Information — United States v. Patrick Parker Walsh (Dkt. 1, N.D. Fla.)
Summary
This Information in the Northern District of Florida (Gainesville Division) charges Patrick Parker Walsh with wire fraud and with a monetary transaction in criminally derived property. It alleges that between about April 7, 2020 and January 18, 2021 Walsh made false statements about employees and average monthly payroll in PPP and EIDL applications for 19 entities, including Airsign Inc, American Blimp Company LLC and Skywrite Aerial Advertising, submitted to lenders including Celtic, WebBank and Chase, and to the SBA. By this conduct, it says, Walsh fraudulently obtained and attempted to obtain more than $14,000,000. Count Two charges a wire transfer and ACH payment of $272,455.53 to Superior Loan Servicing. The government seeks a forfeiture money judgment of $7,818,167.00 and real property in Levy County, Florida, including Sweetheart Island, and in Eastland County, Texas.
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
Full text
Text recognized from a scanned document; may contain errors.
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF FLORIDA
GAINESVILLE DIVISION (oe
UNITED STATES OF AMERICA
v. INFORMATION
PATRICK PARKER WALSH
/
THE U.S. ATTORNEY CHARGES:
COUNT ONE
A. INTRODUCTION
At all times material to this Information: |
ki The United States Small Business Administration (“SBA”) was an
executive-branch agency of the United States government that provides 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.
Zi As part of this effort, the SBA enabled and provided for loans through
banks, credit unions, and other lenders. These loans had government-backed
guarantees.
The Paycheck Protection Program
3. 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 are suffering the
economic effects caused by the COVID-19 pandemic. 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 SBA Paycheck Protection Program ("PPP").
In or around April 2020, Congress authorized over $300 billion in additional PPP
funding.
4. In order to obtain a PPP loan, a qualifying business was required to
submit a PPP loan application, called an SBA Form 2483. 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 certify, among
other 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. In addition, businesses applying
for a PPP loan were required to provide documentation showing their payroll
2
expenses and that they were in business as of February 15, 2020. Further,
businesses applying for a PPP loan were required to make good faith
certifications, including that economic uncertainties had necessitated their loan
requests for continued business operations, and that they intended to use loan
proceeds only for the authorized, and not any duplicative, purposes.
5. PPP loan applications were required to be signed by an authorized
representative of the business. By signing PPP loan applications, applicants
attested that the information provided in the application and in all supporting
documents and forms was true and accurate, and that the applicant understood that
knowingly making a false statement to obtain a PPP loan was a crime.
6. PPP loan proceeds must have been used by the business on certain
permissible expenses- payroll costs, interest on mortgages, rent, and utilities. The
SBA 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 (usually eight weeks of receiving the proceeds) and used at least
75% of the PPP loan proceeds on payroll expenses.
7. A PPP loan application was required to be processed by a
participating financial institution (“the lender”). If a 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 loan application, including information
3
about the borrower, the total amount of the loan, and the listed number of
employees, was electronically transmitted by the lender to the SBA in the course
of processing the loan.
Economic Injury Disaster Loans
8. Another related response to the COVID-19 outbreak was an
expansion of an existing disaster-related program — the Economic Injury Disaster
Loan (“EIDL”) — to provide for loan assistance (including $10,000 advances) for
small businesses and other eligible entities for loans up to $2 million. The EIDL
proceeds could have been used to pay fixed debts, payroll, accounts payable, and
other bills that could have been paid had the disaster not occurred; however, such
loan proceeds were not intended to replace lost sales or profits, or for the
expansion of a business.
9. Unlike certain other types of SBA-guaranteed loans, EIDL funds were
issued directly from the United States Treasury, and applicants applied for EIDL
funds directly through the SBA via an online portal and application. The EIDL
application process, which also used certain outside contractors for system support,
collected information concerning the business and the business owner, including:
information about the gross revenues for the business prior to January 31, 2020;
and the cost of goods sold. Applicants electronically certified that the information
provided was true and accurate and were warned that any false statement or
4
misrepresentation to the SBA, or any misapplication of loan proceeds may result in
sanctions, including criminal penalties.
10. EIDL applications were received in and processed using computer
servers located in the states of lowa, Virginia, and Washington. EIDL
disbursement payments were initiated by the SBA using computer servers located
in the state of Colorado, which transmitted the payment information to the
Treasury using computer servers located in the state of Virginia.
Financial Institutions and Lenders
11. Celtic Bank (“Celtic”), WebBank, Renasant Bank, Trustmark
National Bank (‘“‘Trustmark”), First Home Bank, and J.P. Morgan Chase Bank
(“Chase”) were financial institutions, the deposits of which were federally insured
by the Federal Deposit Insurance Corporation, and which were headquartered
outside of the state of Florida. Celtic, WebBank, Renasant Bank, Trustmark, and
First Home Bank offered PPP loans to its customers.
12. Fountainhead SBF, LLC (“Fountainhead”) was a non-bank
commercial lender that offered SBA PPP loans to owners of small to midsize
businesses.
13. Newtek Small Business Financial, Inc. (“Newtek”) was a business
development company that offered SBA PPP loans to its clients. Newtek used
computer servers located outside of Florida to process loan applications for its
clients.
14. Harvest Small Business Finance, LLC (“Harvest”) was a non-bank
lender that offered SBA PPP loans to small business borrowers. Harvest used
computer servers located outside of Florida to process loan applications for its
clients.
B. THE CHARGE
Between on or about April 7, 2020, and on or about January 18, 2021, in the
Northern District of Florida and elsewhere, the defendant,
PATRICK PARKER WALSH,
did knowingly and willfully devise, and intend to devise, a scheme to defraud and
for obtaining money and property by means of materially false and fraudulent
pretenses, representations, and promises, and for the purpose of executing such
scheme, did cause a wire communication to be transmitted in interstate commerce.
C. SCHEME TO DEFRAUD
It was part of the scheme to defraud that:
1. PATRICK PARKER WALSH made and caused to be made false
and fraudulent representations in SBA PPP and EIDL loan applications and in
supporting loan documents submitted to Celtic, WebBank, Renasant Bank,
Trustmark, First Home Bank, Chase, Fountainhead, Newtek, Harvest, and the SBA
6
in the name of business entities, namely, Airsign Inc, Airsign Airships Latin
America, Eagle Ridge Management Group LLC, Airsign Airship Repair Station,
Shiloh Oil Company, Airsign Group, Airsign Airship Group, Walsh Family Land
Corp, Aero Capital LLC, Airsign Airships America, Airsign Airships Title,
American Blimp Company LLC, Airsign Airships Asia Pacific, Palmetto Springs
Plaza, Carter Oil, Airsign-MZ3A LLC, Mariena Oil Trust, Davis Oil, and Skywrite
Aerial Advertising, in order to falsely qualify for SBA PPP and EIDL loans.
2. PATRICK PARKER WALSH specifically attempted to cause and
caused Celtic, WebBank, Renasant Bank, Trustmark, First Home Bank, Chase,
Fountainhead, Newtek, Harvest, and the SBA to issue SBA PPP and EIDL loans,
and to disburse SBA PPP and EIDL loan proceeds to him based upon loan
applications, loan documents, and emails that falsely represented the number of
employees and average monthly payroll expenses for Airsign Inc, Airsign Airships
Latin America, Eagle Ridge Management Group LLC, Airsign Airship Repair
Station, Shiloh Oil Company, Airsign Group, Airsign Airship Group, Walsh
Family Land Corp, Aero Capital LLC, Airsign Airships America, Airsign Airships
Title, American Blimp Company LLC, Airsign Airships Asia Pacific, Palmetto
Springs Plaza, Carter Oil, Airsign-MZ3A LLC, Mariena Oil Trust, Davis Oil, and
Skywrite Aerial Advertising. In particular, the names and personal identification
information for some former and current employees of WALSH?’s business entities
7
were falsely duplicated and submitted as part of the SBA PPP and EIDL loan
applications for WALSH’s business entities for which the employees did not
work.
3. PATRICK PARKER WALSH electronically mailed and submitted,
and caused to be electronically mailed and submitted, false and fraudulent
documentation to Celtic, WebBank, Renasant Bank, Trustmark, First Home Bank,
Chase, Fountainhead, Newtek, Harvest, and the SBA for the SBA PPP and EIDL
loan applications.
4. PATRICK PARKER WALSH communicated, via email and
telephone, with the financial institutions at which he applied for SBA PPP loans,
and with Fountainhead, Newtek, Harvest, and the SBA, about the loan applications
and their status, and the funding of such loans.
5. By this conduct, PATRICK PARKER WALSH fraudulently
obtained and attempted to obtain more than $14,000,000 in monies and funds from
Celtic, WebBank, Renasant Bank, Trustmark, First Home Bank, Chase,
Fountainhead, Newtek, Harvest, and the SBA to which he was not entitled.
D. EXECUTION OF THE SCHEME
Between on or about April 23, 2020, and on or about May 27, 2020, for the
purpose of executing and attempting to execute the scheme to defraud, the
defendant, PATRICK PARKER WALSH knowingly did cause wire
8
communications to be transmitted in interstate commerce, to wit, a Paycheck
Protection Program Borrower Application Form (SBA Form 2483), a U.S. SBA
Note, a loan agreement, and an Agreement to Cooperate, to Fountainhead.
In violation of Title 18, United States Code, Sections 1343 and 2.
COUNT TWO
A. INTRODUCTION
The allegations of Section A of Count One is hereby realleged and
incorporated by reference as if fully set forth herein.
B. THE CHARGE
Between on or about April 20, 2020, and on or about November 10, 2020, in
the Northern District of Florida and elsewhere, the defendant,
PATRICK PARKER WALSH,
did knowingly engage and attempt to engage in a monetary transaction by,
through, and to a financial institution, affecting interstate commerce, in criminally
derived property of a value greater than $10,000, to wit, a wire transfer and ACH
payment of $272,455.53 to Superior Loan Servicing, such property having been
derived from a specified unlawful activity, that is, wire fraud, in violation of Title
18, United States Code, Section 1343, as charged in Count One of this Information.
In violation of Title 18, United States Code, Section 1957 and 2.
CRIMINAL FORFEITURE
The allegations contained in Counts One and Two of this Information are
hereby realleged and incorporated by reference for the purpose of alleging
forfeiture. From his engagement in the violations alleged in Counts One and Two
of this Information, the defendant,
PATRICK PARKER WALSH,
shall forfeit to the United States of America:
(A) pursuant to Title 18, United States Code, Section 982(a)(2), and Title
28, United States Code, Section 2461(c), upon conviction of an offense in violation
of Title 18, United States Code, Section 1343, as alleged in Count One of this
Information, any and all of the Defendant’s right, title, and interest in any property,
real and personal, constituting and derived from proceeds traceable to such
offense;
(B) pursuant to Title 18, United States Code, Section 982(a)(1), upon
conviction of an offense in violation of Title 18, United States Code, Section 1957,
as alleged in Count Two of this Information, any and all of the Defendant’s right,
title, and interest in any property, real and personal, involved in such offense, and
any property traceable to such property.
The United States will also seek a forfeiture money judgment in the sum of
$7,818,167.00, which is equal to the value of any property, real or personal, which:
10
1) constitutes or is derived from proceeds traceable to these offenses, and 2) is
involved in such offenses and any property traceable to such property. The
property subject to forfeiture includes, but is not limited to, the following:
l. Real property located and situated in Levy County, Florida, located at
17370 NE 75th Street, Williston, FL 32696, further described in Levy County
Official Records Book 1480 and Page 268 as
A PARCEL OF LAND LYING IN SECTION 23, INSIDE THE
ARREDONDO GRANT, TOWNSHIP 12 SOUTH, RANGE 18
EAST, LEVY COUNTY, FLORIDA, Parcel Identification #
04123-000-00.
2. Real property located and situated in Eastland County, Texas, located
at 7005 Hwy 183, Cisco, TX 76437, further described in Eastland County Official
Records Volume 2020 Page 3259 as
2.625 ACRES, ABST. 249, BLK. 3, SEC 65, H & TC RR,
EASTLAND COUNTY, TEXAS, Property Identification #
16937.
3. Real property located and situated in Levy County, Florida, located at
12 NW 5TH PL, WILLISTON, FL 32696, further described in Levy County
Official Records Book 1565 and Page 643 as
A PARCEL IN SECTION 31, TOWNSHIP 12 SOUTH,
RANGE 19 EAST, LEVY COUNTY, FLORIDA, Parcel
Identification # 04780-000-00.
1]
4. Real property located and situated in Levy County, Florida,
commonly known as “Sweetheart Island,” and further described in Levy County
Official Records Book 1534 and Page 942 as
LOTS 6 AND 9 IN SECTION 2, TOWNSHIP 17 SOUTH,
RANGE 15 EAST, LEVY COUNTY, FLORIDA, Parcel
Identification # 02290-000-00.
If any of the property described above as being subject to forfeiture, as a
result of acts or omissions of the defendant:
i.
li.
lil.
iv.
cannot be located upon the exercise of due diligence;
has been transferred, sold to, or deposited with a third party;
has been placed beyond the jurisdiction of this Court;
has been substantially diminished in value; or
has been commingled with other property that cannot be
subdivided without difficulty,
12
it is the intent of the United States, pursuant to Title 21, United States Code,
Section 853(p), as incorporated by Title 28, United States Code, Section 2461(c),
to seek forfeiture of any other property of said defendant up to the value of the
forfeitable property.
JUSTIN M. KEEN }°
Assistant United States Attorney
13
File and source
- File
- gov.uscourts.flnd.443309.1.0.pdf
- Size
- 496,180 bytes
- SHA-256
- 6e5e209cbf65fb2f3183c3c0fd7d70841d8789d6103859e4fb64ede3437a0c8b
- Our copy
- gov.uscourts.flnd.443309.1.0.pdf
- Original
- No public link identified.