OCC, In the Matter of Gerald E. Milligan II, former teller, PNC Bank, N.A., Decision on Entry of Default and Order of Prohibition (OCC AA-EC-2024-12)

Summary

A Decision on Entry of Default and Order of Prohibition by the Comptroller of the Currency, Jonathan V. Gould, digitally signed 2025.08.25 (OCC AA-EC-2024-12), In the Matter of Gerald E. Milligan II, a former teller at PNC Bank, N.A. in Wilmington, Delaware. The Comptroller finds the respondent in default on the Administrative Law Judge's recommended decision under 12 U.S.C. § 1818(e). The uncontested findings are that on about February 24, 2021 he applied through Itria Ventures LLC for a $141,530 Paycheck Protection Program loan for The Digital Marketing Network LLC, falsely attesting to thirteen employees and supplying a false bank statement and a false IRS form reporting $679,354 in payroll. He then used the proceeds for personal spending, and the order prohibits him from further participation in the affairs of covered institutions.

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                              UNITED STATES OF AMERICA
                             DEPARTMENT OF THE TREASURY
                            COMPTROLLER OF THE CURRENCY
                                  WASHINGTON, D.C.


 In the Matter of:                               )
                                                 )
 Gerald E. Milligan II,                          )
 Former Teller                                   )
                                                 )           OCC AA-EC-2024-12
                                                 )
 PNC Bank, N.A.                                  )
 Wilmington, Delaware                            )
                                                 )


        DECISION ON ENTRY OF DEFAULT AND ORDER OF PROHIBITION

       This matter is before the Comptroller of the Currency (“Comptroller” or “OCC”) on a

Recommended Decision of the Administrative Law Judge (“ALJ”) for entry of default and order

of prohibition against Gerald E. Milligan II (“Respondent”), a former employee of PNC Bank,

N.A., Wilmington, Delaware (“Bank” or “PNC”). A Notice of Charges for Order of Prohibition

(“Notice”), issued by the OCC pursuant to section 8(e) of the Federal Deposit Insurance Act

(“Act”), 12 U.S.C. § 1818(e), seeks an order prohibiting Respondent from further participating in

any manner in the conduct of the affairs of any federally insured depository institution, credit

union, agency, or entity referred to in section 8(e) of the Act. Upon consideration of the

pleadings, the ALJ’s Recommended Decision, and the entire record, the Comptroller concludes

that (1) Respondent is in default, and (2) the record supports the conclusion that Respondent

should be prohibited from any further participation in the conduct of the affairs of any institution

or entity set forth in section 8(e) of the Act. 12 U.S.C. § 1818(e).
                 I.      Factual Summary and Procedural History

        The ALJ’s Recommended Decision details the uncontested findings of fact giving rise to

this Decision. Among those uncontested findings are the following:

        Respondent was employed as a teller at PNC’s Fox Trail Road branch in Royal Palm,

Florida, from September 28, 2020 until at least June 22, 2021. Previously, on January 31, 2019,

Respondent had incorporated The Digital Marketing Network (“TDMN”) LLC as a Florida

Corporation and opened a business account at PNC for TDMN LLC on December 6, 2019. On

approximately February 24, 2021 Respondent applied through the internet for a $141,530

Paycheck Protection Program (“PPP”)1 loan for TDMN LLC through an entity named Itria

Ventures LLC.

        Respondent knowingly and falsely attested in his PPP loan application that TDMN LLC

employed thirteen (13) employees and had average monthly payroll expenses of $56,612. In

support of the application, Respondent knowingly provided a false PNC bank statement for

TDMN LLC that recorded fake deposits and transactions that had not occurred. He also

knowingly provided a false IRS Form 390 for TDMN LLC that reported $679,354 in fake

payroll expenses for 2020 that did not exist. In fact, throughout 2020 TDMN LLC’s PNC

business account balance never exceeded $50.

        On March 1, 2021 Respondent received PPP loan proceeds in the amount of $141,530 in

TDMN LLC’s PNC business account. Between March 1, 2021 and July 2, 2021 Respondent

used the PPP loan proceeds for personal gain and not for any payroll expenses of TDMN LLC.


1
 The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted on March 27, 2020 to provide
economic relief to small businesses from the effects of the Coronavirus Pandemic. Section 1102 of the CARES Act
established the Paycheck Protection Program (“PPP”) to provide fully guaranteed loans under section 7(a) of the
Small Business Act. See generally 15 U.S.C. § 636(a)(36)-(37).

                                                       2
Respondent’s personal expenditures included approximately $40,000 in checks payable to his

father; $17,000 in checks payable to cash; $15,000 in checks payable to Respondent; $6,500 in

ATM transactions; and a $17,000 cashier’s check payable to a luxury car dealer.

       Service of the OCC’s Notice initiating this proceeding was effected on April 17, 2024,

when Enforcement Counsel sent the Notice to Respondent by email to an email address

Respondent had provided the OCC. See 12 C.F.R. §§ 19.11(b), 19.18(a). The Notice was also

served on April 25, 2024 by a process server at Respondent’s home address, where the Notice

was accepted by Respondent’s father. Respondent was required to file an Answer to the Notice

within twenty (20) days of service. See 12 C.F.R. §§ 19.12, 19.19(a). Respondent failed to file a

timely Answer. On June 7, 2024 OCC Enforcement Counsel filed a Motion for Entry of Order

of Default and Report on Service of Notice of Charges (“Default Motion”) pursuant to 12 C.F.R.

§ 19.19(c)(1).

       In an Order of Default and Recommended Decision issued July 17, 2024, the ALJ found

that Respondent had waived his right to appear and contest the allegations in the Notice and that

no good cause had been shown for Respondent’s failure to file a timely Answer. See 12 C.F.R.

§ 19.19(c)(1). Accordingly, the ALJ granted the Default Motion and recommended that the

Comptroller enter an order permanently prohibiting Respondent from further industry

participation pursuant to 12 U.S.C. § 1818(e).

                 II.   Decision

       The ALJ’s finding that Respondent is in default based upon his failure to appear is

appropriate. Respondent has been provided with adequate notice of this proceeding and

opportunity to appear and respond. Based on the record of this proceeding, the Comptroller




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agrees with the ALJ that Respondent was properly served, see 12 C.F.R. § 19.11(b), has failed to

file an Answer, see 12 C.F.R. § 19.19, and is in default, see 12 C.F.R. § 19.19(c)(1).

         Moreover, the Comptroller agrees that the uncontested allegations set forth in the Notice

meet the standards for prohibition under section 8(e) of the Act. 12 U.S.C. § 1818(e).

         Respondent knowingly submitted a false PNC bank statement, false tax documentation,

and a false attestation to support an application for a PPP loan to cover payroll expenses that did

not actually exist for an entity he had incorporated, TDMN LLC. He received PPP loan proceeds

in the amount of $141,530 in a business account that he had opened at PNC for TDMN LLC.

Respondent used the PPP loan proceeds for personal gain and not for any payroll expenses of

TDMN LLC.

         By making false attestations and submitting false documentation to secure PPP loan

proceeds, Respondent committed violations of law,2 including 18 U.S.C. §§ 1001 and 1343. As

a result of the foregoing misconduct, Respondent received a “financial gain or benefit”,3 i.e., the

receipt of $141,530 in PPP loan proceeds that Respondent used for personal expenditures and not

payroll expenses for TDMN LLC. Respondent’s misconduct also involved personal dishonesty.4

As the uncontested findings of fact detail, he knowingly submitted a false attestation and false

documentation containing untrue information as part of his PPP application for TDMN LLC. He

then knowingly used the loan proceeds for purposes other than what he had attested would be the

purposes for use of the loan proceeds. Accordingly, I find that the requirements for entry of an

order prohibiting Respondent from participating in any manner in the conduct of the affairs of

any insured depository institution have been met.



2
  See 12 U.S.C. § 1818(e)(1)(A)(i).
3
  See 12 U.S.C. § 1818(e)(1)(B)(iii).
4
  See 12 U.S.C. § 1818(e)(1)(C)(i).

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   III      ORDER

1. Respondent, Gerald E. Milligan II, is hereby prohibited from:

         a. Participating in any manner in the conduct of the affairs of any institution or

            agency specified in paragraph (2) of this Order;

         b. Soliciting, procuring, transferring, attempting to transfer, voting, or attempting to

            vote any proxy, consent, or authorization with respect to any voting rights in any

            institution described in paragraph (2) of this Order;

         c. Violating any voting agreement previously approved by the “appropriate Federal

            banking agency” as defined in 12 U.S.C. § 1813(q); or

         d. Voting for a director or serving or acting as an “institution-affiliated party” as

            defined in 12 U.S.C. § 1813(u).

2. The prohibitions in paragraph (1) of this Order apply to the following institutions and

   agencies:

         a. any insured depository institution as defined in 12 U.S.C. § 1813(c);

         b. any institution treated as an insured bank under 12 U.S.C. 1818(b)(3), (b)(4), or

            (b)(5);

         c. any insured credit union under the Federal Credit Union Act;

         d. any institution chartered under the Farm Credit Act of 1971;

         e. any appropriate Federal depository institution regulatory agency; and

         f. the Federal Housing Finance Agency and any Federal Home Loan Bank.

3. The prohibitions in paragraphs (1) and (2) of this Order shall cease to apply with respect

   to a particular institution if Respondent obtains the prior written consent of both the OCC




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   and the institution’s “appropriate Federal financial institutions regulatory agency” as

   defined in 12 U.S.C. § 1818(e)(7)(D).

4. This Order shall remain effective and enforceable except to the extent that, and until such

   time as, any provisions have been modified, terminated, suspended, or set aside by the

   OCC.



   SO ORDERED.

                                                                    Digitally signed by
                                                    Jonathan V.     Jonathan V. Gould
                                                                    Date: 2025.08.25
                                                    Gould           13:56:26 -04'00'




                                                      JONATHAN V. GOULD
                                                      COMPTROLLER OF THE CURRENCY




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