Indictment — United States v. Damon Alexander Wahl, District of Montana (Document 2)

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An Indictment filed 11/03/22 as Document 2 in United States of America v. Damon Alexander Wahl, CR 22-58, in the U.S. District Court for the District of Montana, Missoula Division. Counts 1 and 2 charge wire fraud under 18 U.S.C. § 1343 and Counts 3 through 7 charge money laundering under 18 U.S.C. § 1957. The grand jury alleges a scheme from on or about April 3, 2020 to on or about July 8, 2021 in which Wahl falsely certified that EIDL proceeds would be used as working capital for Wahls Roofing LLC. It alleges a Loan Authorization and Agreement for $405,300 and an electronic payment of $405,300, and a later cashier's check for $60,000, and includes forfeiture allegations.

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Case 9:22-cr-00058-DWM Document 2 Filed 11/03/22 Page 1of8

JESSE A. LASLOVICH FILED

United States Attorney
TIMOTHY J. RACICOT NOV 03 2022
Assistant U.S. Attorney TSF att Cour
U.S. Attorney’s Office ‘rant Fo"s
P.O. Box 8329
Missoula, MT 59807
101 E. Front Street, Suite 401
Missoula, MT 59801
Phone: (406) 542-8851
Fax: (406) 542-1476
E-mail: Jesse.Laslovich@usdoj.gov
Tim.Racicot2@usdoj.gov

ATTORNEYS FOR PLAINTIFF
UNITED STATES OF AMERICA

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MONTANA
MISSOULA DIVISION

UNITED STATES OF AMERICA, | CR 22-58 -M- OAM)

Plaintiff, INDICTMENT
VS. WIRE FRAUD (Counts 1-2)
Title 18 U.S.C. § 1343
DAMON ALEXANDER WAHL (Penalty: 20 years of imprisonment,
? $250,000 fine, and three years of supervised
release)
Defendant.

MONEY LAUNDERING (Counts 3-7)
Title 18 U.S.C. § 1957

(Penalty: Ten years of imprisonment,
$250,000 fine, and three years of supervised
release)

CRIMINAL FORFEITURE
Title 18 U.S.C. §§ 981(a)(1)(C) and
982(a)(1), and Title 28 U.S.C. § 2461(c)
Case 9:22-cr-00058-DWM Document 2 Filed 11/03/22 Page 2 of 8

THE GRAND JURY CHARGES:
INTRODUCTION

At all times relevant to this indictment:

1. In March 2020, Congress passed the Coronavirus Aid, Relief, and
Economic Security Act (“CARES Act”) to provide emergency financial assistance
to the millions of Americans suffering adverse economic effects caused by the
COVID-19 pandemic.

2. The CARES Act authorized the United States Small Business
Administration (“SBA”) to provide loans via the Economic Injury Disaster Loan
program (“EIDL”). EIDL loans were intended to provide economic relief to small
businesses and nonprofit organizations that experienced a temporary loss of
revenue during the pandemic.

3. As part of the EIDL process, business owners were required to submit
an application that provided information about the number of employees, gross
revenue during the 12 months preceding the pandemic, and the cost of goods sold
during that same period. The amount of the loan was determined based on those
numbers and the business owners were required to certify that the information they
provided was true and correct to the best of their knowledge.

4. Also as part of the EIDL process, business owners were required to

certify under penalty of perjury that they would use the loan proceeds solely as

2
Case 9:22-cr-00058-DWM Document 2 Filed 11/03/22 Page 3 of 8

“working capital,” that is, for business operating expenses such as payroll, rent and
mortgage payments, utilities, and to pay business debt incurred at any time before
or after the loan was received.

WIRE FRAUD
COUNTS 1 and 2

THE SCHEME TO DEFRAUD

Beginning on or about April 3, 2020, and continuing until on or about July
8, 2021, at Clinton, in Missoula County, in the State and District of Montana, and
elsewhere, the defendant, DAMON ALEXANDER WAHL, on behalf of Wahls
Roofing LLC, with the intent to defraud, knowingly devised a scheme and plan for
obtaining money by means of material false and fraudulent pretenses,
representations, promises, and omissions, and in doing so caused wire
communications to be transmitted in interstate commerce.

To execute the scheme, the defendant, DAMON ALEXANDER WAHL,
falsely certified to the SBA that EIDL loan proceeds he applied for and received
would be used as working capital for his business, when, in fact, he intended to
use, and did use, the loan proceeds for his personal benefit.

INTERSTATE WIRES
COUNT 1
On or about July 3, 2021, in Missoula County, in the State and District of

Montana, the defendant, DAMON ALEXANDER WAHL, for the purpose of
3
Case 9:22-cr-00058-DWM Document 2 Filed 11/03/22 Page 4 of 8

executing the aforementioned scheme, knowingly caused to be transmitted in
interstate commerce a wire communication between Montana and Iowa.
Specifically, Wahl electronically signed a Loan Authorization and Agreement in
connection with his receipt of an EIDL loan for $405,300, and certified under
penalty of perjury that he would use the EIDL proceeds “solely as working capital
to alleviate the economic injury caused by disaster,” all in in violation of 18 U.S.C.
§ 1343.
COUNT 2

On or about July 8, 2021, at Helena, in Lewis and Clark County, in the State
and District of Montana, the defendant, DAMON ALEXANDER WAHL, for the
purpose of executing the aforementioned scheme, knowingly caused to be
transmitted in interstate commerce a wire communication between Montana and
other states. Specifically, the SBA in Colorado initiated an electronic payment of
$405,300 to Wahl’s Opportunity Bank account in Montana, which funds
represented the EIDL proceeds referenced above, all in violation of 18 U.S.C.
§ 1343.

MONEY LAUNDERING
COUNTS 3-7

COUNT 3
On or about July 12, 2021, at Missoula, in Missoula County, in the State and

District of Montana, the defendant, DAMON ALEXANDER WAHL, knowingly

4
engaged in a monetary transaction by, through, and to a financial institution, with
criminally derived property of a value greater than $10,000, affecting interstate and
foreign commerce. Specifically, he purchased a cashier’s check for $60,000,
drawn on his Opportunity Bank account, the account number ending in 9633, and
used the money to pay back taxes and a loan payment for a property not related to
his roofing business, such money having been derived from specified unlawful
activity, that is wire fraud as described in counts 1 and 2, in violation of 18 U.S.C.
§ 1957.
COUNT 4
On or about July 16, 2021, at Missoula, in Missoula County, in the State and
District of Montana, the defendant, DAMON ALEXANDER WAHL, knowingly
engaged in a monetary transaction by, through, and to a financial institution, with
criminally derived property of a value greater than $10,000, affecting interstate and
foreign commerce. Specifically, he withdrew $15,000 in cash from his
Opportunity Bank account and used $13,900 of that money to buy a 2013 Polaris
ATV, such money having been derived from specified unlawful activity, that is
wire fraud as described in counts 1 and 2, in violation of 18 U.S.C. § 1957.
COUNT 5
On or about July 31, 2021, at Missoula, in Missoula County, in the State and

District of Montana, the defendant, DAMON ALEXANDER WAHL, knowingly
Case 9:22-cr-00058-DWM Document 2 Filed 11/03/22 Page 6 of 8

engaged in a monetary transaction by, through, and to a financial institution, with
criminally derived property of a value greater than $10,000, affecting interstate and
foreign commerce. Specifically, he provided a check in the amount of $21,060.09,
drawn on his Opportunity Bank account, to Grizzly Harley-Davidson for the
purchase of a 2021 Harley-Davidson motorcycle, such money having been derived
from specified unlawful activity, that is wire fraud as described in counts 1 and 2,
in violation of 18 U.S.C. § 1957.
COUNT 6
On or about August 4, 2021, at Missoula, in Missoula County, in the State
and District of Montana, the defendant, DAMON ALEXANDER WAHL,
knowingly engaged in a monetary transaction by, through, and to a financial
institution, with criminally derived property of a value greater than $10,000,
affecting interstate and foreign commerce. Specifically, he withdrew $15,000 in
cash from his Opportunity Bank account and used $14,700 to purchase a 2018
Hideout camper, such money having been derived from specified unlawful
activity, that is wire fraud as described in counts 1 and 2, in violation of 18 U.S.C.
§ 1957.
COUNT 7
On or about August 4, 2021, at Missoula, in Missoula County, in the State

and District of Montana, the defendant, DAMON ALEXANDER WAHL,
Case 9:22-cr-00058-DWM Document 2 Filed 11/03/22 Page 7 of 8

knowingly engaged in a monetary transaction by, through, and to a financial
institution, with criminally derived property of a value greater than $10,000,
affecting interstate and foreign commerce. Specifically, he withdrew $15,000 in
cash from his Opportunity Bank account, such money having been derived from
specified unlawful activity, that is wire fraud as described in counts 1 and 2, in
violation of 18 U.S.C. § 1957.

| FORFEITURE

Upon conviction of either of the wire fraud offenses set forth in counts 1 and
2 of this indictment, the defendant, DAMON ALEXANDER WAHL, shall forfeit
to the United States, pursuant to 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c),
any property, real or personal, that constitutes or is derived from proceeds
traceable to the offense.

Upon conviction of the money laundering offenses set forth in counts 3
through 7 of this indictment, the defendant, DAMON ALEXANDER WAHL, shall
forfeit to the United States, pursuant to 18 U.S.C. § 982(a)(1), all right, title, and
interest in property, real and personal, involved in said violations, or any property
traceable to such property.

The property to be forfeited includes, but is not limited to, the following:

e a2021 Harley-Davidson motorcycle, model FLSL Softail Slim, bearing
Vehicle Identification Number 1HD1YDJ11MB052273;
Case 9:22-cr-00058-DWM Document 2 Filed 11/03/22 Page 8 of 8

e a2018 Hideout Camper Trailer, bearing Vehicle Identification Number
4YDT26R28JN248254; and

e a2013 Polaris RZR 4 800 EPS all-terrain vehicle, bearing Vehicle
Identification Number 4XAXE7EA6DF250038.

The United States of America, pursuant to 21 U.S.C. § 853(p), shall be

entitled to forfeiture of substitute property if any of the property that is subject to

forfeiture:
a. cannot be located upon the exercise of due diligence;
b. has been transferred or sold to, or deposited with, a third party;
ei has been placed beyond the jurisdiction of the court;
d. has been substantially diminished in value; or
e. has been commingled with other property which cannot be
divided without difficulty.
A TRUE BILL.

Foreperson signature redacted. Original
document filed under seal.

FOREPERSON 4

CYNDEE L: PETERSON
Criminal Chief Assistant U.S. Attorney


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