Information — United States v. Omar Smith, Southern District of Florida (Document 1)
Summary
An Information in United States of America v. Omar Smith, Case 9:22-cr-80074-RLR, in the U.S. District Court for the Southern District of Florida, filed May 9, 2022 as Document 1. COUNT 1 charges conspiracy to commit bank fraud and wire fraud under Title 18, United States Code, Section 1349. It alleges that Smith, president of A Star For 1, agreed to pay 20% of the PPP loan proceeds to a co-conspirator, and that the loan application requested $212,500 while falsely stating 30 employees and an average monthly payroll of $85,000, supported by a false IRS Form 941. It alleges that Bank 1 wired $212,500 and that Smith transferred $42,500 to a coconspirator on or about June 10, 2020. The forfeiture allegation seeks a sum of at least $212,500 under Section 982(a)(2)(A).
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“Information — United States v. Omar Smith, Southern District of Florida (Document 1).”
Original at ecf.flsd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/information-usa-v-smith-dkt-1-s-d-fla-cf6e7d1cc9/
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Case 9:22-cr-80074-RLR Document 1 Entered on FLSD Docket 05/09/2022 Page 1 of 10
UNITED STATES DISTRICT COURT
SOUTH ERN DISTRICT O F FLO RIDA
CASENO. 22-80074-CR-RO SEN BERG/RE1N H ART
18U.S.C.5 1319
18U.S.C.: 982(a)(2)(A)
UNITED STATES OF AM ERICA t
)
FILED BY AT Dc
1 @
M ay 9,2022
OM A R SM ITH, ANGELA E.NOBLE
CLERK t!$ DIST CTL
s . o.oriuk,
.-I.'i'I.
-
Defendant.
INFORM ATIO N
TheUnited StatesAttorney chr gesthat:
GENER AL ALLEGATIONS
Ata11timesm aterialto thisInformation;
ThePgyçheck Protection Praaram
TheCoronavirusAid,Relief,andEconomicSectlrity($çCA1tES'')Actwasafederal
law enacted in oraround M arch 2020 and designed to provide emergency financialassistance to
the m illions ofAm ericans who were suffering the economic effects caused by the C0V 1D-19
pandem ic.One source ofreliefprovidcd by thc CARES Actwasthe authorization offorgivable
loanstosmallbusinessesforjobretentionandcertainotherexpenses,through aprogram referred
Jt
toasthePaycheckProtection Progrâm (ç$PPP'').
1
2. lnordertoobtain aPPP loan,aqualifyingbusinesssubm ittedaPPP loan application,
which was signed by an authorized representative of the business. The PPP loan application
requiredthebusiness(thzoughitsauthorizedrepresentative)toacknowledgetheprogram rulesand
Case 9:22-cr-80074-RLR Document 1 Entered on FLSD Docket 05/09/2022 Page 2 of 10
make eertain affirm ative certitk ationsin orderto be eligible to obtain the PPP loan. ln the PPP
loan application ((SmallBusiness Administration ((tSBA'') Fol'm 2483)),the smallbusiness
(tllroughitsauthorizedrepresentative)wasrequiredtoprovide,amongotherthings,its:(a)average
monthlypayrollexpenses;and(b)numberofemployees.Thesefigureswereusedtocalculatethe
am ountofm oney thesmallbusinesswaseligible to receiveunderthePPP. Businessesapplying
for a PPP loan were required to provide docum entation confirming theirpayroll expenses. In
general,an employerwasobligated to reporttothelnternalRevenue Serviee (çkIRS'')aftereaeh
calendarquarter,with an 1RS Form 941, thenum berofsalaried employeeswho received 1RS W -
2sand thenmount,in total,the employeeswerepaid forthatcalendarquarter.
3. A PPP 1oan application wasprocessed by a participating lenderorloan processor.
lfaPPP loan applicationw asapproved,theparticipating lenderfunded thePPP loan using itsown
m onies.W hile itwas the participating lender that issued the PPP loan, the loan w as 100%
guaranteed by the SBA.Datafrom theapplication,including information aboutthebonower, the
totalamountoftheloan,and the listednum berofemployees,wastransmitted by thelenderto the
SBA in the courseofprocessing theloan.
PPP loan proceeds were required to be used by the business to pay expenses
necessary to continue the operations ofthe business,including the payrollcosts ofemployees,
interest on mortgages,rent,and utilities.The interest and principalon the PPP loan could be
entirelyforgivenifthebusinessspenttheloanproceedson theseexpenseitemswithin adesignated
period oftime and used a detinedportion ofthePPP loan proceedson payrollexpenses.
Case 9:22-cr-80074-RLR Document 1 Entered on FLSD Docket 05/09/2022 Page 3 of 10
The Financiallnstitution
Balzk 1wasa lendinginstitution based in SaltLakeCity, Utah,thatwasinsured by
theFederallnsuranceDepositCom oration. Barlk 1wasan approved SBA lenderofPPP loans.
Bank Processor lwasathird-party processor,based in Redwood City, California,
thatprocessed PPP loan applicationsthrough a server located in N orthern Virginia forBank 1.
Smallbusinessesseeking PPP loanscould apply electronically tluough Bank Processor1forPPP
loans. Bank Processor 1 would review the loan application and, if approved,a partner bank
disbursed theloan fundstothe applieantviathe interstatebanking system .
The D efendantand the D efendant'sC om panv
7. A StarFor1,1nc.,(6çA StarFor15')wasaFloridacorporationwithitslistedprincipal
addressin RoyalPalm Beach,Florida.
8. DefendantOM AR SM ITH wasthepresidentofA StarFor1.
A StarForlhadacheeking aceountatanationalbnnktûsBank 2''),anddefendant
SM ITH had check signing authority on thataccount.
COUNT 1
C onspiracy to C om m itBank Fraud and W ire Fraud
(18 U.S.C.k 1349)
TheGeneralAllegationssedion ofthislnform ation isre-alleged and incop orated
by referenceasthough fully setforth herein.
From in oraround June 2020 through in oraround Odober2020, in Palm B each
County,in the Southem DistrictofFlorida,and elsewhere,thedefendant,
O M A R SM ITH ,
Case 9:22-cr-80074-RLR Document 1 Entered on FLSD Docket 05/09/2022 Page 4 of 10
did willfully,thatis,with the intentto furtherthe objective ofthe conspiracy,and knowingly
combine,conspire,confederate,and agree with othersknown and unknown to the United States
Attom ey,to commitan offenseagainsttheUnited States,thatis:
toknowingly,andwiththeintentto defraud,execute, and causetheexecution of,a
schem e and artificeto defraud a finmw ialinstitution,which scheme and artitice would employ a
m aterialfalsehood,andtoknowingly,and with intenttodefraud, execute,and cause the execution
of,ascheme and artificeto obtain money and ftm dsowned by, and tmderthe custody and control
of,a financialinstitution,by meansofm aterially false and fraudulentpretenses, representations,
and prom ises relating to a m aterial fact,in violation of Title 18,U nited States Code, Seetions
1344(1)and (2);and
toknowingly,and with theintentto defraud,devise,and intend to devise,a scheme
and artifice to defraud, and to obtain m oney and property by m eans of m aterially false and
fraudulentpretenses,representations,and prom ises,knowing thatthe pretenses,representations,
andprom iseswerefalseandfraudulentwhen made,and,forthepurpose ofexecuting theschem e
and artifice,did know ingly transm itand cause to be transm itted,by m eans ofw ire eom m unication
in interstate and foreign eommerce,certain writings, signs,signals,pidures,and sounds, in
violation ofTitlel8,United StatesCode,Section 1343.
PURPOSE AND OBJECTIVE O F TH E CO NSPIR ACY
ltwasthepurposeand objectiveoftheconspiracy forthedefendantand hisco-
conspiratorsto unlawfullyenrichthemselvesby,among otherthings;(a)submittingandcausing
the subm ission ofa false and fraudulentapplication for a loan m ade available through the SB A to
provide reliefforthe eeonom ie effectscaused by the COV 1D -19 pandem ic, including PPP loans'
,
Case 9:22-cr-80074-RLR Document 1 Entered on FLSD Docket 05/09/2022 Page 5 of 10
and(b)divertingtheproceedsforthedefendant'sand co-conspirators'personaluse,theuseand
benefitofothers,and to furtherthe fraud.
M ANNER AND M EAN S OF THE CONSPIM CY
The m anner and m eans by which defendantSM ITH and his co-conspirators soughtto
accomplishthepurposeandobjectiveoftheconspiracyincluded,nmongothers,thefollowing:
4. In or aboutJune 2020,in violation of the conditions forobtaining a PPP loan,
defendantSM ITH unlawfully agreedtopay 20% ofthePPP loan proceedstoaeo-eonspiratorwho
would help defendantSM ITH obtain the loan.
5. On or about June 1,2020,defendant SM ITH caused a loan application to be
prepared by a co-conspirator requesting a PPP loan of $212,500 to be submitted online,by
interstate w ire com m unication,to Bank Processor 1.
Theloan application falsely stated thatA StarForlhad 30 em ployees and had an
averagemonthly payrollof$85,000 am onth.
In supportofthe loan applieation,an IRS Form 941 forthe firstquarterof2019
wasprepared by aco-conspiratorand wassubmitted online,by interstatewireeom munieation,to
Bank Processor1. The1RS Form 941falsely stated thatin the Erstquarterof2019 A StarForl
paidwagesof$255,000 and hadwitllheld from thosewagesfederalincometax of$24,040,social
security tax of$31,620,and M edicaretax of$7,395.
On or about June 2,2020,based on the false infonnation provided in the loan
application and supporting docum ent,Bank Processor 1approved the loan to A Star For Iand
Bank 1wire transferred $212,500,via interstate wire com munication,to the A StarForIbank
accountatBank 2.
Case 9:22-cr-80074-RLR Document 1 Entered on FLSD Docket 05/09/2022 Page 6 of 10
On or about June 10, 2020,defendant SM ITH transferred $42,500 to a co-
conspiratoraspaym entforobtaining the PPP loanforA StarFor1.
From in oraboutJuly 2020 through in or aboutOctober2020, defendantSM ITH
began issuing checks to persons in order to m ake it appear as if A Star For l had f'ull-tim e
em ployeesandwascom plying with the conditionsofthePPP loan.
11. Thepersonsreceiving thechecksdid little,ifany,work forA StarFor1.
Allin violation ofTitle 18,United StatesCode,Sedion 1349.
FORFEITURE ALLEGATION S
The allegations contained in this lnform ation are hereby re-alleged and by this
reference fully incorporated herein forthe purpose ofalleging forfeiture to the United Statesof
Am ericaofcertain propeo in whichthedefendant,OM AR SM ITH ,hasan interest.
Upon conviction ofa violation ofTitle 18,United States Code,Section 1349, as
alleged in this Information, the defendant shall forfeit to the United States any property
eonstituting,orderivedfrom ,proceedsobtained,diredlyorindiredly,astheresultofsueh offense,
pursuanttoTitle18,United StatesCode,Section 982(a)(2)(A).
Theproperty subjecttoforfeitureasaresultoftheallegedoffensesineludes,butis
notlim itedto,asum ofatleast$212,500,which representsthetotalamountoffundsderived from
theallegedoffenseandmay besoughtasaforfeituremoneyjudgment.
Ifanyoftheproperty subjecttoforfeiture,asaresultofany actoromissionofthe
defendant.
cnnnotbe located upon theexercise ofduediligence;
b. hasbeen transferred orsold to,ordepositedwith,athird person;
c. hasbeenplacedbeyondthejurisdictionoftheCourt;
Case 9:22-cr-80074-RLR Document 1 Entered on FLSD Docket 05/09/2022 Page 7 of 10
hasbeen substantially dim inished in value;or
hasbeen comm ingledw ith otherproperty which cannotbesubdividedwithout
difficulty,
theUnited Statesshallbeentitled to forfeiture ofsubstituteproperty undertheprovisionsofTitle
21,UnitedStatesCode,Section8531).
Allpursuantto Title 18,UnitedStatesCode,Sedion982(a)(2)(A)andtheproceduresset
forth in Title21,United StatesCode,Section 853,asincorporatedby Title 18, United StatesCode,
Section 982(b)(1).
/
JUAN ANT 10 GONZALEZ
UNITED STATES ATTORN EY
1
V. z
JEF A PL -.
A SSISTAN T 1..
1N 1 ED STA TES A TTORN EY
Case 9:22-cr-80074-RLR Document 1 Entered on FLSD Docket 05/09/2022 Page 8 of 10
U NITED STATES D ISTRICT CO URT
SO UTH ER N DISTRICT O F FLOR IDA
UNITED STA TES OF AM ERICA CA SE NO . :
CER TIFICA TE O F TR IAL A TT O R N EY *
OM AR SM ITH
/ Superseding Case Inform ation:
Defendant.
CourtDivision(selectone) New Defendantts)(YesorNo)
r M iami L Key W est L FTP Num berofN ew Defendants
r'FTL rz W PB TotalnumberofNew Counts
1do hereby certify that:
1. lhave carefully considered the allegationsofthe indictm ent, the numberof defendants,the num berofprobable
witnessesand thelegalcomplexitiesofthelndictment/lnformation attached hereto.
lam awarethattheinform ation supplied on thisstatementwillbereliedupon by theJudgesofthisCourtinsetting
theircalendarsand scheduling criminaltrialsunderthe mandateofthe Speedy TrialAct, Title28U.
S.C.j316l.
Interpreter:(YesorNo)No
Listlanguage and/ordialect:
Thiscasewilltake daysforthepartiestotry.
Pleasecheck appropriatecategory andtypeofoffenselisted below :
(Checkonlyone) (Checkonlyone)
l D 0 to 5days r Petty
11 L 6to 10days r M inor
IIl D 1lto 20days L M isdemeanor
IV L 21to 60days g Felony
V L 61daysand over
HasthiscasebeenpreviouslyfiledinthisDistrictCourt?(YesorNo)No
lfyes,Judge CaseN o.
Hasacomplaintbeenfiled inthismatler?(YesorNo)No
lfyes,M agistrateCaseNo.
DoesthiscaserelatetoapreviouslyfiledmatterinthisDistrictCourt?(YesorNo)No
Ifyes,Judge Case N o.
9. Defendantts)infederalcustodyasof
10. Defendantts)instatecustodyasof
ll. Rule 20 from the D istrictof
12. lsthisapotentialdeathpenaltycase?(YesorNo)No
l3. Doesthiscase originate from a matterpending in the Northern Region ofthe U .S.Attorney'sOffice
priortoAugust8,2014(Mag.JudgeShaniekMaynard?(YesorNo)No
l4. D oes thiscase originate from a m atterpending in the CentralRegion ofthe U .S.Attorney'sOffice
priortoOctober3,2019(M ag.JudgeJaredStrauss?(YesorNo)No
By: ' -
) ..
ef ey .K aplan
A ssistantUnited StatesAttorney
CourtID N o. 5500030
Case 9:22-cr-80074-RLR Document 1 Entered on FLSD Docket 05/09/2022 Page 9 of 10
UN ITED STATES DISTRICT C OU RT
SOU TH ER N DISTRICT OF FLO R IDA
PEN ALTY SHEET
Defendant's Nam e O M AR SM ITH
Case N o:
Count#:1
Conspiracy to Com m itBank Fraud and W ire Fraud
Title 18.United StatesCode.Section 1349
*(
M ax.Penalty: '' - - ' - ethe
grosslossor$1,000,000,5years'supervised release
*Refersonly to possibleterm ofinearceration,doesnotincludepossibletines,restitution,specialassessm ents,parale
termsorforfeituresthatmay beapplicable.
Case 9:22-cr-80074-RLR Document 1 Entered on FLSD Docket 05/09/2022 Page 10 of 10
AO455(Re&.01/09)Waiverofanlndictment .. ...'
L---''' . . .
. -.
U NITED STATESD ISTRICT C OURT
forthe
SouthernDistrictofFlorida
United StatesofAmerica )
V. ) CaseNo.
OMAR SM ITH, ) 22-80074-CR-ROSENBERG/RE1NHART
)
)
W AIVER OF AN INDICTM ENT
IunderstandthatIhavebeen accused ofoneormoreoffensespunishableby imprisonm entformore thanone
year. lwasadvised in open courtofmy rightsand thenatureofthe proposed chargesagainstme.
Afterreceiving thisadvice,lwaive my rightto prosecution by indictmentand consentto prosecution by
information.
(late:
De#ndant'
ssi
gnature
Signatureofdefendant'
sattorney
Printednameofdefendant'
sattorney
Judge'
ssignature
Judge'
sprintednameand title
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