Plea Agreement — United States v. Gernesia Williams (Dkt. 14, M.D. La.)

Summary

Gernesia Williams agreed with the U.S. Attorney's Office for the Middle District of Louisiana to plead guilty to a bill of information charging knowing conversion of government funds under 18 U.S.C. § 641, in an agreement dated August 26, 2024. The factual basis says the SBA deposited $404,700 of Economic Injury Disaster Loan funds into accounts Williams controlled, from applications in Williams's own name and in the name of Rosebud Investment LLC. The parties agree that Williams converted all $30,500 of the Rosebud funds plus personal spending such as $33,500 for jewelry and $21,666.71 for non-Amazon.com wedding expenses, and that the loss was $109,383.20, the amount of the agreed money judgment and of restitution the Court may order. The maximum penalty is 10 years in prison and a fine of up to $250,000. As of June 2024, Williams had paid $3,915 to the SBA.

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UNITED STATES DISTRICT COURT

MIDDLE DISTRICT OF LOUISIANA

UNITED STATES OF AMERICA :

versus : CRIMD4AL NO.

GERNESIA WILLIAMS :

PLEA AGREEMENT

The United States Attorney's Office for the Middle District of Louisiana ("the United

States") and Gemesia Williams ("the defendant") hereby enter into the following plea

agreement pursuant to Fed. R. Grim. P. 1 l(c).

A. THE DEFENDANT'S OBLIGATIONS

1. Guilty Plea

The defendant agrees to enter a plea of guilty to a Bill of Information charging her with

Knowing Conversion of Government Funds in violation of 18 U.S.C. § 641.

2. Financial Information

The defendant agrees to fully and truthfully complete the financial statement provided

to her by the United States and to return the financial statement to the United States within ten

days of this agreement being filed with the Court. Further, the defendant agrees to provide the

United States with any information or documentation in her possession regarding her financial

affairs and to submit to a debtor's examination upon request. Any financial information

provided by the defendant may be used by the United States to collect any financial obligations

imposed in this prosecution and may be considered by the Court in imposing sentence.

Gernesia Williams Page 1 August 26,2024
3. Waiver of Indictment

The defendant agrees to waive indictment in open court at arraignment.

B. UNITED STATES' OBLIGATIONS

1. Non-prosecution of Charges

The United States agrees that, if the Court accepts the defendant's guilty plea, it will

not prosecute the defendant, in this district, for any offense related to the offense charged in

the Bill of Information or for any other offense discovered during the investigation into the

offense that forms the basis of the Bill of Information.

2. Motion for Third Point for Acceptance of Responsibility

The United States acknowledges that the defendant has assisted authorities in the

investigation or prosecution of the defendant's own misconduct by timely notifying authorities

of her intention to enter a plea of guilty, thereby permitting the United States to avoid preparing

for trial and permitting the United States and the Court to allocate their resources efficiently.

The United States therefore agrees that, if the Court finds that the defendant qualifies for a

two-level decrease in offense level for acceptance of responsibility under USSG § 3El.l(a)

and, prior to the operation ofUSSG § 3El.l(a), the defendant's offense level is 16 or greater,

the United States will move the Court pursuant to USSG § 3E1.1 (b) to decrease the defendant's

offense level by one additional level. The United States reserves the right to object to a

decrease in offense level for acceptance of responsibility based on information received by the

United States after the effective date of this agreement, including information that the

defendant failed to timely submit the financial statement required by Section A(2) of this

agreement.

Gemesia Williams Page 2 August 26, 2024
C. SENTENCING

1. Maximum Statutory Penalties

The maximum possible penalty is a term of imprisonment of 10 years, a fine of up to

$250,000, and a term of supervised release of three years.

In addition to the above, the Court must impose a special assessment of $100 which is

due at the time of sentencing. The Court may also order restitution.

2. Supervised Release

Supervised release is a period following release from imprisonment during which the

defendant's conduct is monitored by the Court and the United States Probation Office and

during which the defendant must comply with certain conditions. Supervised release is

imposed in addition to a sentence of imprisonment, and a violation of the conditions of

supervised release can subject the defendant to imprisonment over and above any period of

imprisonment initially ordered by the Court for a term of up to two years, without credit for

any time already served on the term of supervised release.

3. Sentencing Guidelines

The Court will determine in its sole discretion what the defendant's sentence will be.

While the Court must consider the United States Sentencing Guidelines in imposing sentence,

the Sentencing Guidelines are not binding on the Court. The Court could impose any sentence

up to the maximum possible penalty as set out above despite any lesser or greater sentencing

range provided for by the Sentencing Guidelines.

Gernesia Williams Page 3 August 26, 2024
4. Aereement Regarding Loss and Restitution

The United States and the defendant agree and stipulate that, though not binding on the

Court or the United States Probation Office, they will jointly recommend that the Court find,

for purposes of Section 2Bl.l(b)(l) of the Sentencing Guidelines, that the amount of loss

caused by the defendant as a result of the offense of conviction was $109,383.20.

The United States and the defendant further agree, pursuant to 18 U.S.C. § 3663(a)(3),

that the Court shall not be limited to the count of conviction for purposes of ordering

restitution. As a condition of this plea agreement, the defendant agrees that the Court will order

full restitution to the victim in an amount to be determined by the Court based on defendant's

conduct.

5. No Further Agreement Regarding Sentencing:

Except as set forth in this agreement and the supplement to the plea agreement, the

United States makes no promises, representations, or agreements regarding sentencing. In

particular, the United States reserves the right to present any evidence and information, and to

make any argument, to the Court and the United States Probation Office regarding sentencing.

6. Forfeiture

The defendant agrees to forfeit any property constituting, or derived from, proceeds

that are traceable to, directly or indirectly, the offense charged in the Bill of Information, with

the following exception: the United States agrees that it will not seek to forfeit the real property

located at 3211 Hollywood Street, Baton Rouge, Louisiana, 70805, and 3027 Wmbourne

Avenue, Baton Rouge, Louisiana, 70805.

Gemesia Williams Page 4 August 26,2024
The defendant admits that the amount of the proceeds derived from the offense was

$109,383.20. She therefore agrees to forfeit to the United States a sum of money equal to

$109,383.20 in United States currency and consents to entry of a personal money judgment

against her in such amount.

The defendant admits that the property identified in the Notice of Forfeiture in the Bill

oflnfomiation constitutes or is derived from proceeds traceable to the offense. She therefore

agrees to forfeit her interest in such property and consents to the entry of orders of forfeiture

for such property.

The defendant understands that forfeiture of her property will not be treated as

satisfaction of any fine, restitution, cost of imprisonment, or other penalty which may be

imposed upon her as part of her sentence. The defendant further understands that, separate

and apart from her sentence in this case, the United States may also institute civil or

administrative forfeiture proceedings of any property, real or personal, which is subject to

forfeiture. The defendant agrees to waive her interest in the property identified in the Notice

of Forfeiture in the Bill of Information in any such civil or administrative forfeiture proceeding.

The defendant agrees to fully and truthfully disclose the existence, nature, and location

of all assets and to fully and completely assist the United States in the recovery and forfeiture

of all forfeitable assets, including taking all steps as requested by the United States to pass

clear title to forfeitable assets to the United States. The defendant agrees to hold the United

States, its agents, and its employees harmless from any claims whatsoever in connection with

the seizure or forfeiture of property pursuant to the Court's forfeiture orders.

Gernesia Williams Page 5 August 26, 2024
The defendant hereby waives the following: (1) all statutory and constitutional defenses

to the forfeiture, including any claim that the forfeiture constitutes an excessive fine or

punishment; (2) any failure by the Court to ensure at sentencing that the defendant is aware of

the forfeiture or to incorporate the forfeiture in the judgment as required by Fed. R. Crim. P.

32.2(b)(4)(B); and (3) any failure by the Court to inform the defendant of, and determine that

the defendant understands, the applicable forfeiture prior to accepting the defendant's plea.

D. FACTUAL BASIS

The United States and the defendant stipulate to the following facts:

From in or around April 2020, and continuing through at least in or
around January 2023, in the Middle District of Louisiana and elsewhere,
Gernesia Williams, defendant herein, as part of a single continuing scheme
involving Economic Injury Disaster Loan ("EIDL") funds administered by the
United States Small Business Administration ("SBA"), did knowingly convert
to her own use. United States government funds in excess of $1,000, with the
intent to deprive the SBA of the use or benefit of the funds and to use the funds
for an unauthorized purpose.

At all times relevant, the SBA was an executive-branch agency of the
United States government that provided support to entrepreneurs and small
businesses, among other ways, by assisting in the economic recovery of
communities after disasters. As part of this effort, the SBA administered loans
with government-backed guarantees, including through the disaster-related
EIDL program. In or around IVIarch 2020, in response to the COVID-19
pandemic, the EIDL Program was expanded through the federal Coronavirus
Aid, Relief, and Economic Security ("CARES") Act. The EIDL Program
offered economic relief to eligible small businesses that were experiencing
substantial financial disruption as a result of the COVID-19 pandemic. Through
the EIDL Program, the CARES Act authorized the SBA to provide working
capital in the form of low interest, long-term loans.

On April 7, 2020, the defendant electronically submitted an EIDL
Program application to the SBA in her own name, asserting that her business
was a single-employee sole proprietorship that sold personal services. Based on
that application, on or about June 14, 2020, the defendant signed a Loan
Authorization and Agreement in which she certified, among other

Gemesia Williams Page 6 August 26, 2024
representations, that all EIDL funds would be used solely as working capital to
alleviate economic injury caused by the COVID-19 pandemic. In connection
with later loan modifications, she certified that none of the EIDL funds would
be used primarily for personal, family, or household purposes. Under the terms
of the approved Note, the defendant caused the SBA, initially, to deposit
$13,800 into her back account on or about June 16, 2020.

Also on April 7, 2020, the same day the defendant submitted the EIDL
Program application in her own name, she electronically submitted another
EIDL Program application to the SBA in the name ofRosebud Investment LLC,
claiming that her mother was the sole owner of the business. On June 15, 2020,
the defendant submitted a Loan Authorization and Agreement in which she
certified, among other representations, that all EIDL funds would be used solely
as working capital to alleviate economic injury caused by the COVID-19
pandemic. Under the terms of the approved Note, the defendant caused the SBA,
on or about July 7, 2020, to deposit $30,500 into a bank account that she
controlled.

On September 2, 2020, the defendant registered with the Louisiana
Secretary of State a limited liability company called Dreamlife Solutions, LLC
("Dreamlife"). The defendant was and is the sole officer and registered agent
for Dreamlife, a housing and personal services business that provides lodging,
meals, basic medical care, and transportation to medical appointments for
elderly and/or disabled clients.

On October 28, 2020, the defendant electronically submitted an
additional EIDL Program application to the SBA in the name ofDreamlife. The
SBA did not approve this application.

On December 30, 2021, the defendant requested that the SBA increase
the amount of the EIDL program loan she received in her own name. Based on
the defendant's representations, the SBA approved the request and ultimately
authorized several loan modifications. Between February 8,2022, and April 12,
2022, the defendant signed several Amended Loan Authorization and
Agreements, in which she falsely certified, among other representations, that all
EIDL funds would be used solely as working capital to alleviate economic
injmy caused by the COVID-19 pandemic and that none of the EIDL funds
would be used primarily for personal, family, or household purposes. During
that same time period, the defendant caused the SBA to deposit an additional
$360,400 into her bank account. Therefore, not counting the receipt of a $1,000
advance that did not need to be repaid, the defendant caused the SBA to deposit
into her bank account approximately $374,200 in EIDL funds associated with
the application in her own name.

Gernesia Williams Page 7 August 26, 2024
In summary, counting the EIDL funds that the defendant received both
in her own name and that ofRosebud, she caused the SBA to deposit $404,700
ofEIDL funds into bank accounts that she controlled. Of this amount, the United
States and the defendant agree that the defendant knowingly converted to her
own use, between June 2020 and January 2023, all $30,500 of the Rosebud
EIDL funds, and the following EIDL funds she received in her own name:
$33,500 for jewelry; $21,666.71 for non-Amazon.com wedding expenses;
$13,972.62 for miscellaneous personal purchases on Amazon.com, including
additional wedding expenses and beauty supplies; $4,490.93 for clothing, shoes,
and other accessories; $2,509.44 for reinstatement fees to the Louisiana
Department of Public Safety & Corrections; $2,055.74 for DoorDash food
delivery services; $687.76 for other miscellaneous personal care expenses; and
$647.27 for various entertainment expenses.

During the same approximate time period, the defendant spent a
substantial portion of the SBA EIDL funds on expenses related to Dreamlife,
including for employee payroll and to purchase, renovate, furnish, clean, and
operate two housing locations, one at 3211 Hollywood Street, and the other at
3027 Winboume Avenue, both in Baton Rouge, Louisiana.

Accordingly, the United States and the defendant stipulate that, for the
puiposes of Section 2B 1.1 (b)(l) ofthe United States Sentencing Guidelines, the
amount of actual loss caused by the defendant through the aforementioned
conduct is $109,383.20, and that the Court may order restitution in that amount.
As of June 2024, the defendant has paid $3,915 to the SBA toward the balance
remaining due on her EIDL notes and accumulated interest.

The defendant admits that, to the best of her knowledge and belief, the stipulated

statement of facts is true and correct in all respects. The United States and the defendant agree

that, had this matter gone to trial, the United States could have proved such facts. The United

States and the defendant further agree that such facts are sufficient to support conviction of the

offense to which the defendant has agreed to plead guilty. The defendant understands that, by

the terms of US SG § 6B 1.4, the Court is not limited by the stipulated facts for purposes of

sentencing. Rather, in determining the factual basis for the sentence, the Court will consider

Gernesia Williams Page 8 August 26, 2024
the stipulation, together with the results of the presentence investigation and any other relevant

information.

E. BREACH AND ITS CONSEQUENCES

1. Conduct Constituting Breach

Any of the following actions by the defendant constitutes a material breach of this

agreement:

a. failing to plead guilty to the Bill of Information at arraignment;

b. representing, directly or through counsel, to the United States or the
Court that she will not plead guilty to the Bill of Information;

c. moving to withdraw her guilty plea;

d. filing an appeal or instituting other post-conviction proceedings
not authorized in Section F(2);

e. disputing or denying guilt of the offense to which the defendant has
agreed to plead guilty or denying or disputing any fact contained in the
stipulated factual basis;

f. failing or refusing to waive indictment in open court at arraignment;

g. providing false, misleading, or incomplete information or
testimony, including financial information and testimony
provided pursuant to Section A(2), to the United States; or

h. violating the terms of this agreement or the supplement to the plea
agreement in any other manner.

2. Consequences of Breach

In the event of a breach by the defendant, the United States is relieved of its obligations

under the agreement and the supplement to the plea agreement. In particular, the United States

may prosecute the defendant for any criminal offense. In addition, any statements and

Gernesia Williams Page 9 August 26,2024
information provided by the defendant pursuant to this agreement (or the supplement to the

plea agreement) or otherwise, and any information and evidence derived therefrom, may be

used against the defendant in this or any other prosecution or proceeding without limitation.

Such statements and information include, but are not limited to, the plea agreement itself

(including the factual basis contained in Section D), the supplement to the plea agreement,

statements made to law enforcement agents or prosecutors, testimony before a grand jury or

other tribunal, statements made pursuant to a proffer agreement, statements made in the course

of any proceedings under Rule 11, Fed. R. Crim. P. (including the defendant's entry of the

guilty plea), and statements made in the course of plea discussions. The defendant expressly

and voluntarily waives the protection afforded by Fed. R. Evid. 410 as to any statements made

by her personally (but not as to statements made by her counsel). The defendant is not entitled

to withdraw her guilty plea.

3. Procedure for Establishins Breach

The United States will provide written notice to the defendant or her attorney if it

intends to be relieved of its obligations under the agreement and the supplement to the plea

agreement as a result of a breach by the defendant. After providing such notice, the United

States may institute or proceed with any charges against the defendant prior to any judicial

determination regarding breach. However, the United States will obtain a judicial

determination regarding breach prior to using statements and information provided by the

defendant or any act of producing documents or items by the defendant pursuant to this

agreement or the supplement to the plea agreement, or any evidence or information derived

therefrom, in its case-in-chief in a criminal trial or in sentencing the defendant in this case.

Gernesia Williams Page 10 August 26, 2024
The standard of proof in any proceeding to determine whether the plea agreement or the

supplement to the plea agreement has been breached is preponderance of the evidence. To

prove a breach, the United States may use (1) any and all statements of the defendant, (2) any

and all statements of her counsel to the Court (including the United States Probation Office),

and (3) any representation by defense counsel to the United States that the defendant will not

plead guilty.

F. WAIVERS BY THE DEFENDANT

1. Waiver of Trial Rights

By pleading guilty, the defendant waives the right to plead not guilty or to persist in a

not guilty plea and waives the right to ajmy trial. At a trial, the defendant would have the trial

rights to be represented by counsel (and if necessary have the Court appoint counsel), to

confront and examine adverse witnesses, to be protected against compelled self-incrimination,

to testify and present evidence, to compel the attendance of witnesses, and to have the jury

instructed that the defendant is presumed innocent and the burden is on the United States to

prove the defendant's guilt beyond a reasonable doubt. By waiving her right to a trial and

pleading guilty, the defendant is waiving these trial rights.

2. Waiver of Appeal and Collateral Remedies

Except as otherwise provided in this section, the defendant hereby expressly waives the

right to appeal her conviction and sentence, including any appeal right conferred by 28 U.S.C.

§ 1291 and 18 U.S.C. § 3742, and to challenge the conviction and sentence in any post-

conviction proceeding, including a proceeding under 28 U.S.C. § 2241, 28 U.S.C. § 2255, or

18 U.S.C. § 3582(c)(2). This waiver applies to any challenge on appeal or in any post-

Gernesia Williams Page 11 August 26,2024
conviction proceeding to any aspect of the defendant's sentence, including imprisonment, fine,

special assessment, restitution, forfeiture or the length and conditions of supervised release or

probation. The defendant, however, reserves the right to appeal the following: (a) any sentence

which is in excess of the statutory maximum; (b) any sentence which is an upward departure

pursuant to the Sentencing Guidelines; (c) any sentence in which the loss amount as calculated

pursuant to the Sentencing Guidelines is more than $150,000, and (d) any non-Guidelines

sentence or "variance" which is above the guidelines range calculated by the Court.

Notwithstanding this waiver of appeal and collateral remedies, the defendant may bring any

claim of ineffectiveness of counsel.

3. Waiver of Statute of Limitations

The defendant hereby waives all defenses based on the applicable statutes of limitation

as to the offense charged in the Bill of Information and all offenses that the United States has

agreed not to prosecute, as long as such offenses are not time-barred on the effective date of

this agreement. The defendant likewise waives any common law, equitable, or constitutional

claim ofpre-indictment delay as to such offenses, as long as such offenses are not time-barred

on the effective date of this agreement. The waivers contained in this paragraph will expire

one year after the date of any of the following: (1) a judicial finding that defendant has

breached the plea agreement; (2) the withdrawal of any plea entered pursuant to this plea

agreement; or (3) the vacating of any conviction resulting from a guilty plea pursuant to this

plea agreement.

Gernesia Williams Page 12 August 26, 2024
4. Waiver of Speedy Trial Rights

The defendant hereby waives any common law, equitable, or constitutional claim

regarding post-indictment delay as to the offense charged in the Bill of Information. The

waiver contained in this paragraph will expire one year after the date of any of the following:

(1) a judicial finding that defendant has breached the plea agreement; (2) the withdrawal of

any plea entered pursuant to this plea agreement; or (3) the vacating of any conviction resulting

from a guilty plea pursuant to this plea agreement.

G. EFFECT OF AGREEMENT

1. Effective Date

This agreement and the supplement to the plea agreement are not binding on any party

until both are signed by the defendant, defendant's counsel, and an attorney for the United

States. Once signed by the defendant, her counsel, and an attorney for the United States, the

agreement and the supplement are binding on the defendant and the United States.

2. Effect on Other Agreements

This agreement incorporates the supplement to the plea agreement which will be filed

under seal with the Court. In this district, the Court requires that a sealed supplement be filed

with eveiy plea agreement regardless of whether the defendant is cooperating. The supplement

either states that the defendant is not cooperating or provides the terms of the defendant's

agreement to cooperate. This plea agreement, along with the aforementioned supplement to

the plea agreement, supersedes any prior agreements, promises, or understandings between the

parties, written or oral, including any proffer agreement.

Gernesia Williams Page 13 August 26, 2024
3. Effect on Other Authorities

The agreement does not bind any federal, state, or local prosecuting authority other than

the United States Attorney's Office for the Middle District of Louisiana.

4. Effect of Reiection by Court

Pursuant to Fed. R. Crim. P. 11, the Court may accept or reject this plea agreement and

the supplement to the plea agreement. If the Court rejects the plea agreement and the

supplement, the plea agreement and the supplement are no longer binding on the parties and

are not binding on the Court. If the Court rejects the plea agreement and the supplement, the

defendant will be given the opportunity to withdraw her plea and such withdrawal will not

constitute a breach of the agreement. If the defendant does not withdraw her plea following

rejection of the plea agreement and the supplement, the disposition of the case may be less

favorable to the defendant than contemplated by the plea agreement.

H. REPRESENTATIONS AND SIGNATURES

1. By The Defendant

I, Gernesia Williams, have read this plea agreement and have discussed it with my

attorney. I fully understand the agreement and enter into it knowingly, voluntarily, and without

reservation. I have not been threatened, intimidated, pressured, or coerced in any manner. I

am not under the influence of any substance or circumstance that could impede my ability to

understand the agreement and its consequences.

I affirm that absolutely no promises, agreements, understandings, or conditions have

been made, agreed to, or imposed by the United States in connection with my decision to plead

guilty except those set forth in this agreement and the supplement to the plea agreement.

Gernesia Williams Page 14 August 26, 2024
I acknowledge that no promises or assurances have been made to me by anyone as to

what my sentence will be. I understand that representations by my attorney (or anyone else)

regarding application of the Sentencing Guidelines and/or my possible sentence are merely

estimates and are not binding on the Court.

I have read the Bill of Information and discussed it with my attorney. I fully understand

the nature of the charge, including the elements. I understand that I am entitled, under the Fifth

Amendment of the United States Constitution, to have the charge instituted by a Grand July

Indictment.

I have accepted this plea agreement and agreed to plead guilty because I am in fact

guilty of the offense charged in the Bill of Information .

I am satisfied with the legal services provided by my attorney and have no objection to

the legal representation I have received.

^A^l(y \^) \)\\(\^\ DATE:_^lrllt
Gemesia Williams
Defendant

2. By Defense Counsel

I have read the Bill of Information and this plea agreement and have discussed both

with my client, Gemesia Williams, who is the defendant in this matter. I am satisfied that the

defendant understands the agreement and the charge against her, including the elements. I am

also satisfied that the defendant is entering into the agreement knowingly and voluntarily. This

agreement, together with the supplement to the plea agreement, accurately and completely sets

forth the entire agreement between the defendant and the United States.

Gernesia Williams Page 15 August 26, 2024
J7^/^ _44'.^ DATE:^^Z^_
J. ?sTopher I^ippel, Jr. ^/ / (Y
C%insel for Defendant

3. By the United States

We accept and agree to this plea agreement on behalf of the United States. This

agreement, together with the supplement to the plea agreement, accurately and completely sets

forth th^ entire agreement between the defendant and the United States.

//^J/ /'^^. / 7 DATE:^^_^
^.odiald C. Gathe, Jr.
United States Attorney
Middle District of Louisiana

DATE: .Lg.-Uf
Ben Wallace
Assistant United States Attorney
Middle District of Louisiana

Gernesia Williams Page 16 August 26, 2024

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