Information — United States v. Scott Suber, Eastern District of Virginia (Document 1)

Summary

A criminal information charging Scott Suber with bank fraud under 18U.S.C. § 1344, Case 2:20-cr-00110-RGD-LRL, in the United States District Court for the Eastern District of Virginia, Norfolk Division, filed November 23, 2020 as Document 1. It alleges that in or about June 2020 Suber submitted a PPP loan application to Celtic Bank stating that Debris or Not Debris Property Preservation Inc. had eight employees and an average monthly payroll of $140,000, supported by a Form 941 claiming quarterly wages of $420,000 and an altered Wells Fargo Bank statement. It alleges that Celtic Bank funded a $350,000 loan and that the proceeds went to personal use, including large cash withdrawals and travel to Las Vegas. The forfeiture notice seeks a monetary judgment of not less than $350,000.

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 Case 2:20-cr-00110-RGD-LRL Document 1 Filed 11/23/20 Page 1 of 4 PageID# 1



                                                                                           FILED
                         IN THE UNITED STATES DISTRICT COURT


                        FOR THE EASTERN DISTRICT OF VIRGINIA                            NOV 2 3 2020

                                      NORFOLK DIVISION                            OLbHK, U.y. D\S 1HICT COU
                                                                                         NORFOLK. VA

UNITED STATES OF AMERICA
                                                      CRIMINAL NO. 2:20cr       llO
               V.

                                                      18U.S.C. § 1344
SCOTT SUBER,                                          Bank Fraud


           Defendant.                                 Forfeiture


                                  CRIMINAL INFORMATION


       THE UNITED STATES ATTORNEY CHARGES THAT:


       In or about June 2020, in the Eastern District of Virginia and elsewhere, SCOTT SUBER,

the defendant, knowingly executed and attempted to execute a scheme and artifice to defraud

Celtic Bank, a financial institution with deposits insured by the Federal Deposit Insurance

Corporation, and to obtain moneys, funds, credits, assets, securities and other property owned by

and under the custody and control of said financial institution, by means of materially false

pretenses, representations and promises, which scheme and artifice, and the execution thereof,

were in substance as follows:


       1. The Paycheck Protection Program ("PPP") is a program administered by the Small

Business Administration. In or around March 2020, Congress passed the Coronavirus Aid,

Relief, and Economic Security ("CARES") Act, of which the PPP is one component. Through

the PPP, Congress authorized the award of hundreds of billions of dollars in forgivable loans to

small businesses, for the purpose of enabling those businesses to continue to pay salary or wages

to their employees. To apply for a forgivable loan under the PPP, a business must submit an

application to a participating financial institution. If a PPP loan application is approved,the
 Case 2:20-cr-00110-RGD-LRL Document 1 Filed 11/23/20 Page 2 of 4 PageID# 2




participating lender funds the PPP loan using its own money. The SBA,in turn, guarantees the

repayment of the loan.

       2. An applicant seeking a PPP loan is required to diselose to a participating lender,

among other things, the applieant's number of employees and average payroll expenses. The

applieant also must agree to use any funds disbursed through the program only "to retain workers

and maintain payroll or make mortgage interest payments, lease payments, and utility payments

as specified under the Payeheck Protection Program Rule."

       3. The object of the seheme and artifice devised and exeeuted by the defendant was to

obtain monies for himself by submitting and eausing to be submitted to Celtic Bank a fraudulent

applieation for a PPP loan, and then to use the loan proeeeds for impermissible purposes.

       4. In his application to Celtic Bank for a PPP loan, the defendant represented that his

business. Debris or Not Debris Property Preservation Inc., had eight(8) employees and an

average monthly payroll of $140,000. As the defendant well knew, these representations were

completely false and fabricated.

       5. In support of his fraudulent application, the defendant submitted a Form 941,

Employer's Quarterly Federal Tax Return for Debris or Not Debris Property Preservation Inc. for

the 4th quarter of 2019, elaiming that the business had quarterly wages of $420,000 and federal

tax withholding of $36,620. As the defendant well knew,these figures were eompletely false

and fabricated.


       6. In further support of his fraudulent applieation, the defendant submitted a Wells Fargo

Bank monthly statement for Debris or Not Debris Property Preservation Inc. that he had altered.

       7. In reliance on the representations in his application, Celtic Bank approved and funded
  Case 2:20-cr-00110-RGD-LRL Document 1 Filed 11/23/20 Page 3 of 4 PageID# 3




a PPP loan for Debris or Not Debris Property Preservation Inc. in the amount of$350,000. The

defendant directed Celtic Bank to wire transfer the funds to an account he maintained at Wells

Fargo Bank.

        8. In his loan application, the defendant stated that he would use the loan proceeds for

purposes connected to his business, that is, for the costs of payroll, lease and utilities. Instead,

the defendant used the proceeds for his own personal benefit, including, among other things,

making large cash withdrawals and travel to Las Vegas.

        (In violation of Title 18, United States Code, Section 1344.)

                                           FORFEITURE


        1. The defendant, SCOTT SUBER,if convicted of the offense set forth in this criminal

information shall, as part of the sentencing of the defendant pursuant to Rule 32.2 of the Federal

Rules of Criminal Procedure, forfeit to the United States any property constituting or derived

from proceeds the defendant obtained, directly or indirectly, as a result of said violation, which is

subject to criminal forfeiture pursuant to 18 U.S.C. § 982(a)(2)(A).

       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 monetary judgment

in the amount of not less than $350,000.

        (In accordance with 18 U.S.C. § 982(a)(2)(A).)
Case 2:20-cr-00110-RGD-LRL Document 1 Filed 11/23/20 Page 4 of 4 PageID# 4




                                 G.Zachary Terwilliger
                                 United States Attorney


                                    Alan M.Salsbuiy
                                    Assistant United States Attorn^
                                    Virginia State Bar No. 15682
                                    101 West Main Street, Suite 8000
                                    Norfolk, Virginia 23510
                                    Tel.-757-441-6350
                                    Fax-757-441-6689
                                    Email: alan.salsbury@usdoj.gov


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