Indictment — United States v. Mubarak Sulaiman Ukashat, District of Utah (Document 1)
Summary
A grand jury Indictment in United States of America v. Mubarak Sulaiman Ukashat, Case 2:23-cr-00111-HCN, in the U.S. District Court for the District of Utah, filed March 22, 2023 as Document 1. Counts 1-4 charge wire fraud under 18 U.S.C. § 1343, Count 5 aggravated identity theft under 18 U.S.C. § 1028A, and Counts 6-7 money laundering under 18 U.S.C. § 1957(a). The Indictment alleges that between June 15, 2020 and July 6, 2020 Ukashat submitted four fraudulent EIDL applications in the names of agricultural businesses and persons that never applied, directing the proceeds to a student club account he controlled. It alleges that he obtained $333,900 in EIDL proceeds and advances and spent them on personal expenses, a GMC Yukon bought for approximately $45,900 in cash, and wires to Nigeria and Dubai. The Indictment names Assistant United States Attorney Todd C. Bouton.
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“Indictment — United States v. Mubarak Sulaiman Ukashat, District of Utah (Document 1).”
Original at ecf.utd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/indictment-usa-v-ukashat-dkt-1-fce5b6e07c/
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Case 2:23-cr-00111-HCN Document 1 Filed 03/22/23 PageID.1 Page 1 of 11
TRINA A. HIGGINS, United States Attorney (#7349)
TODD C. BOUTON, Assistant United States Attorney (#17800)
Attorneys for the United States of America
Office of the United States Attorney
111 South Main Street, Suite 1800
Salt Lake City, Utah 84111-2176.
Telephone: (801) 524-5682
Email: todd.bouton@usdoj.gov
SEALED
IN THE UNITED STATES DISTRICT COURT
DISTRICT OF UTAH
UNITED STATES OF AMERICA, INDICTMENT
Plaintiff, VIOLATIONS:
vs. COUNTS 1-4: 18 U.S.C. § 1343
Wire Fraud
MUBARAK SULAIMAN UKASHAT,
COUNT 5: 18 U.S.C. § 1028A
Defendant. Aggravated Identity Theft
Case: 2:23-cr-00111 COUNTS 6-7: 18 U.S.C. § 1957(a)
Assigned To: Nielson, Howard C., Jr Money Laundering
Assign. Date: 3/21/2023
The Grand Jury Charges:
I. BACKGROUND
At all times relevant to this Indictment:
1. Defendant MUBARAK SULAIMAN UK.ASHAT ("UK.ASHAT") was a
resident of Taylorsville, Utah in the District ofUtah. -:;-?~
vii/. .(/4 /e / ? ~v
2. UKASHAT had been a graduate studenf at the-VUrnversity of Utah and the
,--1
president of the USUSA Muslim Students Club. As the actual or nominal club president,
Case 2:23-cr-00111-HCN Document 1 Filed 03/22/23 PageID.2 Page 2 of 11
UKASHAT had custody and control of the USUSA Muslim Students Club Account ("Club
Account"), which was a bank account at America First ending in -5012.
3. UKASHAThad ownership and control over a bank account at America First
Credit Union ("America First") ending in 9711 that he held jointly with Relative 1 ("Joint
Bank Account").
4. UKASHAT's Relative 1 also had ownership and control over checking and
savings accounts at Security Service Federal Credit Union ("Security Service") ending in
-0000 (savings) and-0071 (checking).
The COVID-19 Pandemic and the EIDL Loan Program
5. By March 2020, the COVID-19 pandemic had threatened the United States
economy. Offices, restaurants, and businesses began closing. In response, Congress acted
to keep small businesses afloat-ultimately spending trillions of dollars to help protect
millions of workers, business owners, and citizens from economic disruption caused by the
pandemic.
6. To facilitate this economic rescue effort, on March 25, 2020, Congress passed
the Coronavirus Aid, Relief, and Economic Security Act, 15 U.S.C. § 9001 et seq. (the
"CARES Act"). The CARES Act was designed to provide emergency financial assistance
to millions of Americans who were suffering the economic effects caused by the COVID-
19 pandemic.
7. As part of the CARES Act, Congress authorized the U.S. Small Business
Association ("SBA") to provide low-interest Economic Injury Disaster Loans ("EIDL
Loans") of 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 ofup to $10,000 to small businesses within three days of applying for an
EIDLLoan.
2
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How EIDL Loan Applications Were Processed
8. EIDL Loan applications were submitted directly to and processed by the
SBA. The applications were received in cloud-based platforms. The location of the server
through which EIDL Loan applications were submitted was based on the date a given
application was processed by the SBA and the application number. During the time period
relevant to this Indictment, the EIDL Loan applications and supporting documents were
received in a cloud-based platform through SBA servers located in Des Moines, Iowa.
9. After an EIDL Loan was approved, the applicant business received the EIDL
Loan proceeds through an electronic funds transfer directly from the SBA into a financial
account reportedly under the control of the applicant business.
Required Certifications in EIDL Loan Applications
10. From March 2020 on, to obtain an EIDL Loan, a qualifying business was
required to submit a loan application to the SBA and provide information about its business
and ownership. Each EIDL Loan applicant was required to certify under penalty of perjury
that all the information in the loan application was true and correct to the best of his or her
knowledge.
11. This certified information included information about the borrower business's
operations, such as the number of its employees, its gross revenues for the 12-month period
preceding the disaster, and the cost of goods it sold in the 12-month period preceding the
disaster. In the case ofEIDL Loans for COVID-19 relief, the 12-month period was the year
preceding January 31, 2020. The applicant also had to certify that all the information in the
application was true and correct, and agree in the required Loan Authorization and
Agreement that the EIDL Loan funds would be used solely as working capital to alleviate
economic injury caused by disaster.
3
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The SBA Clarified the Limits on Using EIDL Loan Proceeds, and Some Penalties for
False Statements in Loan Applications and Agreements and for Misusing Proceeds
12. Starting March 30, 2020 through at least June 2020, the SBA made clear on
its website that the SBA was offering EIDL Loans "for working capital to small businesses
suffering substantial economic injury as a result of the Coronavirus (COVID-19)," and that
these loans were intended "to help alleviate economic injury caused by the Coronavirus
(COVID-19)." Coronavirus (COVID-19) SBA Disaster Assistance in Response to the
Coronavirus (posted on SBA website on March 30, 2020 and May 4, 2020). During this
same timeframe, the SBA further made it clear, that EIDL Loan proceeds could be used
only "to pay fixed debts, payroll, accounts payable and other bills that [could not] be paid
because of the [COVID-19] disaster's impact." Id. Any applicant who had any questions
regarding the EIDL Loan program was directed to "contact the SBA disaster assistance
customer service center at 1-800-659-2955 . . . or [to] e-mail [the SBA at]
disastercustomerservice@sba.gov." Id. SBA customer service representatives were
available to answer any questions an applicant might have about the EIDL Loan program.
13. From March 30, 2020 to at least July 8, 2020, EIDL Loan Agreements also
included a specific provision entitled "USE OF LOAN PROCEEDS" which stated that:
Borrower will use all the proceeds of this loan solely as working
capital to alleviate economic injury caused by disaster occurring
in the month of January 31, 2020 and continuing thereafter ....
(emphasis added).
14. From March 30, 2020 to at least July 8, 2020, EIDL Loan Agreements also
included a certification at the end of the Agreement that was signed by the Borrower and
stated:
The undersigned agree(s) to be bound by the terms and conditions herein
during the terms of this Loan, and further agree(s) that no provision stated
herein will be waived without prior written consent of SBA. Under penalty
4
Case 2:23-cr-00111-HCN Document 1 Filed 03/22/23 PageID.5 Page 5 of 11
of perjury of the United States of America, I hereby certify that I am
authorized to apply for and obtain a disaster loan on behalf of Borrower,
in connection with the effects of the COVID-19 emergency.
(emphasis in original).
15. From March 30, 2020 to at least July 8, 2020, EIDL Loan Agreements also
included a provision entitled "CIVIL AND CRIMINAL PENALTIES" that advised the
Borrower of civil and criminal penalties for misapplying proceeds from an EIDL Loan and
for making false statements on an EIDL Loan application.
II. THE SCHEME AND ARTIFICE TO DEFRAUD
16. Beginning in and around June 15, 2020, and continuing to and including
August 2020, within the District of Utah and elsewhere, the defendant,
MUBARAK SULAIMAN UKASHAT,
knowingly devised and executed a scheme and artifice to defraud and sought to obtain
money and property by means of materially false and :fraudulent pretenses, representations
and promises, and omissions of material facts.
17. In executing and attempting to execute the scheme and artifice to defraud, and
in furtherance thereof, UK.ASHAT:
a. Submitted or caused to be submitted four fraudulent EIDL. Loan
applications to the SBA between June 15, 2020 and July 6, 2020:
1. That listed as the loan applicants four persons and entities that
never applied for any EIDL Loans; and
11. Directed the EIDL Loan proceeds to be sent to the Club Account
(ending in -5012) which he controlled.
b. Applied for and obtained $333,900 in EIDL Loan proceeds and advances
for the four listed applicant agricultural businesses even though he knew
none of the businesses had applied for an EIDL Loan;
5
Case 2:23-cr-00111-HCN Document 1 Filed 03/22/23 PageID.6 Page 6 of 11
c. Made false certifications in four EIDL Loan Agreements between
approximately June 19, 2020 and July 8, 2020 that:
1. The EIDL Loan proceeds would be used solely as working capital
to alleviate economic injury caused by [COVID-19-related]
disaster occurring in the month of January 31, 2020 and
continuing thereafter;
11. The listed loan applicants would be bound by the terms and
conditions of the Loan Agreements that were signed under
penalty of perjury; and
d. Knowingly and willfully misused approximately $333,900 of the EIDL
Loan proceeds for personal expenses, wire transfers to Nigeria and Dubai,
and the purchase of a GMC Yukon for approximately $45,900 in cash.
III. THE OBJECT OF THE SCHEME AND ARTIFICE TO DEFRAUD
18. It was the object of the scheme and artifice to defraud for defendant
UKASHAT to obtain money from the SBA in the form of EIDL Loan proceeds through
false statements, misrepresentation, deception, and omissions of material facts, and
thereafter to divert the money for his own use to make unauthorized purchases unrelated to
any of the ostensible loan applicants and to transfer EIDL Loan proceeds to Nigeria and
Dubai.
19. The fraudulently obtained EIDL Loan proceeds were used by defendant
UK.ASHAT for his own personal benefit, including:
a. Purchasing an approximately $45,900 GMC Yukon in cash;
b. Using EIDL Loan proceeds to pay personal expenses, including at least
$27,000 to electronic retailers, at least $21,000 to pay off a car loan, at
least $20,000 in apparent debt payments, at least $10,000 in earnest money
to buy a house, at least $5,200 for college expenses, and other cash
withdrawals, wires, and miscellaneous household purchases;
6
Case 2:23-cr-00111-HCN Document 1 Filed 03/22/23 PageID.7 Page 7 of 11
c. Wiring at least $15,000 to someone in Nigeria; and
d. Wiring at least $20,000 to someone in Dubai.
20. It was further part of the scheme and artifice to defraud that UKASHATused
wire transfers to move the EIDL Loan proceeds into accounts under his control and the
control of Relative 1 and Unnamed Abettor 1, to then use the EIDL Loan proceeds-which
were intended for other ostensible borrowers who, in fact, never applied for the loans-to
pay for UKASHAT's own unauthorized personal expenses and international wires to
Nigeria and Dubai.
IV. OVERT ACTS IN FURTHERANCE OF THE SCHEME
AND ARTIFICE TO DEFRAUD
21. It was part of the scheme and artifice to defraud that UK.ASHAT knowingly
attempted to and did, without lawful authority, transfer, possess and use a means of
identification of another person as indicated below; and did knowingly transmit or cause
to be transmitted the following EIDL Loan applications on behalf of persons and entities
who never applied for such loans and had no association with UKASHAT:
DATE MEANS OF INTERSTATE WIRE
(on or about) IDENTIFICATION
6/15/20 Used name and SSN Submitted EIDL Loan Application No. -3787
ofL.K. ostensibly on behalf of Apex Farms, Inc. and
ostensibly through L.K. (for $81,200 Loan and
$10,000 EIDL Advance)
6/22/20 Used name and SSN Submitted EIDL Loan Application No. -1028
ofA.S. ostensibly on behalf of Swanstrom Farm, LLC
and ostensibly through A.S. (for $48,800 Loan
and $6,000 EIDL Advance)
7/02/20 Used name and SSN Submitted EIDL Loan Application No. -4952
ofG.N. ostensibly on behalf ofDBA Nelson Farms and
ostensibly through G.N. (for $125,500 Loan)
7/06/20 Used name and SSN Submitted EIDL Loan Application No. -3694
ofM.L. ostensibly on behalf ofDBA Lambright and
ostensibly through M.L. (for $62,400 Loan)
7
Case 2:23-cr-00111-HCN Document 1 Filed 03/22/23 PageID.8 Page 8 of 11
All of these EIDL Loan applications were submitted through a server located in West Des
Moines, Iowa, and the loan funds were deposited into an account in Utah.
COUNTS 1-4
18 u.s.c. § 1343)
(Wire Fraud)
22. The allegations set forth above are incorporated herein by reference and
realleged as though fully set forth in this Count.
23. Beginning around June 15, 2020 and continuing in and through at least
August 2020, in the District of Utah and elsewhere, the defendant,
MUBARAK SULAIMAN UKASHAT,
having devised and intended to devise a scheme and artifice to defraud, and for obtaining
money and property from the SBA (ostensibly on behalf of persons and entities with whom
UK.ASHAT had no connection) by means of false and fraudulent pretenses,
representations, promises, and omissions of material facts, for the purpose of executing
said scheme and artifice to defraud, caused the following items to be transmitted by means
of wire communication in interstate commerce described below for each count, each
transmission constituting a separate count:
COUNT DATE WIRE COMMUNICATIONS
(on or about)
1 6/15/20 Submitted EIDL Loan Application No. -3787 ostensibly on
behalf of Apex Farms, Inc. and ostensibly through L.K. (for
$81,200 Loan +$10,000 EIDL Advance)
2 6/22/20 Submitted EIDL Loan Application No. -1028 ostensibly on
behalf of Swanstrom Farm, LLC and ostensibly through A.S.
(for $48,800 Loan and $6,000 EIDL Advance)
3 7/02/20 Submitted EIDL Loan Application No. -4952 ostensibly on
behalf ofDBA Nelson Farms and ostensibly through G.N. (for
$125,500)
8
Case 2:23-cr-00111-HCN Document 1 Filed 03/22/23 PageID.9 Page 9 of 11
4 7/06/20 Submitted EIDL Loan Application No. -3694 ostensibly on
behalf ofDBA Lambright and ostensibly through M.L. (for
$62,400 Loan)
All in violation of 18 U.S.C. § 1343.
COUNTS
18 U.S.C. § 1028A
(Aggravated Identity Theft)
24. The allegations set forth above are incorporated herein by reference and
realleged as though fully set forth in this Count.
25. On or about the dates alleged below, in the Central Division of the District
of Utah, and elsewhere, the defendant,
MUBARAK SULAIMAN UKASHAT,
knowingly attempted to and did, without lawful authority, transfer, possess and use a means
of identification of another person, to wit, the name and Social Security number of "G.N."
which is associated with an actual person, used in an EIDL Loan application on July 2,
2020, during and in relation to a felony violation, to wit, Wire Fraud in violation of 18
U.S.C. § 1341, as alleged in Count 4 of this Indictment, incorporated herein by reference.
All in violation of 18 U.S.C. § 1028A(a)(l).
COUNTS 6-7
18 U.S.C. § 1957(a)
(Money Laundering)
26. The allegations set forth above are incorporated herein by reference and
realleged as though fully set forth in this Count.
27. On or about the dates alleged below, in the District of Utah, and elsewhere,
the defendant,
MUBARAK SULAIMAN UKASHAT,
did knowingly engage and attempt to engage in the following monetary transactions by,
through, and to, a financial institution, affecting interstate and foreign commerce, in
9
Case 2:23-cr-00111-HCN Document 1 Filed 03/22/23 PageID.10 Page 10 of 11
criminally derived property of a value greater than $10,000.00, that was derived from a
specified unlawful activity that constitutes a violation of 18 U.S.C. § 1343, in instances,
including but not limited to each count below:
COUNT DATE MONETARY TRANSACTIONS
(On or About)
UKASHAT used his America First Club Account (-
5012), his America First Joint Account (-9711), and
6 July 8, 2020
Relative 1 's Security Service Savings Account (-
0000) to transfer $15,000 to an account in Nigeria the
same day.
UKASHAT used his America First Club Account (-
5012) to transfer $40,000 to Unnamed Abettor l's
7 July 13, 2020
America First Account (-8097) and then arranged to
have Unnamed Abettor 1 transfer $20,000 to an
account in Dubai the same day.
All in violation of Title 18 U.S.C. §§ 1957 and 2:
NOTICE OF INTENT TO SEEK FORFEITURE
Pursuant to 18 U.S.C. § 98l(a)(l)(C) and 28 U.S.C. § 2461(c), upon conviction of
any offense violating 18 U.S.C. § 1343, the defendant(s) shall forfeit to the United States
of America any property, real or personal, that constitutes or is derived from proceeds
traceable to the scheme to defraud. The property to be forfeited includes, but is not limited
to:
■ A money judgment equal to the value of any property not available for forfeiture
as a result of any act or omission of the defendant(s) for one or more of the
reasons listed in 21 U.S.C. § 853(p).
■ Substitute property as allowed by 28 U.S.C. § 2461(c) and 21 U.S.C. § 853(p).
Case 2:23-cr-00111-HCN Document 1 Filed 03/22/23 PageID.11 Page 11 of 11
Pursuant to 18 U.S.C. § 982(a)(l), upon conviction of any offense in violation of 18
U.S.C. § 1957, the defendants shall forfeit to the United States of America any property,
real or personal, involved in such violations, and any property traceable to such property.
The property to be forfeited includes, but is not limited to:
■ A money jµdgment equal to the value of all property not available for forfeiture
as a result of any act or omission of the defendant(s) for one or more of the
reasons listed in 21 U.S.C. § 853(p ); and
■ Substitute property as allowed by 18 U.S.C. § 982(b) and 21 U.S.C. § 853(p).
A TRUE BILL:
HOREPEl~OF GRAND JURY
TRINA A. HIGGINS
United States Attorney
Assistant United States Attorney
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