Pandemic Darlings The pandemic economy, in original documents
Home Indictment — United States v. Thomas Aaron Kane, Northern District of Alabama (Document 1)Search ⌕

Indictment — United States v. Thomas Aaron Kane, Northern District of Alabama (Document 1)

Summary

A grand jury Indictment in United States v. Thomas Aaron Kane, Case 2:24-cr-00476-MHH-GMB, in the United States District Court for the Northern District of Alabama, Southern Division, filed November 27, 2024. Counts One through Twelve charge wire fraud under 18 U.S.C. § 1343, alleging that Kane, Owner and Chief Executive Officer of Keep Information Technology Simple, LLC and Keepitsimple.us LLC, made unauthorized charges to medical and dental practice customers' cards and bank accounts. Counts Thirteen through Seventeen charge wire fraud over PPP loans, alleging that Kane falsely certified to Lender #1 and Lender #2 that no other PPP applications were pending, receiving $193,900, $208,051 and $225,000. It alleges that Kane used $150,000 of the $208,051 loan to repay a prior customer. The forfeiture allegation covers Counts One through Eighteen.

Summary drafted by a model from the text of the original file linked on this page and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“Indictment — United States v. Thomas Aaron Kane, Northern District of Alabama (Document 1).” Original at ecf.alnd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/indictment-usa-v-kane-dkt-1-7007be7de7/, SHA-256 2a36f75fe7aa765ab2591a770aff538f0baf52b7804360caebb127a9dd11f03e.

Full text

   Case 2:24-cr-00476-MHH-GMB        Document 1   Filed 11/27/24   Page 1 of 17           FILED
                                                                                 2024 Dec-03 AM 10:33
                                                                   PFE/RSR: Dec. U.S.
                                                                                 2024DISTRICT COURT
                                                                              GJ# 12  N.D. OF ALABAMA


              IN THE UNITED STATES DISTRICT COURT
             FOR THE NORTHERN DISTRICT OF ALABAMA
                       SOUTHERN DIVISION

UNITED STATES OF AMERICA                      )
                                              )
      v.                                      )   No.
                                              )
THOMAS AARON KANE,                            )
                                              )
      Defendant.                              )

                                  INDICTMENT

      The Grand Jury charges:

                                INTRODUCTION

      At all times relevant to this Indictment:

      1.    Defendant THOMAS AARON KANE was the Owner and Chief

Executive Officer of Keep Information Technology Simple, LLC and

Keepitsimple.us LLC, both of which were information technology businesses

located in Jefferson County, within the Northern District of Alabama.

      2.    KANE formed Keep Information Technology Simple, LLC, also

known as Keep IT Simple, in Jefferson County, Alabama on or about September 1,

2015. Keep Information Technology Simple, LLC provided information technology

services and support for businesses, mostly businesses in the healthcare industry.

According to KANE, Keep Information Technology Simple, LLC was dissolved on

December 31, 2020.


                                          1
   Case 2:24-cr-00476-MHH-GMB         Document 1     Filed 11/27/24    Page 2 of 17




      3.     KANE formed Keepitsimple.us LLC on or about May 26, 2020.

According to its Operating Agreement, the purpose of Keepitsimple.us LLC was to

“Service, Support, and Provide IT, VOIP, Web Design, and Online Marketing

Products and Services for the Healthcare Industry.” According to KANE,

Keepitsimple.us LLC assumed operations on January 1, 2021.

      4.     The business model for Keep Information Technology Simple, LLC

and Keepitsimple.us LLC (collectively, “KITS”) was to require payment from its

customers using a credit card on file or banking information on file that would be

used to pay a monthly contractual rate for services. Additionally, if a customer

needed additional service or equipment, KITS would provide an invoice for the

service or equipment, and, if authorized by the customer, KITS would use the credit

card or financial information on file to charge the customer.

      5.     Business #1 is a medical practice in Columbiana, Alabama.

      6.     Business #2 is a medical practice in Birmingham, Alabama.

      7.     Business #3 is a dental practice in Trussville, Alabama.

      8.     Business #4 is a medical practice in Huntsville, Alabama.

                        COUNTS ONE through TWELVE
                                Wire Fraud
                             [18 U.S.C. § 1343]

      9.     The allegations contained in paragraphs 1 through 8 are hereby

repeated, realleged, and incorporated by reference, as if fully set forth herein.


                                           2
   Case 2:24-cr-00476-MHH-GMB        Document 1     Filed 11/27/24   Page 3 of 17




      10.    From at least July 2017 to in or around December 2021, in Jefferson

County, within the Northern District of Alabama, and elsewhere, the defendant,

                           THOMAS AARON KANE,

knowingly devised and intended to devise a scheme and artifice to defraud customers

of KITS, and to obtain money and property from customers of KITS by means of

materially false and fraudulent pretenses, representations, and promises.

                     PURPOSE OF THE SCHEME AND ARTIFICE

      11.    It was a purpose of the scheme and artifice for KANE to unlawfully

enrich himself by charging without authorization customers’ credit cards or bank

accounts that had been placed on file with KITS.

                               MANNER AND MEANS

      12.    It was part of the scheme that KANE would enter into a service contract

with his customers, which would require monthly payment from customers using a

credit card on file or banking information on file. Additionally, if a customer needed

additional service or equipment, KITS would provide an invoice for the service or

equipment, and, if authorized by the customer, KITS would use the credit card or e-

check on file to charge the customer.

      13.    It was further part of the scheme that KANE began making

unauthorized charges using his customers’ payment information on file.




                                          3
   Case 2:24-cr-00476-MHH-GMB       Document 1     Filed 11/27/24   Page 4 of 17




      14.    It was further part of the scheme that when customers would complain

or ask about these unauthorized charges, KANE would attempt to conceal his

conduct by inventing an excuse, such as stating that there had been an inadvertent

double charge, an accounting/billing error had occurred, or some unidentifiable

person within the company had made a mistake. In fact, as KANE well knew, no

billing error had occurred, and there was no accounting department responsible for

such an error.

      15.    It was further part of the scheme that when a customer would question

specific charges, KANE would often create false invoices that he would send to the

customer purporting to be a valid invoice.

      16.    It was further part of the scheme that KANE would create email address

accounts for customers that he would place on documentation to give his records an

appearance of legitimacy.

      17.    It was further part of the scheme that KANE would often provide

refunds to customers who had caught him in his fraud. KANE did this in an effort

to placate these victims and permit him to continue his fraudulent scheme.

      18.    It was further part of the scheme that KANE would intentionally default

on lawsuits that customers brought against him.

      19.    It was further part of the scheme that KANE established

Keepitsimple.us LLC in or around May 2020. Then, according to KANE, Keep IT


                                         4
   Case 2:24-cr-00476-MHH-GMB         Document 1     Filed 11/27/24   Page 5 of 17




Simple ceased operations on or about December 31, 2020, and Keepitsimple.us

began operations on or about January 1, 2021.

       20.    It was further part of the scheme that after KANE established

Keepitsimple.us LLC, he continued to engage in the same conduct described herein.

                            The Wire Communications

       21.    The allegations contained in paragraphs 1 through 20 are hereby

repeated, realleged, and incorporated by reference for each count below, as if fully

set forth therein.

       22.    On or about each of the dates listed below, within the Northern District

of Alabama, and elsewhere, the defendant,

                            THOMAS AARON KANE,

for the purpose of executing the above-described scheme and artifice, did transmit

and cause to be transmitted in interstate commerce, by means of a wire

communication, certain signs, signals, and communications described below for

each count, each transmission constituting a separate count:

 Count Approximate Date    Victim               Description of Wire
         of Transaction
   1   December 17, 2019 Business #1 $7,040.00 charge from Business #1’s bank
                                     account ending in -9028 to Keep IT Simple
   2   November 16, 2020 Business #1 $7,163.20 charge from Business #1’s bank
                                             account ending in -9028 to
                                               Keepitsimple.us, LLC
   3    January 29, 2021 Business #1 $8,811.00 charge from Business #1’s bank
                                             account ending in -9028 to
                                               Keepitsimple.us, LLC
                                          5
   Case 2:24-cr-00476-MHH-GMB         Document 1     Filed 11/27/24   Page 6 of 17




   4           October 5, 2020  Business #2 $2,748.90 charge from Business #2’s bank
                                                   account ending in -1641 to
                                                      Keepitsimple.us, LLC
   5           October 6, 2020  Business #2 $5,600.01 charge from Business #2’s bank
                                                   account ending in -1641 to
                                                      Keepitsimple.us, LLC
   6           October 6, 2020  Business #2 $7,646.08 charge from Business #2’s bank
                                                   account ending in -1641 to
                                                      Keepitsimple.us, LLC
   7             June 4, 2021   Business #3 $1,420.10 charge on Business #3’s credit
                                             card ending in -8142 to Keepitsimple.us
                                                               LLC
   8            June 15, 2021   Business #3 $2,013.91 charge on Business #3’s credit
                                             card ending in -8142 to Keepitsimple.us
                                                               LLC
   9            July 12, 2021   Business #3 $1,755.60 charge on Business #3’s credit
                                             card ending in -8142 to Keepitsimple.us
                                                               LLC
   10          August 12, 2021  Business #4 $4,510.63 charge from Business #4’s bank
                                                   account ending in -2756 to
                                                      Keepitsimple.us LLC
   11         November 23, 2021 Business #4 $3,100.23 charge from Business #4’s bank
                                                   account ending in -2756 to
                                                      Keepitsimple.us LLC
   12         December 22, 2021 Business #4 $3,998.50 charge from Business #4’s bank
                                                   account ending in -2756 to
                                                      Keepitsimple.us LLC

        All in violation of Title 18, United States Code, Section 1343.

                    COUNTS THIRTEEN through SEVENTEEN
                                  Wire Fraud
                           [18 U.S.C. § 1343 & 1349]

        23.     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.

                                           6
   Case 2:24-cr-00476-MHH-GMB          Document 1     Filed 11/27/24    Page 7 of 17




      24.    The SBA enabled and provided for loans through banks, credit unions,

and other lenders. These loans had government-backed guarantees. In addition to

traditional SBA funding programs, the Coronavirus Aid, Relief, and Economic

Security (“CARES”) Act established several new temporary programs and provided

for the expansion of others to address the COVID-19 pandemic, which was declared

a nationwide disaster by the President on March 13, 2020.

      25.    One of the new programs was the SBA Paycheck Protection Program

(“PPP”), which was a loan designed to provide a direct incentive for small businesses

to keep their workers on the payroll. Under this program, the SBA could forgive all

or part of loans if employees were kept on the payroll for eight weeks and borrowers

submitted documentation confirming the loan proceeds were used for certain

qualifying business expenses (i.e., payroll, rent, mortgage interest, or utilities).

      26.    Interested applicants applied through an existing SBA lender or any

other participating federally insured financial institution. The PPP application

process required applicants to submit a Borrower Application Form through an

SBA-approved financial entity. The application contained information as to the

purpose of the loan, average monthly payroll, number of employees, and background

of the business and its owner. Applicants were also required to make certain good

faith certifications, including that economic uncertainty had necessitated their loan

requests for continued business operations, and that they intended to use the loan


                                            7
   Case 2:24-cr-00476-MHH-GMB        Document 1       Filed 11/27/24   Page 8 of 17




proceeds only for the authorized purposes. Applicants were also required to certify

that the information provided in the application and all supporting documentation is

true and correct in all material respects and that knowingly making a false statement

to obtain the loan is punishable under federal law.

        27.   Lender #1 was an SBA-approved PPP lender headquartered in

Pennsylvania.

        28.   Lender #2 was an SBA-approved PPP lender headquartered in New

York.

                             The Scheme and Artifice

        29.   Beginning on or about April 4, 2020, and continuing to on or about May

5, 2021, within Jefferson County, in the Northern District of Alabama, and

elsewhere, defendant

                            THOMAS AARON KANE

devised and intended to devise a scheme and artifice to defraud the United States,

the SBA, and others, and to obtain money and property belonging to the United

States, the SBA, and others, by means of materially false and fraudulent pretenses,

representations, and promises.




                                          8
   Case 2:24-cr-00476-MHH-GMB        Document 1     Filed 11/27/24   Page 9 of 17




                       Purpose of the Scheme and Artifice

      30.    It was a purpose of the scheme and artifice for KANE, by submitting

false PPP loan applications, to unlawfully obtain PPP funds to which he was not

entitled, in violation of the terms of the PPP loan agreements.

                                Manner and Means

      31.    It was a part of the scheme and artifice that on or about April 4, 2020,

KANE applied for a PPP loan in the amount of $193,900 from Lender #1 on behalf

of his business, Keep Information Technology Simple LLC. Then, on or about April

15, 2020, KANE falsely represented to Lender #1 in a Paycheck Protection Program

Certification that Keep Information Technology Simple LLC did not have any other

PPP loan applications pending, when KANE knew that he had submitted a PPP loan

application on behalf of Keep Information Technology Simple LLC to Lender #2

just one day prior.

      32.    It was a further part of the scheme and artifice that KANE caused an

electronic transfer of $193,900 from Lender #1 into Keep Information Technology

Simple’s bank account in Birmingham, Alabama.

      33.    It was a further part of the scheme and artifice that on or about

December 24, 2020, KANE submitted a PPP Loan Forgiveness Application Form

seeking forgiveness of the April 2020 PPP loan with Lender #1.

      34.    It was a further part of the scheme and artifice that on or about January


                                          9
   Case 2:24-cr-00476-MHH-GMB        Document 1     Filed 11/27/24   Page 10 of 17




15, 2021, KANE applied for a PPP loan in the amount of $208,051 from Lender #2

on behalf of his business, Keep Information Technology Simple LLC. In his

application, KANE certified that these “funds will be used to retain workers and

maintain payroll; or make payments for mortgage interest, rent, utilities, covered

operations expenditures, covered property damage costs, covered supplier costs, and

covered worker protection expenditures as specified under the Paycheck Protection

Program Rules.”

      35.   It was a further part of the scheme and artifice that KANE caused an

electronic transfer of $208,051 into Keep Information Technology Simple’s bank

account in Birmingham, Alabama as a result of the false and fraudulent January 2021

PPP loan application to Lender #2.

      36.   It was a further part of the scheme and artifice that despite certifying in

his January 15, 2021 application that the funds would only be used for authorized

purposes, KANE received $208,051 from Lender #2 on or about May 5, 2021 and

then used $150,000 of these PPP funds to repay a prior customer on the same date.

      37.   It was a further part of the scheme and artifice that on or about January

10, 2022, KANE submitted a PPP Loan Forgiveness Application Form seeking

forgiveness of the January 2021 PPP loan with Lender #2.

      38.   It was a part of the scheme and artifice that on or about January 19,

2021, KANE applied for a PPP loan in the amount of $225,000 from Lender #1 on


                                         10
   Case 2:24-cr-00476-MHH-GMB       Document 1     Filed 11/27/24   Page 11 of 17




behalf of his business, Keep Information Technology Simple LLC. It was a further

part of the scheme and artifice that on or about February 27, 2021, KANE falsely

represented to Lender #1 in a Paycheck Protection Program Certification that Keep

Information Technology Simple LLC did not have any other second draw PPP loan

applications pending, when KANE knew that he had submitted a second draw PPP

loan application on behalf of Keep Information Technology Simple LLC to Lender

#2 just a few days prior. Additionally, KANE certified that his business had not and

would not receive another PPP loan, other than the first draw PPP Loan from Lender

#1. As KANE knew, this certification was false, as KANE had obtained a first draw

PPP Loan from Lender #2 in 2020.

      39.   It was a further part of the scheme and artifice that KANE would and

did cause an electronic transfer of $225,000 from Lender #1 into Keep Information

Technology Simple’s bank account in Birmingham, Alabama.

      40.   It was a further part of the scheme and artifice that KANE would and

did submit a PPP Loan Forgiveness Application Form seeking forgiveness of the

February 2021 PPP loan with Lender #1.

      41.   It was a further part of the scheme and artifice that on or about February

17, 2021, KANE applied for a PPP loan in the amount of $225,000 from Lender #2

on behalf of his business, Keepitsimple.us LLC. This PPP loan application contained

material misrepresentations and fraudulent supporting documentation, examples of


                                         11
   Case 2:24-cr-00476-MHH-GMB        Document 1     Filed 11/27/24   Page 12 of 17




which include:

            a. KANE certified that this business was established on September 1,

              2015 and that this business was in operation on February 15, 2020.

              KANE knew this information was false, as Keepitsimple.us LLC was

              not established until May 26, 2020.

            b. KANE submitted a false 2019 and 2020 IRS Form 941 (Employer’s

              Quarterly Federal Tax Returns) purportedly from Keepitsimple.us

              LLC. As KANE knew, these documents were false, as Keepitsimple.us

              did not file an IRS Form 941 with the IRS in 2019 or 2020.

      42.     It was a further part of the scheme and artifice that on or about March

8, 2021, KANE applied for a PPP loan in the amount of $230,000 from Lender #2

on behalf of his business, Keepitsimple.us LLC. This PPP loan application contained

material misrepresentations and fraudulent supporting documentation, examples of

which include:

            a. KANE certified that this business was established on September 1,

              2015 and that this business was in operation on February 15, 2020.

              KANE knew this information was false, as Keepitsimple.us LLC was

              not established until May 26, 2020.

            b. KANE submitted a false 2019 and 2020 IRS Form 941 (Employer’s

              Quarterly Federal Tax Returns) purportedly from Keepitsimple.us


                                         12
   Case 2:24-cr-00476-MHH-GMB       Document 1    Filed 11/27/24   Page 13 of 17




              LLC. As KANE knew, these documents were false, as Keepitsimple.us

              did not file an IRS Form 941 with the IRS in 2019 or 2020.

                            The Wire Communications

       43.    The allegations contained in paragraphs 23 through 42 are hereby

repeated, realleged, and incorporated by reference for each count below, as if fully

set forth therein.

       44.    On or about the dates listed below, in Jefferson County, within the

Northern District of Alabama, and elsewhere, the defendant,

                           THOMAS AARON KANE,

for the purpose of executing the scheme and artifice described above and attempting

to do so, knowingly and intentionally transmitted and caused to be transmitted by

means of wire communication in interstate and foreign commerce the writings,

signs, signals, pictures, and sounds described below, each transmission constituting

a separate count:

 COUNT APPROXIMATE                            DESCRIPTION OF WIRE
       DATE OF WIRE
                                   A wire transfer in the amount of $193,900 in
                                  PPP loan funds, sent from Lender #1 to a Keep
    13         April 16, 2020
                                   Information Technology Simple LLC bank
                                   account in the Northern District of Alabama
                                   A wire transfer in the amount of $225,000 in
                                  PPP loan funds, sent from Lender #1 to a Keep
    14        February 8, 2021
                                   Information Technology Simple LLC bank
                                   account in the Northern District of Alabama
                                  False application to Lender #2 for PPP loan in
    15       February 17, 2021
                                             the amount of $225,000
                                         13
   Case 2:24-cr-00476-MHH-GMB         Document 1    Filed 11/27/24   Page 14 of 17




                                    False application to Lender #2 for PPP loan in
    16         March 8, 2021
                                               the amount of $230,000
                                     A wire transfer in the amount of $208,051 in
                                      PPP loan funds, sent from Lender #2 to a
    17          May 5, 2021
                                      Keepitsimple.us LLC bank account in the
                                            Northern District of Alabama


        All in violation of Title 18, United States Code, Sections 1343 and 1349.

                              COUNT EIGHTEEN
                          Unlawful Monetary Transaction
                                [18 U.S.C. § 1957]

        45.   On or about May 5, 2021, in the Northern District of Alabama, and

elsewhere, the defendant,

                            THOMAS AARON KANE,

knowingly engaged in and attempted to engage in a monetary transaction by,

through, and to a financial institution, affecting interstate or foreign commerce, in

criminally derived property of a value greater than $10,000, that is, a $150,000.00

payment to a prior victim, such property being derived from a specified unlawful

activity, that is, wire fraud, in violation of Title 18, United States Code, Section

1343.

        All in violation of Title 18, United States Code, Section 1957.




                                          14
   Case 2:24-cr-00476-MHH-GMB      Document 1     Filed 11/27/24   Page 15 of 17




                              COUNT NINETEEN
                               Bankruptcy Fraud
                               [18 U.S.C. § 152(5)]

      46.   On or about December 31, 2021, Keep Information Technology

Simple, LLC filed a voluntary petition for bankruptcy under Chapter 11 of the

United States Code in the United States Bankruptcy Court for the Northern District

of Alabama. This petition was given Case Number 21-02987-TOM11.

      47.   On or about December 31, 2021, Keepitsimple.us LLC also filed a

voluntary petition for bankruptcy under Chapter 11 of the United States Code in the

United States Bankruptcy Court for the Northern District of Alabama. This petition

was given Case Number 21-02986-DSC11.

      48.   These two petitions were consolidated for procedural purposes and

were jointly administered by the Court under Case Number 21-02986-DSC-11.

      49.   The filing of a bankruptcy petition by these debtors created a

bankruptcy estate that included all legal and equitable interests of the debtors in

property as of the commencement of the cases.

      50.   On or about April 18, 2022, KANE withdrew $20,941.66 via Cashier’s

Check from a Keepitsimple.us bank account at Regions Bank. That same day,

KANE deposited the proceeds from this Cashier’s Check into his personal bank

account at Chase Bank ending in -0251.




                                         15
   Case 2:24-cr-00476-MHH-GMB       Document 1     Filed 11/27/24   Page 16 of 17




      51.    On or about April 18, 2022, in the Northern District of Alabama, and

elsewhere, the defendant,

                            THOMAS AARON KANE,

did knowingly and fraudulently receive from Keepitsimple.us LLC, Debtor, in the

case filed December 31, 2021 under Title 11 of the United States Code in the United

States Bankruptcy Court for the Northern District of Alabama, Case Number 21-

02986-DSC11, a material amount of property, that is, a Cashier’s Check in the

amount of $20,941.66, with intent to defeat the provisions of Title 11.

      All in violation of Title 18, United States Code, Section 152(5).

                         NOTICE OF FORFEITURE
       [18 U.S.C. §§ 981(a)(1)(C), 982(a)(2)(A), and 28 U.S.C. § 2461(c)]

      1.     The allegations contained in Counts One through Eighteen of this

Indictment are re-alleged and incorporated by reference for the purpose of alleging

forfeitures pursuant to Title 18, United States Code, Sections 981(a)(1)(A) and (C),

982(a)(1)-(2), and Title 28, United States Code, Section 2461(c).

      2.     Upon conviction of the offenses in violation of Title 18, United States

Code, Sections 1343 and/or 1957, set forth in Counts One through Eighteen of this

Indictment, the defendant shall forfeit to the United States, pursuant to Title 18,

United States Code, Sections 981(a)(1)(C), 982(a)(2)(A), and Title 28, United States

Code, Section 2461(c), any and all property constituting, or derived from, proceeds

the defendant obtained directly or indirectly, as a result of the commission of said
                                         16
   Case 2:24-cr-00476-MHH-GMB        Document 1     Filed 11/27/24   Page 17 of 17




offenses, including but not limited to, a sum of money in United States currency

representing the amount of proceeds traceable to the commission of said offenses.

      3.     If any of the above-described forfeitable property, as a result of any act

or omission of the defendant:

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

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

      c.     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;

the United States shall be entitled to forfeiture of substitute property, pursuant to

Title 21, United States Code, Section 853(p), as incorporated by Title 18, United

States Code, Section 982(b)(1) and Title 28, United States Code, Section 2461(c).


A TRUE BILL

/s/ Electronic Signature______________
FOREPERSON OF THE GRAND JURY


                                       PRIM F. ESCALONA
                                       United States Attorney


                                       /s/ Electronic Signature_______
                                       RYAN S. RUMMAGE
                                       Assistant United States Attorney
                                          17


File and source

File
1-indictment-as-to-thomas-aaron-kane.pdf
Size
375,834 bytes
SHA-256
2a36f75fe7aa765ab2591a770aff538f0baf52b7804360caebb127a9dd11f03e
Our copy
1-indictment-as-to-thomas-aaron-kane.pdf
Original
PACER (login required)
Back to top