Information — United States v. Jeremy Earley (D.N.J.)
Summary
An Information in United States v. Jeremy Earley in the U.S. District Court for the District of New Jersey, brought after Earley waived prosecution by indictment, charging one count under 18 U.S.C. § 1957(a). It alleges that Rhonda Thomas, a co-conspirator charged elsewhere, submitted PPP loan applications listing Earley as owner of D2R Agency LLC and More Life Records LLC with false employee and payroll figures and false IRS Form 940 returns. According to the Information, Lender 1 disbursed approximately $362,500 for D2R Agency LLC on or about July 29, 2020 and Lender 2 disbursed approximately $956,250 for More Life Records LLC on or about February 24, 2021, and Earley wrote a check of $108,750 and three checks totaling $286,875 to businesses controlled by Thomas. The count rests on a wire of approximately $85,000 of More Life loan proceeds on or about July 12, 2022.
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2023R00238/DAF/JMR
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
UNITED STATES OF AMERICA : Crim. No. 23-
:
v. :
: 18 U.S.C. § 1957(a)
JEREMY EARLEY :
INFORMATION
The defendant having waived in open court prosecution by Indictment,
the United States Attorney for the District of New Jersey charges:
The Defendant and Co-Conspirators
1. At all times relevant to this Information:
a. The defendant, JEREMY EARLEY (“EARLEY”), resided in
Galloway, New Jersey. Defendant EARLEY owned or controlled the New Jersey
businesses D2R Agency LLC and More Life Records LLC.
b. Defendant JEREMY EARLEY maintained a business bank
account at Financial Institution 1 in the name of D2R Agency LLC. From on or
about January 1, 2021 through on or about May 17, 2021, EARLEY
maintained a business bank account at Financial Institution 1 in the name of
More Life Records LLC. Beginning on or about May 10, 2021, defendant
EARLEY maintained a business bank account at Financial Institution 2 in the
name of More Life Records LLC.
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c. Co-conspirator Rhonda Thomas (“Thomas”), who is a co-
conspirator not named as a defendant herein and charged elsewhere, resided
in Sicklerville, New Jersey.
d. Lender 1 and Lender 2 were “financial institutions” within
the meaning of Title 18, United States Code, Section 20, that participated as
lenders in the Paycheck Protection Program (“PPP”), as described herein.
e. The U.S. Small Business Administration (“SBA”) was an
independent agency of the federal government created to aid, counsel, assist,
and protect the interests of small business concerns, preserve free competitive
enterprise, and maintain and strengthen the overall economy of the United
States.
The Paycheck Protection Program
f. The Coronavirus Aid, Relief, and Economic Security
(“CARES”) Act was a federal law enacted in or around March 2020 and was
designed to provide emergency financial assistance to the millions of Americans
who suffered the economic effects caused by the COVID-19 pandemic. One
source of relief provided by the CARES Act was the authorization of billions of
dollars in forgivable loans to small businesses for job retention and certain
other expenses, through a program referred to as the Paycheck Protection
Program (“PPP”).
g. To obtain a PPP loan, a qualifying business had to submit a
PPP loan application signed by an authorized representative of the business.
The applicant of a PPP loan was required to acknowledge the program rules
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and make certain affirmative certifications in order to be eligible to obtain the
PPP loan. In the PPP loan application, the applicant had to state, among other
things, its average monthly payroll expenses and number of employees. These
figures were used to calculate the amount of money the business was eligible to
receive under the PPP. In addition, businesses applying for a PPP loan had to
provide documentation showing their payroll expenses.
h. A PPP loan application had to be processed by a participating
financial institution (the lender). If the PPP loan application was approved, the
lender 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.
i. PPP loan proceeds could only be used by the business for
certain permissible expenses, including 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 used 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.
Engaging in Monetary Transactions with Criminally Derived Funds
The D2R Agency LLC Loan and Subsequent Money Laundering
2. In or about July 2020, Rhonda Thomas submitted a PPP loan
application to Lender 1 on behalf of D2R Agency LLC seeking a loan for
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approximately $362,500 (the “D2R Application”). Thomas listed defendant
JEREMY EARLEY as “Owner.”
3. The D2R Application contained materially false and fraudulent
information, including that D2R Agency LLC had 17 employees and had an
average monthly payroll of $145,000.
4. As part of the D2R Application, Thomas submitted to Lender 1 a
materially false and fraudulent Internal Revenue Service (“IRS”) Form 940
(Employers Annual Federal Unemployment Tax Return) for 2019 showing that
D2R Agency LLC paid $1,728,000 in wages to employees during 2019. This
supporting document was created solely for purposes of applying for the PPP
loan and was never submitted to the IRS.
5. In fact, D2R Agency LLC had only one employee and paid minimal
wages in 2019.
6. Based on the D2R Application, Lender 1 approved the PPP loan to
D2R Agency and, on or about July 29, 2020, Lender 1 disbursed approximately
$362,500 to a bank account controlled by defendant JEREMY EARLEY in the
name of D2R Agency LLC at Financial Institution 1.
7. After the loan proceeds were paid into the D2R Agency LLC bank
account at Financial Institution 1, defendant JEREMY EARLEY wrote a check
in the amount of $108,750 to a business controlled by Rhonda Thomas, which
Thomas deposited into a bank account she controlled.
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The More Life Records LLC Loan and Subsequent Money Laundering
8. In or about February 2021, Rhonda Thomas submitted a PPP loan
application to Lender 2 on behalf of More Life Records LLC seeking a loan for
approximately $956,250 (the “More Life Application”). Thomas listed EARLEY
as “Owner.”
9. The More Life Application contained materially false and
fraudulent information, including that More Life Records LLC had 46
employees and had an average monthly payroll of $382,400.
10. As part of the More Life Application, Rhonda Thomas submitted to
Lender 1 a materially false and fraudulent IRS Form 940 (Employers Annual
Federal Unemployment Tax Return) for 2019 showing that More Life Records
LLC paid $4,590,000 in wages to employees during 2019. This supporting
document was created solely for purposes of applying for the PPP loan and was
never submitted to the IRS.
11. In fact, More Life Records LLC had no employees and paid no
wages in 2019.
12. Based on the More Life Application, Lender 2 approved the PPP
loan to More Life Records LLC and, on or about February 24, 2021, Lender 2
disbursed approximately $956,250 to a bank account controlled by defendant
JEREMY EARLEY in the name of More Life Records LLC at Financial
Institution 1.
13. After the loan proceeds were paid into the More Life Records LLC
bank account at Financial Institution 1, defendant JERMEY EARLEY wrote 3
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checks totaling $286,875 to businesses controlled by Rhonda Thomas, which
Thomas deposited into bank accounts she controlled.
14. On or about May 10, 2021, defendant JEREMY EARLEY opened a
business bank account in the name of More Life Records LLC at Financial
Institution 2. Defendant EARLEY was the sole signatory on this account.
15. On or about May 17, 2021, defendant JEREMY EARLEY wired
approximately $411,620 from the fraudulently obtained More Life PPP loan
referenced above from the More Life Records LLC bank account at Financial
Institution 1 into the More Life Records LLC bank account at Financial
Institution 2.
16. On or about July 12, 2022, defendant JEREMY EARLEY wired
$85,000 consisting of proceeds of the fraudulent More Life Records LLC PPP
loan out of the Financial Institution 2 More Life Records LLC bank account to
an account at Financial Institution 3.
17. On or about July 12, 2022, in Atlantic County, in the District of
New Jersey and elsewhere, the defendant,
JEREMY EARLEY,
did knowingly engage and attempt to engage in a monetary transaction
through a financial institution, affecting interstate and foreign commerce,
in criminally derived property of a value greater than $10,000, specifically by
wiring approximately $85,000 from the More Life Records LLC bank account at
Financial Institution 2, such property having been derived from a specified
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unlawful activity, namely, bank fraud, contrary to Title 18, United States Code,
Section 1344.
In violation of Title 18, United States Code, Section 1957(a).
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FORFEITURE ALLEGATION
1. As the result of committing the money laundering conspiracy
offense in violation of 18 U.S.C. § 1957(a)(1) alleged in this Information, the
defendant,
JEREMY EARLEY
shall forfeit to the United States, pursuant to 18 U.S.C. § 982(a)(1), all
property, real and personal, involved in the money laundering offense, and all
property traceable to such property.
Substitute Assets Provision
2. If any of the property described above, as a result of any act or
omission of the defendants:
a. cannot be located upon the exercise of due diligence;
b. has been transferred of sold to, or deposited with, a third party;
c. has been placed beyond the jurisdiction of the court;
d. has been substantially diminished in value; or
e. has been commingled with other property which cannot be divided
without difficulty,
the United States shall be entitled, pursuant to 21 U.S.C. § 853(p), as
incorporated by 18 U.S.C. § 982(b), to forfeiture of any other property of the
defendants up to the value of the above-described forfeitable property.
_______________________
PHILIP R. SELLINGER
United States Attorney
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CASE NUMBER: _____________
═════════════════════════════════
United States District Court
District of New Jersey
═════════════════════════════════
UNITED STATES OF AMERICA
v.
JEREMY EARLEY
═════════════════════════════════
INFORMATION FOR
18 U.S.C. § 1957(a)
═════════════════════════════════
PHILIP R. SELLINGER
UNITED STATES ATTORNEY
FOR THE DISTRICT OF NEW JERSEY
═════════════════════════════════
DANIEL A. FRIEDMAN
JASON M. RICHARDSON
ASSISTANT U.S. ATTORNEYS
CAMDEN, NEW JERSEY
(856) 757-5026
═════════════════════════════════
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