraw $1,000.
18 Overt Act No. 36: On August 15, 2020, defendant FOSTER used
19 the EBP debit card issued in the name of J.A. at a Bank of America
20 ATM in Long Beach, California, to withdraw $1,000.
21 Overt Act No. 37: On August 21, 2020, defendant LAWRENCE used
22 the EBP debit card issued in the name of J.A. at Bank of America in
23 Chatsworth, California, to make two ATM withdrawals – for $200 and
24 then for $800 – in rapid succession.
25 Overt Act No. 38: On August 24, 2020, defendant LAWRENCE used
26 the EBP debit card issued in the name of J.A. at Bank of America in
27 Northridge, California, to make two ATM withdrawals – for $200 and
28 then for $800 – in rapid succession.
11
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 12 of 29 Page ID #:12
1 Overt Act No. 39: On August 28, 2020, defendant LAWRENCE used
2 the EBP debit card issued in the name of J.A. at a Bank of America
3 ATM in Chatsworth, California, to make two ATM withdrawals – each for
4 $500 – in rapid succession.
5 Overt Act No. 40: On August 29, 2020, defendant LAWRENCE used
6 the EBP debit card issued in the name of J.A. at a Bank of America
7 ATM in Northridge, California, to withdraw $500.
8 Identity-Theft Victim J.D.
9 Overt Act No. 41: On August 4, 2020, defendant FOSTER
10 electronically filed an application for pandemic assistance benefits
11 in the name of victim J.D., which was approved.
12 Overt Act No. 42: On August 15, 2020, defendant FOSTER
13 contacted Bank of America to activate the EBP debit card linked to
14 the EDD debit account established to dispense UI benefits to victim
15 J.D.
16 Overt Act No. 43: On August 15, 2020, defendant FOSTER used
17 the EBP debit card issued in the name of J.D. to transfer $5,000 to
18 the Champs Up Bank Account.
19 Overt Act No. 44: On August 17, 2020, defendant FOSTER used
20 the EBP debit card issued in the name of J.D. at a Bank of America
21 ATM in Long Beach, California, to withdraw $1,000.
22 Overt Act No. 45: On August 18, 2020, defendant FOSTER used
23 the EBP debit card issued in the name of J.D. at a Bank of America
24 ATM in Long Beach, California, to withdraw $1,000.
25 Overt Act No. 46: On August 19, 2020, defendant FOSTER used
26 the EBP debit card issued in the name of J.D. at a Bank of America
27 ATM in Long Beach, California, to withdraw $1,000.
28
12
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1 Overt Act No. 47: On August 20, 2020, defendant FOSTER used
2 the EBP debit card issued in the name of J.D. at a Bank of America
3 ATM in Long Beach, California, to withdraw $1,000.
4 Overt Act No. 48: On August 21, 2020, defendant LAWRENCE used
5 the EBP debit card issued in the name of J.D. at a Bank of America
6 ATM in Northridge, California, to withdraw $800.
7 Overt Act No. 49: On August 25, 2020, defendant LAWRENCE used
8 the EBP debit card issued in the name of J.D. at a Bank of America
9 ATM in Hollywood, California, to withdraw $800.
10 Overt Act No. 50: On August 28, 2020, defendant LAWRENCE used
11 the EBP debit card issued in the name of J.D. at a Bank of America
12 ATM in Northridge, California, to withdraw $500.
13 Overt Act No. 51: On August 29, 2020, defendant LAWRENCE used
14 the EBP debit card issued in the name of J.D. at a Bank of America
15 ATM in Chatsworth, California, to withdraw $500.
16 Identity-Theft Victim H.G.
17 Overt Act No. 52: On August 4, 2020, defendant FOSTER
18 electronically filed an application for pandemic assistance benefits
19 in the name of victim H.G., which was approved.
20 Overt Act No. 53: On August 13, 2020, defendant FOSTER
21 contacted Bank of America to activate the EBP debit card linked to
22 the EDD debit account established to dispense UI benefits to victim
23 H.G.
24 Overt Act No. 54: On August 13, 2020, defendant FOSTER used
25 the EBP debit card issued in the name of H.G. to transfer $5,000 to
26 the Champs Up Bank Account.
27
28
13
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 14 of 29 Page ID #:14
1 Overt Act No. 55: On August 14, 2020, defendant FOSTER used
2 the EBP debit card issued in the name of H.G. at a Bank of America
3 ATM in Long Beach, California, to withdraw $1,000.
4 Overt Act No. 56: On August 17, 2020, defendant FOSTER used
5 the EBP debit card issued in the name of H.G. at a Bank of America
6 ATM in Long Beach, California, to withdraw $1,000.
7 Overt Act No. 57: On August 18, 2020, defendant FOSTER used
8 the EBP debit card issued in the name of H.G. at a Bank of America
9 ATM in Long Beach, California, to withdraw $1,000.
10 Overt Act No. 58: On August 21, 2020, defendant LAWRENCE used
11 the EBP debit card issued in the name of H.G. at a Bank of America
12 ATM in Northridge, California, to withdraw $800.
13 Overt Act No. 59: On August 29, 2020, defendant LAWRENCE used
14 the EBP debit card issued in the name of H.G. at a Bank of America
15 ATM in Northridge, California, to make two ATM withdrawals – each for
16 $500 – in rapid succession.
17 Identity-Theft Victim M.W.
18 Overt Act No. 60: On August 7, 2020, defendant FOSTER
19 electronically filed an application for pandemic assistance benefits
20 in the name of victim M.W., which was approved.
21 Overt Act No. 61: On August 18, 2020, defendant FOSTER
22 contacted Bank of America to activate the EBP debit card linked to
23 the EDD debit account established to dispense UI benefits to victim
24 M.W.
25 Overt Act No. 62: On August 18, 2020, defendant FOSTER used
26 the EBP debit card issued in the name of M.W. to transfer $5,000 to
27 the Champs Up Bank Account.
28
14
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1 Overt Act No. 63: On August 24, 2020, defendant COUNTS used
2 the EBP debit card issued in the name of M.W. at a Bank of America
3 ATM in Culver City, California, to withdraw $1,000.
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Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 16 of 29 Page ID #:16
1 COUNTS TWO THROUGH TEN
2 [18 U.S.C. §§ 1341, 2(b)]
3 [DEFENDANT FOSTER]
4 16. The Grand Jury re-alleges paragraphs 1 through 12, 14 and
5 15 of this Indictment here.
6 A. THE SCHEME TO DEFRAUD
7 17. Beginning on a date unknown to the Grand Jury, but no later
8 than in or around June 2020, and continuing through at least
9 September 2020, in Los Angeles County, within the Central District of
10 California, and elsewhere, defendant FOSTER, together with others
11 known and unknown to the Grand Jury, knowingly and with intent to
12 defraud, devised, participated in, and executed a scheme to defraud
13 EDD and the United States Treasury as to material matters, and to
14 obtain money and property from EDD and the United States Treasury,
15 namely, UI benefits, including PUA benefits, by means of material
16 false and fraudulent pretenses, representations, and promises, and
17 the concealment of material facts.
18 18. The fraudulent scheme operated and was carried out, in
19 substance, as described in paragraphs 14 and 15 of this Indictment.
20 B. USE OF THE MAILS
21 19. On or about the dates set forth below, within the Central
22 District of California and elsewhere, defendant FOSTER, for the
23 purpose of executing the above-described scheme to defraud, willfully
24 caused the following items to be placed in an authorized depository
25 for mail matter to be sent and delivered by the United States Postal
26 Service, according to the directions thereon:
27 ///
28
16
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 17 of 29 Page ID #:17
1
COUNT DATE ITEM MAILED
2
TWO 7/19/2020 EBP debit card for an account in the name of
3 U.W. ending in 9676 sent by U.S. Mail from
Bank of America to East 65th Street, Long
4 Beach, California.
5 THREE 7/26/2020 EBP debit card for an account in the name of
T.K. ending in 7011 sent by U.S. Mail from
6 Bank of America to East 65th Street, Long
Beach, California.
7
FOUR 7/30/2020 EBP debit card for an account in the name of
8 T.M. ending in 0365 sent by U.S. Mail from
Bank of America to East 65th Street, Long
9 Beach, California.
10 FIVE 7/30/2020 EBP debit card for an account in the name of
G.T. ending in 4498 sent by U.S. Mail from
11 Bank of America to East 65th Street, Long
12 Beach, California.
SIX 7/31/2020 EBP debit card for an account in the name of
13 J.J. ending in 0680 sent by U.S. Mail from
Bank of America to East 65th Street, Long
14
Beach, California.
15 SEVEN 8/3/2020 EBP debit card for an account in the name of
J.A. ending in 4134 sent by U.S. Mail from
16
Bank of America to East 65th Street, Long
17 Beach, California.
EIGHT 8/6/2020 EBP debit card for an account in the name of
18
J.D. ending in 8152 sent by U.S. Mail from
19 Bank of America to East 65th Street, Long
Beach, California.
20
NINE 8/6/2020 EBP debit card for an account in the name of
21 H.G. ending in 0077 sent by U.S. Mail from
Bank of America to East 65th Street, Long
22 Beach, California.
23 TEN 8/10/2020 EBP debit card for an account in the name of
M.W. ending in 0533 sent by U.S. Mail from
24 Bank of America to East 65th Street, Long
Beach, California.
25
26
27
28
17
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 18 of 29 Page ID #:18
1 COUNTS ELEVEN THROUGH THIRTY-TWO
2 [18 U.S.C. §§ 1344(2), 2(a), 2(b)]
3 [ALL DEFENDANTS]
4 20. The Grand Jury re-alleges paragraphs 1 through 12, 14 and
5 15 of this Indictment here.
6 A. THE SCHEME TO DEFRAUD
7 21. Beginning on a date unknown to the Grand Jury, but no later
8 than in or around June 2020, and continuing until in or around
9 September 2020, in Los Angeles and Riverside Counties, within the
10 Central District of California, and elsewhere, defendants FOSTER,
11 COUNTS, and LAWRENCE, together with others known and unknown to the
12 Grand Jury, knowingly and with intent to defraud, devised,
13 participated in, and executed a scheme to obtain moneys, funds,
14 credits, assets, and other property owned by and in the custody and
15 control of federally-insured financial institutions by means of
16 material false and fraudulent pretenses, representations, and
17 promises, and the concealment of material facts.
18 22. The fraudulent scheme operated and was carried out, in
19 substance, as described in paragraphs 14 and 15 of this Indictment.
20 B. EXECUTIONS OF THE SCHEME
21 23. On or about the following dates, in Los Angeles and
22 Riverside Counties, within the Central District of California, and
23 elsewhere, defendants FOSTER, COUNTS, and LAWRENCE as set forth
24 below, together with others known and unknown to the Grand Jury,
25 aiding and abetting each other, committed and willfully caused others
26 to commit the following acts, each of which constituted an execution
27 of the fraudulent scheme:
28
18
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 19 of 29 Page ID #:19
1 COUNT DEFENDANT(S) DATE ACT
2 ELEVEN FOSTER 8/4/2020 Use of an EDD debit
LAWRENCE card ending in 7011
3 issued in the name of
T.K, at Bank of
4 America to make two
withdrawals of $500
5 each, in Chatsworth,
California.
6
TWELVE FOSTER 8/10/2020 Use of an EDD debit
7 card ending in 4134
issued in the name of
8 J.A., at Bank of
America to withdraw
9 $1,000, in Long Beach,
California.
10
THIRTEEN FOSTER 8/14/2020 Use of an EDD debit
11 card ending in 0077
issued in the name of
12 H.G., at Bank of
America to withdraw
13 $1,000, in Long Beach,
California.
14
FOURTEEN FOSTER 8/15/2020 Use of an EDD debit
15 card ending in 0365
issued in the name of
16 T.M. at Bank of
America to withdraw
17 $1,000, in Long Beach,
California.
18
19 FIFTEEN FOSTER 8/15/2020 Use of an EDD debit
card ending in 4134
20 issued in the name of
J.A., at Bank of
21 America to withdraw
$1,000, in Long Beach,
22 California.
23 SIXTEEN FOSTER 8/16/2020 Use of an EDD debit
card ending in 4479
24 issued in the name of
A.W., at Bank of
25 America to withdraw
$1,000, in Long Beach,
26 California.
27
28
19
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 20 of 29 Page ID #:20
1 COUNT DEFENDANT(S) DATE ACT
2 SEVENTEEN FOSTER 8/17/2020 Use of an EDD debit
LAWRENCE card ending in 9676
3 issued in the name of
U.W., at Bank of
4 America to withdraw
$200, in Northridge,
5 California.
6 EIGHTEEN FOSTER 8/17/2020 Use of an EDD debit
LAWRENCE card ending in 9676
7 issued in the name of
U.W., at Bank of
8 America to withdraw
$800, in Northridge,
9 California.
10 NINETEEN FOSTER 8/18/2020 Use of an EDD debit
card ending in 2399
11 issued in the name of
A.S., at Bank of
12 America to withdraw
$1,000, in Long Beach,
13 California.
14 TWENTY FOSTER 8/18/2020 Use of an EDD debit
LAWRENCE card ending in 9676
15 issued in the name of
U.W., at Bank of
16 America to withdraw
$400, in Chatsworth,
17 California.
18
TWENTY-ONE FOSTER 8/21/2020 Use of an EDD debit
19 COUNTS card ending in 4498
issued in the name of
20 G.T., at Bank of
America to withdraw
21 $1,000, in Culver
City, California.
22
TWENTY-TWO FOSTER 8/21/2020 Use of an EDD debit
23 COUNTS card ending in 3280
issued in the name of
24 D.C., at Bank of
America to withdraw
25 $1,000, in Culver
City, California.
26
27
28
20
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 21 of 29 Page ID #:21
1 COUNT DEFENDANT(S) DATE ACT
2 TWENTY-THREE FOSTER 8/21/2020 Use of an EDD debit
COUNTS card ending in 0680
3 issued in the name of
J.J., at Bank of
4 America to withdraw
$1,000, in Culver
5 City, California.
6 TWENTY-FOUR FOSTER 8/24/2020 Use of an EDD debit
COUNTS card ending in 0533
7 issued in the name of
M.W., at Bank of
8 America to withdraw
$1,000, in Culver
9 City, California.
10 TWENTY-FIVE FOSTER 8/25/2020 Use of an EDD debit
LAWRENCE card ending in 8152
11 issued in the name of
J.D., at Bank of
12 America to withdraw
$800, in Hollywood,
13 California.
14 TWENTY-SIX FOSTER 8/28/2020 Use of an EDD debit
LAWRENCE card ending in 4134
15 issued in the name of
J.A., at Bank of
16 America to withdraw
$500, in Chatsworth,
17 California.
18
TWENTY-SEVEN FOSTER 8/28/2020 Use of an EDD debit
19 LAWRENCE card ending in 4134
issued in the name of
20 J.A., at Bank of
America to withdraw
21 $500, in Chatsworth,
California.
22
TWENTY-EIGHT FOSTER 8/29/2020 Use of an EDD debit
23 LAWRENCE card ending in 4134
issued in the name of
24 J.A., at Bank of
America to withdraw
25 $500, in Northridge,
California.
26
27
28
21
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 22 of 29 Page ID #:22
1 COUNT DEFENDANT(S) DATE ACT
2 TWENTY-NINE FOSTER 8/29/2020 Use of an EDD debit
LAWRENCE card ending in 0077
3 issued in the name of
H.G. at Bank of
4 America to withdraw
$500, in Northridge,
5 California.
6 THIRTY FOSTER 8/29/2020 Use of an EDD debit
LAWRENCE card ending in 0077
7 issued in the name of
H.G. at Bank of
8 America to withdraw
$500, in Northridge,
9 California.
10 THIRTY-ONE FOSTER 9/2/2020 Use of an EDD debit
LAWRENCE card ending in 0365
11 issued in the name of
T.M., at Bank of
12 America to withdraw
$800, in Chatsworth,
13 California.
14 THIRTY-TWO FOSTER 9/17/2020 Use of an EDD debit
COUNTS card ending in 0409
15 issued in the name of
K.G., at Bank of
16 America to withdraw
$1,000, in Culver
17 City, California.
18
19
20
21
22
23
24
25
26
27
28
22
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 23 of 29 Page ID #:23
1 COUNT THIRTY-THREE
2 [18 U.S.C. §§ 1029(a)(2), 2(a)]
3 [DEFENDANT FOSTER]
4 24. The Grand Jury re-alleges paragraphs 1 through 12, 14 and
5 15 of this Indictment here.
6 25. Beginning on or about July 14, 2020, and continuing through
7 on or about November 5, 2020, in Los Angeles County, within the
8 Central District of California, and elsewhere, defendant FOSTER, in
9 transactions affecting interstate and foreign commerce, knowingly
10 and with intent to defraud, used unauthorized access devices, as
11 defined in Title 18, United States Code, Sections 1029(e)(1) and
12 (3), specifically, EBP debit card account numbers linked to EDD
13 debit accounts, which EBP debit card account numbers had been issued
14 in the names of persons other than defendant FOSTER and had been
15 obtained by defendant FOSTER with intent to defraud, and by such
16 conduct obtained things of value, their value together totaling
17 $1,000 or more during a one-year period.
18
19
20
21
22
23
24
25
26
27
28
23
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 24 of 29 Page ID #:24
1 COUNT THIRTY-FOUR
2 [18 U.S.C. §§ 1029(a)(2), 2(a)]
3 [DEFENDANT COUNTS]
4 26. The Grand Jury re-alleges paragraphs 1 through 12, 14 and
5 15 of this Indictment here.
6 27. Beginning on or about August 4, 2020, and continuing
7 through on or about September 22, 2020, in Los Angeles County,
8 within the Central District of California, and elsewhere, defendant
9 COUNTS, in transactions affecting interstate and foreign commerce,
10 knowingly and with intent to defraud, used unauthorized access
11 devices, as defined in Title 18, United States Code, Sections
12 1029(e)(1) and (3), specifically, EBP debit card account numbers
13 linked to EDD debit accounts, which EBP debit card account numbers
14 had been issued in the names of persons other than defendant COUNTS
15 and had been obtained by defendant COUNTS with intent to defraud,
16 and by such conduct obtained things of value, their value together
17 totaling $1,000 or more during a one-year period.
18
19
20
21
22
23
24
25
26
27
28
24
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 25 of 29 Page ID #:25
1 COUNT THIRTY-FIVE
2 [18 U.S.C. §§ 1029(a)(2), 2(a)]
3 [DEFENDANT LAWRENCE]
4 28. The Grand Jury re-alleges paragraphs 1 through 12, 14 and
5 15 of this Indictment here.
6 29. Beginning on or about August 1, 2020, and continuing
7 through on or about September 12, 2020, in Los Angeles and Riverside
8 Counties, within the Central District of California, and elsewhere,
9 defendant LAWRENCE, in transactions affecting interstate and foreign
10 commerce, knowingly and with intent to defraud, used unauthorized
11 access devices, as defined in Title 18, United States Code, Sections
12 1029(e)(1) and (3), specifically, EBP debit card account numbers
13 linked to EDD debit accounts, which EBP debit card account numbers
14 had been issued in the names of persons other than defendant
15 LAWRENCE and had been obtained by defendant LAWRENCE with intent to
16 defraud, and by such conduct obtained things of value, their value
17 together totaling $1,000 or more during a one-year period.
18
19
20
21
22
23
24
25
26
27
28
25
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 26 of 29 Page ID #:26
1 COUNTS THIRTY-SIX THROUGH FORTY
2 [18 U.S.C. §§ 1028A(a)(1), 2(b)]
3 [ALL DEFENDANTS]
4 30. The Grand Jury re-alleges paragraphs 1 through 12, 14 and
5 15 of this Indictment here.
6 31. On or about the dates set forth below, in Los Angeles,
7 Riverside and Orange Counties, within the Central District of
8 California, and elsewhere, defendants FOSTER, COUNTS, and LAWRENCE
9 as set forth below, knowingly transferred, possessed, and used, and
10 willfully caused to be transferred, possessed, and used, without
11 lawful authority, means of identification that defendants knew
12 belonged to other persons, namely, the names and Bank of America EDD
13 debit account numbers of the individuals identified below, during
14 and in relation to the felony violations charged in the counts of
15 this Indictment identified below.
16 COUNT DEFENDANT(S) DATE(S) OTHER FELONY VIOLATION
PERSON(S)
17 THIRTY-SIX FOSTER 8/6/2020– H.G. 18 U.S.C. § 1349
LAWRENCE 8/18/2020 as charged in
18 Count One
19 THIRTY-SEVEN COUNTS 8/13/2020- G.T. 18 U.S.C. § 1349
8/21/2020 as charged in
20 Count One
21 THIRTY-EIGHT FOSTER 8/9/2020- J.A. 18 U.S.C.
8/10/2020 § 1344(2) as
22 charged in Count
Twelve
23
THIRTY-NINE LAWRENCE 8/18/2020 U.W. 18 U.S.C.
24 § 1344(2) as
charged in Count
25 Eighteen
26
FORTY COUNTS 8/21/2020 G.T. 18 U.S.C.
27 § 1344(2) as
charged in Count
28 Twenty-One
26
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 27 of 29 Page ID #:27
1 FORFEITURE ALLEGATION ONE
2 [18 U.S.C. § 982]
3 32. Pursuant to Rule 32.2(a) of the Federal Rules of Criminal
4 Procedure, notice is hereby given that the United States of America
5 will seek forfeiture as part of any sentence, pursuant to Title 18,
6 United States Code, Section 982(a)(2), in the event of any
7 defendant’s conviction of the offenses set forth in any of Counts One
8 through Thirty-two and Thirty-six through Forty of this Indictment.
9 33. Any defendant so convicted shall forfeit to the United
10 States of America the following:
11 (a) All right, title and interest in any and all property,
12 real or personal, constituting, or derived from, any proceeds
13 obtained, directly or indirectly, as a result of the offense; and
14 (b) To the extent such property is not available for
15 forfeiture, a sum of money equal to the total value of the property
16 described in subparagraph (a).
17 34. Pursuant to Title 21, United States Code, Section 853(p),
18 as incorporated by Title 18, United States Code, Section 982(b), any
19 defendant so convicted shall forfeit substitute property, up to the
20 total value of the property described in the preceding paragraph if,
21 as the result of any act or omission of said defendant, the property
22 described in the preceding paragraph, or any portion thereof: (a)
23 cannot be located upon the exercise of due diligence; (b) has been
24 transferred, sold to or deposited with a third party; (c) has been
25 placed beyond the jurisdiction of the court; (d) has been
26 substantially diminished in value; or (e) has been commingled with
27 other property that cannot be divided without difficulty.
28
27
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 28 of 29 Page ID #:28
1 FORFEITURE ALLEGATION TWO
2 [18 U.S.C. §§ 982 and 1029]
3 35. Pursuant to Rule 32.2(a) of the Federal Rules of Criminal
4 Procedure, notice is hereby given that the United States will seek
5 forfeiture as part of any sentence, pursuant to Title 18, United
6 States Code, Sections 982(a)(2) and 1029, in the event of any
7 defendant’s conviction of the offenses set forth in any of Counts
8 Thirty-three through Thirty-five of this Indictment.
9 36. Any defendant so convicted shall forfeit to the United
10 States of America the following:
11 (a) All right, title, and interest in any and all
12 property, real or personal, constituting, or derived from, any
13 proceeds obtained, directly or indirectly, as a result of the
14 offense;
15 (b) Any personal property used or intended to be used to
16 commit the offense; and
17 (c) To the extent such property is not available for
18 forfeiture, a sum of money equal to the total value of the property
19 described in subparagraphs (a) and (b).
20 37. Pursuant to Title 21, United States Code, Section 853(p),
21 as incorporated by Title 18, United States Code, Sections 982(b)(1)
22 and 1029(c)(2), any defendant so convicted shall forfeit substitute
23 property, up to the total value of the property described in the
24 preceding paragraph if, as the result of any act or omission of the
25 defendant, the property described in the preceding paragraph, or any
26 portion thereof: (a) cannot be located upon the exercise of due
27 diligence; (b) has been transferred, sold to or deposited with a
28 third party; (c) has been placed beyond the jurisdiction of the
28
Case 2:24-cr-00367-MCS Document 1 Filed 06/18/24 Page 29 of 29 Page ID #:29
1 court; (d) has been substantially diminished in value; or (e) has
2 been commingled with other property that cannot be divided without
3 difficulty.
4
5
6 A TRUE BILL
7
8 /s/
Foreperson
9
10 E. MARTIN ESTRADA
United States Attorney
11
12
13 MACK E. JENKINS
Assistant United States Attorney
14 Chief, Criminal Division
15 BRAM M. ALDEN
Assistant United States Attorney
16 Chief, Criminal Appeals Section
17 RANEE A. KATZENSTEIN
Assistant United States Attorney
18 Criminal Appeals Section
19
20
21
22
23
24
25
26
27
28
29
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