Information — United States v. Marisa Beck, Eastern District of Washington (ECF No. 1)

Summary

An Information filed May 12, 2023 as ECF No. 1 in United States v. Marisa Beck, Case No. 2:23-CR-55-MKD, in the U.S. District Court for the Eastern District of Washington, charging one count of false, fictitious or fraudulent claims under 18 U.S.C. § 287. It alleges that from about April 2, 2020 through at least January 18, 2022 Beck submitted PPP and EIDL applications for Cyra Solar, LLC, Beck N' Call Landscape, LLC and Value in People Consulting using false W-3 forms, a fabricated 1099 report and inflated revenue figures. It lists a $45,717 PPP loan, a $70,900 EIDL and a PPP loan of $69,012 requested for Beck N' Call Landscape, and states the applications caused a loss of $368,829 in CARES Act funding. The count rests on the January 18, 2022 forgiveness request for the Beck N' Call Landscape loan.

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“Information — United States v. Marisa Beck, Eastern District of Washington (ECF No. 1).” Original at ecf.waed.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/information-usa-v-beck-dkt-1-e-d-wash-932c2176b9/, SHA-256 d56091a2b91be1c93d4a87d3165970fa1a14769d0e658c0a54e30e6e3580c8d2.

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Case 2:23-cr-00055-SAB ECF No. 1 filed 05/12/23 PageID.1 Page 1 of 10

FILED IN THE
U.S. DISTRICT COURT
EASTERN DISTRICT OF WASHINGTON

1 Vanessa R. Waldref May 12, 2023
United States Attorney
2 Eastern District of Washington SEAN F. M AVOY, CLERK C

3 Dan Fruchter
Tyler H.L. Tornabene
4 Assistant United States Attorneys
5 Post Office Box 1494
Spokane, WA 99210-1494
6 Telephone: (509) 353-2767
7
UNITED STATES DISTRICT COURT
8 FOR THE EASTERN DISTRICT OF WASHINGTON
9
UNITED STATES OF AMERICA, Case No.: 2:23-CR-55-MKD
10
Plaintiff, INFORMATION
11
12 v.
Vio: 18 U.S.C. § 287
13
False, Fictitious, or Fraudulent
14 MARISA BECK, Claims
Defendant.
15
16
17 The United States Attorney charges:

18 General Allegations

19 At all relevant times relevant to this Information:

20 1. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”)

21 was a federal law enacted on March 27, 2020, designed to provide emergency financial
22 assistance to the millions of Americans who were suffering the economic effects caused
23 by the COVID-19 pandemic. One source of relief provided by the CARES Act was the
24 authorization of forgivable loans to small businesses for job retention and other certain
25 expenses, through a program referred to as the Paycheck Protection Program (“PPP”).
26 2. In order to obtain a PPP loan, a qualifying business was required to submit
27 a PPP loan application signed by an authorized representative of the business. The PPP
28 loan application required the business (through its authorized representative) to
INFORMATION - 1
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acknowledge the program rules and make certain affirmative certifications in order to
1
be eligible to obtain the PPP loan. In the PPP loan application, the applicant (through
2
its authorized representative) was required to state, among other things: (a) its average
3
monthly payroll expenses; and (b) its number of employees. If the applicant had no
4
employees other than the owner, the applicant was required to provide the gross income
5
amount from a 2019 or 2020 IRS Form 1040, Schedule C. These figures were used to
6
calculate the amount of money the small business was eligible to receive under the PPP.
7
Additionally, the applicant was required to certify that they were in operation as of
8
February 15, 2020. The applicant was also required to certify that the information in
9
the application was true and correct to the best of the applicant’s knowledge.
10
3. A business’s PPP loan application was received and processed, in the first
11
instance, by a participating lender. If a PPP loan application was approved, the
12
13 participating lender funded the PPP loan using its own monies. Data from the
14 application, including information about the borrower, the total amount of the loan, the
15 listed number of employees, and the gross income amount, was transmitted by the
16 lender to the Small Business Administration (“SBA”), an agency of the United States,
17 in the course of processing the loan.
18 4. PPP applications are received in cloud-based platforms. The location of

19 the server through which the PPP application is submitted is based on the date the
20 application was processed by the SBA and the application number. During the time
21 period relevant to this Indictment, all PPP applications were received through the
22 Summit platform, a cloud-based platform utilizing the AWS GOV cloud servers located
23 in Oregon. PPP lenders submitted disbursement details into the SBA E-Tran system in
24 Sterling, Virginia. E-Tran transmitted the PPP processing fee to the lender through the
25 FMS system to the Treasury. The primary server for FMS is in Sterling, Virginia.
26 5. In addition to the PPP program, the CARES Act also authorized the

27 Economic Injury Disaster Loan (EIDL) program. EIDL is an SBA program that
28 provides low-interest funding to small businesses, renters, and homeowners affected by
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declared disasters. In order to obtain an EIDL, and/or advance, a qualifying business
1
must submit an application to the SBA and provide information about its operations,
2
such as the number of employees, gross revenues for the 12-month period preceding the
3
disaster, and cost of goods sold in the 12-month period preceding the disaster. In the
4
case of EIDLs for COVID-19 relief, the 12-month period was the year preceding
5
January 31, 2020. The applicant must also certify that all the information in the
6
application is true and correct to the best of the applicant’s knowledge. The amount of
7
an EIDL, if the application is approved, is determined based, in part, on the information
8
provided in the application about employment, revenue, and costs of goods, as set forth
9
above. Any funds issued under an EIDL or advance are issued directly by the SBA.
10
EIDL funds can be used for payroll expenses, sick leave, production costs, and business
11
obligations, such as debts, rent, and mortgage payments. If the applicant also obtains a
12
13 loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP
14 funds.
15 6. Beginning no later than on or about April 2, 2020, and continuing through

16 at least January 18, 2022, in the Eastern District of Washington and elsewhere,
17 Defendant devised and intended to devise a scheme to defraud the SBA, and to obtain
18 money and property by means of materially false and fraudulent pretenses,
19 representations, and promises.
20 7. EIDL applications are received in cloud-based platforms. The location of

21 the server through which the EIDL application is submitted is based on the date the
22 application was processed by SBA and the application number. During the time period
23 relevant to this Indictment, all EIDL applications were received in a Microsoft cloud-
24 based platform using a Rapid Finance application, through SBA servers located in Des
25 Moines, Iowa.
26 PPP Loan No. 4870587409

27 8. On or about May 11, 2020, Defendant submitted an application for PPP

28 loan number 4870587409 through Kabbage, Inc., a PPP servicing lender, to the SBA
INFORMATION - 3
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under the name of her purportedly active business, Cyra Solar, LLC. Cyra Solar was
1
incorporated in Arizona, on or about November 7, 2019, and also operates in Texas.
2
Kabbage records indicate that Defendant created three separate loan application files,
3
one of which was actually approved and funded. Each of the applications were signed
4
and/or submitted by Defendant.
5
9. Defendant provided purported 2019 IRS W-3 Forms as supporting
6
documentation for the applications. For each of the three applications, Defendant
7
submitted false and fraudulent IRS W-3 Forms from the 2019 calendar year. Each of
8
these purported 2019 W-3 forms reported inconsistent wage, tips, or other
9
compensation amounts. For example, one of the 2019 W-3s indicated that Cyra Solar
10
purportedly earned $218,124.13, while another W-3 indicated earnings of $318,124.13,
11
and still another W-3 indicated $214,333.28 in earnings. Despite the various earnings
12
13 figures reported across the multiple the purported W-3 forms, records from Texas
14 Workforce Commission and Arizona Department of Economic Security did not reflect
15 any wages paid by the business for the calendar year 2019.
16 10. For the loan application that was approved, Defendant also supplied a

17 purported 1099 Form titled “CyraSolar1099Report2019,” which showed payments of
18 $262,500 to eight employees from July 1, 2019, to December 30, 2019, from a Chase
19 Bank Account ending in 9371. However, the JP Morgan Chase Bank Account ending
20 in 9371 was not opened until February 18, 2020. Based on the false and fictitious
21 information submitted, Defendant requested a PPP loan for the business in the amount
22 of $45,717 into Defendant’s JP Morgan Chase Account ending in 9371.
23 11. Defendant’s representations were materially false and fraudulent.

24 Quarterly wage and earnings records indicate Defendant paid wages to employees only
25 during two quarters between 2017 and 2022. Accordingly, Defendant’s reported
26 average monthly payroll, Form 1099, and each of the three W-3 forms were false as
27 Defendant was not paying any employees at the time that she submitted the application.
28 12. PPP loan number 4870587409 was handled by Cross River Bank, a
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federally-insured financial institution located in Fort Lee, New Jersey on a delegated
1
basis from the SBA. On or about May 11, 2020, as a result of the fraudulent scheme
2
described above, and based on the materially false and fraudulent information supplied
3
by Defendant, Cross River Bank disbursed $45,717 into Defendant’s JP Morgan Chase
4
Account ending in 9371. On or about January 10, 2022, from and while residing in the
5
Eastern District of Washington, Defendant falsely and fraudulently requested
6
forgiveness of PPP number 4870587409, representing that those proceeds had been
7
used for eligible uses and expenses.
8
13. Defendant’s JP Morgan Chase Account ending in 9371 was opened on or
9
about February 2020, and had a balance of $100 or less before it received the PPP
10
funds on or about May 13, 2020.
11
EIDL No. 2894447909
12
13 14. On or about April 2, 2020, Defendant submitted an application for EIDL

14 loan number 2894447909 to the SBA in the name of her purportedly active business,
15 Cyra Solar. In the EIDL application, Defendant falsely represented that the purportedly
16 active business had earned $236,465 in the calendar year 2019. As supporting
17 documentation for the EIDL application, Defendant submitted a purported board
18 resolution that stated the Cyra Solar board had held a meeting on January 1, 2020, and
19 approved a COVID-19 EIDL loan for $70,900.
20 15. These representations were materially false and fraudulent. In fact, Cyra

21 Solar’s income represented on the EIDL application was false, and no board existed for
22 the purportedly active business. Additionally, Cyra Solar did not have six employees at
23 the time of the submission of the EIDL application.
24 16. Using this false information, Defendant requested an EIDL loan for the

25 business in the amount of $70,900. The SBA approved the EIDL loan and $70,900 was
26 subsequently disbursed, via interstate wires, into the JP Morgan Chase Checking
27 Account ending in 9371. On or about June 22, 2020, and based on the false information
28 provided by Defendant, an EIDL advance of an additional $6,000 was approved and
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disbursed, via interstate wires, into Defendant’s JP Morgan Chase Checking Account
1
ending in 9371.
2
EIDL No. 3307378506
3
17. On or about June 29, 2020, Defendant submitted another application for
4
EIDL number 3307378506 for her purported business Cyra Solar, LLC using a different
5
TIN identification from the previously disbursed EIDL loan. On or about July 8, 2020,
6
an advance of $6,000 for EIDL number 3307378506 was disbursed into JP Morgan
7
Chase Checking Account ending in 6861. In this application, Defendant falsely claimed
8
$895,125 in gross revenues for the 2019 calendar year. On or about July 14, 2020,
9
Defendant received a letter from SBA denying Defendant’s application for EIDL loan
10
number 3307378506 for $150,000.
11
PPP No. 6764178101
12
13 18. On or about July 22, 2020, Defendant submitted an application for PPP

14 number 6764178101 to the SBA under the name of her purportedly active business Beck
15 ‘N Call Landscape, LLC, based in Arizona. Defendant falsely stated that that the
16 purportedly active company had six employees. Defendant provided a purported 2019
17 IRS Form W-3 as supporting documentation for the application for PPP number
18 6764178101. The purported W-3 documentation falsely stated that the company had
19 paid $324,152.25 in wages, tips, and other compensation during the 2019 calendar year.
20 Defendant fraudulently completed and signed the loan application, resolution to borrow,
21 and SBA note using her husband’s information and signature. The Defendant also
22 certified that the business was in operation on February 15, 2020. However, the Arizona
23 Corporation Commission indicated that the purportedly active business’s most recent
24 activity last occurred on, or around, December 30, 2013. The Arizona Department of
25 Economic Security also certified that there were no records associated with the
26 purportedly active business between January 1, 2017, and September 9, 2022.
27 19. Based on the false information she provided, Defendant requested a PPP

28 loan for the purportedly active business in the amount of $69,012. Defendant provided
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Defendant’s Joint Navy Federal Credit Union Savings Account ending in 5774, a
1
federally-insured financial institution through the National Credit Union
2
Administration, as the account for the purported business, and the account into which
3
funds would be deposited. Defendant certified that the information in the application
4
was true and correct to the best of her knowledge, under penalty of perjury and of other
5
criminal penalties for false information.
6
20. These representations were materially false and fraudulent. First,
7
Defendant acknowledges that she fraudulently signed the PPP application on behalf of
8
her husband, without his knowledge or consent. Moreover, neither Defendant nor her
9
purportedly active business had paid $324,125.25 in wages, tips, or other compensation
10
for the 2019 calendar year. Accordingly, neither the purportedly active business nor
11
Defendant were eligible for PPP funding. On or about July 22, 2020, as a result of the
12
13 fraudulent scheme, and the materially false and fraudulent information supplied by
14 Defendant, $69,102 in PPP funding was disbursed, via interstate wires, into Defendant’s
15 Joint Navy Federal Credit Union Savings Account ending in 5774, into which it was
16 deposited on July 24, 2022. At the time of the transfer, the account had a balance of
17 $5.00.
18 21. As part of the fraudulent scheme and from and while residing in the Eastern

19 District of Washington, on or about January 18, 2022, Defendant fraudulently requested
20 forgiveness of the entire PPP loan amount. Defendant represented that $60,000 of the
21 was spent on payroll costs for six employees of the purportedly active business. Based
22 on the false and fraudulent representations made by Defendant in the forgiveness
23 application, the SBA granted forgiveness of the full amount of PPP loan number
24 6764178101.
25 EIDL No. 2254048208

26 22. On or about July 14, 2020, Defendant submitted an application for EIDL

27 loan number 2254048208 to the SBA in the name of Beck ‘N Call Landscaping, LLC.
28 Defendant also falsely stated that the purportedly active business had six employees and
INFORMATION - 7
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earned $875,325 in gross revenue for the 2019 calendar year. Documents obtained from
1
the IRS, however, indicated that Beck ‘N Call Landscape, LLC did not file a tax return
2
or claim any income for calendar year 2019. Supporting document for the application
3
for EIDL loan number 2254048208 included a “Resolution of the Board” that indicated
4
that the board of Beck ‘N Call Landscaping, LLC purportedly held a meeting on
5
February 1, 2019, and approved the EIDL loan for $150,000. However, records obtained
6
from DocuSign indicated that the purported resolution document was signed on March
7
1, 2021. Defendant falsely and fraudulently completed and certified the application with
8
her husband’s name and signature without his consent or knowledge.
9
23. Based on that information, Defendant requested the EIDL loan for the
10
purportedly active business in the amount of $150,000 into Defendant’s Joint Navy
11
Federal Credit Union Savings Account ending in 5774. On or about August 1, 2020, as
12
13 a result of the fraudulent scheme and the materially false and fraudulent information
14 supplied by Defendant, the EIDL in the amount of $149,900 (the $150,000 EIDL
15 amount less a $100 processing fee) was disbursed via interstate wires to Defendant’s
16 Joint Navy Federal Credit Union Savings Account ending in 5774, into which it was
17 deposited on August 4, 2020.
18 EIDL No. 1125447910

19 24. On or about June 10, 2020, Defendant submitted an application for EIDL

20 number 1125447910 for her business, Value in People Consulting, LLC, requesting
21 $20,200. In her application, Defendant falsely and fraudulently stated that Value in
22 People Consulting earned $65,000 in revenue for the calendar year 2019. However, in
23 support of her application, Defendant submitted a 2019 IRS Schedule C indicating the
24 business only earned $10,000. Defendant certified that the funds for Value in People
25 Consulting would be used for authorized purposes and legitimate business expenses,
26 and that all information and documentation provided in her application was truthful and
27 accurate.
28 25. Defendant’s representations and certifications were materially false and
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fraudulent. Defendant falsely claimed that the business earned $65,000 in gross
1
revenue in 2019, but Defendant’s IRS 2019 Schedule C form indicated only $10,000
2
in gross receipts and sales. An email correspondence between the SBA and Defendant
3
also submitted a purported signed resolution from Value in People Consulting’s board
4
alleging approval for the loan for $20,000 on or about February 1, 2019.
5
26. EIDL number 1125447910 was handled by Itria Ventures LLC, a
6
federally-insured financial institution located in New York, New York on a delegated
7
basis from the SBA. Itria Ventures submitted disbursement details from this loan into
8
the SBA E-Tran system located in Fresno, California. On or about June 10, 2020, as a
9
result of the fraudulent scheme described above, and based on the materially false and
10
fraudulent information supplied by Defendant, Itria Ventures disbursed, via interstate
11
wires, $20,200 into Defendant’s Navy Federal Credit Union Account ending in 2723,
12
13 into which it was deposited on July 11, 2020. On or about June 23, 2020, an advance of
14 $1,000 was disbursed in Defendant’s Navy Federal Credit Union Account ending in
15 2723 by Itria Venture via interstate wires. By May 31, 2021, the Navy Federal Credit
16 Union Account ending in 2723 had a balance of $0.71 with minimal account activity.
17 27. In total, Defendant’s false and fraudulent PPP and EIDL applications

18 resulted in a loss of $368,829 in CARES Act funding to Beck N’ Call Landscape, Cyra
19 Solar, and Value in People Consulting.
20 COUNT 1

21 28. The allegations set forth in paragraphs 1 through 27 are realleged and

22 incorporated herein.
23 29. On or about January 18, 2022 in the Eastern District of Washington, the

24 Defendant, MARISA BECK, made and presented to the United States Small Business
25 Administration, a claim upon the United States for forgiveness of PPP No. 6764178101
26 in the name of Beck N’ Call Landscape, LLC, knowing that the claim was false and
27 fraudulent in that Beck N’ Call Landscape, LLC was not an active business eligible for
28 any PPP funding, that the business, tax, and financial information submitted by
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Defendant MARISA BECK in support of her application for PPP No. 6764178101 was
1
materially false and fraudulent; and that none of the PPP funds had been spent on payroll
2
for Beck N’ Call Landscape, LLC; all in violation of 18 U.S.C. § 287.
3
Dated this 12th day of May, 2023.
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Vanessa R. Waldref
6
United States Attorney
7
8
s/Dan Fruchter
9 Dan Fruchter
Assistant United States Attorney
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s/Tyler H.L. Tornabene
12
Tyler H.L. Tornabene
13 Assistant United States Attorney
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