Indictment — United States v. Maria Reich, Eastern District of Virginia (Document 1)

Summary

A grand jury indictment against Maria Reich, Case 2:23-cr-00135-EWH-LRL, in the U.S. District Court for the Eastern District of Virginia, Norfolk Division, filed November 15, 2023 as Document 1. Counts One through Seven charge wire fraud, alleging Reich, President of ASOC. Inc. d/b/a On Call Accountants, used her bookkeeping role to divert approximately $1,132,693 from a client, Company A. Count Eight charges wire fraud over an EIDL loan of $150,000 that was increased by a modification to $500,000, alleging she used the funds for personal expenses including a home downpayment and received approximately $249,102 to which she was not entitled. Count Nine charges a false statement to the Federal Bureau of Investigation on or about May 3, 2023. The indictment seeks forfeiture of approximately $1,381,795.

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“Indictment — United States v. Maria Reich, Eastern District of Virginia (Document 1).” Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/indictment-v-united-states-v-reich-dkt-1-e-d-va-58761e8701/, SHA-256 9272fb8df20cf1362f4250a3bb31ab26c2358c384e70d49e0f5d457b2b574800.

Full text

Case 2:23-cr-00135-EWH-LRL Document 1 Filed 11/15/23 Page 1 of 10 PageID# 1
FILED
IN OPEN COURT

IN THE UNITED STATES DISTRICT COURT
NOV 1 5 2023
FOR THE EASTERN DISTRICT OF VIRGINIA
Norfolk Division
CLERK, U.S. DISTRICT COURT
NORFOLK. VA.
UNITED STATES OF AMERICA )
) CRIMINAL NO. 2:23cr
)
V. ) I8U.S.C.§1343
) Wire Fraud
MARIA REICH ) (Counts One-Eight)
)
Defendant. ) 18U.S.C. §1001
) False Statements
) (Count Nine)
)
) Forfeiture

INDICTMENT

THE GRAND JURY CHARGES THAT;

GENERAL ALLEGATIONS

Al all times material to this infonnation;

A. Reich and ASOC. Inc.

1. MARIA REICH was President of ASOC. Inc. d/b/a On Call Accountants

('*OCA'’), a Virginia Beach-based business which offered bookkeeping, accounting, and payroll

services to small business clients.

2. Company A is a family-owned company that manufactures condiments and is

located in Virginia Beach, Virginia.

.5. MARIA REICH and On Call Accountants did the bookkeeping for Company A

4. MARIA REICH would prepare checks and schedule electronic payments on

behalf of Company A in order to pay the company's bills.

5. MARIA REICH had personal and business credit cards at Capital One Bank and

bank accounts at Navy Federal Credit Union.
Case 2:23-cr-00135-EWH-LRL Document 1 Filed 11/15/23 Page 2 of 10 PageID# 2

B. EIDL Loans

6. In response to the economic crisis caused by the coronavirus pandemic, the Small

Business Administration (''SBA”) made government-guaranteed loans available to qualified

small businesses through the Economic Injury Disaster Loan ('‘EIDL“) program. The purpose of

EIDLs was to enable small businesses to meet financial obligations and operating expenses in

light of the pandemic. The SBA promulgated regulations concerning eligibility for an EIDL.

Eligible businesses seeking an EIDL could apply for such a loan directly through the SBA.
7. To qualify for an EIDL, an applicant had to meet certain criteria, including,

among other things, that it was in operation prior to the pandemic, and had regular operating

expenses, which would have been paid if not for the pandemic. Moreover, the amount of the

loan that could be approved under the EIDL program typically was a function of the applicant's

working capital. The proceeds of an EIDL could be used for working capital and normal

operating expenses. The proceeds of an EIDL were not permitted to be used to fund the

borrower's ordinary day-to-day living expenses or to purchase personal real estate.

If qualified, an EIDL loan applicant was also entitled to loan modifications to increase the

amount of an original loan.

If an EIDL loan or advance is approved, that information is wired from the SBA

server in the Eastern District of Virginia to a Treasury Department server located outside of

Virginia.

9. EIDL loans were benefits authorized, transported, transmitted, transferred.

disbursed, or paid in connection with, a presidentially declared major disaster or emergency (as

2
Case 2:23-cr-00135-EWH-LRL Document 1 Filed 11/15/23 Page 3 of 10 PageID# 3

those terms are defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency

Assistance Act (42 U.S.C. § 5122).

COUNT ONES THROUGH SEVEN
(Wire Fraud)

10. Paragraphs 1 through 9 of the General Allegations section of this Indictment are

incorporated by reference as though fully set forth herein.

11. From in or about January 2015 and continuing through January 2019, in the

Eastern District of Virginia and elsewhere, defendant MARIA REICH, for the purpose of

executing and attempting to execute the following scheme and artifice to defraud and lor

obtaining money and property by materially false and fraudulent pretenses, representations, and

promises, did transmit and cause to be transmitted by means of wire communication in interstate

commerce writings, signs, signals, pictures, and sounds for the purposes of execution of such

scheme and artifice. This scheme and artifice operated in substance as follows:

PURPOSE OF THE SCHEME

12. The purpose of the scheme and artifice to defraud was for REICH to obtain

money she was not entitled to by using her position with OCA to steal, purloin, embezzle, and

knowingly convert money from Company A.

MANNER AND MEANS

The manner and means by which REICH carried out the scheme and artifice to defraud

included, but were not limited to, the following:

13. REICH wrongfully obtained money and retained the wrongfully obtained money

by preparing and sending ACH, mobile, and check payments from Company A‘s bank accounts
Case 2:23-cr-00135-EWH-LRL Document 1 Filed 11/15/23 Page 4 of 10 PageID# 4

directly to REICH and to REICH’S personal and business credit card accounts at Capital One

Bank.

In furtherance of the scheme, REICH caused the submission of wire transmissions in

interstate commerce.

14. As a result of the aforesaid scheme and artifice, REICH received Company A’s

funds to which she was not entitled in the approximate amount of $1,132,693.

15. On or about the dates listed below, in the Eastern District of Virginia and

elsewhere, MARIA REICH, for the purpose of executing the above-described scheme and

artifice to defraud and to fraudulently obtain money and property by means of materially false

and fraudulent pretenses, representations, and promises, and attempting to do so, did knowingly

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

certain writings, signs, signals, pictures, and sounds, each transmission being a separate count of

this Indictment as indicated:

Count Date Amount Paid Via Interstate Wire from
Company A’s Towne Bank Account to Reich’s
Capital One Account
ONE November 28, 2018 $1,038.91

TWO December 4, 2018 $1,210.28

THREE December 11, 2018 $1,294.61

FOUR December 14, 2018 $3,561.73

FIVE December 19, 2018 $1,716.83

SIX December 26, 2018 $1,457.00

SEVEN December 31,2018 $1,551.25

(In violation of Title 18, United States Code, Section 1343.)
4
Case 2:23-cr-00135-EWH-LRL Document 1 Filed 11/15/23 Page 5 of 10 PageID# 5

COUNT EIGHT
(Wire Fraud)

16. Paragraphs 1 through 9 of the General Allegations section of this Indictment are

incorporated by reference as though fully set forth herein.

17. From in or about April 2021 and continuing through August 2021, in the Eastern

District of Virginia and elsewhere, defendant MARIA REICH, for the purpose of executing and

attempting to exeeute the following scheme and artifice to defraud and for obtaining money and

property by materially false and fraudulent pretenses, representations, and promises, did transmit

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

signs, signals, pictures, and sounds for the purposes of execution of such scheme and artifice.

This scheme and artifice operated in substance as follows:

PURPOSE OF THE SCHEME

18. The object of the scheme and artifice to defraud was for REICH to wrongfully

obtain money and to retain the wrongfully obtained EIDL loan money by fraudulently applying

for the loan, knowing she would use the funds for non-business expenses such personal, family,

or household expenses.

MANNER AND MEANS

19. The manner and means by whieh REICH carried out the scheme and artifice to

defraud included, but were not limited to, the following:

20. In March 2020, REICH applied for an EIDL loan on behalf of OCA and requested

a $150,000 loan. In the EIDL application, REICH certified that none of the EIDL funds would

be used for non-business expenses.

5
Case 2:23-cr-00135-EWH-LRL Document 1 Filed 11/15/23 Page 6 of 10 PageID# 6

21. In May 2020, the SBA funded the EIDL loan to REICH and OCA for $150,000.

On May 21, 2020, when REICH signed the Loan and Security Agreement, she specifically

certified that none of the EIDL funds are or would be for “personal, family, or household

expenses.

22. In April 2021, REICH applied for a modification of the EIDL loan, specifically to

increase the loan from $150,000 to $500,000. In the EIDL application, REICH certified that

none of the EIDL funds would be used for non-business expenses.

23. In July 2021. the SBA approved the modification and funded the EIDL loan to

REICH and OCA for an additional $350,000. On July 28, 2021, when REICH signed the Loan

and Security Agreement for the modified loan, she specifically certified that none of the EIDL

funds are or would be for “personal, family, or household expenses.

24. On August 3, 2021, an interstate wire deposit from the SBA for $350,000 was

made to OCA’s Truist bank aceount. REICH immediately transferred $150,000 to her personal

Navy Federal Credit Union (NFCU) personal banking accounts.

25. On September 27, 2021, REICH withdrew approximately $93,416 from her

NFCU savings account via a check. The money was used for a downpayment for the purchase of

the residence located at 5317 Stratford Case Drive, Virginia Beaeh, which was used as REICH’S

family residence. REICH and her family continue to the reside at this residence.

26. In addition to the downpayment for the residence, from the $150,000 REICFI

transferred to her personal NFCU aceounts, REICH used the EIDL funds for the following:

a. $5,000 into her minor children’s bank accounts;

b. $2,349 to her Kohl’s credit card;

6
Case 2:23-cr-00135-EWH-LRL Document 1 Filed 11/15/23 Page 7 of 10 PageID# 7

c. $7,194 in mortgage payments on her personal residence; and

d. $10,883 for personal loan, credit card, and life insurance payments.

27. Of the remaining EIDL funds from the $350,000 EIDL loan, REICH made the

following payments for personal, household, and/or family expenses:
a. $65,009 to her Capital One credit card;

b. $21,837 to her PayPal account;

c. $14,378 in home improvement costs;

d. $13,224 in automobile expenses;

e. $8,004 in dining and grocery expenses; and

f. $7,808 in entertainment expenses.

28. As a result of the aforesaid scheme and artifice, REICH received and spent EIDL

funds to which she was not entitled in the approximate amount of $249,102.

(In violation of Title 18, United States Code, Section 1343.)

7
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COUNT NINE
(False Statements)

29. Paragraphs 1 through 9 of the General Allegations section of this Indictment are

incorporated by reference as though fully set forth herein.

30. On or about May 3, 2023, in Norfolk, within the Eastern District of Virginia,

defendant MARIA REICH did willfully and knowingly make a materially false, fictitious, and

fraudulent statement and representation in a matter within the jurisdiction of the executive

branch of the Government of the United States, by making false, fictitious, and fraudulent

statements to the Federal Bureau of Investigation, at the United States Attorney’s Office in

Norfolk, Virginia.

(In violation of Title 18, United States Code, Section 1001(a)(2).)

8
Case 2:23-cr-00135-EWH-LRL Document 1 Filed 11/15/23 Page 9 of 10 PageID# 9

FORFEITURE

THE GRAND JURY FURTHER FINDS PROBABLE CAUSE THAT:

1. Defendant MARIA REICH, if convicted of any of the violations alleged in

Counts One through Eight of this Indictment, shall forfeit to the United States, as part of the

sentencing pursuant to Federal Rule of Criminal Procedure 32.2, any property, real or personal,

which constitutes or is derived from proceeds traceable to the violation.

2. If any property that is subject to forfeiture above is not available, it is the intention

of the United States to seek an order forfeiting substitute assets pursuant to Title 21, United

States Code, Section 853(p) and Federal Rule of Criminal Procedure 32.2(e).

3. The property subject to forfeiture includes, but is not limited to, a sum of money

of approximately $1,381,795, representing the proceeds MARIA REICH obtained from the

offenses charged.

(All in accordance with Title 18, United States Code, Section 981(a)(1)(C), as
incorporated by Title 28, United States Code, Section 2461(c); and Title 21, United States Code,
Section 853(p).)

9
Case 2:23-cr-00135-EWH-LRL Document 1 Filed 11/15/23 Page 10 of 10 PageID# 10

United States v. MARIA REICH Pursuant to the E-Government Act,
Criminal No. 2:23cr »he. original of this page has been filed
irt tier ?§al in the Clerk's Office.

A TRUE BILL:

REDACT®^/

FOREPERSON

JESSICA D. ABER
UNITED STATES ATTORNEY

By:
Elizabeth Yu^i-^Va. b\^o.tomey
Assistant Uiiiled 'ST^tes
91982)
Attorneys for the United States
United States Attorney’s Office
101 West Main Street, Suite 8000
Norfolk, VA 23510
Office-757441-6331
Facsimile - 757-441-6689
E-Mail - elizabeth.yusi@usdoj.gov

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