United States v. Jasmine Spencer — Plea Agreement Letter, Southern District of West Virginia (March 14, 2025)

Summary

A plea agreement letter dated March 14, 2025 from the United States Attorney for the Southern District of West Virginia to counsel for Jasmine Spencer in United States v. Jasmine Spencer, Criminal No. 2:24-cr-00192, filed March 25, 2025 as Document 153. Spencer agrees to plead guilty to Count Eight of a ten-count superseding indictment, aiding and abetting bank fraud under 18 U.S.C. §§ 1344 and 2, and the United States will move to dismiss Count One. The letter lists a maximum penalty of 30 years, a fine of $1,000,000 and a $100 special assessment, and Spencer agrees she owes restitution of at least $15,625. It also sets out cooperation, appeal-waiver and FOIA-waiver terms. In the attached Stipulation of Facts, Spencer states she received a $15,625 PPP loan on or about June 28, 2021 and paid $3,000 of it to the person who facilitated her application.

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Case 2:24-cr-00192 Document153_ Filed 03/25/25 Page 1 of 12 PagelD #: 650

United States Department of Justice

United States Attorney
Southern District of West Virginia

Robert C. Byrd United States Courthouse 1-800-659-8726
300 Virginia Street, East 304-345-2200
Charleston, WV 25301 = Be Sad i)

March 14, 2025 MAR 25 202

RORY L. PERRY it Clee
1554 Kanawha Blvd E Suite 100

Charleston, WV 25311

Re: United States v. Jasmine Spencer
Criminal No. 2:24-cr-00192 (USDC SDWV)

Dear Mr. Balenovich:

This will confirm our conversations with regard to your
client, Jasmine Spencer (hereinafter “Ms. Spencer”). As a result
of these conversations, it is agreed by and between the United
States and Ms. Spencer as follows:

i PENDING CHARGES. Ms. Spencer is charged in two counts
of a ten-count superseding indictment as follows:

(a) Count One charges Ms. Spencer with a violation of 18
U.S.C. § 1344 and § 1349 (conspiracy to commit bank
fraud); and

(6b) Count Eight charges Ms. Spencer with a violation of 18
U.S.C. §§ 1344 and 2 (aiding and abetting bank fraud).

2 RESOLUTION OF CHARGES. Ms. Spencer will plead guilty
to Count Eight of said superseding indictment, which charges her
with a violation of 18 U.S.C. §§ 1344 and 2. Following final
disposition, the United States will move the Court to dismiss Count
One in Criminal No. 2:24-cr-00192 as to Ms. Spencer.

4, MAXIMUM POTENTIAL PENALTY. The maximum penalty to which
Ms. Spencer will be exposed by virtue of this guilty plea is as

follows:

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John Balenovich, Esq.
March 14, 2025 Re: Jasmine Spencer
Page 2

(a) Imprisonment for a period of 30 years;

(bo) A fine of $1,000,000, or twice the gross pecuniary gain
or loss, whichever is greater.

(c) A term of supervised release of 5 years;

(dq) A mandatory special assessment of $100 pursuant to
18 UsSsC. § 30137 and

(e) An order of restitution pursuant to 18 U.S.C. §§ 3663
and 3664.

Bs SPECIAL ASSESSMENT. Ms. Spencer has submitted certified
financial statements to the United States reflecting that she is
without sufficient funds to pay the special assessment due upon
conviction in this case. Ms. Spencer agrees that, if incarcerated,
she will join the Inmate Financial Responsibility Program,
earnings from which will be applied toward payment of the special
assessment.

6. RESTITUTION. Notwithstanding the offense of conviction,
Ms. Spencer agrees that she owes restitution in the amount of at
least $15,625 and agrees to pay such restitution, with interest as
allowed by law, to the fullest extent financially feasible. In
aid of restitution, Ms. Spencer further agrees as follows:

(a) Ms. Spencer agrees to fully assist the United States in
identifying and locating any assets to be applied toward
restitution and to give signed, sworn statements and
testimony concerning assets upon request of the United
States.

(b) Ms. Spencer will fully complete and execute, under oath,
a Financial Statement and a Release of Financial
Information on forms supplied by the United States and
will return these completed forms to counsel for the

SS

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John Balenovich, Esq.
March 14, 2025 Re: Jasmine Spencer
Page 3

United States within seven calendar days from the date
of the signing of this plea agreement.

(c) Ms. Spencer agrees not to dispose of, transfer or
otherwise encumber any real or personal property which
she currently owns or in which she holds an interest.

(d) Ms. Spencer agrees to fully cooperate with the United
States in the liquidation of assets to be applied towards
restitution, to execute any and all documents necessary
to transfer title of any assets available to satisfy
restitution, to release any and all right, title and
interest she may have in and to such property, and waives
her right to exemptions under the Federal Debt
Collection Procedures Act upon levy against and the sale
of any such property.

(e) Ms. Spencer agrees not to appeal any order of the
District Court imposing restitution unless the amount of
restitution imposed exceeds the amount set forth in this
plea agreement. However, nothing in this provision is
intended to preclude the Court from ordering Ms. Spencer
to pay a greater or lesser sum of restitution in
accordance with law.

qd. PAYMENT OF MONETARY PENALTIES. Ms. Spencer authorizes
the Financial Litigation Program in the United States Attorney’s
Office to obtain a credit report from any major credit reporting
agency prior to sentencing in order to assess her financial
condition for sentencing purposes. Ms. Spencer agrees not to
object to the District Court ordering all monetary penalties
(including the special assessment, fine, court costs, and any
restitution that does not exceed the amount set forth in this plea
agreement) to be due and payable in full immediately and subject
to immediate enforcement by the United States. So long as the
monetary penalties are ordered to be due and payable in full
immediately, Ms. Spencer further agrees not to object to the

SS

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John Balenovich, Esq.
March 14, 2025 Re: Jasmine Spencer

Page 4

District Court imposing any schedule of payments as merely a
minimum schedule of payments and not the only method, nor a
limitation on the methods, available to the United States to
enforce the judgment.

Ms. Spencer authorizes the United States, through the
Financial Litigation Program, to submit any unpaid criminal
monetary penalty to the United States Treasury for offset in
accordance with the Treasury Offset Program, regardless of the
defendant’s payment status or history at that time.

In addition to any payment ordered by the Court, Ms. Spencer
shall pay all monies received from any source other than earned
income, including but not limited to, lottery winnings, gambling
proceeds, judgments, inheritances, and tax refunds, toward the
court ordered restitution or fine.

Ms. Spencer agrees that if she retains counsel or has
appointed counsel in response to the United States’ efforts to
collect any monetary penalty, she shall immediately notify the
United States Attorney’s Office, Attention: Financial Litigation
Program, 300 Virginia Street E., Suite 4000, Charleston, West
Virginia 25301, in writing and shall instruct her attorney to
notify FLP immediately of her representation.

8. COOPERATION. Ms. Spencer will be forthright and
truthful with this office and other law enforcement agencies with
regard to all inquiries made pursuant to this agreement, and will
give signed, sworn statements and grand jury and trial testimony
upon request’ of the United States. In complying with this
provision, Ms. Spencer may have counsel present except when
appearing before a grand jury. Further, Ms. Spencer agrees to be
named as an unindicted co-conspirator and unindicted aider and

abettor, as appropriate, in subsequent indictments or
informations.
oF USE IMMUNITY. Unless this agreement becomes void due

to a violation of any of its terms by Ms. Spencer, and except as

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John Balenovich, Esq.
March 14, 2025 Re: Jasmine Spencer

Page 5

expressly provided for in paragraph eleven below, nothing
contained in any statement or testimony provided by her pursuant
to this agreement, or any evidence developed therefrom, will be
used against her, directly or indirectly, in any further criminal
prosecutions or in determining the applicable guideline range
under the Federal Sentencing Guidelines.

10. LIMITATIONS ON IMMUNITY. Nothing contained in this
agreement restricts the use of information obtained by the United
States from an independent, legitimate source, separate and apart
from any information and testimony provided pursuant to this
agreement, in determining the applicable guideline range or in
prosecuting Ms. Spencer for any violations of federal or state
laws. The United States reserves the right to prosecute Ms.
Spencer for perjury or false statement if such a situation should
occur pursuant to this agreement.

11. STIPULATION OF FACTS AND WAIVER OF FED. R. EVID. 410.
The United States and Ms. Spencer stipulate and agree that the
facts comprising the offense of conviction include the facts
outlined in the “Stipulation of Facts,” a copy of which is attached
hereto as “Plea Agreement Exhibit A.”

Ms. Spencer agrees that if she withdraws from this agreement,
or this agreement is voided as a result of a breach of its terms
by her, and she is subsequently tried for her conduct alleged in
the information, as more specifically described in the Stipulation
of Facts, the United States may use and introduce the Stipulation
of Facts in the United States case-in-chief, in cross-examination
of Ms. Spencer or of any of her witnesses, or in rebuttal of any
testimony introduced by her or on her behalf. Ms. Spencer knowingly
and voluntarily waives, see United States v. Mezzanatto, 513 U.S.
196 (1995), any right she has pursuant to Fed. R. Evid. 410 that
would prohibit such use of the Stipulation of Facts. If the Court
does not accept the plea agreement through no fault of the
defendant, or the Court declares the agreement void due to a breach
of its terms by the United States, the Stipulation of Facts cannot

be used by the United States.

Defendant’s
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John Balenovich, Esq.
March 14, 2025 Re: Jasmine Spencer
Page 6

The United States and Ms. Spencer understand and acknowledge
that the Court is not bound by the Stipulation of Facts and that
if some or all of the Stipulation of Facts is not accepted by the
Court, the parties will not have the right to withdraw from the
plea agreement.

12. WAIVER OF APPEAL AND COLLATERAL ATTACK. Ms. Spencer
knowingly and voluntarily waives her right to seek appellate review
of her conviction and of any sentence imposed by the District
Court, including any term of imprisonment, fine, term or condition
of supervised release, term or condition of probation, or special
assessment, or the manner in which the sentence was determined, on
any ground whatsoever including any ground set forth in 18 U.S.C.
§ 3742(a), except that the defendant may appeal any sentence that
exceeds the maximum penalty prescribed by statute. Ms. Spencer
also knowingly and voluntarily waives any right to seek appellate
review of any claim or argument that (1) the statutes of
conviction, 18 U.S.C. §§ 1344 and 2, are unconstitutional, and (2)
Ms. Spencer conduct set forth in the Stipulation of Facts (Plea
Agreement Exhibit A) does not fall within the scope of 18 U.S.C.
§§ 1344 and 2.

The United States also agrees to waive its right to appeal
any sentence imposed by the District Court, or the manner in which
the sentence was determined, on any ground whatsoever, including
any ground set forth in 18 U.S.C. § 3742(b), except that the United
States may appeal any sentence that is below the minimum penalty,
if any, prescribed by statute.

Ms. Spencer also knowingly and voluntarily waives the right
to challenge her guilty plea and conviction resulting from this
plea agreement, and any sentence imposed for the conviction, in
any collateral attack, including but not limited to a motion
brought under 28 U.S.C. § 2255.

The waivers noted above shall not apply to a post-conviction
collateral attack or direct appeal based on a claim of ineffective

assistance of counsel.

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John Balenovich, Esq.
March 14, 2025 Re: Jasmine Spencer

Page 7

13. WAIVER OF FOIA AND PRIVACY RIGHT. Ms. Spencer knowingly
and voluntarily waives all rights, whether asserted directly or by
a representative, to request or receive from any department or
agency of the United States any records pertaining to the
investigation or prosecution of this case, including without any
limitation any records that may be sought under the Freedom of
Information Act (FOIA), 5 U.S.C. § 552, or the Privacy Act of 1974,
5 U.S.C. § 552a, following final disposition.

14. FINAL DISPOSITION. The matter of sentencing is within
the sole discretion of the Court. The United States has made no
representations or promises as to a specific sentence. The United
States reserves the right to:

(a) Inform the Probation Office and the Court of all relevant
facts and conduct;

(b) Present evidence and argument relevant to the factors
enumerated in 18 U.S.C. § 3553(a);

(c) Respond to questions raised by the Court;

(d) Correct inaccuracies or inadequacies in the presentence
report;

(e) Respond to statements made to the Court by or on behalf
of Ms. Spencer;

(£) Advise the Court concerning the nature and extent of Ms.
Spencer’s cooperation; and

(g) Address the Court regarding the issue of Ms. Spencer's
acceptance of responsibility.

15. VOIDING OF AGREEMENT. If either the United States or
Ms. Spencer violates the terms of this agreement, the other party
will have the right to void this agreement. If the Court refuses

Défendant’s
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John Balenovich, Esq.
March 14, 2025 Re: Jasmine Spencer
Page 8

to accept this agreement, it shall be void.

16. ENTIRETY OF AGREEMENT. This written agreement
constitutes the entire agreement between the United States and Ms.
Spencer in this matter. There are no agreements, understandings

or recommendations as to any other pending or future charges
against Ms. Spencer in any Court other than the United States
District Court for the Southern District of West Virginia.

Acknowledged and agreed to on behalf of the United States:

LISA G. JOHNSTON
Acting United Sta

ss Attorney

By: JE) A —

—_ United §
/ }

Attorney

NES

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Case 2:24-cr-00192 Document153_ Filed 03/25/25 Page 9 of 12 PagelD #: 658

John Balenovich, Esq.
March 14, 2025 Re: Jasmine Spencer
Page 9

I hereby acknowledge by my initials at the bottom of each of the
foregoing pages and by my signature on the last page of this nine-
page agreement that I have read and carefully discussed every part
of it with my attorney, that I understand the terms of this
agreement, and that I voluntarily agree to those terms and
conditions set forth in the agreement. I further acknowledge that
my attorney have advised me of my rights, possible defenses, the
Sentencing Guideline provisions, and the consequences of entering
into this agreement, that no promises or inducements have been
made to me other than those in this agreement, and that no one has
threatened me or forced me in any way to enter into this agreement.
Finally, I am satisfied with the representation of my attorney in
this matter.

myne ORees Date Signed
ef y)
Wizz Esq. Date "Signed

u ae for Defendant

Defendant’s
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Case 2:24-cr-00192 Documenti53_ Filed 03/25/25 Page 10 of 12 PagelD #: 659

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF WEST VIRGINIA
CHARLESTON

UNITED STATES OF AMERICA
ow, CRIMINAL NO. 2:24~CR-00192-7

JASMINE SPENCER, ET AL.

STIPULATION OF FACTS

The United States and JASMINE SPENCER {hereinafter
“defendant,” “I,” “me,” “my,” and “her”) stipulate and agree that
the facts comprising the offense of conviction (Count Eight in the
Superseding Indictment in the Southern District of West Virginia,
Criminal No, 2:24-cr-00192), include the following:

Coronavirus Relief Background

I agree that the Coronavirus Aid, Relief, and Economic
Security (“CARES”) Act was a federal law enacted in or around March
2020 and designed to provide emergency financial assistance to the
Millions of Americans who were suffering the economic effects
caused by the COVID-19 pandemic. The CARES Act authorized the Small
Business Administration (“SBA”) to provide forgivable loans to
small businesses for job retention and certain other expenses,
through a program referred to as the Paycheck Protection Program
(“PPP”).

tT agree that the PPP allowed qualifying small businesses and
other organizations to receive PPP loans. Businesses were required
to use PPP loan proceeds to cover payroll costs, interest on
mortgages, rent and utilities. The PPP allowed interest and
principal on the PPP loans to be entirely forgiven if the
businesses spent the loan proceeds to cover these expenses within
a designated time and used a certain specified percentage of the
PPP loan proceeds on payroll expenses.

I agree that to obtain a PPP loan, a qualifying business was

required to submit a PPP loan application. The PPP loan application
required the small business (through its authorized

PLEA AGREEMENT EXHIBIT A
Case 2:24-cr-00192 Document153_ Filed 03/25/25 Page 11 of 12 PagelD #: 660

representative) to acknowledge the program rules and make
affirmative certifications that the small business was eligible to
obtain the PPP loan. In addition, businesses applying for a PPP
loan were required to provide documentation showing their prior
gross income from either 2019 or 2020. Applicants also had to
certify that the small business was in operation on February 15,
2020.

I agree that a PPP loan application was processed by a
participating lender. If a PPP loan application was approved, the
participating lender funded the PPP loan using its own monies,
which were 100% guaranteed by the SBA.

Factual Basis for Plea

At all relevant times, I resided in Charleston, Kanawha
County, West Virginia, within the Southern District of West
Virginia.

Throughout 2021, I maintained a personal bank account with
The Bancorp Bank, N.A. (“Bancorp”). I agree that Bancorp was a
financial institution within the meaning of 18 U.S.c. § 20 that
was headquartered in South Dakota. Further, I agree that Financial
Institution 1 was a “financial institution” within the meaning of
18 U.S.C. § 20 that participated in the PPP by funding loans.

On or about May 27, 2021, Kisha Sutton submitted, with my
full knowledge and authorization, a PPP loan application on my
behaif to Financial Institution 1. The application, including
supplemental documents, contained materially false information in
at least two respects. First, the documents falsely represented
that I was a self-employed “hair dresser” who received $75,000 in
gross income during 2020. Second, a fraudulent IRS Form 1040 -
Schedule C: Profit or Loss from Business Forms (“IRS Form 1040”),
for the year 2020. I never earned $75,000 in gross income as a
hair dresser in 2020 or during any tax year. The IRS Form 1040 was
also never submitted by me to the IRS; it was created for the sole
purpose of obtaining a fraudulent PPP loan. This information
qualified me for a loan amount I otherwise would not have been
qualified to receive. Financial Institution 1 approved the
fraudulent application.

On or about June 28, 2021, I received a $15,625 ACH transfer
disbursed by Financial Institution 1, and the funds’ were
electronically deposited in my Bancorp bank account. At the time
I received the funds, I knew the $15,625 represented proceeds from
the fraudulent PPP loan.

PLEA AGREEMENT EXHIBIT A
2
Case 2:24-cr-00192 Document153 Filed 03/25/25 Page 12 of 12 PagelD #: 661

Between June 30, 2021, and July 9, 2021, I used CashApp to
transfer $3,000 to Kisha Sutton from the fraudulent PPP loan
proceeds, as compensation for facilitating the submission of my
fraudulent loan and consistent with our agreement. I initiated
these transfers while in the Southern District of West Virginia.
The transfers were as follows:

Date Total Sender Recipient
2021-06-30 |S 1,000.00 Jasmine Spencer Kisha Sutton
16:16:10

UTC

2021-06-30 |S 500.00 Jasmine Spencer |Kisha Sutton

UTC

2021-07-09 | $ 1,500.00 Jasmine Spencer Kisha Sutton
14:35:38

UTC

I spent the remainder of the loan proceeds on personal
expenses.

This Stipulation of Facts does not contain each and every
fact known to defendant and to the United States concerning her
involvement and the involvement of others in the charges set forth
in the Information.

Stipulated and agreed to:

INE SPENCER Date
Defendant

BALENOVICH, Kor Daté
of un 1 for fendarit

JO db T. STORAGE f Date
Foes United States fAttorn

PLEA AGREEMENT EXHIBIT A
3


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