Information — United States v. Armando Ariel De Leon, Southern District of Florida (Document 28)
Summary
An Information in United States of America v. Armando Ariel De Leon, Case No. 22-20420-CR-MOORE/LOUIS, in the U.S. District Court for the Southern District of Florida, entered on the docket September 7, 2022 as Document 28. Count 1 charges conspiracy to commit wire fraud under 18 U.S.C. § 1349 from in or around January 2021 through at least July 2021. It alleges that the defendant, an employee of Bank 1 until approximately January 2021, agreed with a co-conspirator to assist with false PPP loan applications at Bank 1 and false EIDL applications with the SBA, and received kickbacks for funded loans. It alleges Bank 1 disbursed over $5,000,000 in PPP loan proceeds to accounts controlled by co-conspirators. A certificate of trial attorney, a penalty sheet listing a maximum of 20 years and a waiver of indictment form are attached.
Summary drafted by a model from the text of the original file linked on this page and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Information — United States v. Armando Ariel De Leon, Southern District of Florida (Document 28).”
Original at ecf.flsd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/information-no-1-22-cr-20420-dkt-28-s-d-fla-de84ea0c71/
, SHA-256 acd883c319afbee66a4926e50a07df98b4350c0a769e778be6e83d2267ff2866.Full text
.. Case 1:22-cr-20420-JEM Document 28 Entered on FLSD Docket 09/07/2022 Page 1 of 10
mml
Sep 7, 2022
UNITED STATES DISTRICT COURT
Miami
SOUTHERN DISTRICT OF FLORIDA
22-20420-CR-MOORE/LOUIS
Case No. - - - - - - - - - - -
18 u.s.c. § 1349
18.U.S.C. § 982
UNITED STATES OF AMERICA
vs.
ARMANDO ARIEL DE LEON,
Defendant.
- - - - - - - - - - - - -I
INFORMATION
The United States Attorney charges that:
GENERAL ALLEGATIONS
At all times relevant to this Information:
The Small Business Administration
1. 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.
2. 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
3. The Coronavirus Aid, Relief, and Economic Security ("CARES") Act was a federal
law enacted in or around March 2020 and designed to provide emergency financial assistance to
Case 1:22-cr-20420-JEM Document 28 Entered on FLSD Docket 09/07/2022 Page 2 of 10
the millions of Americans who were suffering from the economic effects caused by the COVID-
19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivab le
loans to small businesses for job retention and ce1iain other expenses, through a program referred
to as the Paycheck Protection Program ("PPP").
4. In order to obtain a PPP loan, a qualifying business submitted 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 (SBA Form 2483), the small business (through its authorized
representative) was required to provide, 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 were required to provide documentation confirming their payroll expenses.
5. A PPP loan application was processed by a participating lender. If a PPP loan
application was approved, the participating lender funded the PPP loan using its own monies.
While it was the participating lender that issued the PPP loan, the loan was 100% guaranteed by
the SBA. Data from the application, including information about the borrower, the total amount
of the loan, and the listed number of employees, was transmitted by the lender to the SBA in the
course of processing the loan.
6. PPP loan proceeds were required to be used by the business on certain permissible
expenses-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
2
Case 1:22-cr-20420-JEM Document 28 Entered on FLSD Docket 09/07/2022 Page 3 of 10
these expense items within a designated period of time and used a defined portion of the PPP loan
proceeds on payroll expenses.
The Economic Injury Disaster Loan Program
7. Another related response to the COVID- 19 outbreak was an expans10n of an
existing disaster-related program - the Economic Injury Disaster Loan ("EIDL") - to provide for
loan assistance (including $10,000 advances) for small businesses and other eligible entities for
loans up to $2 million. The EIDL proceeds could have been used to pay fixed debts, payroll,
accounts payable, and other bills that could have been paid had the disaster not occurred; however,
such loan proceeds were not intended to replace lost sales or profits, or for the expansion of a
business.
8. Unlike certain other types of SBA-guaranteed loans, EIDL funds were issued
directly from the United States Treasury, and applicants applied for EIDL funds directly through
the SBA via an online portal and application. The EIDL application process, which also used
certain outside contractors for system support, collected information concerning the business and
the business owner, including: information about the gross revenues for the business prior to
January 31 , 2020; and the cost of goods sold. Applicants electronically certified that the
information provided was true and accurate and were warned that any false statement or
misrepresentations to the SBA, or any misapplication of loan proceeds may result in sanctions,
including criminal penalties.
9. EIDL applications were received in and processed using computer servers located
in the states of Iowa, Virginia, and Washington. EIDL disbursement payments were initiated by
the SBA using computer servers located in the state of Colorado, which transmitted the payment
information to the Treasury using computer servers located in the state of Virginia.
3
Case 1:22-cr-20420-JEM Document 28 Entered on FLSD Docket 09/07/2022 Page 4 of 10
The Defendant, Related Individual, and Banks
10. Defendant ARMANDO ARIEL DE LEON was a resident of Miami-Dade
County, Florida. Until approximately January 2021, he was an employee of Bank I.
11. Daniel Hernandez was a resident of Miami-Dade County; Florida, an employee of
Bank 1; and a co-conspirator of the defendant.
Relevant Banks
12. Bank 1 was a national bank based in New Jersey.
13. Bank 2 was a national bank based in No1ih Carolina.
14. Both Bank 1 and Bank 2 were approved SBA lenders of PPP loans and insured by
the Federal Deposit Insurance Corporation (" FDIC").
COUNT 1
Conspiracy to Commit Wire Fraud
(18 u.s.c. § 1349)
1. The General Allegations section of this Information is re-alleged and incorporated
by reference as though fully set forth herein.
2. From in or around January 202 1, continuing through at least July 2021 , in Miami-
Dade County, in the Southern District of Florida, and elsewhere, the defendant,
ARMANDO ARIEL DE LEON,
did willfully , that is, with the intent to further the object of the conspiracy, and knowingly combine,
conspire, confederate, and agree with Daniel Hernandez and others known and unknown to the
United States Attorney to knowingly, and with the intent to defraud, 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, knowing that the pretenses,
representations, and promises were false and fraudu lent when made, and, for the purpose of
executing the scheme and artifice, did knowingly transmit and cause to be transmitted, by means
4
Case 1:22-cr-20420-JEM Document 28 Entered on FLSD Docket 09/07/2022 Page 5 of 10
of wire communications in interstate and foreign commerce, certain writings, signs, signals,
pictures, and sounds, in violation of Title 18, United States Code, Section 1343.
PURPOSE OF THE CO SPIRACY
3. It was the purpose of the conspiracy for the defendant and his co-conspirators to
unjustly enrich themselves by, among other things: (a) submitting and causing the submission of
false and fraudulent applications for loans and grants made available through the SBA to provide
relief for the economic effects caused by the COVID-19 pandemic, namely, PPP and EIDL loans;
(b) offering, paying, and receiving kickbacks in return for referring other individuals for the
submission of false and fraudulent loan applications; and (c) diverting fraud proceeds for the
defendant's and co-conspirators' personal use, the use and benefit of others, and to further the
conspiracy.
MANNER AND MEANS OF THE CONSPIRACY
The manner and means by which the defendant and his co-conspirators sought to
accomplish the object and pmpose of the conspiracy included, among others, the following:
4. ARMANDO ARIEL DE LEON agreed with Daniel Hernandez to assist with
submitting (i) false and fraudulent PPP loan applications at Bank 1 and (ii) false and fraudulent
EIDL applications with the SBA.
5. ARMANDO ARIEL DE LEON and co-conspirators submitted and caused to be
submitted false and fraudulent PPP and EIDL loan applications on behalf of Florida-based entities
that the co-conspirators controlled, using the companies' Florida addresses and Employer
Identification umbers, via interstate wire communications.
6. In furtherance of the conspiracy, ARMANDO ARIEL DE LEON and co-
conspirators submitted and caused the submission of false and fraud ulent information and
documentation in support of the PPP and EIDL loan applications, including falsified Internal
5
Case 1:22-cr-20420-JEM Document 28 Entered on FLSD Docket 09/07/2022 Page 6 of 10
Revenue Service ("IRS") forms , falsified bank statements, and payroll tax forms, among other
things, and falsely and fraudulently represented each company's number of employees, amount of
monthly payroll, and amount of gross revenue.
7. ARMANDO ARIEL DE LEON monitored, recorded, and shared the status of co-
conspirators' false and fraudulent applications.
8. As a result of the false and fraudulent PPP loan applications submitted as part of
this scheme, Bank 1 approved PPP loans to entities belonging to the defendant' s co-conspirators,
and disbursed over $5 ,000,000 in loan proceeds into bank accounts controlled by the defendant's
co-conspirators, via interstate wire transmission.
9. As a result of the false and fraudulent EIDL loan applications submitted as part of
this scheme, the SBA approved EIDL loans to entities belonging to the defendant's co-conspirators
and disbursed EIDL loan proceeds to bank accounts controlled by the defendant' s co-conspirators,
via interstate wire transmission.
10. Co-conspirators paid ARMANDO ARIEL DE LEON, Daniel Hernandez, and
others a kickback based on each false and fraudulent loan funded.
11. The defendant and his co-conspirators used the proceeds from the fraudulent
scheme to enrich themselves and others, and to further the conspiracy.
All in violation of Title 18, United States Code, Section 1349.
FORFEITURE ALLEGATIONS
1. The allegations contained in this Information 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 the defendant, ARMANDO ARIEL DE LEON, has an interest.
2. Upon conviction of a violation of a criminal conspiracy to violate Title 18, United
Sates Code, Section 1343 , as alleged in this Information, the defendant shall forfeit to the United
6
Case 1:22-cr-20420-JEM Document 28 Entered on FLSD Docket 09/07/2022 Page 7 of 10
States any property constituting, or derived from, proceeds the person obtained directly or
indirectly, as the result of such offense, pursuant to Title 18, United States Code Section
982(a)(2)(B).
All pursuant to Title 18, United States Code, Section 982(a)(l ), and the procedures set forth
at Title 21 , United States Code, Section 853 , as incorporated by Title 18, United States Code,
Section 982(b )(1 ).
E S. RUBIN
ASSISTANT UNITE STATES ATTORNEY
7
Case 1:22-cr-20420-JEM Document 28 Entered on FLSD Docket 09/07/2022 Page 8 of 10
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
UNITED STATES OF AMERICA CASE NO.:
v.
ARMA DO ARIEL DE LEON, CERTIFICATE OF TRIAL ATTORNEY*
- - - - - - - - - - - - - -I Superseding Case Information:
Defendant.
Court Division (select one) New Defendant(s) (Yes or No)
El Miami □ Key West □ FTP Number of New Defendants
□ FTL □ WPB Total number of New Counts
I do hereby certify that:
I. J have carefully considered the allegations of the indi ctment, the number of defendants, the number of probable
witnesses and the legal complexities of the Indictment/Information attached hereto.
2. I am aware that the information suppl ied on this statement will be relied upon by the Judges of this Court in setting
their calendars and schedu ling criminal trials under the mandate of the Speedy Trial Act, Title 28 U.S.C. §3 161.
3. Interpreter: (Yes or No) lw.._
List language and/or dialect: - - - - - - - -
4. This case wi ll take_0__ days for the parties to try.
5. Please check appropriate category and type of offense li sted below:
(Check only one) (Check on ly one)
I 0 0 to 5 days □ Petty
lI D 6 to IO days D Minor
Tll D 11 to 20 days D Misdemeanor
IV D 21 to 60 days El Fe lony
V D 61 days and over
6. Has this case been previously filed in this District Court? (Yes or No) .No__
lf yes, Judge Huck Case No. - - - - - -- - -
7. Has a complaint been filed in this matter? (Yes or No) Yes
If yes, Magistrate Case No. 22-02253-MJ-EGT
8. Does this case relate to a previously filed matter in this District Court? (Yes or No) Yes
lf yes, Judge Martinez Case o. 22-20194-CR-JEM
9. Defendant(s) in federal custody as of
- - - - - - -- - - -- - - - -
( 0. Defendant(s) in state custody as of - - -- - - -- - - - - - - - --
11 . Rule 20 from the District of
12. Is this a potential death penalty case? (Yes or No) No
13. Does this case originate from a matter pending in the Northern Region of the U.S. Attorney's Office
prior to August 8, 20 14 (Mag. Judge Shaniek Maynard? (Yes or o) .No__
14. Does this case origi nate from a matter pending in the Central Region of the U.S. Attorney's Office
prior to October 3, 2019 (Mag. Judge Jared Strauss? (Yes or No) No
By:
Eli S. Rubin
Ass istant United States Attorney
Court 1D No. A5502535
Case 1:22-cr-20420-JEM Document 28 Entered on FLSD Docket 09/07/2022 Page 9 of 10
UNITED STA TES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
PE ALTY SHEET
Defendant's Name: ARMANDO ARlEL DE LEON
Case No : _ __ _ _ _ _ __ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ __ _ _
Count # : 1
Conspiracy to Commit Wire Fraud, 18 U.S.C. §§ 1343, 1349
* Max. Term of Imprisonment: 20 years
* Mandatory Min. Term oflmprisonment (if applicable): N/A
* Max.Supervised Release: 3 years
* Max. Fine: $250 000
*Refers only to possible term of incarceration , sup ervised rel ease and fin es. It does not include
restitution, special assessments, parole terms, or forfeiture s that ma y be applicable.
Case 1:22-cr-20420-JEM Document 28 Entered on FLSD Docket 09/07/2022 Page 10 of 10
AO 455 (Rev O1/09) Waiver of an Indictment
UNITED STATES DISTRICT COURT
for the
Southern District of Florida
United States of America )
V. ) Case No.
)
ARMANDO ARIEL DE LEON, )
Defendant )
W AIYER OF AN INDICTMENT
I understand that I have been accused of one or more offenses punis hable by impri sonment for more than one
year. I was advised in open court of my rights and the nature of the proposed charges against me.
After receiving thi s advice, I waive my ri ght to prosecution by indictment and consent to prosecution by
information.
Date: - - - - - - - -
Defendant 's signature
Signature of defendant's attorney
- - - - - - - Paul D. Petruzzi
Printed name of defendant 's attorney
Judge's signature
Judge's printed name and title
File and source
- File
- 28-information-felony.pdf
- Size
- 657,681 bytes
- SHA-256
- acd883c319afbee66a4926e50a07df98b4350c0a769e778be6e83d2267ff2866
- Our copy
- 28-information-felony.pdf
- Original
- PACER (login required)