Indictment — United States v. Rodney Rosenstein, District of Arizona (Document 3)
Summary
A sealed grand jury indictment against Rodney Rosenstein, Case 4:26-cr-04213-RM-EJM, filed August 12, 2026 as Document 3 in the U.S. District Court for the District of Arizona. It charges conspiracy to commit bank fraud under 18 U.S.C. § 1349 (Count 1-2) and conspiracy to commit false statement to influence a mortgage lending business under 18 U.S.C. § 371 (Count 3). It alleges that between approximately May 2020 and April 2021 Rosenstein, through companies he owned and controlled, obtained approximately $2,904,091 in 15 PPP loans using fake IRS Forms 941 and W-2's created by an unindicted co-conspirator, and later sought loan forgiveness with fake payroll documents. It also alleges fake rent rolls overstated occupancy to obtain cash-back refinance loans, including an approximately $11.4 million loan from M&T Realty Capital Corporation on or about June 30, 2023.
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“Indictment — United States v. Rodney Rosenstein, District of Arizona (Document 3).”
Original at ecf.azd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/indictment-usa-v-rosenstein-dkt-3-d-ariz-1f34c7d62e/
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Case 4:26-cr-04213-RM-EJM Document 3 Filed 08/12/26 Page 1 of 12
1 TIMOTHY COURCHAINE
United States Attorney
2 District of Arizona
Jonathan B. Grano ff
3 David P. Petermann
Assistant U.S. Attorneys
4 United States Courthouse
405 W. Congress Street, Suite 4800
5 Tucson, Arizona 85701
Telephone: 520-620-7300
6 Email: Jonathan.Granoff@usdoj.gov
David.Petermann@usdoJ.gov CR26-04213 TUC-RM(LLP)
7 Attorneys for Plaintiff
8 IN THE UNITED STATES DISTRICT COURT
9 FOR THE DISTRICT OF ARIZONA
10
United States of America,
11 INDICTMENT
Plaintiff,
12 Violations:
vs.
13 18 U.S.C. § 1349
Conspiracy to Commit Bank Fraud
14 Rodney Rosenstein, (Count 1-2)
15 Defendant.
18 U.S.C. § 371
16 Conspiracy to Commit False Statement to
Influence a Mortgage Lending Business
17 (Count 3)
18
18 U.S.C. §§ 98l(a)(l)(C) and
19 982(a)(2)(A); 28 O.S.C. § 246l(c)
(Forfeiture Allegation)
20
(UNDER SEAL)
21
22 THE GRAND JURY CHARGES:
23 INTRODUCTION
24 At all relevant times in this indictment, the following facts are alleged:
25 1. The defendant, Rodney Rosenstein ("ROSENSTEIN"), was a resident of
26 California. Rosenstein owned and controlled the following companies: Red Ocean Inc. ;
27 Ocean Structures LP; 9919 Canoga LLC ; 2450 Colorado Blvd. LLC; Helpful Housing;
28 Storage Depot Inc. ; Pacific Coast Alarms Inc. ; and Ocean Structure Inc.
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1 2. ROSENSTEIN also owned and controlled the following additional companies:
2 4098 E. 29th Street LLC ; 4141 E. 29th Street LLC ; 314 E. Benson LLC ; and 1025 E.
3 Benson LLC. Helpful Housing is the principal member for each of these entities.
4 ROSENSTEIN incorporated and is listed as the CEO of Helpful Housing. Each of these
5 entities was formed in Arizona.
6 3. Pacific Western Bank (now known as Banc of California, N.A); Pacific Enterprise
7 Bank (now known as United Business Bank); Zions Bancorporation dba California Bank
8 & Trust; Zions Bancorporation dba Zions First National Bank; Farmers & Merchants Bank
9 of Long Beach; and Bank of Southern California (now known as California Bank of
10 Commerce) were all financial institutions insured by the Federal Deposit Insurance
11 Corporation (FDIC).
12 4. These "financial institutions" were all Small Business Administration (SBA)
13 participating lenders for the Paycheck Protection Program described below.
14 5. The SBA is an agency of the United States. The purpose of the SBA is to help
15 and support small businesses in the United States.
16 6. Pacific Premier Bank (now known as Columbia Bank), M&T Realty Capital
17 Corporation, and ReadyCap Commercial LLC were financial institutions and mortgage
18 lending businesses.
19 The Paycheck Protection Program
20 7. In March 2020, the Coronavirus Aid Relief, and Economic Security ("CARES")
21 Act was enacted and provided emergency financial assistance to Americans suffering
22 economic harm because of the COVID-19 pandemic. The CARES Act authorized the SBA
23 to create the Paycheck Protection Program (PPP), which permitted the SBA to use billions
24 of dollars in United States taxpayer funds to provide guaranteed loans to small businesses
25 for job retention and certain other expenses. PPP loans were 100% guaranteed by the SBA,
26 and the full principal amount of the loans qualified for loan forgiveness if the terms of the
27 program were satisfied.
28
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1 8. To provide relief to America's small businesses expeditiously, the CARES Act
2 streamlined the loan process and allowed SBA participating lenders (the financial
3 institutions) to rely on certifications of the borrowers to determine eligibility for the loans.
4 The Act also allowed these financial institutions to rely on specified documents provided
5 by borrowers to detennine the qualifying loan amount and eligibility for loan forgiveness.
6 Some of the documents the lenders relied on for their loan approval process were United
7 States tax forms to include Forms 941 (quarterly payroll tax forms) and W-2 's. These
8 documents were material to the lending decisions and provided by the loan applicant as
9 proof of the monthly payroll expenses to support the loan amounts issued by the
10 participating lenders.
11 9. To obtain approval for the loan, the loan applicant was required to state, among
12 other things, their average monthly payroll expenses. These figures were used to calculate
13 the amount of money the small business was eligible to receive. Under the Program,
14 businesses were generally eligible for loans 2.5 times that of their average monthly payroll.
15 The loan funding amount under the SBA program therefore generally increased depending
16 on the stated monthly payroll in the loan application.
17 10. In the application for PPP loan ("SBA Form 2483 "), the applicant certified that
18 "the information provided in all supporting documents and forms [was] true and accurate
19 in all material respects. " The application further informed the applicant that making a false
20 statement to obtain a guaranteed loan from the SBA was punishable under various federal
21 criminal statutes.
22 The PPP Bank Fraud Scheme and Artifice to Defraud
23 11. It was part of the scheme and artifice to defraud that ROSENSTEIN and his co-
24 conspirators, with the intent to defraud, knowingly and intentionally executed and
25 attempted execute a scheme to defraud various federally insured financial institutions
26 identified in paragraph 3 of the indictment. ROSENSTEIN became a member of the
27 conspiracy knowing its object was to commit bank fraud and intended to help accomplish
28 it. Between approximately May 2020 through April 2021, ROSENSTEIN, through his
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Case 4:26-cr-04213-RM-EJM Document 3 Filed 08/12/26 Page 4 of 12
1 companies identified in paragraph 1, fraudulently obtained a total of approximately
2 $2,904,091 in 15 PPP loans from these financial institutions. As part of the loan application
3 process, Co-conspirator A created numerous fake and fraudulent IRS Forms 941 and W-
4 2's in the names of ROSENSTEIN' s business entities. These phony documents falsely
5 conveyed that these tax documents had been properly filed with the IRS when that had not
6 occurred. The fake W-2 forms falsely represented that various employees had been paid
7 wages and that they had federal income and payroll tax withheld from these wages.
8 However, none of these W-2 forms were ever issued or filed with the IRS and the listed
9 individuals were never paid the wages reflected on the forms. Additionally, no such income
10 was ever actually withheld from the phony wages. These tax documents contained personal
11 identifying information of fake individuals purporting to be employees who either did not
12 exist or individuals who did exist but never worked for ROSENSTEIN or his companies.
13 The social security numbers listed on these forms were either not valid or falsely attributed
14 to an individual listed on the tax fonn. After creating these fake tax documents, Co-
15 conspirator A would transfer them to ROSENSTEIN. In certain cases, the transfer of fake
16 documents was directly from Co-conspirator A to ROSENSTEIN. However, in other cases,
17 Co-conspirator A forwarded the fake documents to Co-conspirator B, who would then
18 transfer the fake documents to ROSENSTEIN. 1 ROSENSTEIN and his fellow co-
19 conspirators knowingly and intentionally caused these fake and phony tax documents to be
20 submitted for each fraudulently obtained PPP loan. These fake documents and their filing
21 status with the IRS were material and capable of influencing the lenders' decisions to issue
22 PPP loans.
23 12. As part of the PPP loan program, loan applicants were eligible for loan
24 forgiveness assuming they could demonstrate that they complied with the parameters of
25 the PPP loan program. In furtherance of the bank fraud scheme, between approximately
26 June 2021 through August 2022, ROSENSTEIN submitted or caused to be submitted
27
28 1
Co-conspirators "A" and "B" are unindicted co-conspirators.
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1 fraudulent and phony payroll tax documents to the financial institutions to unlawfully
2 obtain "loan forgiveness. " These documents were also created by Co-conspirator A and
3 provided to ROSENSTEIN through Co-conspirator B. In his "loan forgiveness
4 applications," ROSENSTEIN further intentionally caused documents to be submitted that
5 contained materially false representations that he properly used PPP loan funds towards
6 payroll and other qualified expenses, when in fact ROSENSTEIN had used portions of
7 fraudulent PPP loan funds to purchase new properties or for other unauthorized expenses.
8 The Phony "Rent Roll" Bank Fraud Scheme and Artifice to Defraud
9 13. It was part of the scheme and artifice to defraud that defendant and his co-
10 conspirators, (Co-conspirators B and C and at least one other unnamed Co-conspirator) 2
11 with the intent to defraud, knowingly and intentionally executed and attempted execute a
12 scheme to defraud various financial institutions and mortgage lending businesses in a
13 separate bank fraud scheme as follows. ROSENSTEIN became a member of the
14 conspiracy knowing its object was to commit bank fraud and intended to help accomplish
15 it.
16 4098 E. 29th Street, Tucson AZ
17 14. On or about June 30, 2023 , ROSENSTEIN, through his company 4098 E. 29th
18 Street LLC obtained an additional approximately $11.4 million dollar fraudulent "cash
19 back" refinance loan relating to the above property from M&T Realty Capital
20 Corporation, a financial institution and mortgage lending business. From this total,
21 ROSENSTEIN received approximately $3 .5 million dollars after the balance of the
22 previous mortgage had been paid. ROSENSTEIN and his co-conspirators caused to be
23 submitted materially false representations concerning the property ' s rental occupancy.
24 The fake rent roll documents falsely represented the rental occupancy rates for the
25 property at 100% occupied between March through May 2023. In reality, the property
26 during this time-period was 80% occupied.
27
28 2
Co-conspirator "C" is also an unindicted Co-conspirator.
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1 4141 E. 29th Street, Tucson, AZ
2 15. On or about March 18, 2022, ROSENSTEIN, through his company 4141 E.
3 29th Street LLC, obtained an additional approximately $6.2 million "cash back"
4 refinance loan from ReadyCap Commercial LLC, a financial institution and mortgage
5 lending business. From this total, ROSENSTEIN received approximately $2.1 million
6 dollars after the balance of the previous mortgage had been paid. As part of the loan
7 approval process, the co-conspirators, to include ROSENSTEIN, caused to be submitted
8 materially false representations to include falsely overstating the "rent roll" occupancy
9 rate for the property as 100 percent and falsely overstating gross monthly operating
10 income. In reality, during the time-frame submitted for the loan application, the
11 occupancy rate for the property was 56% and 61 %.
12 314 E. Benson Highway, Tucson, AZ
13 16. On or about June 30, 2022, ROSENSTEIN, through his company 314 E.
14 Benson LLC, obtained an approximately $2.5 million "cash back" refinance loan from
15 ReadyCap Commercial LLC, a financial institution and mortgage lending business. From
16 this total, ROSENSTEIN received approximately $1.3 million dollars after the balance of
17 the previous mortgage had been paid. As part of the loan approval process, the co-
18 conspirators, to include ROSENSTEIN, caused to be submitted materially false
19 representations to include falsely overstating the "rent roll" occupancy rate as 100 percent
20 and falsely overstating the gross monthly operating income. In reality, during the time-
21 frame submitted for the loan application, the occupancy rate was 76%.
22 1025 E. Benson Highway, Tucson, AZ
23 17. On or about January 25, 2023 , ROSENSTEIN, through his company 1025 E.
24 Benson LLC, obtained an approximately $7 .1 million "cash back" refinance loan from
25 ReadyCap Commercial LLC, a financial institution and mortgage lending business. From
26 this total, ROSENSTEIN received approximately $1 .9 million dollars after the balance of
27 the previous mortgage had been paid. As part of the loan approval process, the co-
28 conspirators, to include ROSENSTEIN, caused to be submitted materially false
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1 representations to include falsely overstating the "rent roll" occupancy rate as 100 percent
2 and falsely overstating the gross monthly operating income. In reality, the occupancy rate
3 for the property was between 59% and 66% during the time-period submitted for the loan
4 application.
5
Additional False Statements to Influence Financial Institutions and Mortgage
6
Lending Businesses
7
18. On or about September 16, 2021 , ROSENSTEIN, through his company 4098
8
E. 29th Street LLC, obtained an approximately $8 million dollar "cash back" refinance
9
loan from Pacific Premier Bank (now known as Columbia Bank), a financial institution
10
and mortgage lending business. From this total, ROSENSTEIN, through his company,
11
received approximately $2.2 million dollars after the balance of the previous mortgage
12
had been paid. To obtain the loan, the Co-conspirators provided fake "rent rolls" to
13
demonstrate that the property had a rental occupancy rate of 100% when the property
14
truthfully did not have a full rental occupancy. Co-conspirators further falsely overstated
15
gross operating income to inflate the profitability of the property. These false
16
representations were provided to the lender to obtain the loan.
17
19. Relating to each commercial loan outlined in paragraphs 13-18 of the
18
indictment, Co-conspirator B, on behalf of ROSENSTEIN, created fake capital
19
expenditure lists for each loan application. The capital expenditure lists artificially
20
inflated the true and accurate capital improvement expenses for each property. These
21
false statements were submitted to the mortgage lending businesses in furtherance of the
22
conspiracy to influence the lenders ' funding decision.
23
20. Relating to the commercial loans outlined in paragraphs 13-18 of the
24
indictment, Co-conspirator B, on behalf ROSENSTEIN, provided additional false
25
representations concerning the rental occupancy rates after the loans had been approved.
26
Co-conspirators informed bank inspectors ( after the issuance of the loans) that the
27
28
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1 property had an occupancy rate close to 100 percent when in fact the occupancy rate was
2 significantly below 100 percent.
3 21. Relating to the commercial loan for 1025 E. Benson Highway referenced in
4 paragraph 17 of the indictment, after the loan had been issued, the Co-conspirators
5 continued to provide the lender' s servicer fake "rent roll" documents and other false
6 representations about the rental occupancy rates of the property. This property was
7 condemned by the City in September 2023. After this time-period, the property had no
8 tenants. Co-conspirator B, on behalf of ROSENSTEIN, falsely "staged" the property to
9 make it appear that there were tenants on the property during various bank inspections
10 when in fact the property had no tenants at the time.
11 COUNTl
12 Conspiracy to Commit Bank Fraud
13 (PPP Loan Program)
14 [Title 18 U.S.C. § 1349)
15 22. Paragraphs 1 and 3-5, 7-12 of this indictment are re-alleged and reincorporated
16 as if fully set forth herein.
17 23. On or about April 2020 through August 2022, in the District of Arizona, and
18 elsewhere, the defendant, ROSENSTEIN and his fellow Co-conspirators knowingly and
19 intentionally combined, confederated and agreed with each other to commit an ongoing
20 Conspiracy to Commit Bank Fraud as specified in paragraphs 11-12 of the indictment. The
21 co-conspirators, to include ROSENSTEIN, knowingly and intentionally executed, and
22 attempted to execute, a scheme and artifice to: (1) defraud various federally insured
23 financial institutions; and (2) obtain any money, funds , credits, assets, or other property
24 owned by or under the custody or control of such financial institutions, by means of
25 materially false and fraudulent pretenses, representations, or promises, all in violation of
26 Title 18, United States Code, Sections 1344. Various overt acts in furtherance of the
27 conspiracy occurred in the District of Arizona and elsewhere.
28 All in violation of Title 18, United States Code, Section 1349.
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1 COUNT2
2 Conspiracy to Commit Bank Fraud
3 (Phony Rent Roll Scheme)
4 [Title 18 U.S.C. § 1349]
5 24. Paragraphs 2, 6, and 13-17 of this indictment are re-alleged and reincorporated
6 as if fully set forth herein.
7 25. On or about March 2022 through June 2023 , in the District of Arizona, and
8 elsewhere, the defendant, ROSENSTEIN and his fellow co-conspirators knowingly and
9 intentionally combined, confederated, and agreed with each other to commit an ongoing
10 Conspiracy to Commit Bank Fraud as specified in paragraphs 13-17 of the indictment. The
11 co-conspirators, to include ROSENSTEIN, knowingly and intentionally executed, and
12 attempted to execute, a scheme and artifice to: (1) defraud various federally insured
13 financial institutions; and (2) obtain any money, funds , credits, assets, or other property
14 owned by or under the custody or control of such financial institutions, by means of
15 materially false and fraudulent pretenses, representations, or promises, all in violation of
16 Title 18, United States Code, Sections 1344. Various overt acts in furtherance of the
17 conspiracy occurred in the District of Arizona and elsewhere.
18 All in violation of Title 18, United States Code, Section 1349.
19
20 COUNT3
21 Conspiracy to Commit an Offense Against the United States:
False Statement to Influence a Mortgage Lending Business
22
[Title 18 U.S.C. § 371]
23
24 26. Paragraphs 2, 6, and 13-21 of this indictment are re-alleged and incorporated as
25 if fully set forth herein.
26 27. On or about September 2021 through December 2025 , in the District of Arizona,
27 and elsewhere, the defendant, ROSENSTEIN and his fellow Co-conspirators knowingly
28 and intentionally combined, confederated, agreed, and conspired with each other to commit
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an offense against the United States, that is, false statement for the purpose of influencing
1
in any way the action of mortgage lending businesses and an FDIC insured financial
2
institution upon and in relation to applications or inspections relating cash-back mortgage
3
refinance loans, in violation of Title 18, U.S.C. § 1014. ROSENSTEIN became a member
4
of the conspiracy knowing its object was to commit false statement to influence a financial
5
institution or mortgage lending business and intended to help accomplish it
6
7 28. In furtherance of the conspiracy and to effect the object of the conspiracy, the
8 following overt acts were committed in the District of Arizona and elsewhere:
9 a. ROSENSTEIN and his Co-conspirators conspired to falsely inflate various capital
10 expenditures relating to the commercial "cash-back" fraudulently obtained loans. Co-
11 conspirator B, on behalf of ROSENSTEIN, created a phony capital expenditure list that
12 reflected total capital expenses for the 4098 E. 29 th Street Tucson property as
13 approximately $3.7 million dollars. In reality, capital expenses for this property were
14 approximately $2 million to $2.25 million dollars. The false capital expenditure list for this
15 property was submitted to the lenders with the intent to influence the lenders ' decision to
16 obtain the loans. Additionally, false rent rolls reflecting the property had a 100% occupancy
17 rate were also submitted to obtain both cash-back refinance loans for this property. In
18 reality, the truthful rental occupancy rates were between 80% and 92% during the time-
19 period provided in the loan applications for the loans.
20 b. Co-conspirator B, on behalf of ROSENSTEIN, created a phony capital
21 expenditure list that reflected total capital expenses for 4141 E. 29 th Street property as
22 approximately $2.6 million dollars. In reality, capital expenses for this property were
23 approximately $1.2 million dollars. The false capital expenditure list was submitted to the
24 lender, as part of the conspiracy, with the intent to influence the lender' s decision to obtain
25 the loan.
26 c. Co-conspirator B, on behalf of ROSENSTEIN, created a phony capital
27 expenditure list that reflected total capital expenses for 314 E. Benson Street as
28 approximately $ 1.05 million. In reality, capital expenses for this property were
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1 approximately $250,000 dollars. The false capital expenditure list was submitted to the
2 lender, as part of the conspiracy, with the intent to influence the lender' s decision to obtain
3 the loan.
4 d. Co-conspirator B, on behalf of ROSENSTEIN, created a phony capital
5 expenditure list that reflected total capital expenses for 1025 E. Benson Highway as
6 approximately $2 million. In reality, capital expenses for this property were approximately
7 $200,000 dollars. The false capital expenditure list was submitted to the lender, as part of
8 the conspiracy, with the intent to influence the lender' s decision to obtain the fraudulent
9 loan.
10 e. Key Bank Real Estate Capital and Allegiant Community Asset Service Group
11 conducted inspections on behalf of KeyBank, an FDIC insured financial institution and
12 servicer of the 1025 E. Benson Highway loan referenced in paragraph 17 of the indictment.
13 In connection with this loan and during these inspections on or about January 29, 2024 and
14 December 30, 2025, Co-conspirator B, on behalf of ROSENSTEIN, falsely represented
15 that the property was 99% and 100% occupied, when in fact there were no tenants residing
16 on the premises. Co-conspirator B, on behalf of ROSENSTEIN, "staged" the property with
17 fake tenants to make it appear that the property was occupied when in fact no tenants
18 resided there. These false representations were made with intent to influence the loan
19 servicer' s inspections for the property relating to the loan.
20 All in violation of Title 18, U.S.C., Section 371.
21 FORFEITURE ALLEGATION
22 Upon conviction of Counts One through Three of this Indictment, the defendant,
23 Rodney Rosenstein, shall forfeit to the United States of America, pursuant to Title 18,
24 United States Code, Sections 98l(a)(l)(C) and 982(a)(2)(A), and Title 28, United States
25 Code, Section 2461 (c), any property, real or personal, constituting or derived from
26 proceeds traceable to the violations, and any property constituting, or derived from ,
27 proceeds obtained, directly or indirectly, as a result of such violations.
28
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Case 4:26-cr-04213-RM-EJM Document 3 Filed 08/12/26 Page 12 of 12
1 If any of the property described above, as a result of any act or omission of the
2 defendant: a) cannot be located upon the exercise of due diligence; b) has been transferred
3 or sold to, or deposited with, a third party ; c)has been placed beyond the jurisdiction of the
4 court; d) has been substantially diminished in value; ore) has been commingled with other
5 property which cannot be divided without difficulty, it is the intent of the United States,
6 pursuant to Title 21 , United States Code, Section 853(p ), as incorporated by Title 18,
7 United States Code, Section 982(b)(l), and Title 28, United States Code, Section 246l(c),
8 to seek forfeiture of any other property of said defendant up to the value of the above
9 forfeitable property, including, but not limited to, all property, both real and personal,
10 owned by the defendant.
11 All pursuant to Title 18, United States Code, Sections 98l(a)(l)(C) and
12 982(a)(2)(A), Title 28, United States Code, Section 246l(c), and Rule 32.2(a), Federal
13 Rules of Criminal Procedure.
14
A TRUE BILL
15
16 ISi
FOREPERSON OF THE GRAND JURY
17 Dated: August 12, 2026
18 TIMOTHY COURCHAINE
United States Attorney
19 District of Arizona
20
ISi
21 JONATHAN B. GRANOFF
Assistant U.S. Attorney
22
23
24
25
26
27
28
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