Indictment — United States v. Reginald Eburuche, Eastern District of Michigan (ECF No. 1)

Summary

A grand jury indictment of Reginald Eburuche, Case No. 2:24-cr-20400, in the U.S. District Court for the Eastern District of Michigan, filed July 25, 2024 as ECF No. 1 and assigned to Judge Nancy G. Edmunds. Count 1 charges bank fraud under 18 U.S.C. § 1344(2). The indictment alleges that on or about July 27, 2020 Eburuche submitted a PPP loan application for $1,760,000 on behalf of Renovis Healthcare, LLC to Fifth Third Bank that overstated average monthly payroll and employees and was supported by a false IRS Form 941, and that the bank disbursed $1,760,000. The forfeiture allegations seek $1,623,984.76 from a Fifth Third Bank account and a money judgment of $1,760,000. It is signed by Assistant United States Attorney Carl D. Gilmer-Hill.

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Case 2:24-cr-20400-NGE-DRG ECF No.1, PagelD.1 Filed 07/25/24 Page 1 of 8

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN

UNITED STATES OF AMERICA CRIMINAL NO.
Plaintiff, VIOLATION: 18 U.S.C. § 1344(2)
Vv.
Case: 2:24-cr-20400
REGINALD EBURUCHE, Assigned To : Edmunds, Nancy G.
Referral Judge: Grand, David R.
Assign. Date : 7/25/2024
Defendant. Description: IND USA V. EBURUCHE (DJ)
/
INDICTMENT

THE GRAND JURY CHARGES:

General Allegations

At all times relevant to this Information:

1. Reginald Eburuche (Eburuche) was a resident of Oakland County,
Michigan in the Eastern District of Michigan.

2. Eburuche was the owner and Chief Executive Officer of Renovis
Healthcare, LLC, which was registered in the State of Michigan and located within
the Eastern District of Michigan.

3. Eburuche controlled a business checking account for Renovis Healthcare,
LLC, at a branch of Fifth Third Bank located within the Eastern District of Michigan.

4. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was a

federal law enacted in or around March 2020 and designed to provide emergency

financial assistance to the millions of Americans suffering the economic effects
Case 2:24-cr-20400-NGE-DRG ECF No. 1, PagelD.2 Filed 07/25/24 Page 2 of 8

caused by the COVID-19 pandemic. One source of relief provided by the CARES
Act was the authorization of up to $349 billion in forgivable loans to small
businesses for job retention and certain other expenses through a program referred
to as the Paycheck Protection Program (PPP). In or around April 2020, Congress
authorized over $300 billion in additional PPP funding.

5. In order to obtain a PPP loan, a qualifying business had 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.

6. In the PPP loan application, the small business (through its authorized
representative) had to state, among other things, its: (a) average monthly payroll
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. In
addition, businesses applying for a PPP loan had to provide documentation showing
their payroll expenses.

7. A PPP loan application had to be processed by a participating lender. Ifa
PPP loan application was approved, the participating lender funded the PPP loan
using its own monies, which were 100% guaranteed by the Small Business

Administration (SBA). Data from the application, including information about the
Case 2:24-cr-20400-NGE-DRG ECF No. 1, PagelD.3 Filed 07/25/24 Page 3 of 8

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.

8. PPP loan proceeds had to be used by the business on certain permissible
expenses—-payroll costs, interest on mortgages, rent, and utilities. The proceeds
were to be used as working capital for the established business, not to start or expand
a business. Interest and principal on the PPP loan could be entirely forgiven if the
business spent the loan proceeds on permissible expenses within a designated period
of time after receiving the proceeds and used a certain amount of the PPP loan
proceeds on payroll expenses.

9. Fifth Third Bank was a financial institution, as defined in 18 U.S.C. §
20(1), whose deposits were insured by the Federal Deposit Insurance Corporation
(FDIC).

10. Fifth Third Bank was a participating lender in the Paycheck Protection
Program which funded PPP loans using its own monies.

COUNT 1
(Bank Fraud - 18 U.S.C. § 1344(2))

11. The general allegations are included in this count.
12. In or about July 2020, in the Eastern District of Michigan, the defendant,
Eburuche, knowingly executed and attempted to execute a scheme to obtain moneys,

funds, credits, assets, and other property owned by, and under the custody and
Case 2:24-cr-20400-NGE-DRG ECF No. 1, PagelD.4 Filed 07/25/24 Page 4 of 8

control of, Fifth Third Bank, by means of false and fraudulent material pretenses,

representations, and promises.

The Scheme

13. On or about July 27, 2020, Eburuche knowingly submitted and caused
the submission of a PPP loan application for $1,760,000 on behalf of Renovis
Healthcare, LLC, to Fifth Third Bank.

14. As Eburuche knew and intended, the PPP loan application he submitted
contained false and fraudulent material pretenses, representations, and promises.

15. To deceive Fifth Third Bank into approving the PPP loan and obtain
money under the custody and control of the bank, within the PPP loan application
Eburuche falsely, and with intent to defraud, overstated the average monthly payroll
expenses of Renovis Healthcare, LLC.

16. In furtherance of the scheme to defraud and obtain money from Fifth
Third Bank, within the PPP loan application Eburuche falsely overstated the number
of employees working for Renovis Healthcare, LLC.

17. In furtherance of the scheme to defraud and obtain money from Fifth
Third Bank, Eburuche knowingly signed and submitted a false and fraudulent IRS
Form 941 (Employer’s Quarterly Federal Tax Return) in support of the PPP loan

application.
Case 2:24-cr-20400-NGE-DRG ECF No.1, PagelD.5 Filed 07/25/24 Page5of8

18. On or about July 27, 2020, Fifth Third Bank approved and disbursed PPP
loan proceeds in the amount of $1,760,000 to the business checking account for
Renovis Healthcare, LLC, at Fifth Third Bank controlled by Eburuche.

All in violation of Title 18, United States Code, Section 1344(2).

FORFEITURE ALLEGATIONS
18 U.S.C. § 982(a)(2)(a) and 18 U.S.C. § 981(a)(1)(c) with 28 U.S.C. § 2461

19. The above allegations contained in this Information are incorporated by
reference as if set forth fully herein for the purpose of alleging forfeiture pursuant to
the provisions of 18 U.S.C. § 982(a)(2)(a) and 18 U.S.C. § 981(a)(1)(c) with 28
ULS.C. § 2461.

20. As a result of violating 18 U.S.C. § 1344, as set forth in this Information,
Eburuche shall forfeit to the United States any property, real or personal, which
‘represents or is traceable to the gross proceeds obtained, directly or indirectly, as the
result of his violation of 18 U.S.C. § 1344(2), including $1,623,984.76 in funds from
bank account XXXXXX6920, held in the name of Renovis Health, LLC., at Fifth
Third Bank, Troy, MI.

21. Money Judgment: Upon conviction of violating 18, United States Code,
Section 1343, defendant shall be ordered to pay the United States a sum of money
equal to the total amount of proceeds defendant obtained as a result of such

violation, specifically $1,760,000.
Case 2:24-cr-20400-NGE-DRG ECF No.1, PagelD.6 Filed 07/25/24 Page 6 of 8

22. Substitute Assets: If all or any of the the property described above as

being subject to forfeiture, as a result of any act or omission of defendant:

a.

b.

cannot be located upon the exercise of due diligence;

has been transferred or sold to, or deposited with, a third

party;
has been placed beyond the jurisdiction of the Court;

has been substantially diminished in value; or

has been commingled with other property that cannot be
subdivided without difficulty;

it is the intent of the United States, pursuant to 21 U.S.C. § 853(p), as incorporated

by 18 U.S.C. § 982(b), to seek forfeiture of any other property of Eburuche up to
Case 2:24-cr-20400-NGE-DRG ECF No.1, PagelD.7 Filed 07/25/24 Page 7 of 8

the value of the $1,760,000 still outstanding.

THIS IS A TRUE BILL

S/GRAND JURY FOREPERSON

DAWN N. ISON
United States Attorney

s/Mark Chasteen
Mark Chasteen
Chief, White Collar Crime Unit

s/Carl D. Gilmer-Hill

CARL D. GILMER-HILL
Assistant United States Attorney
211 W. Fort St., Suite 2001
Detroit, MI 48226

(313) 226-9585
Carl.Gilmer-Hill@usdoj.gov
CA161939

Dated: July 25, 2024
Case 2:24-cr-20400-NGE-DRG ECF No. 1, PagelD.8 Filed 07/25/24 Page 8 of 8

Case: 2:24-cr-20400

Assigned To : Edmunds, Nancy G.
Referral Judge: Grand, David R.

Assign. Date : 7/25/2024

Description: IND USA Vv. EBURUCHE (DJ)

Eastern District of Michigan

NOTE: It is the responsibility of the Assistant U.S. Attorney signing this form to comph __

Companion Case Information Companion Case Number:

This may be a companion case based upon LCrR 57.10 (b)(4)': Judge Assigned:
Ll ves No AUSA’s Initials: CDE A

Case Title: USA v. REGINALD EBURUCHE

County where offense occurred : Oakland

Y¥_Indictment/ information --- no prior complaint.
Indictment/ Information --- based upon prior complaint [Case number: ]
Indictment/ Information --- based upon LCrR 57.10 (d) [Complete Superseding section below].

Superseding Case Information

Superseding to Case No:

Judge:

[_]Corrects errors; no additional charges or defendants.

[_ Involves, for plea purposes, different charges or adds counts.
[_]Embraces same subject matter but adds the additional defendants or charges below:

Defendant name Charges Prior Complaint (if applicable)

Please take notice that the below listed Assistant United’States Attorney is t a of record for

the above captioned case. / \ ) i .

July 25, 2024 e Soy

Date Carl D. Gilmer-Hill / f
Assistant United States Attorney
211 W. Fort Street, Suite 2001

Detroit, MI 48226-3277

E-Mail address: Carl.Gilmer-Hill@usdoj.gov
Attorney Bar #: CA161939

1 Companion cases are matters in which it appears that (1) substantially similar evidence will be offered at trial, or (2) the same
or related parties are present, and the cases arise out of the same transaction or occurrence. Cases may be companion cases

even though one of them may have already been terminated.
5/16


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