Indictment — United States v. Sirdell McCullough et al., Western District of Louisiana (Document 1)

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A grand jury Indictment in United States v. Sirdell McCullough and others, No. 5:23-cr-00108, in the United States District Court for the Western District of Louisiana, filed May 10, 2023. It alleges that the defendants are members or associates of a Shreveport street gang that refer to themselves as Step or Die or SOD. Count One charges conspiracy to commit wire fraud under 18 U.S.C. § 1349 from on or about April 2020 until November 6, 2021, alleging PPP and EIDL applications for non-operational businesses with false payroll and revenue figures and fabricated tax forms. It alleges that the defendants collectively obtained approximately twenty-nine (29) fraudulent loans worth approximately $600,000 and attempted approximately forty-two (42) more worth approximately $2,200,000. Counts 2 - 30 charge wire fraud, each tied to a listed loan deposit.

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Case 5:23-cr-00108-EEF-MLH Document1 Filed 05/10/23 Page 1of10PagelID#: 1
RECEIVED

MAY 10 2023
ee UNITED STATES DISTRICT COURT
WES SHREVERRAYLLOURIANA WESTERN DISTRICT OF LOUISIANA
BY, SHREVEPORT DIVISION

UNITED STATES OF AMERICA *

*
VERSUS i 5:23-cr-00108
SIRDELL MCCULLOUGH (01) * Judge Foote
RODERGUIZ HENRY (02) * Magistrate J udge Hornsby
JOHNTRELL CRUTCHFIELD (03) *
DEANTHONY JOHNSON (04) *
DEAAUNDRAKOUS HAGGER (05) *
NICO STEWART (06) *
TIMOTHY VASHER (07) *
DESTANE GLASS (08) *
XAVIEN BEASLEY (09) *
QUINTERRIUS BROWN (10) *
TORONCO LOSTON (11) *
DEWONNIE BROWN (12) *
JOSHUA DOMINIQUE (13) *
KADARIUS JENKINS (14) *
JASMINE GLASS (15) *
TRAMAINE TAYLOR (16) *
ANTORIA JOHNSON (17) *
JOKETA BAULKMAN (18) *
TYNEAL JOHNSON (19) *
CIERRA FLEMING (20) *
TRAMARCIEA RUFFINS (21) *
OLIVIA THOMAS (22) *
SAMARRIAN KINGSTON (23) *
LAKEAH GIPSON (24) *

INDICTMENT
THE GRAND JURY CHARGES:
COUNT ONE

18 U.S.C. § 1349
(Conspiracy to Commit Wire Fraud)

AT ALL TIMES HEREIN RELEVANT:

I, BACKGROUND

1. The defendants in this indictment are members or associates of a Shreveport

street gang that refer to themselves as Step or Die or SOD.

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2: The banking institutions referred herein are all federally insured and

headquartered at various locations throughout the United States.

A. Small Business Administration

1, The United States Small Business Administration (“SBA”) was an executive-
branch agency of the United States government that provided support to entrepreneurs and
small businesses. The mission of the SBA was to maintain and strengthen the nation’s
economy by enabling the establishment and viability of small businesses and by assisting in
the economic recovery of communities after disasters.

2. As part of this effort, the SBA facilitated government-backed loans through
banks, credit unions, and other lenders.

B. The Paycheck Protection Program

i. 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 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 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.

2. In 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 small business (through its authorized

representative) was required to state its average monthly payroll expenses and its number

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of employees, among other things. 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 were required to provide documentation showing their payroll expenses.

3. A PPP loan application was processed by a participating financial institution
(“lender”). If a PPP loan application was approved, the participating lender would fund the
loan using its own monies, which were guaranteed by the SBA. Data from the application,
including information about the 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.

4, PPP loan proceeds were required to be used by the business on certain
permissible expenses, including payroll costs, mortgage interest, rent, and utilities. Under
the applicable PPP rules and guidance, the interest and principal on the PPP loan was
eligible for forgiveness if the business was eligible for the PPP loan it received, spent the loan
proceeds on these permissible expense items within a designated period of time, and used a

certain portion of the loan proceeds for payroll expenses,

C. The Economic Injury Disaster Loan Program

1, The Economic Injury Disaster Loan (“EIDL”) Program was an SBA program
that provided low-interest financing to small businesses, renters, and homeowners in regions
affected by declared disasters.

2. The CARES Act authorized the SBA to provide EIDLs up to $2 million to
eligible small businesses experiencing substantial financial disruption due to the COVID-19
pandemic. In addition, the CARES Act authorized the SBA to issue advances of up to $10,000
to small businesses within three days of applying for an EIDL. The amount of the advance
was determined by the number of employees the applicant certified having. The advances

did not have to be repaid.

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3, In order to obtain an EIDL and advance, a qualifying business was required to
submit an application to the SBA and provide information about its operations, such as: (1)
the number of employees, (2) gross revenues for the 12-month period preceding the disaster,
and (3) cost of goods sold in the 12-month period preceding the disaster. The 12-month period
for EIDLs for COVID-19 relief was from January 31, 2019 to January 31, 2020. The applicant
was also required to certify that all the information in the application was true and correct
to the best of the applicant’s knowledge.

4, EIDL applications were submitted directly to the SBA and processed by the
agency with support from a government contractor, Rapid Finance. The amount of the loan,
if the application was approved, was determined based on the information provided by the
applicant about employment, revenue, and cost of goods, as described above. Any funds
issued under an EIDL or advance were issued directly by the SBA. EIDL funds could be used
for payroll expenses, sick leave, production costs, and business obligations, such as debts,
rent, and mortgage payments. Ifthe applicant also obtained a loan under the PPP, the EIDL
funds could not be used for the same purpose as the PPP funds.

Il. THE CONSPIRACY

Beginning on or about April 2020, and continuing until November 6, 2021, in the
Western District of Louisiana and elsewhere, the Defendants, Sirdell McCullough,
Roderguiz Henry, Johntrell Crutchfield, Deanthony Johnson, Deaaundrakous
Hagger, Nico Stewart, Timothy Vasher, Destane Glass, Xavien Beasley, Quinterrius
Brown, Toronco Loston, Dewonnie Brown, Joshua Dominique, Kadarious Jenkins,
Jasmine Glass, Tramaine Taylor, Antoria Johnson, Joketa Baulkman, Tyneal
Johnson, Cierra Fleming, Tramarcia Ruffins, Olivia Thomas, Samarrian Kingston,
and Lakeah Gipson, and others known and unknown to the Grand Jury, did knowingly and

intentionally conspire to commit and attempt to commit violations of Title 18, United States

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Code, Section 1348, namely, to knowingly devise a scheme and artifice to defraud the SBA
and various financial institutions, by:

(1) falsifying PPP and EIDL Program loan applications, forms, and other documents
(“fraudulent loan applications”);

(2) submitting and causing to be submitted fraudulent loan applications to lending
institutions and the SBA in order to obtain funds through the PPP and EIDL Program; and

(3) receiving and obtaining payments and benefits from lending institutions and the
SBA based on the fraudulent loan applications submitted.
Ill. THE OBJECT OF THE CONSPIRACY

The object of the conspiracy was for the Defendants, and others known and unknown
to the Grand Jury, to unlawfully and unjustly enrich themselves by obtaining PPP and EIDL

loan proceeds through materially false and fraudulent pretenses, representations, and

promises.
IV. MANNER AND MEANS OF THE CONSPIRACY AND THE SCHEME AND
ARTIFICE TO DEFRAUD

The manner and means used by the defendants to accomplish the objectives of the
conspiracy included but were not limited to the following:

A. It was part of the conspiracy and the scheme and artifice to defraud that
members of the conspiracy registered, reported and caused to be registered and reported,
non-operational businesses.

B, The defendants opened and caused to be opened bank accounts to receive,
deposit, and transfer PPP and EIDL funds.

C. The defendants prepared and caused to be prepared the PPP and EIDL
applications and submitted and caused to be submitted the application through the online

portals.

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D. The defendants submitted and caused to be submitted PPP and EIDL

applications that contained false and fabricated information, including but not limited to:

1. the number of employees;
2. monthly payroll expenses;
3. gross revenue; and

4. cost of goods sold.

E. The defendants submitted and caused to be submitted false and fabricated

supporting documentation with their loan applications, including but not limited to:
1. false and fabricated federal tax forms; and
2. false and fabricated bank statements.

F, The defendants used or caused to be used the PPP and EIDL funds for
unauthorized purposes, including but not limited to cash withdrawals and other personal
expenses.

G. The defendants paid or caused to be paid a portion of the PPP and EIDL funds
to co-conspirators as kickbacks for their assistance in obtaining the loans.

H. The defendants submitted and caused to submitted PPP and EIDL

applications, to further the scheme and artifice to defraud, including but not limited to the

following:
Date Defendant Loan Amount | Loan Type Funded
7/12/2020 | Quinterrius Brown $30,800.00 EIDL NO
4/5/2021 Toronco Loston $20,832.00 PPP NO
10/30/2020 Toronco Loston $201,100.00 EIDL NO
8/16/2021 Kadarius Jenkins $20,832.00 PPP YES

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Date Defendant Loan Amount | Loan Type Funded
7/16/2021 Cierra Fleming $20,207.00 PPP YES
a The defendants collectively obtained approximately twenty-nine (29)

fraudulent loans with an approximate value of $600,000 and attempted to obtain
approximately forty-two (42) related loans with an approximate value of $2,200,000.

J. The allegations in Counts 2 - 30 are incorporated by reference as though fully
set forth herein as part of the conspiracy to defraud.

All in violation of Title 18, United States Code, Section 1349 [18 U.S.C. § 1349].

COUNTS 2 - 30
18 U.S.C, § 1343
(Wire Fraud)

A, The allegations in Count 1 are incorporated by reference as though fully set
forth herein as the scheme and artifice to defraud.

B. On or about the dates set forth below, in the Western District of Louisiana and
elsewhere, the Defendants listed below, and others known and unknown to the Grand Jury,
devised and intended to devise a scheme to defraud, and to obtain money and property by
means of materially false and fraudulent pretenses, representations and promises, and for
the purpose of executing the scheme, caused to be transmitted by means of wire
communication in interstate commerce, the signals and sounds more specifically described
below for each count, to wit: an electronic transfer of funds from financial institutions outside

of the state of Louisiana to the below listed financial institutions located in the Western

District of Louisiana:

Yate of Amount Receiving Nese

Count Tewnwton Defendant Electronically Bank Type
aiciiaa Transferred Account yP

2 3/31/2021 | Sirdell McCullough | —_ $20,832.00 — PPP

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Date of Amount Receiving Tawa
Count Tinnever Defendant Electronically Bank a
» Transferred Account yP
Bank of
3 6/22/2021 Roderguiz Henry $20,260.00 America rer
#4727
Johntrell Regions
4 3/22/2021 Crutchfield $20,832.00 #3194 PPP
Deanthony Bank Mobile
5 7/6/2020 Johnson $8,000.00 46865 EIDL
Carter
6 5/10/2021 ise saciine $20,575.00 F.C.U. PPP
oe #4062
Deaaundrakous Capital One
7 4/26/2021 Hageay $20,833.00 41987 PPP
Deaaundrakous Capital One
8 6/11/2021 Hagaor $20,833.00 #1987 PRP
. WESLA
9 5/18/2020 Nico Stewart $4,000.00 F.C.U. #358 EIDL
WESLA
10 4/17/2020 Nico Stewart $1,000.00 F.C.U. EIDL
#2001
11 | 3/25/2021 | Timothy Vasher $20,832.00 my PPP
Regions
12 3/25/2021 Destane Glass $20,832.00 427165 PPP
. Capital One
13 7/9/2020 Xavien Beasley $10,000.00 45537 EIDL
14 2/26/2021 Dewonnie Brown $20,832.00 Bank #576 PPP
TES
15 5/20/2021 Dewonnie Brown $20,800.00 Regional PPP
#9163
. Progressive
16 4/20/2021 Dewonnie Brown $20,833.00 Bank #577 PPP
. Progressive
17 5/4/2021 Dewonnie Brown $20,833.00 Bank #577 PPP
18 4/2/2021 | Joshua Dominique | — $20,832.00 “= een PPP
Barksdale
19 3/18/2021 Jasmine Glass $8,332.00 F.C.U. PPP
#0802

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Date of Amount Receiving Twa
Count Teariafee Defendant Electronically Bank ‘ern
Transferred Account yP
20 5/25/2021 Tramaine Taylor $20,832.00 Chase #1277 PPP
21 4/9/2021 | Antoria Johnson $20,458.00 Beneey PPP
#4022
22 5/5/2021 | Antoria Johnson $20,458.00 Regions PPP
#2983
Bank of
23 4/16/2021 Joketa Baulkman $19,005.00 America PPP
#0595
Bank of
24 5/4/2021 Joketa Baulkman $19,005.00 America PPP
#0595
25 4/13/2021 Tyneal Johnson $20,833.00 Chase #5676 | PPP
26 6/1/2021 Tyneal Johnson $20,800.00 Chase #5676 | PPP
‘ ‘ Red River
27 4/9/2021 | Tramarciea Ruffins $20,415.00 F.CU. #235 PPP
28 8/25/2021 Olivia Thomas $20,832.00 Chase #5670 | PPP
Samarrian Rarkatels
29 3/25/2021 Kingston $20,272.00 F.C.U, PPP
30 | 4/6/2021 | Lakeah Gipson $20,058.00 a on ne | ppp
All in violation of Title 18, United States Code, Section 13438. [18 U.S.C. § 1343].
NOTICE OF FORFEITURE
1. Counts 1-30 of the Indictment are re-alleged and incorporated by reference as

through fully set forth herein for the purposes of alleging forfeiture to the United States.

2. Upon conviction of one or more of the offenses set forth in Counts 1-30 of this
Indictment, the defendants shall forfeit to the United States, pursuant to Title 18, United
States Code, Section 982(a)(2)(A), and/or Title 18, United States Code, Section 981(a)(1)(C),

the latter made applicable by Title 28, United States Code, Section 2461(c), any property,

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real or personal, which constitutes or is derived from proceeds traceable to any of the said
offenses.
3. If any of the above-described forfeitable property, as a result of any act or

omission of the defendant:

1. cannot be located upon the exercise of due diligence;

2. has been transferred or sold to, or deposited with, a third party;

8. has been placed beyond the jurisdiction of the Court;

4. has been substantially diminished in value; or

5. has been commingled with other property which cannot be divided

without difficulty;

I tis the intent of the United States, pursuant to Title 21, United States Code, Section 853(p),
as incorporated by Title 18, United States Code, Section 982(b), to seek forfeiture of any other

property of the defendant up to the value of the forfeitable property described above.

A TRUE BILL: BRANDON B. BROWN
United States Attorney

GRAND JURY FOREPERSON Aaron Crawford, LA Bar No. 31682

Assistant United States Attorney
300 Fannin Street, Suite 3201
Shreveport, LA 71101

(318) 676-3600 — office

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