Information — United States v. Malik Mitchum and Jenna Mitchum, Eastern District of Virginia (Document 1)
Summary
A criminal information in United States of America v. Malik Mitchum and Jenna Mitchum, filed December 17, 2021 as Document 1 in No. 4:21-cr-00085-AWA-DEM in the U.S. District Court for the Eastern District of Virginia, Newport News Division. It charges both defendants with conspiracy to commit wire fraud under 18 U.S.C. § 1349, with criminal forfeiture under 18 U.S.C. § 982(a)(2)(A). The information alleges that from about March 2020 to at least May 2021 the defendants submitted false EIDL and PPP applications using fictitious businesses such as Alpha 2 Omega Logistics and Day and Night Trucking, fabricated bank statements and helped others apply for a percentage of the funds. It alleges actual loss of not less than $1.4 million and intended loss of not less than $5.1 million. The signature block names United States Attorney Jessica D. Aber.
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“Information — United States v. Malik Mitchum and Jenna Mitchum, Eastern District of Virginia (Document 1).”
Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/information-no-4-21-cr-00085-dkt-1-e-d-va-2b17f05d09/
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Case 4:21-cr-00085-AWA-DEM Document 1 Filed 12/17/21 Page 1 of 8 PageID# 1
FILED
IN THE UNITED STATES DISTRICT COURT FOR THI DEC 1 7 2021
EASTERN DISTRICT OF VIRGINIA
CLERK, U.S. DISTRICT COURT
Newport News Division NORFOLK, VA
UNITED STATES OF AMERICA
CRIMINAL NO. 4:21-or-
V.
18U.S.C. § 1349
MALIK MITCHUM,
Conspiracy to Commit Wire Fraud
(Count 1)
and
18 U.S.C. § 982(a)(2)(A)
JENNA MITCHUM,
Criminal Forfeiture
Defendants.
CRIMINAL INFORMATION
GENERAL ALLEGATIONS
At all times relevant:
1. The United States Small Business Administration(SBA)is an executive-branch
agency ofthe United States government that provides support to entrepreneurs and small
businesses. The mission ofthe SBA is 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 ofthis effort, the SBA enables and provides for loans through banks,
credit unions and other lenders. These loans have government-backed guarantees. In addition to
traditional SBA funding programs. The CARES Act, which was signed into law in March 2020,
established several new temporary programs and provided for the expansion of others to address
the COVID-19 pandemic.
3. One ofthese new programs was the SBA paycheck Protection Program (PPP),
which provided for loans as a direct incentive for small businesses to keep their workers on the
Case 4:21-cr-00085-AWA-DEM Document 1 Filed 12/17/21 Page 2 of 8 PageID# 2
payroll. Under this program,the SBA forgave all or part ofloans ifthe applying business kept
its employees on the payroll for eight weeks and submitted documentation confirming that the
loan proceeds were used for payroll, rent, mortgage interest, or utilities. Interested applicants
apply through an existing SBA lender or any other participating federally insured financial
institution.
4. The PPP application process requires applicants to submit a Borrower Application
Form through an SBA-approved financial entity. The application contains information as to the
purpose ofthe loan, average monthly payroll, number ofemployees and background ofthe
business and its owner,including questions relating to criminal history. Applicants are also
required to make good faith certifications, including that economic xmcertainties have
necessitated their loan requests for continued business operations and that they intend to use loan
proceeds only for the authorized and not any duplicative purposes.
5. Another related response to the COVID-19 pandemic has been an expansion of
an existing disaster-related program-the Economic Injury Disaster Loan(EIDL)-to provide
for loan assistance (including $10,000.00 advances)for small businesses and other eligible
entities for loans up to $2 million. The EIDL proceeds can be used to pay fixed debts, payroll,
accoimts payable and other bills that could have been paid had the disaster not occurred;
however,such loan proceeds are not intended to replace lost sales or profits or for expansion of
the business.
6. Unlike certain other types of SBA-guaranteed loans,EIDL funds are issued
directly firom the United States Treasury and applicants apply through the SBA via an online
portal and application. The EIDL application process, which also uses certain outside
contractors for system support, collects information concerning the business and the business
owner, including: information as to the gross revenues for the business prior to January 31,
Case 4:21-cr-00085-AWA-DEM Document 1 Filed 12/17/21 Page 3 of 8 PageID# 3
2020;the cost ofgoods sold; and infonnation as to any criminal history ofthe business owner.
Applicants electronically certify that the information provided is accurate and are warned that
any false statement or misrepresentation to the SBA or any misapplication ofloan proceeds may
result in sanctions, including criminal penalties.
COUNT ONE
THE UNITED STATES ATTORNEY CHARGES THAT:
Between in or about March 2020 and continuing imtil in or about at least May 2021,the
exact dates being unknown,in the Eastern District of Virginia and elsewhere, MALIK
MITCHUM and JENNA MITCHUM,the defendants herein, and other conspirators known and
unknown,did knowingly and willfully combine, conspire, confederate and agree with each other
and others known and unknown,to commit the following offense against the United States: to
knowingly devise and intend to devise a scheme and artifice to defraud and for obtaining money
and property by means of materially false and fraudulent pretenses, representations, and
promises affecting a financial institution, for which the defendants transmitted and caused to be
transmitted by means of wire communications in interstate conunerce certain writings, signs,
signals, and sounds for the pinpose of executing the scheme and artifice to defraud and for
obtaining money by means of materially false and fraudulent pretenses, representations, and
promises, in violation of Title 18, United States Code, Section 1343.
Case 4:21-cr-00085-AWA-DEM Document 1 Filed 12/17/21 Page 4 of 8 PageID# 4
WAYS.MANNER AND MEANS OF THE CONSPIRACY
The ways, manner, and means by which the foregoing objectives ofthe conspiracy to
commit wire fraud were to be accomplished included, but were not limited to the following:
1. The primary purpose ofthe conspiracy and scheme and artifice was for the
defendants to fraudulently obtain pandemic-related benefits in the form of SBA-sponsored
Economic Injury Disaster(EIDL)loans and SBA Paycheck Protection Program(PPP)loans.
2. It was further part ofthe conspiracy and scheme and artifice that the defendants
submitted applications for loans under the EIDL and PPP programs that contained false
statements, misrepresentations, omissions related to the defendant's income,employment, and
claimed business entities.
3. It was further part ofthe conspiracy and scheme and artifice that the defendants
falsely attested on their loan applications that the information presented was true and accurate.
4. It was further part ofthe conspiracy and scheme and artifice that the defendants
formed fictitious business entities such as Alpha 2 Omega Logistics, Southern by the Belle, A20
Auto Brokers,Pure Pressure, and Day and Night Trucking - all of which were used to
fraudulently apply for loans under the EIDL and PPP programs.
5. It was further part ofthe conspiracy and scheme and artifice that the defendants
fabricated bank statements and other documentation to falsely portray the fmancial activity of
their purported businesses in need ofEIDL and PPP funds.
6. It was further part ofthe conspiracy and scheme and artifice that the defendants
helped coconspirators fraudulently apply for EIDL and PPP funds and in some cases were paid a
percentage ofthe funds obtained.
Case 4:21-cr-00085-AWA-DEM Document 1 Filed 12/17/21 Page 5 of 8 PageID# 5
7. It was further part ofthe conspiracy and scheme and artifice that the defendants
and coconspirators caused actual loss in an amount not less than $1.4 million and intended loss
in an amount not less than $5.1 million.
8. It was further a part ofthe conspiracy and scheme and artifice that the Small
Business Administration, the Commonwealth of Virginia, and financial institutions like Ready
Capital Corporation and Newtek Small Business Finance, LLC,sustained pecuniary loss.
9. It was further part ofthe conspiracy and scheme and artifice to defiaud that the
defendants knowingly and willfully transmit and caused to be transmitted by means of wire
communication interstate commerce, certain signs, signals, and sounds, that is, the electronic
transmission ofinformation from terminals and/or computers within the Eastern District of
Virginia and terminals and/or computer servers located outside ofthe Commonwealth of
Virginia.
(In violation of Title 18,United States Code, Sections 1349 and 1343.)
Case 4:21-cr-00085-AWA-DEM Document 1 Filed 12/17/21 Page 6 of 8 PageID# 6
FORPEITURE
1. The defendants, if convicted ofthe violation alleged in Count One,shall forfeit to
the United States, as part of sentencing pursuant to Federal Rule of Criminal Procedure 32.2, any
property constituting, or derived from,proceeds obtained directly or indirectly, as the result of
the violation.
2. If any property that is subject to forfeiture is not available, it is the intention ofthe
United States to seek an order forfeiting substitute assets to Title 21, United States Code, Section
853(p)and Federal Rule of Criminal Procedure 32.2(e).
(In accordance with Title 18,United States Code,982(a)(2)(A).)
Case 4:21-cr-00085-AWA-DEM Document 1 Filed 12/17/21 Page 7 of 8 PageID# 7
UNITED STATES v. MALIK MITCHUM AND JENNA MITCHUM,4:21-cr- 85
RespectMly submitted,
Jessica D. Aber
United States Atto:
By:
D. Mack Colema
Assistant United States Attorney
Eastern District of Virginia
Fountain Plaza Three, Suite 300
721 Lakejfront Commons
Newport News, Virginia 23606
Office: (757)591-4000
Fax: (757)591-0866
Email: mack.coleman@usdoj.gov
Case 4:21-cr-00085-AWA-DEM Document 1 Filed 12/17/21 Page 8 of 8 PageID# 8
CERTIFICATE OF SERVICE
I hereby certify that on December 17,2021,1 submitted the foregoing to the Clerk of
Court to be filed. I will send a notification ofsuch filing to counsel ofrecord for the defendant
Counsel for Malik Mitchum:
James Broccoletti
Zoby & Brocoletti
6663 Stoney Point S
Norfolk, Virginia 23502
james@zobybroccoletti.com
(757)466-0750
Counsel for Jenna Mitchum:
Richard Doummar
Law Office ofRichard H. Doummar
1397 Laskin Road
Virginia Beach, Virginia 23451
rdoummar@doummarlaw.com
(757)422-0061
By:
D. Mac^Colem^
Assistant United States Attorney
Eastern District of Virginia
Fountain Plaza Three, Suite 300
721 Lakeffont Commons
Newport News, Virginia 23606
Office:(757)591-4000
Fax:(757)591-0866
Email: mack.coleman@usdoj.gov
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