Information — United States v. Damara Holness, Southern District of Florida (Document 1)
Summary
A criminal information filed by the Acting United States Attorney against Damara Holness, Case No. 0:21-cr-60229-RAR, in the U.S. District Court for the Southern District of Florida, entered on the docket August 17, 2021 as Document 1. Count 1 charges conspiracy to commit wire fraud under Title 18, United States Code, Section 1349. The information alleges that on or about June 29, 2020 Holness caused a PPP loan application requesting $300,000 to be submitted for Holness Consulting stating 18 employees and an average monthly payroll of $120,000, and that on or about July 2, 2020 a partner bank wired $300,000 to the company's account. It further alleges that checks were issued to persons who endorsed and returned them. The filing includes forfeiture allegations, a penalty sheet listing a maximum of 20 years imprisonment, a bond recommendation and a waiver of indictment form.
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“Information — United States v. Damara Holness, Southern District of Florida (Document 1).”
Original at ecf.flsd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/information-no-0-21-cr-60229-dkt-1-s-d-fla-94cb5e214d/
, SHA-256 5d8c4458afef5a15468235e9b538bc5fbb4e5395c74e44d3ee7796997822d830.Full text
Case 0:21-cr-60229-RAR Document 1 Entered on FLSD Docket 08/17/2021 Page 1 of 10
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
CASENO. 21-60229-C R-RU lZ/STR A U SS
18U.S.C.51349
18U.S.C.5982(a)(2)(A)
UNITED STA TES O F A M ERIC A
FILED BY D.C.
V.
DAM A RA H O LNE SS,
AtJ6 1? 2221
ANGELA E.NOBLE
CLERK U S.DIST CT.
s.D.oFFt.
'A. - F'
ti-Aup.
Defendant.
IN FO RM A TIO N
The A cting United StatesA ttorney chargesthat:
GENERAL ALLEGATIO NS
Ata1ltim esm aterialto thisInform ation:
The Pavcheck Protection Proeram
TheCoronavirusAid,Relief,andEconomicSecurityIC6CAItES''IActwasafederal
law enacted in oraround M arch 2020 and designed to provide em ergency financialassistance to
the millions ofAmericans who were suffering the cconomic effects caused by the COV1D-19
pandem ic.O ne source ofreliefprovided by the CARES Actw as the authorization offorgivable
loanstosmallbusinessesforjobretentionandcertainotherexpenses,throughaprogram referred
toasthePaycheckProtectionProgram (itPPP'').
ln ordertoobtainaPPP loan,aqualifyingbusinesssubm ittedaPPP loan application,
which was signed by an authorized representative of the business.The PPP loan application
requiredthebusiness(throughitsauthorizedrepresentative)toacknowledgetheprogram rulesand
Case 0:21-cr-60229-RAR Document 1 Entered on FLSD Docket 08/17/2021 Page 2 of 10
m ake certain aftinuative certifications in orderto be eligible to obtain the PPP loan.ln the PPP
loanapplication(SmallBusinessAdministration($kSBA'')Form 2483),thesmallbusiness(through
itsauthorizedrepresentative)wasrequiredtoprovide,amongotherthings,its:(a)averagemonthly
payrollexpenses;and(b)numberofemployees.Thesefigureswereusedtocalculatetheamount
ofm oney the sm allbusinessw as eligible to receive underthe PPP.Businessesapplying fora PPP
loan were required to provide documentation confirming theirpayrollexpenses.ln general, an
employerwasobligatedtoreporttothelnternalRevenueSelwice($é1RS''),withanIRS Form 941
oran lRS Form W -3,the num ber of salaried em ployeesw ho received lRS W -2s and how m uch,
in total,theemployeeswerepaid.
A PPP loan applieation was proeessed by a participating lender.lf a PPP loan
application was approved,the participating lender funded the PPP loan using its own m onies.
W hile itwasthe participating lenderthatissued the PPP loan,the loan was 100% guaranteed by
theSBA. Data from the application,including inform ation aboutthe borrower,thetotalamount
ofthe loan,and the listed num berofem ployees,w astransm itted by the lenderto the SBA in the
course ofprocessing the loan.
PPP loan proceeds xvere required to be used by the business to pay expenses
necessary to eontinue the operations ofthe business,including the payrollcosts of employees,
interest on mortgages,rent,and utilities.The interest and principalon the PPP loan could be
entirelyforgivenifthebusinessspenttheloanproeeedson theseexpenseitemswithin adesignated
period oftim eand used adefinedportion ofthePPP loan proceedson payrollexpenses.
The Financiallnstitution
Bank 1wasalending institution locatedin Atlanta,Georgia,and provided funding
directly to sm allbusinesses and consum ersthrough an online lending platfonn. Banlt 1 w as an
Case 0:21-cr-60229-RAR Document 1 Entered on FLSD Docket 08/17/2021 Page 3 of 10
approved SBA lenderofPPP loans. Sm allbusinessesseeking PPP loanssenttheirapplications
electronically to Bank 1whose serverswere located in Reston,Virginia. Bank lwould review the
loan application and,ifapproved,apartnerbank disbursedtheloan fundsto theapplicantviathe
interstate banking system .
T he D efendantand the D efendant's Com panv
6. HOLNESSConsulting,Inc.,(CûHOLNESS Consulting'')wasaFloridacorporation
w ith its listed principaladdressin Plantation,Florida.
DefendantDAM ARA HOLN ESS wasthepresidentand sole ownerofHOLN ESS
Consulting.
8. HOLNESS Consultinghad acheekingaeeountatanationalbank (ûkBank 25'),and
defendantH O LN ESS had check signing authority on thataccount.
CO UN T 1
C onspiracy to C om m itW ire Fraud
(18 U.S.C.k 1349)
The GeneralA llegationssection ofthislnfonnation isre-alleged and incorporated
by reference asthough fully setforth herein.
From in oraround June 2020 through in oraround September 2020,in Broward
County,in the Southel'
n D istrictofFlorida,and elsewhere,the defendant,
DA M A R A H O LN ESS,
did willfully,thatis,with theintentto furthertheobjective ofthe conspiracy,and knowingly
com bine,conspire,confederate,and agree w ith others know n and unknow n to the A cting U nited
StatesA ttorney,to com m it an offense against the U nited States,thatis:to know ingly,and with
the intentto defraud,devise,and intend to devise,a schem e and artifice to defraud,and to obtain
money and property by m eansofm aterially false and fraudulentpretenses,representations,and
Case 0:21-cr-60229-RAR Document 1 Entered on FLSD Docket 08/17/2021 Page 4 of 10
prom ises,know ing that the pretenses,representations, and prom ises w ere false and fraudulent
when m ade,and,forthe purpose ofexecuting the schem e and artitice,did know ingly transm itand
cause to be transm itted,by m eans of w ire com m unication in interstate and foreign com m erce,
certain w ritings,signs,signals,pictures,and sounds,in violation ofTitle 18,U nited States Code,
Section 1343.
PU RPO SE A ND O BJE CT IV E O F TH E C O N SPIM C Y
ltwasthepurposeand objectiveofthe conspiracy forthe defendantand herco-
conspiratorsto unlawfully emichthemselvesby,amongotherthings;(a)submitting and causing
thesubmission ofafalseand fraudulentapplication fora loan m adeavailablethrough the SBA to
provide relief for the econom ic effectscaused by the C OV ID -19 pandem ic,including PPP loans;
and (b)divertingtheproceedsforthedefendant'sandco-conspirators'personaluse,theuseand
benefitofothers,and to furtherthefraud.
M A N NE R A N D M EAN S O F TH E C O N SPIR AC Y
The m annerand m eans by w hich defendantH O LN ESS and herco-conspirators soughtto
accomplishthepurposeandobjectiveoftheconspiracy included,nmongothers,thefollowing:
4. On or about June 29, 2020, defendant H OLN ESS caused a loan application
requesting aPPP loan of$300,000 to be subm itted online,by interstate wire communication,to
Bank l.
The loan application falsely stated that H OLN ESS Consulting had 18 em ployees
and had an average monthly payrollof$120,000 a month.
In suppol't of the loan application,defendant H OLN ESS caused to be subm itted
online,by interstate w ire com m unication,to B ank 1 an 1R S Form W -3 falsely stating thatduring
Case 0:21-cr-60229-RAR Document 1 Entered on FLSD Docket 08/17/2021 Page 5 of 10
2019 HOLNESS Consultingpaid wagesof$1,440,000andhad withheld from thosewagesfederal
incom etax of$532,800,socialsecuritytax of$178,560,and M edicare tax of$41,760.
7. On or about July 2, 2020,based on the false infonnation provided in the loan
application and supporting docum ent,Bank 1 approved the loan to H O LN ESS Consulting and a
partner bank of Bank 1 wire transferred $300,000,via interstate wire comm unication,to the
HO LN ESS Consulting bank accountatBank 2.
8. From in or about July 2020 through in or about Septem ber 2020, defendant
HOLNESS began issuing checksto personsin ordertom ake itappearasifH OLNESS Consulting
had full-tim e em ployeesand w ascom plying w ith the conditionsofthe PPP loan.
9. Atthedirection ofdefendantHOLN ESS,thepersonsreceivingthechecksendorsed
thechecksand retum ed thechecksto defendantH OLNESS.
10. DefendantHOLNESS cashed the checksatBank 2,gave a few hundred dollarsto
theperson to whom thecheckwasissued,andkepttherem aining am ountofapproximately $l,000
percheck.
D efendantHO LN ESS and other co-conspirators used the proceeds from the fraud
schem e fortheirown use,the use ofothers,and to furtherthe fraud.
A llin violation ofTitle 18,U nited States Code,Section 1349.
FO RFEITUR E AL LEG A TIO N S
The allegations contained in this lnfonnation are hereby re-alleged and by this
reference fully incorporated herein for the purpose of alleging forfeiture to the United States of
certain property in which thedefendant,DAM AR A HOLNESS,hasan interest.
Upon conviction of a violation ofTitle 18,United States Code,Section 1349,as
alleged in this lnfonnation, the defendant shall forfeit to the United States any property
Case 0:21-cr-60229-RAR Document 1 Entered on FLSD Docket 08/17/2021 Page 6 of 10
constituting,orderived from ,proceedsobtained,directly orindirectly,asthe resultofsuch offense,
pursuanttoTitle18,United StatesCode,Section 982(a)(2)(A).
A1lpursuantto Title18,UnitedStatesCode,Section982(a)(2)(A),andtheproceduresset
forth in Title 21,United States Code,Section 853,asincorporated by Title 18,U nited StatesCode,
Section982(b)(l).
%
JUAN AN T 10 G ON ZA LEZ
A CTIN G U NITED STA TES ATTO RN EY
,. ?
JE F A PLAN
A SSISTA T UN ITED STA TES A TTO RN EY
Case 0:21-cr-60229-RAR Document
UNITED1STATES
Entered
DI on FLSD
STRICT Docket 08/17/2021 Page 7 of 10
CO UIW
SOUTHERNDISTRICT OFFLO RIDA
UNITED STATESOFAM ERICA CASE NO.
V.
C ERTIFICA TE O F T RIAL ATTO R NEY.
DAMARA HOLNESS,
Superseding Case Information:
Defendant. /
CourtDivision:tselectOne) Newdefendantts) I
--IYes I'R No
r-1Miami I
--1KeyWest F/
7 FTL Numberofnewdefendants
I
N WPB U-lFTP Totalnumberofcounts
1. lhavecarefully considered theallegationsofthe indictm ent,thenum berofdefendants,the num berofproh ble
w itnessesandthe Iegalcom plexitiesofthe lndictm ent/lnfonnation attachedhereto.
2. lam aware thatthe inform ation suppliedon thisstatem entwillbe relied upon by theJudgesofthisCourtin
setting theircalendarsand scheduling crim inaltrialsunderthemandate oftheSpeedy TrialAct,
Title28 U.S.C.Section 3161.
3.lnterpreter:(YesorNo) N0
List languageand/ordialect English
4. Thiscase willtake 0 daysforthe partiestotry .
5. Pleasecheck appropriate category and type ofoffense listedbelow :
(Checkonlyone) (Checkonlyone)
I 0to5days Nz Petty C1
11 6to10days rr1 Minor E1
I1l l1to20days (71 Misdemeanor EEI
21to60days (71 Felony EE
d
61daysandover rq
Hasthiscasepreviouslybeenfiled inthisDistrictCourt? (YesorNo) No
Ifyes:Judge CaseNo.
(Attach copyofdispositiveorder)
Hasacomplaintbeenfiledinthismatter? (YesorNo)
lfyes:M agistrateCase No.
Related m iscellaneousnum bers:
Defendantts)infederalcustodyasof
Defendantts)instatecustodyasof
Rule20 from theD istrictof
Isthisapotentialdeathpenaltycase?(YesorNo) No
7. Doesthiscase originate from a matterpending intheCentralRegion oftheU .S.Attorney'sOffice priorto
August9,2013(Mag.JudgeAlicia0.Valle)?(YesorNo) No
8. Doesthiscase originate from a matterpending intheN orthern Region oftheU.S.Attorney'sOffice priorto
August8,2014(Mag.JudgeShaniekM aynard?(YesorNo) No
9. Doesthiscase originatefrom am atterpending intheCentralRegion ofthe U.S.Attorney'
sOffice priorto
October3,2019(M ag.JudgeJaredStrauss)?(YesorNo) No
#
re . aplan
AssistantU nited States Attorney
FLA BarNo. A5500030
*Penalty Sheetts)attachœl REV 3/19/2l
Case 0:21-cr-60229-RAR Document 1 Entered on FLSD Docket 08/17/2021 Page 8 of 10
UN IT ED STA TES D ISTR IC T C O UR T
SO UTH E RN DISTR ICT O F FLO RID A
PEN A LTY SHEET
Defendant'sNam eDAM AR A H OLNESS
Count#:1
Conspiracv to Comm itW ire Fraud
Title 18,United StatesCode.Section 1349
*M ax.Penalty: 20 years'imprisonm ent,$250,000 fine.3years'supervised release
WRefersonlyto possibleterm ofincarceration,doesnotinclude possible fines,restitution.specialassessments,parole
termsorforfeituresthatm ay beapplicable.
Case 0:21-cr-60229-RAR Document 1 Entered on FLSD Docket 08/17/2021 Page 9 of 10
UNITED STATES D ISTR IC T CO URT
SO U TH ER N D ISTIU C T O F FLO R ID A
C A SE N U M BER :
BO N D R ECO M M EN D A TIO N
DEFENDANT:DAMARA HO LNESS
$100,000 PersonalSurety
(PersonalSurety)(CorporateSurety)(Cash)(Pre-TrialDetention)
C y: W
Je ey .Kap an
LastKnown Address:4019 NW 37th Ave.
Lauderdale Lakes,FL 33309
% atFacility'
. N/A
Agentts): S/A HeidiFord,FBI
(FB1) (SECRET SERVICE) (DEA) (1RS) (1CE) (OTHER)
Case 0:21-cr-60229-RAR Document 1 Entered on FLSD Docket 08/17/2021 Page 10 of 10
AO 455(Rev.01/09)Waiveroîanlndi
ctment
U NITED STATESD ISTRICT C OURT
forthe
Southern DistrictofFlorida
United StatesofAmerica )
V. ) CaseNo.
Damara Holness, '
) 2l-60229-C R-RU 1Z/ST RA U SS
)
W AIVER O F AN INDICTM ENT
1understand thatIhavebeen accused ofone orm ore offensespunishableby imprisonlnentfbrmore than one
year. Iwasadvised in opencourtofmy rightsand the nature oftheproposed chargesagainstme.
Afterreceiving tllisadvice,1waivemy rightto prosecutionby indictmentand consentto prosecution by
information,
(late:
Dqgndant'
ssl
knatltre
Judge'sprinted ntzlp?eand title
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