Indictment — United States v. Brian Lee Foster, Western District of Oklahoma (Document 1)

Summary

An indictment in United States of America v. Brian Lee Foster, Case 5:22-cr-00387-SLP, in the U.S. District Court for the Western District of Oklahoma, filed September 7, 2022 as Document 1. Count 1 and Count 2 charge false statements to a financial institution under 18 U.S.C. § 1014. Count 1 alleges that Foster answered "No" to the criminal-charges question on a PPP Borrower Application Form submitted to Stride Bank on or about May 6, 2020 for a $20,833 loan, while a felony DUI case against Foster was pending in Oklahoma County. Count 2 alleges that Foster submitted another application under another person's name claiming average monthly payroll of $8,333.33 and a false 2019 Form 1040 showing net profit of $100,000, with the $20,833 in proceeds deposited in Foster's personal account on or about May 18, 2020.

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       Case 5:22-cr-00387-SLP        Document 1         Filed 09/07/22     Page 1 of 6



            IN THE UNITED STATES DISTRICT COURT FOR THE

                     WESTERN DISTRICT OF OKLAHOMA                                 FILED
                                                                                  SEP 0 7 2022
UNITED STATES OF AMERICA,                                                 CARMEUTAREEDER SHINN, CLERK
                                                                         U.S. DIST. COUR^^W^ERN DIST OKLA.
                                                                          BY                     .DEPUTY
                   Plaintiff,

            -vs-                                  No.


BRIAN LEE FOSTER,                                 Violation:     18 U.S.C. § 1014

                    Defendant.
                                                                                       SLP
                                  INDICTMENT


The Federal Grand Jury charges:

      At all times relevant to this Indictment;

      1.     Defendant BRIAN LEE FOSTER( FOSTER")was a resident ofNorman,

Oklahoma.


      2.     On or about October 6,2014,FOSTER was charged by criminal information

in the District Court of Oklahoma County with driving while under the influence(DUI), a

felony, in violation of Title 47, Oklahoma Statutes, Section 11-902(A)(2). On or about
February 20, 2020, FOSTER personally appeared in Oklahoma County District Court in
connection with the DUI case. The case remained pending through at least July 2020.

      3.     FOSTER owned a personal checking account at Bank of America (account

number ****>h=h**0552).
       Case 5:22-cr-00387-SLP        Document 1     Filed 09/07/22    Page 2 of 6



      4.       Stride Bank,N.A.("Stride Bank")was a financial institution that maintained

accounts insured by the Federal Deposit Insurance Corporation (FDIC). Stride Bank was

a Small Business Administration(SBA)participating lender.

                           The Paycheck Protection Program


      5.       In March 2020, the Coronavirus Aid, Relief, and Economic Security

("CARES") Act was enacted to provide emergency financial assistance to Americans
suffering economic harm because of the COVID-19 pandemic. The CARES Act

authorized the SBA to create the Paycheck Protection Program (PPP), which permitted the

SBA to use up to $349 billion in United States taxpayer funds to provide guaranteed loans

to small businesses for job retention and certain other expenses. PPP loans were 100%

guaranteed by the SBA, and the full principal amount of the loans qualified for loan

forgiveness if the terms of the program were satisfied. In order to provide relief to
America's small businesses expeditiously, the CARES Act streamlined the loan process

and allowed SBA participating lenders to rely on certifications ofthe borrower in order to

determine eligibility. The Act also allowed lenders to rely on specified documents

provided by the borrower to determine the qualifying loan amount and eligibility for loan
forgiveness.

       6.      On about April 15, 2020, SBA implemented a rule that made an individual

applicant ineligible for a PPP loan if the applicant was incarcerated, on probation, on

parole, or was presently subject to an indictment, criminal information, arraignment, or
other means by which formal criminal charges are brought in any jurisdiction, or had been

convicted of a felony within the last five years.
       Case 5:22-cr-00387-SLP        Document 1      Filed 09/07/22   Page 3 of 6



                                        COUNT 1
                      (False Statement to a Financial Institution)

      7.     The Federal Grand Jury incorporates paragraphs 1-6 by reference.

      8.     On or about May 6, 2020, FOSTER submitted a PPP Borrower Application

Form(SBA Form 2483)to Stride Bank requesting a $20,833 PPP loan as a sole proprietor.

FOSTER'S PPP application contained the following representations and certifications:

             a.       Question 5 asked:"Is the Applicant(ifan individual)or any individual

owning 20% or more of the equity of the Applicant subject to an indictment, criminal

information, arraignment, or other means by which formal criminal charges are brought in

any jurisdiction, or presently incarcerated, or on probation or parole?" FOSTER

responded "No."

             b.       Question 6 asked: "Within the last 5 years, for any felony, has the

Applicant (if an individual) or any owner of the Applicant 1) been convicted; 2) pleaded
guilty; 3)pleaded nolo contendere; 4)been placed on pretrial diversion; or 5)been placed

on any form of parole or probation (including probation before judgment)?" FOSTER

responded "Yes."

             c.       FOSTER certified that "the information provided in this application

and the information provided in supporting documents and forms is true and accurate in all

material respects."

             d.       FOSTER certified that "[a]ll SBA proceeds will be used only for

business-related purposes, as specified in the loan application, and consistent with the

Paycheck Protection Program Rule."
       Case 5:22-cr-00387-SLP        Document 1        Filed 09/07/22    Page 4 of 6



      9.     On or about May 7,2020, a loan officer for Stride Bank contacted FOSTER

regarding his affirmative response to Question 6, asking: "Can you shine some light on
number 6. You marked yes and that will raise some flags in the underwriting so I want to

be prepared." The loan officer further advised FOSTER that he failed to initial Question

5, and "I will need an initial." FOSTER responded: "Tax issue, misdemeanor didn't file

in 2012,"


       10.   On or about May 8, 2020, Stride Bank, based upon the certifications and

documents provided by FOSTER, approved FOSTER'S PPP loan application in the

amount of $20,833.

       11.    On or about May 8, 2020, Stride Bank deposited the loan proceeds in the

amount of$20,833 in FOSTER'S personal checking account at Bank of America.

       12.    Between on or about May 6, 2020, and on or about May 8, 2020, in the

Western District of Oklahoma,

                                   BRIAN LEE FOSTER                                    —


knowingly made false statements to Stride Bank, a financial institution, the deposits of

which were insured by the FDIC, for the purpose of influencing Stride Bank to

approve a PPP loan in the amount of $20,833. Specifically, FOSTER falsely answered

"No" to Question 5 of the PPP loan application. In fact, as FOSTER well knew, he was

presently charged with felony DUI in Case Number CF-2014-6799 in the District Court of
Oklahoma County, which made him ineligible for a PPP loan under the rules and

regulations in effect at the time ofthe application.

       All in violation of Title 18, United States Code, Section 1014.
        Case 5:22-cr-00387-SLP       Document 1      Filed 09/07/22    Page 5 of 6



                                       COUNT 2
                     (False Statement to a Financial Institution)

      13.    The Federal Grand Jury incorporates paragraphs 1 and 3-5 by reference.

       14.   On or about May 14,2020,FOSTER submitted a PPP Borrower Application

Fonn(SBA Form 2483)to Stride Bank under the name T.S. The application requested a
$20,833 PPP loan and represented that T.S. had average monthly payroll of$8,333.33. The
application contained certifications that "the information provided in this application and
the infonnation provided in supporting documents and forms is true and accurate in all

material respects" and that "[a]ll SBA proceeds will be used only for business-related
purposes, as specified in the loan application, and consistent with the Paycheck Protection
Program Rule."

       15.    In support of the application, FOSTER submitted a PPP Worksheet and
Customer Identification Program Form representing that T.S. was self-employed with

Rodan and Fields and had net income of $100,000 per year. FOSTER also submitted a

false 2019 Form 1040 showing T.S. had net profit of$100,000. In fact, as FOSTER well

knew, T.S. was self-employed for Rodan and Fields and made less than $1,000 in 2019.

       16.    On or about May 18, 2020, Stride Bank, based upon the false certifications

and documents provided by FOSTER, approved a PPP loan for borrower T.S. in the
amount of $20,833. FOSTER directed Stride Bank to deposit the loan proceeds in his

personal checking account(account number ********0552) at Bank of America.
        Case 5:22-cr-00387-SLP       Document 1      Filed 09/07/22      Page 6 of 6



      17.    On or about May 18, 2020, Stride Bank deposited the loan proceeds in the

amount of $20,833 in FOSTER'S personal checking account at Bank of America.

FOSTER used the proceeds of the loan for his own personal benefit.

       18.   Between on or about May 14, 2020, and on or about May 18, 2020, in the

Western District of Oklahoma,

                                   BRIAN LEE FOSTER


knowingly made false statements to Stride Bank, a financial institution, the deposits of

which were insured by the FDIC, for the purpose ofinfluencing Stride Bank to

approve a PPP loan in the amount of $20,833. Specifically, FOSTER submitted an SBA

Borrower Application Fonn using the name T.S. that falsely represented that T.S. had an

average monthly payroll of $8,333.33. FOSTER also submitted a false and flaudulent

PPP Worksheet that falsely represented that T.S. had net income of $100,000 per year.

FOSTER also provided Stride Bank with a false and fraudulent 2019 Form 1040, which

represented that T.S. had net profit of $100,000 in 2019.

       All in violation of Title 18, United States Code, Section 1014.

                                             ATR




                                                                         GRAND JURY




ROBERT J. TROESTER
United States Attorney



JESMCAL.PERRY              (J
Assistant United States Attorney


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