Indictment — United States v. Dylan Kinlock and Felicia Garza, Southern District of Texas (Document 1)

Summary

A grand jury Indictment in United States v. Dylan Kinlock and Felicia Garza, Cr. No. H-22-126, in the U.S. District Court for the Southern District of Texas, Houston Division, filed March 2, 2022. Count 1 charges conspiracy to commit wire fraud under Title 18, United States Code, Section 1349, from on or about April 1, 2020 until on or about August 25, 2021, and Counts 2-7 charge wire fraud. The indictment alleges that the defendants solicited clients to apply for PPP loans for self-employed individuals using false Schedules C, Forms 1099 and invoices, and that Kinlock required clients to share their loan proceeds. It alleges that Kinlock participated in at least 241 fraudulent PPP loans that led to the distribution of at least $4,844,274.00 and received at least $939,379.00 in fee income. It includes a notice of forfeiture.

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“Indictment — United States v. Dylan Kinlock and Felicia Garza, Southern District of Texas (Document 1).” Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/indictment-no-4-22-cr-00126-dkt-1-5219e85edf/, SHA-256 81f2e589faa580cbf0647284f82151eded1cb22108a9a11855c2a8046c4e1528.

Full text

Case 4:22-cr-00126 Document 1 Filed on 03/02/22 in TXSD Page 1 of 7

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Case 4:22-cr-00126 Document 1 Filed on 03/02/22 in TXSD Page 2 of 7

COUNT 1
(Conspiracy - 18 U.S.C. ' 1349)

A. INTRODUCTION

4. The Grand Jury adopts, realleges, and incorporates the allegations in

paragraphs 1-3 of the Introduction of this Indictment as if set out fully herein.

B. THE CONSPIRACY AND ITS OBJECTS

5. From on or about April 1, 2020 and continuing until on or about August 25,

2021, in the Houston Division of the Southern District of Texas and elsewhere,

DYLAN KINLOCK, and
FELICIA GARZA,

Defendants herein, did knowingly and willfully combine, conspire, confederate, and agree

with others known and unknown to the Grand Jury to devise and intend to devise a scheme

and artifice to defraud, and for obtaining money by means of false and fraudulent pretenses,

and in the execution of said scheme and artifice, did knowingly transmit and cause to be

transmitted by means of wire communications in interstate or foreign commerce, writings,

signs, signals, pictures, or sounds, in violation of Title 18, United States Code, Section

1343 (Wire Fraud).

C. THE MANNER AND MEANS OF THE CONSPIRACY

The manner and means of the conspiracy were as follows:

6. The Defendants devised a scheme to solicit others to apply for fraudulent PPP

loans offered by the CARES Act.

7. The Defendants would use the personal information of their clients and create

false documents to qualify for a PPP Loan available to self-employed individuals.

8. The false documents created by the Defendants included Schedules C, Profit

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or Loss from a Business, Forms 1099 Miscellaneous Income and invoices showing

income that was never received but qualified the client for the PPP Loan for self-

employed individuals.

9. As part of the loan application process, KINLOCK required each of his clients

to execute a contract with him in which they agreed to share the proceeds of their PPP

Loan with him. These contracts were sent to KINLOCK in Orlando, Florida from the

Houston Division of the Southern District of Texas by use of interstate wire

communications facilities.

10. After the client received their PPP Loans, KINLOCK directed the client to

send him his fee through various means including direct deposit into KINLOCK’s bank

account or other electronic payment methods.

11. Defendant KINLOCK participated in at least 241 fraudulent PPP Loans that

were approved and that led to the distribution of at least $4,844,274.00 of CARES Act

money. KINLOCK received at least $939,379.00 in fee income from individuals he

assisted in securing fraudulent PPP Loans.

D. OVERT ACTS

12. In furtherance of the conspiracy, and to effect the objects thereof, the

conspirators performed and caused to be performed, among others, the overt acts set forth

in Counts Two through Seven of this indictment, hereby re-alleged and incorporated as if

fully set forth in this Count of the indictment. They also performed the following overt

acts:

a. On or about June 17, 2020, the Defendants applied for a fraudulent PPP

Loan in the name of Defendant FELICIA GARZA in the amount of $20,833.00.

b. On or about March 3, 2021, the Defendants applied for a fraudulent PPP

Loan in the name of Defendant FELICIA GARZA in the amount of $14,872.00.

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In violation of Title 18, United States Code, Section 1349.

COUNTS 2- 7
(Wire Fraud - 18 U.S.C. ' 1343)

A. INTRODUCTION

1. The Grand Jury adopts, realleges, and incorporates the allegations in

paragraphs 1-3 of the Introduction of this Indictment as if set out fully herein.

B. THE SCHEME AND ARTIFICE

2. From on or about April 1, 2020, until at least on or about August 25, 2021,

in the Houston Division of Southern District of Texas, and elsewhere,

DYLAN KINLOCK, and
FELICIA GARZA,

Defendants herein, did knowingly devise and intend to devise a scheme and artifice to defraud,

and for obtaining money by means of false and fraudulent pretenses, and in the execution of said

scheme and artifice, did knowingly transmit and cause to be transmitted by means of wire

communications in interstate or foreign commerce, writings, signs, signals, pictures, or sounds,

as more fully set forth in the counts below.

C. MANNER AND MEANS OF THE SCHEME AND ARTIFICE

3. Among the manner and means by which the Defendants sought to accomplish and

did accomplish the purpose of the scheme to defraud are the acts set forth in paragraphs 6 through

11 of Count One of this Indictment, hereby re-alleged and incorporated as if fully set forth in these

counts.

D. EXECUTION OF THE SCHEME AND ARTIFICE

4. The Defendants caused interstate wire communications facilities to be utilized in

the scheme in several different ways. On or about the dates alleged in the Counts below, the

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Defendants caused their clients to send a services contract to Defendant KINLOCK in Orlando,

Florida, from the Houston Division of the Southern District of Texas, as described below:

COUNT DATE PPP LOAN APPLICANT

TWO July 19, 2020 K.D.

THREE July 20, 2020 C.C.

FOUR July 27, 2020 K.C.

FIVE February 8, 2021 C.C.

SIX February 9, 2021 K.D.

SEVEN March 4, 2021 K.C.

In violation of Title 18, United States Code, Sections 1343 and 2.

NOTICE OF FORFEITURE
(18 U.S.C. §§ 981(a)(1)(C), 982(a)(2)(A))

1. The allegations contained in Counts 1-7 of this Indictment/Information are hereby

realleged and incorporated by reference for the purpose of alleging forfeitures pursuant to Title

18, United States Code, Section 981(a)(1)(C), Title 18 United States Code, Section 982(a)(2)(A)

and Title 28, United States Code, Section 2461(c).

2. Upon conviction of the offenses set forth in Counts 1-7 of this

Indictment/Information, the defendants, DYLAN KINLOCK and FELICIA GARZA shall forfeit

to the United States of America, pursuant to Title 18, United States Code, Section 981(a)(1)(C),

982(a)(2)(A) and Title 28, United States Code, Section 2461(c), any property, real or personal,

which constitutes or is derived from proceeds traceable to the offense(s). The property to be

forfeited includes, but is not limited to, the following: real property located at 5818 Cheshire

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Original Signature on File
Case 4:22-cr-00126 Document 1 Filed on 03/02/22 in TXSD Page 7 of 7

JENNIFER B. LOWERY
United States Attorney

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