Information — United States v. Tracy Kirkland, Southern District of Georgia (Document 1)
Summary
An Information in United States of America v. Tracy Kirkland, Information No. 6:21cr-002, Case 6:21-cr-00002-JRH-CLR, Document 1, in the U.S. District Court for the Southern District of Georgia, Statesboro Division, filed February 19, 2021, citing 18 U.S.C. § 1343 (Wire Fraud) and 18 U.S.C. § 2 (Aiding and Abetting). It alleges that from in or around May 2020 through at least in or around August 2020 Kirkland devised a scheme to submit false loan applications to the SBA for an EIDL and to Financial Institution 1 for a PPP loan. It alleges that Kirkland falsely affirmed in an EIDL application on or about July 30, 2020 that she operated a business named Kirklands Hair N Beauty with three employees. Count One lists a wire transfer of $66,400 on August 12, 2020.
Summary drafted by a model from the document's text below 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. Tracy Kirkland, Southern District of Georgia (Document 1).”
Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/information-no-6-21-cr-00002-dkt-1-1ca3bb503d/
, SHA-256 5d3e697f13369d9209b8e1b94ea788dcbf53b8f9c88b9d30f87e2146fcc2f0f5.Full text
Case 6:21-cr-00002-JRH-CLR Document 1 Filed 02/19/21 Page 1 of 7
FILED
John E. Triplett, Acting Clerk
United States District Court
By jburrell at 3:50 pm, Feb 19, 2021
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF GEORGIA
STATESBORO DIVISION
UNITED STATES OF AMERICA ) INFORMATION NO. 6:21cr-002
)
v. ) 18 u.s.c. § 1343
) Wire Fraud
TRACY KIRKLAND )
) 18 u.s.c. § 2
) Aiding and Abetting
THE UNITED STATES ATTORNEY CHARGES THAT:
At all times relevant to this case:
1. Financial Institution 1 was a federally insured financial institution
based in Georgia. Financial Institution 1 was an SBA Preferred Lender and
participated as a PPP lender to small businesses.
The Small Business Administration and the CARES Act
2. 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.
3. As part of this effort, the SBA enabled and provided for loans through
banks, credit unions, and other lenders that had government-backed guarantees. The
SBA also provided direct loans.
4. In or around March 2020, the Coronavirus Aid, Relief, and Economic
Security ("CARES") Act was enacted to provide emergency financial assistance to the
millions of Americans suffering adverse economic effects caused by the COVID-19
Case 6:21-cr-00002-JRH-CLR Document 1 Filed 02/19/21 Page 2 of 7
pandemic. The CARES Act established several new temporary programs and
provided for expansion of others, including programs created and/or administered by
the SBA.
The Paycheck Protection Program
5. One source of relief provided by the CARES Act was the authorization
of up to $349 billion in forgivable loans to small businesses for job retention and
certain other expenses, through a program referred to as the Paycheck Protection
Program ("PPP"). In or around April 2020, Congress autho1·ized over $300 billion in
additional PPP funding.
6. In order to obtain a PPP loan, a qualifying business was required to
submit 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, the small business (through its authorized representative) was required
to state, among other things, its: (i) average monthly payroll expenses; and (ii)
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 showing their payroll
expenses.
7. A PPP loan application was required to be processed by a participating
financial institution ("lender"). If a PPP loan application was approved, the lender
2
Case 6:21-cr-00002-JRH-CLR Document 1 Filed 02/19/21 Page 3 of 7
funded the PPP loan using its own monies, which were 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.
8. 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 SpE:;nt the loan proceeds on these expense items within a designated period
of time after receiving the proceeds and used a certain amount of the PPP loan
proceeds on payroll expenses.
The Economic Injury Disaster Loan Program
9. The Economic Injury Disaster Loan ("EIDL") program was an SBA
program that provided low-interest financing to small businesses, renters, and
homeowners in regions affected by declared disasters.
10. The CARES Act authorized the SBA to provide EIDLs to eligible small
businesses experiencing substantial financial disruptions due to the COVID-19
pandemic. In addition, the CARES Act authorized the SBA to issue advances of up to
$10,000 to small businesses. The amount of the advance was determined by the
number of employees the applicant certified having. The advances did not have to be
repaid.
11. In order to obtain an EIDL and advance, a qualifying business was
required to submit an application to the SBA and provide information about its
3
Case 6:21-cr-00002-JRH-CLR Document 1 Filed 02/19/21 Page 4 of 7
operations, such as the number of employees, gross revenue for the 12-month period
preceding the disaster, and cost of goods sold in the 12-month period preceding the
disaster. In the case o{EIDLs for COVID-19 relief, the 12-month period was that
preceding January 31, 2020. The applicant was also required to certify that all of the
information in the application was true and correct to the best of the applicant's
knowledge.
12. EIDL applications were submitted directly to the SBA and processed by
the agency with support from a government contractor, Rapid Finance. The amount
of the loan, if the application was approved, was determined based, in part, on the
information provided in the application concerning the number of employees, gross
revenue, and cost of goods, as described above. Any funds issued under an EIDL or·
advance were issued. directly by the SBA. EIDL funds were permitted to be used for
payroll expenses, sick leave, production costs, and business obligations, such as debts,
rent, and mortgage payments. If the applicant also obtained a loan under the PPP,
the EIDL funds were not permitted to be used for the same purpose as the PPP funds.
The Scheme to Defraud
13. From in or around May 2020, continuing up to and including at least in
or around August 2020, Defendant KIRKLAND devised a scheme to defraud by
submitting and causing to be submitted false and fraudulent loan applications (i) to
the SBA in order to obtain funds through the EIDL program and (ii) to Financial
Institution 1 in order to obtain funds through the PPP.
4
Case 6:21-cr-00002-JRH-CLR Document 1 Filed 02/19/21 Page 5 of 7
Object of the Scheme to Defraud
14. It was the purpose of the scheme for Defendant KIRKLAND to unjustly
enrich herself and others by obtaining EIDL and PPP loan proceeds under false and
misleading pretenses, including by making false statements that she operated a she
operated a business named "Kirklands Hair N Beauty" located in Swainsboro,
Georgia, when she did not.
Manner and Means
15. On or about July 30, 2020, Defendant KIRKLAND applied
electronically for an EIDL from the SBA ("SBA Loan #6059798202). In connection
with her EIDL Application, Defendant KIRKLAND falsely affirmed, among other
information, that she operated a business named "Kirklands Hair N Beauty" located
in Swainsboro, Georgia, and that the business had three employees, and in the twelve
months prior to the disaster, had $253,423 in gross revenues and $120,673 in cost of
goods sold. On or about August 10, 2020, EIDL Application was approved for an
EIDL loan in the amount of $66,400.
16. On or about August 12, 2020, approximately $66,400 in PPP funds were
deposited into an account controlled by Defendant KIRKLAND at Financial
Institution 1.
5
Case 6:21-cr-00002-JRH-CLR Document 1 Filed 02/19/21 Page 6 of 7
COUNT ONE
Wire Fraud
18 U.S.C. § 1343
17. Paragraphs 1-16 of this Information are realleged and incorporated herein.
18. Beginning in or about May 2020, and continuing until in or about
August 2020, within the Southern District of Georgia, and elsewhere, the defendant,
TRACY KIRKLAND,
and others known and unknown to the grand jury, aided and abetted by each other,
having knowingly devised and intended 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, did transmit and cause to be transmitted
by means of wire communications in-interstate commerce, writings, signs, signals,
pictures, and sounds for the purpose of executing such scheme and artifice, as set
forth below:
Count Approximate Date Description
1 August 12, 2020 Wire transfer of $66,400 that the SBA, ln
Colorado, caused to be routed in interstate
commerce to Defendant KIRKLAND's
account at Financial Institution 1.
All in violation of Title 18, United States Code, Section 1343 and 2.
6
Case 6:21-cr-00002-JRH-CLR Document 1 Filed 02/19/21 Page 7 of 7
y~
. Kat1 I. Knoche Steven H. Lee
Assistant United States Attorney Assistant United States Attorney
Chief, Criminal Division * Lead Counsel
7
File and source
- File
- 1-information.pdf
- Size
- 95,260 bytes
- SHA-256
- 5d3e697f13369d9209b8e1b94ea788dcbf53b8f9c88b9d30f87e2146fcc2f0f5
- Our copy
- 1-information.pdf
- Original
- archive.org