Information — United States v. Ricky Lee Taylor, Jr., Eastern District of Tennessee (Document 1)

Summary

An Information in United States of America v. Ricky Lee Taylor, Jr., Document 1, in the U.S. District Court for the Eastern District of Tennessee at Chattanooga, filed August 9, 2024. Count One (Wire Fraud, 18 U.S.C. § 1343) alleges a scheme from in or about April 2020 through in or about at least February 2021 to obtain Paycheck Protection Program proceeds through fraudulent applications and supporting documents for business entities the defendant operated. It alleges that the defendant submitted (8) fraudulent applications and received approximately $1,800,000 in loans, including a Second Draw application on or about February 9, 2021 resulting in a disbursement of $437,500. Count Two (Tax Fraud-Tax year 2021) alleges a Form 1040 stating income of $72,484 when actual income had been $1,806,201, under Title 26, United States Code, Section 7206(1).

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UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF TENNESSEE

AT CHATTANOOGA
UNITED STATES OF AMERICA ) ~.
) 1:24-er- 30
| )
) ; SJ
RICKY LEE TAYLOR, JR. )
INFORMATION

The United States Attorney for the Eastern District of Tennessee charges:

COUNT ONE
Wire Fraud
(18 U.S.C. § 1343)

1. Beginning in or about April 2020, continuing through in or about at least February
2021, in the Eastern District of Tennessee and elsewhere, the defendant, RICKY LEE TAYLOR,
JR., with the intent to defraud, devised and intended to devise a scheme to defraud, and to obtain
money and property by means of materially false and fraudulent pretenses, representations, and

promises.

Des It was the purpose and object of the scheme for the defendant to unjustly enrich
himself by obtaining fraudulent proceeds via the Paycheck Protection Program (“PPP”) under
false and misleading pretenses, including by materially misrepresenting the information provided

in PPP loan applications and the information provided in supporting documents and forms.

MANNER AND MEANS

3. It was part of the scheme that the defendant operated the following business

entities: Potter’s Wheel Trucking, LLC; Ricky Taylor Basketball, LLC; Arena of Praise; Spirit

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Logistics, LLC; Reap Real Estate and Property. It was further a part of the scheme to defraud
that the defendant would apply for PPP loans on behalf of these entities and in doing would

provide the following fraudulent documentation in support of loan:
a. IRS Form 940 (Employer’s Annual Federal Unemployment Tax Return),
b. IRS Form 941 (Employer’s Quarterly Federal Tax Return),
c. Employee/Revenue Reports.

These documents were fraudulent in that the reported number of employees receiving
wages and the wages actually paid to employees were grossly inflated. These misrepresentations
were material to the lender because they were utilized to falsely justify and inflate the “claimed
monthly payroll” on the PPP Borrower Application Forms. Thus, the defendant’s fraud caused
the lender to approve and disburse excessive loan amounts to the defendant’s bank account. In
total, the defendant submitted (8) fraudulent applications and received approximately $1,800,000

in loans, which significantly exceeded any amount to which he would have been legally entitled.
THE EXECUTION OF THE SCHEME

. 4. On or about February 9, 2021, in the Eastern District of Tennessee, and
elsewhere, the defendant, RICK Y LEE TAYLOR, JR., for the purpose of executing the scheme
described above, caused to be transmitted in interstate commerce, a wire communication
originating from the defendant’s electronic device in the Eastern District of Tennessee, to wit,
the electronic submission of a PPP loan application (“Second Draw’’) on behalf of Potter’s
Wheel Trucking LLC, to Region Bank’s computer servers located outside the state of Tennessee,

which resulted in the disbursement of $437,500, which significantly exceeded any amount to

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which he would have been legally entitled.
All in violation of Title 18, United States Code, Section 1343.

COUNT TWO
Tax Fraud-Tax year 2021

The United States Attorney for the Eastern District of Tennessee further charges that on
or about April 18, 2022, in Eastern District of Tennessee, the defendant, RICKY LEE TAYLOR,
JR., did willfully make and subscribe a U.S. Individual Income Tax Return, Form 1040, which
was verified by a written declaration that it was made under the penalties of perjury and which
TAYLOR did not believe to be true and correct as to every material matter. That is, he filed a
U.S. Individual Income Tax Return, Form 1040, online with the Director, Internal Revenue
Service Center, from a location in Hamilton County, Tennessee, stating that his income in 2021
was $72,484 whereas, as he then and there knew, his actual income in 2021 had been
$1,806,201, which resulted in a tax deficiency in the amount of $620,674.

All in violation of Title 26, United States Code, Section 7206(1).

FORFEITURE ALLEGATIONS

The allegations contained in this Information are hereby realleged and incorporated by
reference for the purpose of alleging forfeitures pursuant to Title 18, United States Code, Section
982(a)(2).

Pursuant to Title 18, United States Code, Section 982(a)(2), upon conviction of an
offense in violation of Title 18, United States Code, Section 1343, the defendant shall forfeit to
the United States of America, any property, real or personal, which constitutes or is derived from
proceeds traceable to the offense. The properties to be forfeited include, but are not limited to,

the following:

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$942,238.85 In U.S. Currency; and

MONEY JUDGMENT:

A personal money judgment for at least $932,853.15 in U.S. currency, which represents
the minimum amount of proceeds the defendant personally obtained as a result of an offense in
violation of 18 U.S.C. § 1343. If any of the property subject to forfeiture, as a result of any act

or omission of a defendant,

a. cannot be located upon the exercise of due diligence;

b. has been transferred, 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

& has been commingled with other property that cannot be divided without difficulty;

the United States of America shall be entitled to forfeiture of substitute property pursuant to Title
21, United States Code, Section 853(p), as incorporated by Title 18, United States Code, Section
982(a)(2).

Respectfully submitted this 8" day of August 2024.

FRANCIS M. HA
United States Atvorne

soft Unt Sa BPR #021822

Assigtant United States Attorney
1110 Market Street, Suite 515
Chattanooga, Tennessee 37402
(423) 752-5140

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