Indictment — United States v. Chris E McCormick, District of Utah (Document 1)

Summary

A grand jury indictment against Chris E McCormick, Case 2:22-cr-00114-JNP, in the U.S. District Court for the District of Utah, filed March 30, 2022 as Document 1. Counts 1-2 charge false statements in loan applications under 18 U.S.C. § 1014, alleging that on May 11, 2020 McCormick stated Peak Debt Consumption, LLC had 12 employees and a monthly payroll of $100,000 in a PPP application for approximately $266,000 to Mountain America Credit Union. The second count concerns a May 13, 2020 application for approximately $248,166.67 stating JR Blending LLC had 11 employees and a monthly payroll of $91,666.67. Counts 3-4 charge money laundering under 18 U.S.C. § 1957 over online wire transfers of $225,000 from each company's MACU account to McCormick's brokerage and bank accounts. The indictment seeks forfeiture.

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“Indictment — United States v. Chris E McCormick, District of Utah (Document 1).” Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/indictment-v-united-states-v-mccormick-dkt-1-d64e1f78c2/, SHA-256 62d2621ee23c95da0f0265cbb0b90084a7139b24e455debc5c6125cc7d18284d.

Full text

Case 2:22-cr-00114-JNP Document 1 Filed 03/30/22 PageID.1 Page 1 of 5

FILED IJS District Court-UT
ANDREA T. MARTINEZ, United States Attorney (#9313)
JACOB J. STRAIN, Assistant United States Attorney (#12680)
MAR 30 '22 AMll:05
Attorneys for the United States of America
Office of the United States Attorney
111 South Main Street, Suite-moo-~-
Salt Lake City, Utah 84111-2176
Telephone: (801) 524-5682

IN THE UNITED STATES DISTRICT COURT
DISTRICT OF UTAH

UNITED STATES OF AMERICA, INDICTMENT

Plaintiff, Counts 1-2: 18 U.S.C. § 1014 (False
Statement in Loan and Credit
vs. Application)

CHRIS E MCCORMICK, Counts 3-4: 18 U.S.C. § 1957 (Money
Laundering)
Defendant.

Case: 2:22-cr-00114
The Grand Jury alleges: Assigned To : Parrish, Jill i\J.
Assign. Date: 3/30/2022
At all times relevant to this Indictment:

1. Defendant CHRIS E MCCORMICK ("MCCORMICK") was a resident of Salt

Lake County, Utah.

2. Defendant MCCORMICK operated and controlled Peak Debt Consumption, LLC

and JR Blending LLC.

3. Mountain America Credit Union ("MACU") is a financial institution, the accounts

of which are insured by the Federal Deposit Insurance Corporation ("FDIC").

4. The United States Small Business Administration ("SBA") is an executive-branch

agency of the United States federal government that provides support to entrepreneurs and small

businesses. The mission of the SBA is to maintain and strengthen the nation's economy by
Case 2:22-cr-00114-JNP Document 1 Filed 03/30/22 PageID.2 Page 2 of 5

enabling the establishment and viability of small businesses and by assisting in the economic

recovery of communities after disasters. As part of this effort, the SBA enables and provides for

loans through banks, credit unions, and other lenders. These loans have government backed

guarantees.

5. In addition to traditional SBA funding programs, The CARES Act, which was

signed into law in March 2020, established several new temporary programs and provided for the

expansion of others to address the COVID-19 outbreak.

6. One of these new programs is the SBA Paycheck Protection Program ("PPP"),

which is a loan program designed to provide a direct incentive for small businesses to keep their

workers on the payroll. Under this program, the SBA will forgive all or part of loans if all

employees were kept on the payroll for eight weeks and borrowers submit documentation

confirming that the loan proceeds were used for payroll, rent, mortgage interest, or utilities.

7. Payroll, as defined by the PPP, excludes compensation of an individual employee

in excess of an annual salary of $100,000, prorated as necessary.

8. Interested applicants apply through an existing SBA lender or any other

participating federally insured financial institution. Program requirements include that the

borrower business was in operation on February 15, 2020, and either had employees for whom

the business paid salaries and payroll taxes or paid independent contractors as reported on a

Form 1099-MISC.

9. The PPP application process requires applicants to submit a Borrower Application

Form through an SBA-approved financial entity. The application contains information as to the

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

business and its owner.

Page 2 of 5
Case 2:22-cr-00114-JNP Document 1 Filed 03/30/22 PageID.3 Page 3 of 5

10. The PPP loan application requires the applicant to certify to the truthfulness of all

information in the application.

Countl
18 u.s.c. § 1014
(False Statement in Loan and Credit Application)

11. The factual allegations above are incorporated by referenced and realleged as

though fully set forth herein.

12. On or about May 11, 2020, in the District of Utah and elsewhere,

CHRIS E MCCORMICK,

defendant herein, knowingly made and caused to be made false statements for the purpose of

influencing the action of MACU, a bank the deposits of which were then insured by the FDIC, in

connection with a PPP loan application for approximately $266,000, in that defendant

MCCORMICK falsely stated and caused to be falsely stated that Peak Debt Consumption, LLC

had 12 employees and had a monthly payroll of $100,000.

All in violation of 18 U.S.C. § 1014.

Count2
18 u.s.c. § 1014
(False Statement in Loan and Credit Application)

13. The factual allegations above are incorporated by referenced and realleged as

though fully set forth herein.

14. On or about May 13, 2020, in the District of Utah and elsewhere,

CHRIS E MCCORMICK,

defendant herein, knowingly made and caused to be made false statements for the purpose of

influencing the action of MACU, a bank the deposits of which were then insured by the FDIC, in

connection with a PPP loan application for approximately $248,166.67, in that defendant

Page 3 of 5
Case 2:22-cr-00114-JNP Document 1 Filed 03/30/22 PageID.4 Page 4 of 5

MCCORMICK falsely stated and caused to be falsely stated that JR Blending LLC had 11

employees and had a monthly payroll of $91,666.67.

All in violation of 18 U.S.C. § 1014.

Counts 3-4
18 u.s.c. § 1957
(Money Laundering)

15. The factual allegations above are incorporated by reference and realleged as

though fully set forth herein.

16. On or about the dates listed below, in the District of Utah, and elsewhere

CHRIS E MCCORMICK,

defendant herein, did knowingly engage in a monetary transaction by through or to a financial

institution, affecting interstate commerce, in criminally derived property of a value greater than

$10,000, that was derived from the specified unlawful activity that constitutes a violation of

18 U.S.C. § 1014, in instances including but not limited to each count below:

COUNT DATE MONETARY TRANSACTIONS
(on or about)
3 05/14/2020 Online wire transfer of $225,000 from Peak Debt Consumption LLC's
MACU account ending in xxx9632 to defendant MCCORMICK's TD
Ameritrade account
4 05/15/2020 Online wire transfer of $225,000 from JR Blending LLC's MACU
account ending in xxx2500 to defendant MCCORMICK's Wells Fargo
account ending xxx2796

All in violation of 18 U.S.C. § 1957.

NOTICE OF INTENT TO SEEK FORFEITURE

Pursuant to 18 U.S.C. § 982(a)(2), upon conviction of any offense violating 18
U.S.C. § 1014, the defendant shall forfeit to the United States of America any property
constituting, or derived from, proceeds obtained directly or indirectly, as a result of the
scheme to defraud. The property to be forfeited includes, but is not limited to:

Page 4 of 5
Case 2:22-cr-00114-JNP Document 1 Filed 03/30/22 PageID.5 Page 5 of 5

• A money judgment 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).

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:

• Substitute property as allowed by 18 U.S.C. § 982(b) and 21 U.S.C. § 853(p).

A TRUE BILL:

FOREPERSON OF THE GRAND JURY

ANDREA T. MARTINEZ
United States Attorney

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J,~IN
Assistant United States Attorney

Page 5 of 5

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