Information — United States v. Rodney McClain, Southern District of Florida (Document 1)
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An information filed by the United States Attorney in United States v. Rodney McClain, Case No. 24-20094-CR-WILLIAMS/GOODMAN, in the U.S. District Court for the Southern District of Florida, entered on the docket March 14, 2024 as Document 1. It charges wire fraud under Title 18, United States Code, Sections 1343 and 2 for a scheme from in or around May 2020 through in or around June 2020. The information alleges that McClain, owner of Dreams Come True Records LLC, submitted a PPP loan application with a false number of employees, payroll and revenue, supported by false IRS Forms 940 and 941, and that Bank 1 disbursed approximately $600,157 on or about May 11, 2020. The forfeiture allegations cite approximately $113,413.76 and list the defendant's musical compositions and sound recordings as substitute property.
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“Information — United States v. Rodney McClain, Southern District of Florida (Document 1).”
Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/information-no-1-24-cr-20094-dkt-1-s-d-fla-56f13fd22b/
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Case 1:24-cr-20094-KMW Document 1 Entered on FLSD Docket 03/14/2024 Page 1 of 10
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
24-20094-CR-WILLIAMS/GOODMAN
CASE NO. --------
18 u.s.c. § 1343
18 U.S.C. § 982(a)(2) MP
UNITED STATES OF AMERICA Mar 14, 2024
vs.
Miami
RODNEY MCCLAIN,
Defendant.
----------------·'
INFORMATION
The United States Attorney charges that:
GENERAL ALLEGATIONS
At all times material to this Information:
The Paycheck Protection Program
1. The Coronavirus Aid, Relief, and Economic Security ("CARES") Act was a federal
law enacted March 27, 2020, to provide emergency financial assistance to Americans suffering
economic harms from the COVID-19 pandemic. One source ofreliefprovided through the CARES
Act was the authorization offorgivable loans to small businesses for job retention and certain other
expenses, through a program called the Paycheck Protection Program ("PPP").
2. 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 to be eligible to obtain the PPP loan. In the PPP loan application,
the small business (through its authorized representative) was required to provide, among other
Case 1:24-cr-20094-KMW Document 1 Entered on FLSD Docket 03/14/2024 Page 2 of 10
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.
3. Businesses applying for a PPP loan were required to provide documentation
confirming their payroll expenses. In general, an employer is obligated to report to the Internal
Revenue Service ("IRS"), with an IRS Form 941, the number of salaried employees who receive
IRS W-2s.
4. A PPP loan application had to be processed by a participating lender. If a PPP loan
application was approved, the participating lender funded the PPP loan using its own monies,
which were fully guaranteed by the Small Business Administration ("SBA"). Data from the
application, including information about the borrower, the total amount of the loan, listed number
of employees, and the reports and documents regarding the business's income and expenses, were
transmitted by the lender to the SBA in the course of processing the loan.
5. 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
these expense items within a designated period of time and used a defined portion of the PPP loan
proceeds on payroll expenses.
The Financial Institutions
6. Bank 1 was a financial institution based in Salt Lake City, Utah, with deposits
insured by the Federal Deposit Insurance Corporation ("FDIC'). Bank 1 was an approved SBA
lender of PPP loans.
2
Case 1:24-cr-20094-KMW Document 1 Entered on FLSD Docket 03/14/2024 Page 3 of 10
7. Bank 2 was a financial institution based in Sioux Falls, South Dakota, with deposits
insured by the FDIC.
The Defendant and Related Entity
8. Dreams Come True Records LLC ("DCTR") is a Florida limited liability company
with its listed address in North Miami Beach, Florida.
9. RODNEY MCCLAIN is a resident ofFulton County, Georgia, and, at all relevant
times, the owner and registered agent ofDCTR.
WIRE FRAUD
(18 u.s.c. § 1343)
From in or around May 2020, through in or around June 2020, in Miami-Dade County, in
the Southern District of Florida, and in Fulton County, in the Northern District of Georgia, and
elsewhere, the defendant,
RODNEY MCCLAIN,
did knowingly, and with intent to defraud, devise and intend to devise a scheme and artifice to
defraud, and to obtain money and property by means ofmaterially false and fraudulent pretenses,
representations, and promises, knowing that the pretenses, representations, and promises were
false and fraudulent when made, and for the purpose of executing the scheme and artifice, did
knowingly transmit and cause to be transmitted in interstate and foreign commerce, by means of
wire communication, certain writings, signs, signals, pictures, and sounds, in violation ofTitle 18,
United States Code, Sections 1343 and 2.
PURPOSE OF THE SCHEME AND ARTIFICE
10. It was a purpose ofthe scheme and artifice for the defendant to unlawfully enrich
himselfby, among other things: (a) submitting and causing the submission ofa false and fraudulent
3
Case 1:24-cr-20094-KMW Document 1 Entered on FLSD Docket 03/14/2024 Page 4 of 10
PPP loan application, and (b) diverting fraud proceeds for his personal use and benefit.
Manner and Means
The manner and means by which the defendant sought to accomplish the purpose of the
scheme and artifice included the following:
11. RODNEY MCCLAIN submitted and caused to be submitted, via interstate wire
communication, a fraudulent PPP loan application on behalf of DCTR, which loan application
included.a false total number of employees, payroll expenses, and revenue.
12. In furtherance of the scheme, RODNEY MCCLAIN submitted and caused to be
submitted in support of the PPP loan application false and fraudulent documentation, including
false and fraudulent IRS Forms 940 and 941.
13. As a result of the false and fraudulent PPP loan application submitted as part of the
scheme, Bank 1 disbursed approximately $600,157 in PPP loan funds into a Bank 2 bank account
controlled by RODNEY MCCLAIN.
14. RODNEY MCCLAIN unlawfully diverted the PPP loan funds for his personal use
and benefit.
USE OF THE WIRE
15. On or about May 11, 2020, in Miami-Dade County, in the Southern District of
Florida and in Fulton County, in the Northern District of Georgia, and elsewhere, the defendant,
RODNEY MCCLAIN, for the purpose of executing and in furtherance of the aforesaid 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 fraudulent when made, did knowingly cause to be transmitted by
4
Case 1:24-cr-20094-KMW Document 1 Entered on FLSD Docket 03/14/2024 Page 5 of 10
means of wire communication in interstate commerce, certain writings, signs, signals, pictures,
and sounds, that is, a wire transfer in the amount of approximately $600,157 from Bank 1 to Bank
2 account ending in 2139, in the name of DCTR and controlled by the defendant, causing a wire
transmission from outside of Georgia to the Northern District of Georgia.
In violation of Title 18, United States Code, Sections 1343 and 2.
FORFEITURE ALLEGATIONS
1. The allegations of this Information are hereby re-alleged and by this reference fully
incorporated herein for the purpose of alleging forfeiture to the United States of America of certain
property in which the defendant, RODNEY MCCLAIN, has an interest.
2. Upon conviction of a violation of Title 18, United States Code, Section 1343, as
alleged in this Information, the defendant shall forfeit to the United States any property, real or
personal, which constitutes or is derived from proceeds obtained directly or indirectly to such
offense, pursuant to Title 18, United States Code, Section 982(a)(2).
4. The property subject to forfeiture as a result of the alleged offense includes, but is •
not limited to, a sum of approximately $113,413.76, which represents the total amount of funds
involved in or derived from the alleged offense and may be sought as a forfeiture money judgment.
4. If any of the property subject to forfeiture, as a result of any act or omission of the
defendant:
a. cannot be located upon the exercise of due diligence;
b. has been transferred or sold to, or deposited with, athird party;
c. has been placed beyond the jurisdiction of the court;
d. has been substantially diminished in value; or
5
Case 1:24-cr-20094-KMW Document 1 Entered on FLSD Docket 03/14/2024 Page 6 of 10
e. has been commingled with other property which cannot be divided without
difficulty,
the United States shall be entitled to the forfeiture of substitute property under the provisions of
Title 21, United States Code, Section 853(p). Such substitute property includes, but is not limited
to, the following:
i. Any and all rights in the defendant's musical compositions (the melody and
lyrics), including the copyrights and proprietary rights therein and in any and
all versions of said musical composition, and any renewals and extensions
thereof (whether presently available or subsequently available as a result of
intervening legislation) in the United States of America and elsewhere
throughout the world, and further including any and all causes of action for
infringement of the same, past, present and future, all of the proceeds from
the foregoing accrued and unpaid hereafter accruing.
11. Any and all rights in the defendant's sound recordings (Master Recordings),
including the copyrights and proprietary rights therein and in any and all
versions of said sound recordings, and any renewals and extensions thereof
(whether presently available or subsequently available as a result of
intervening legislation) in the United States of America and elsewhere
throughout the world, and further including any and all causes of action for
infringement of the same, past, present and future, all of the proceeds from
the foregoing accrued and unpaid hereafter accruing.
iii. Any and all rights in any and all other papers which may be required to
6
Case 1:24-cr-20094-KMW Document 1 Entered on FLSD Docket 03/14/2024 Page 7 of 10
effectuate the transfer of ownership of the musical compositions and sound
recordings in the above paragraphs i and ii, respectively.
All pursuant to Title 18, United States Code, Section 982(a)(2) and the procedures set forth
in Title 21, United States Code, Section 853, as incorporated by Title 18, United States Code,
Section 982(b )(1).
-----»{ Jc 1',:
MARKENZY LAPOINTE
y
EMILY R. STONE
ASSISTANT UNITED STATES ATTORNEY
7
Case 1:24-cr-20094-KMW Document 1 Entered on FLSD Docket 03/14/2024 Page 8 of 10
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
UNITED STATES OF AMERICA CASE NO.: 24-20094-CR-WILLIAMS/GOODMAN
______________
v.
CERTIFICATE OF TRIAL ATTORNEY
RODNEY MCCLAIN,
= _,,
I Superseding Case Information:
------D=-e fe- nd-an_t ._ ---- New De fe ndant(s) (Yes or No) ---
Court Division (select one) Number of New De fe ndants
181 Miami CJ Key West Cl FTP Total number ofcounts
FTL□ WPB □
I do hereby certify that:
1. I have carefully considered the allegations of the indictment, 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 supplied on this statement will be relied upon by the Judges of this Court in setting
their calendars and scheduling criminal trials under the mandate of the Speedy Trial Act, Title 28 U.S.C. §3161.
3. Interpreter: (Yes or No) ---
No
List language and/or dialect: ------
4. This case will take _o_ days for the parties to try.
5. Please check appropriate category and type ofoffense listed below:
(Check only one) (Check only one)
I IE] 0 to 5 days □ Petty
II □ 6 to 10 days □ Minor
III Cl 11 to 20 days □ Misdemeanor
IV □ 21 to 60 days ral Felony
V □ 61 days and over
6.Has this case been previously filed in this District Court? (Yes or No) _N_o__
Ifyes, Judge___________ Case No.______________ _
7. Has a complaint been filed in this matter? (Yes or No) --- No
Ifyes, Magistrate Case No.___________ _
8. Does this case relate to a previously filed matter in this District Court? (Yes or No) _N_o __
Ifyes, Judge__________ Case No.______________ _
9. De fe ndant(s) in fe deral custody as of----------------- -
10. Defendant(s) in state custody as of _N_/A___________________ --_
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 ofthe U.S. Attorney's Office
prior to August 8, 2014 (Mag. Judge Shaniek Maynard? (Yes or No) --- No
14 .. Does this case originate from a matter pending in the Central Region ofthe U.S. Attorney's Office
prior to October 3, 2019 (Mag. Judge Jared Strauss? (Yes or No) --- No
15. Did this matter involve the participation ofor consultation with now Magistrate Judge Eduardo I. Sanchez
during his tenure at the U.S. Attorney's Office, which concluded on January 22, 2023? No_ __
•
By:
Assistant United States Attorney
FL Bar No. 92077
Case 1:24-cr-20094-KMW Document 1 Entered on FLSD Docket 03/14/2024 Page 9 of 10
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
PENALTY SHEET
Defendant's Name: _R_o_d_n e_ ..,_y_M_cC_ l_a_ in____________________ _
Case No: -------------------------------
Count#: 1
Wire Fraud
Title 18, Un ited States Cod e, S ection 1343
*Max.Term of Imprisonment: 20 years
*Mandatory Min.Term of Imprisonment (if applicable): NIA
*Max.Supervised Release: 3 years
*Max.Fine: The greater of $250,000 or twice the gross loss or gain
*Refers only to possible term of incarceration, supervised release and fines. It does not include
restitution, special assessments, parole terms, or forfeitures that may be applicable.
Case 1:24-cr-20094-KMW Document 1 Entered on FLSD Docket 03/14/2024 Page 10 of 10
AO 455 (Rev. 0l/09) Waiver ofan Indictment
UNITED STATES DISTRICT COURT
for the
Southern District of Florida
United States of America )
v. ) Case No.
RODNEY MCCLAIN, ) 24-20094-CR-WILLIAMS/GOODMAN
)
Defendant )
WAIVER OF AN INDICTMENT
I understand that.I have been accused of one or more offenses punishable by imprisonment 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 this advice, I waive my right to prosecution by indictment and consent to prosecution by
information.
Date: --------
Defendant's signature
Signature of defendant's attorney
Paul Petruzzi
Printed name of defendant's attorney
Judge 's signature
Judge's printed name and title
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