Criminal Indictment — United States v. Aleem Rashid, Northern District of Georgia (Document 1)

Summary

A sealed grand jury indictment against Aleem Rashid in the United States District Court for the Northern District of Georgia, Atlanta Division, Case 1:21-cr-00259-JPB-CMS, filed July 13, 2021 as Document 1. Count One charges conspiracy to commit wire fraud under 18 U.S.C. § 1349, alleging that in April and May 2020 Rashid and others submitted false IRS Form 941s and loan documents, leading Financial Institution 2 to issue an approximately $799,955.35 PPP loan to Bellator Phront Group Inc. Other counts charge wire fraud, bank fraud and a false statement to a federally insured bank over a PPP application for Dream Team Real Estate, which Rashid claimed to own. Count Six charges money laundering over an approximately $55,000 wire transfer on or about August 7, 2020 to an account at Samba Bank Limited (Pakistan).

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“Criminal Indictment — United States v. Aleem Rashid, Northern District of Georgia (Document 1).” Original at ecf.gand.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/indictment-with-forfeiture-provision-usa-v-rashid-dkt-1-n-d-ga-2bdda3c076/, SHA-256 c38f5e0757779479cbcfcfada10e2161c92ab33d34ee9594f94d240cc31f69e2.

Full text

Case 1:21-cr-00259-JPB-CMS Document 1 Filed 07/13/21 Page 1 of 12

ORIGINAL FILED IN CHAMBERS
U.S.D.C. Atlanta

JUL 132021
kevin We mer C erk
By
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION

Criminal Indictment
UNITED STATES OF AMERICA
No.
V. .
ALEEM RAsHID UNDER SEAL

THE GRAND JURY CHARGES THAT:
Background

At all times relevant to this Indictment:

The Defendant and His Co-Conspirators

1. ALEEM RASHID (“RASHID”) was an individual residing in the State of

Georgia who claimed ownership of Dream Team Real Estate, a Georgia

corporation.

2. Darrell Thomas was an individual residing in the State of Georgia

who claimed ownership, and was the Chief Financial Officer, of Bellator Phront

Group Inc., a Georgia corporation. As of May 21, 2020, Darrell Thomas claimed

to be the Chief Executive Officer, Secretary, and registered agent of Elite

Executive Services Inc., a Georgia corporation.

3. Meghan Thomas was an individual residing in the State of Georgia

who was associated with Bellator Phront Group Inc. and Elite Executive Services

Inc.

4. Teidrin Foster was an individual residing in the State of Georgia.
Case 1:21-cr-00259-JPB-CMS Document 1 Filed 07/13/21 Page 2 of 12

The Small Business Administration
5. 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. The mission of the SBA was to maintain

and strengthen the nation’s economy by enabling the establishment and viability
of small businesses and by assisting in the economic recovery of communities

after disasters.

6. As part of this effort, the SBA enabled and provided for loans

through banks, credit unions, and other lenders. These loans had government-

backed guarantees.

The Paycheck Protection Program
7. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act

was a federal law enacted in or about March 2020 that was designed to provide

emergency financial assistance to the millions of Americans who are suffering

the economic effects caused by the COVID49 pandemic.

8. One source of relief that the CARES Act provided was the

authorization of up to $349 billion in forgivable loans to small businesses for

payroll, mortgage interest, rent/lease, and utilities, through a program referred

to as the Paycheck Protection Program (“PPP”). Congress has since authorized

additional PPP funding.

9. The PPP allowed qualifying small businesses and other

organizations to receive PPP loans. Businesses must use PPP loan proceeds for

2
Case 1:21-cr-00259-JPB-CMS Document 1 Filed 07/13/21 Page 3 of 12

payroll costs, interest on mortgages, rent, and utilities. The PPP allowed the
interest and principal on the PPP loan to be entirely forgiven if the business spent
the loan proceeds on these expense items within a designated period of time and
used a certain percentage of the PPP loan proceeds for payroll expenses.
10. The amount of a PPP loan that a small business may have been
entitled to receive was determined by the number of employees employed by the
business and the business’s average monthly payroll costs.
11. In order to obtain a PPP loan, a qualifying business was required to
submit a PPP loan application, which was signed by an authorized
representative of the business. The PPP loan application required the business
(through its authorized representative) to acknowledge the program rules and
make certain affirmative certifications in order to be eligible to obtain the PPP
loan. In the PPP loan application, the small business (through its authorized
representative) had to state, among other things, its (a) average monthly payroll
expenses and (b) number of employees. These figures were used to calculate the
amount of money the small business was eligible to receive under the PPP. In
addition, businesses applying for a PPP loan had to provide documentation
showing their payroll expenses.
12. The SBA oversaw the PPP. However, individual PPP loans were
issued by private, approved lenders who received and processed PPP
applications and supporting documentation, and then made loans using the
lenders’ own funds, which were 100% guaranteed by the SBA. Data from the
application, including information about the borrower, the total amount of the

3
Case 1:21-cr-00259-JPB-CMS Document 1 Filed 07/13/21 Page 4 of 12

loan, and the listed nuniber of employees, was transmitted by the lender to the
SBA in the course of processing the loan.

Relevant Financial Institutions and Affiliates
13. Financial Institution 1 was an FDIC-insured financial institution

headquartered in San Francisco, California. Financial Institution 1 participated
in the SBA’s PPP as a lender, and, as such, was authorized to lend funds to
eligible borrowers under the terms of the PPP.
14. Financial Institution 2 was a non-bank financial institution
headquartered in Laguna Hills, California. Financial Institution 2 participated in
the SBA’s PPP as a lender, and, as such, was authorized to lend funds to eligible
borrowers under the terms of the PPP.
15. Bank 1 was an FDIC-insured financial institution based in San

Francisco, California with branches throughout the United States.
16. Bank 2 was an. FDIC-insuxed financial institution based in Charlotte,

North Carolina with branches throughout the United States.

Count One
Conspiracy to Commit Wire Fraud 18 U.S.C. § 1349
—

17. The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 16 of this Indictment as if fully set
forth herein.
18. From in or about April 2020 through in or about May 2020, the exact
dates unknown, in the Northern District of Georgia and elsewhere, the
Defendant,

4
Case 1:21-cr-00259-JPB-CMS Document 1 Filed 07/13/21 Page 5 of 12

ALEEM RAsHID,

did knowingly and willfully combine, conspire, confederate, agree, and have a

tacit understanding with Darrell Thomas, Meghan Thomas, and Teldrin Foster,

and with others known and unknown to the Grand Jury, to devise and intend to
devise a scheme and artifice to defraud, and to obtain money and property, by

means of materially false and fraudulent pretenses, representations, and

promises, and by the omission of material facts, well knowing and having reason

to know that said pretenses were and would be false and fraudulent when made

and caused to be made and that said omissions were and would be material, and,

in so doing, caused interstate and foreign wire communications to be made, in

furtherance of the scheme and artifice to defraud, in violation of Title 18, United

States Code, Section 1343.

Manner and Means

19. RASI-IID, together with Darrell Thomas, Meghan Thomas, and

Teldrin Foster, and with others known and unknown to the Grand Jury,
conspired to submit false materials, such as a false PPP loan application and false
IRS Form 941s to a financial institution to obtain PPP loan funding.
20. Throughout the conspiracy, RASHID utilized interstate wires to
submit and assist in the submission of false documents to a lender when

applying for a PPP loan, including fabricated IRS Form 941s listing falsified
payroll information and false loan application documentation that listed false
payroll information, false employment information, and a false purpose for the
loan funding.

5
Case 1:21-cr-00259-JPB-CMS Document 1 Filed 07/13/21 Page 6 of 12

21. As a result of and based on RASHID’s false representations and

certifications and falsified supporting documents, Financial Institution 2 issued

an approximately $799,955.35 PPP loan to Bellator Phront Group Inc.

All in violation of Title 18, United States Code, Section 1349.

Count Two
Wire Fraud 18 U.S.C. § 1343 and § 2
-

22. The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 16 and 19 through 21 of this

Indictment as if fully set forth herein.

23. On or about April 21, 2020, in the Northern District of Georgia and

elsewhere, the Defendant,
ALEEM RA5HID,

aided and abetted by Darrell Thomas, Meghan Thomas, and Teidrin Foster, and

by others known and unknown to the Grand Jury, for the purpose of executing

and attempting to execute the aforementioned scheme and artifice to defraud,

and to obtain money and property by means of materially false and fraudulent

pretenses, representations, and promises, and by omission of material facts, did,

with intent to defraud, cause to be transmitted by means of a wire

communication in interstate and foreign commerce certain writings, signs,

signals, and sounds, namely, a PPP Borrower Application Form containing false

information related to Bellator Phront Group Inc.’s payroll expenses and the

purpose of the applied-for PPP loan and attaching falsified tax documentation

for each quarter of 2019.

6
Case 1:21-cr-00259-JPB-CMS Document 1 Filed 07/13/21 Page 7 of 12

All in violation of Title 18, United States Code, Section 1343 and Section 2.

Count Three
Bank Fraud —18 U.S.C. § 1344 and § 2

24. The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 16 of this Indictment as if fully set
forth herein.
25. On or about April 15, 2020, in the Northern District of Georgia and
elsewhere, the Defendant,
ALEEM RAsHID,
aided and abetted by others known and unknown to the Grand Jury, did

knowingly execute and attempt to execute a scheme and artifice to defraud
Financial Institution 1, the deposits of which were then insured by the FDIC, and
to obtain, by means of materially false and fraudulent pretenses, representations,
and promises, and by omission of material facts, certain moneys, funds, credits,
assets, securities, and other property owned by and under the custody and
control of Financial Institution 1.
Execution of the Bank Fraud Scheme

26. On or about April 15, 2020, in the Northern District of Georgia and

elsewhere, Defendant RAsHID did knowingly execute and attempt to execute the

above-described scheme to defraud by causing false payroll summaries, false pay

stubs, and a false profit and loss statement to be transmitted to Financial

Institution 1 and making false representations and certifications to Financial

7
Case 1:21-cr-00259-JPB-CMS Document 1 Filed 07/13/21 Page 8 of 12

Institution 1 regarding Dream Team Real Estate’s payroll costs and the purposes
of the applied-for PPP loan.
All in violation of Title 18, United States Code, Section 1344 and Section 2.

Count Four
Wire Fraud 18 U.S.C. § 1343 and § 2
—

27. The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 16 of this Indictment as if fully set
forth herein.
28. On or about April 15, 2020, in the Northern District of Georgia and
elsewhere, the Defendant,
ALEEM RAsHID,

aided and abetted by others known and unknown to the Grand Jury, for the
purpose of executing and attempting to execute the aforementioned scheme and
artifice to defraud, and to obtain money and property by means of materially
false and fraudulent pretenses, representations, and promises, and by omission
of material facts, did, with intent to defraud, cause to be transmitted by means of
a wire communication in interstate and foreign commerce certain writings, signs,
signals, and sounds, namely, a PPP Borrower Application Form containing false
information related to Dream Team Real Estate’s payroll obligations and the
purposes of the applied-for PPP loan, and attaching a falsified payroll summary,
falsified pay stubs, and a falsified profit and loss statement.
All in violation of Title 18, United States Code, Section 1343 and Section 2.

8
Case 1:21-cr-00259-JPB-CMS Document 1 Filed 07/13/21 Page 9 of 12

Count Five
False Statement to a Federally Insured Bank — 18 U.S.C. § 1014 and § 2

29. The Grand Jury re-alleges and incorporates by reference the factual
allegations contained in paragraphs 1 through 16 of this Indictment as if fully set
forth herein.
30. On or about April 15, 2020, in the Northern District of Georgia, the
Defendant,
ALEEM RAsHID,

aided and abetted by others known and unknown to the Grand Jury, knowingly
made a false statement for the purpose of influencing the actions of Financial
Institution 1, in that the Defendant signed and initialed a PPP Borrower
Application Form for Dream Team Real Estate falsely certifying that (a) the funds
will be used to retain workers and maintain payroll or make mortgage interest
payments, lease payments, and utility payments; and (b) the information
provided in the application and in all supporting documents and forms is true
and accurate in all material respects.
All in violation of Title 18, United States Code, Section 1014 and
Section 2.

Count Six
Money Laundering -18 U.S.C. § 1956 and §2

31. The Grand Jury re-alleges and incorporates by reference the factual

allegations contained in paragraphs 1 through 16 of this Indictment as if fully set

forth herein.

9
Case 1:21-cr-00259-JPB-CMS Document 1 Filed 07/13/21 Page 10 of 12

32. On or about August 7, 2020, in the Northern District of Georgia, the
Defendant,
ALEEM RAsHID,

aided and abetted by others known and unknown to the Grand Jury, knowingly
conducted and attempted to conduct a financial transaction affecting interstate
and foreign commerce, to wit, making an approximately $55,000 wire transfer
from Bank 1 account ending in 8068, held in the name of Dream Team Real
Estate, to Samba Bank Limited (Pakistan) account ending in 8077, held in the
name of A.B.A., which involved the proceeds of a specified unlawful activity,
that is bank fraud, in violation of Title 18, United States Code, Section 1344, and
wire fraud, in violation of Title 18, United States Code, Section 1343, knowing
that the transaction was designed in whole and in part to conceal and disguise
the nature, location, source, ownership, and control of the proceeds of specified
unlawful activity, and while conducting and attempting to conduct such
financial transaction knowing that the property involved in the financial
transaction represented the proceeds of some form of unlawful activity.
All in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i) and
Section 2.
Forfeiture Provision

33. Upon conviction of one or more of the offenses alleged in Counts

One through Five of this Indictment, the Defendant, ALEEM RASHID, shall forfeit

to the United States, pursuant to Title 18, United States Code, Section 982(a)(2),

10
Case 1:21-cr-00259-JPB-CMS Document 1 Filed 07/13/21 Page 11 of 12

any property constituting, or derived from, proceeds obtained, directly or

indirectly, as a result of the violation, including, but not limited to, the following:
a. Money Judgment: A sum of money in United States ctirrency
representing the amount of proceeds obtained as a result of
each offense, or conspiracy to commit such offense, for which
the Defendant is convicted.

34. Upon conviction of the offense alleged in Count Six of this

Indictment, the Defendant, ALEEM RASHID, shall forfeit to the United States

pursuant to Title 18, United States Code, Section 982(a) (1), any property, real or

personal, involved in such offense, or any property traceable to such offense,

including but not limited to the following:

a. Money Judgment: A sum of money in U.S. currency

representing the value of the property involved in the offenses

for which the Defendant is convicted.

35. If, as a result of any act or omission of the Defendant, any property

subject to forfeiture:

(a) cannot be located upon the exercise of due diligence;

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

(d) has been substantially diminished in value; or

(e) has been commingled with other property which cannot be

divided without difficulty,

11
Case 1:21-cr-00259-JPB-CMS Document 1 Filed 07/13/21 Page 12 of 12

the United States intends, pursuant to Title 21, United States Code, Section

853(p), as incorporated by Title 18, United States Code, Section 982(b), to seek

forfeiture of any other property of the Defendant up to the value of the

forfeitable property described above.

A ________________________ BILL

FOR~PERS~

KURT R. ERsKINE
Acting United States Attorney

7~i CIa~
TAL C. CHAIKEN
Assistant United States Attorney
Georgia Bar No. 273949

p~
NATHAN P. KITcHENs
Assistant United States Attorney
Georgia Bar No. 263930

600 U.S. Courthouse
75 Ted Turner Drive SW
Atlanta, GA 30303
404-581-6000; Fax: 404-581-6181

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