United States v. William Powell — Plea Agreement Letter, S.D. W. Va. (February 10, 2025)

Summary

A plea agreement letter dated February 10, 2025 from the United States Attorney for the Southern District of West Virginia to Natalie Atkinson, counsel for William Powell, in United States v. William Powell et al., Criminal No. 2:24-cr-00192, filed March 25, 2025 as Document 155. Powell agrees to plead guilty to Count One of a ten-count indictment, conspiracy to commit bank fraud under 18 U.S.C. § 1344 and § 1349, and the United States will move to dismiss Count Six. The letter lists a maximum penalty of 30 years, a fine of $1,000,000 and a $100 special assessment, and Powell agrees he owes restitution of $15,625. In the attached Stipulation of Facts, Powell states that a 2020 IRS Form 1040 claiming $75,000 in gross income was created to obtain a PPP loan and that he received a $15,625 ACH transfer on June 29, 2021.

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Case 2:24-cr-00192 Document155 _ Filed 03/25/25 Page 1 of 11 PagelD #: 663
S. 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
Suite 4000 FAX; 304-347-5104
Charleston, WV 25301
February 10, 2025
Natalie Atkinson, Esq. OAV PERRY 1, CLERK
‘ istrict Court
Atkinson & Frampton Souther, Bisinet of West Virginia

2306 Kanawha Boulevard East
Charleston, W. Va. 25311
natkinson@amplaw.com

Re: United States v. William Powell et al.
Criminal No. 2:24-cr-00192 (USDC SDWV)

Dear Ms. Atkinson:

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

Lis PENDING CHARGES. Mr. Powell is charged in two counts
of a ten-count indictment as follows:

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

(ob) Count Six charges Mr. Powell with a violation of 18
U.S.C. §§ 1344 and 2 (aiding and abetting bank fraud).

Zi RESOLUTION OF CHARGES. Mr. Powell will plead guilty to
Count One of said indictment, which charges him with a violation
of 18 U.S.C. § 1344 and § 1349. Following final disposition, the
United States will move the Court to dismiss Count Six in Criminal
No. 2:24-cr-00192 as to Mr. Powell.

4. MAXIMUM POTENTIAL PENALTY. The maximum penalty to which

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Natalie Atkinson, Esq.
February 10, 2025 Re: William Powell
Page 2

Mr. Powell will be exposed by virtue of this guilty plea is as
follows:

(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;

(d) A mandatory special assessment of $100 pursuant to
18 U.S.C. § 3013; and

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

5. SPECIAL ASSESSMENT. Mr. Powell has submitted certified
financial statements to the United States reflecting that he is
without sufficient funds to pay the special assessment due upon
conviction in this case. Mr. Powell agrees that, if incarcerated,
he 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,
Mr. Powell agrees that he owes restitution in the amount of $15,625
and agrees to pay such restitution, with interest as allowed by
law, to the fullest extent financially feasible. In aid of
restitution, Mr. Powell further agrees as follows:

(a) Mr. Powell 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.

(ob) Mr. Powell will fully complete and execute, under oath,
a Financial Statement and a Release of Financial

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Natalie Atkinson, Esq.
February 10, 2025 Re: William Powell
Page 3

Information on forms supplied by the United States and
will return these completed forms to counsel for the
United States within seven calendar days from the date
of the signing of this plea agreement.

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

7. PAYMENT OF MONETARY PENALTIES. Mr. Powell 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 his financial
condition for sentencing purposes. Mr. Powell 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,
Mr. Powell further agrees not to object to the 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.

Mr. Powell 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, Mr. Powell
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.

Mr. Powell agrees that if he retains counsel or has appointed

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Natalie Atkinson, Esq.
February 10, 2025 Re: William Powell
Page 4

counsel in response to the United States’ efforts to collect any
monetary penalty, he 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 his attorney to notify FLP
immediately of his representation.

8. COOPERATION. Mr. Powell 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,
Mr. Powell may have counsel present except when appearing before
a grand jury. Further, Mr. Powell agrees to be named as an
unindicted co-conspirator and unindicted aider and abettor, as
appropriate, in subsequent indictments or informations.

9. USE IMMUNITY. Unless this agreement becomes void due
to a violation of any of its terms by Mr. Powell, and except as
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 him, 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 Mr. Powell for any violations of federal or state laws.
The United States reserves the right to prosecute Mr. Powell for
perjury or false statement if such a situation should occur
pursuant to this agreement.

ll. STIPULATION OF FACTS AND WAIVER OF FED. R. EVID. 410.
The United States and Mr. Powell stipulate and agree that the facts

WN?

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Natalie Atkinson, Esq.
February 10, 2025 Re: William Powell
Page 5

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.”

Mr. Powell agrees that if he withdraws from this agreement,
or this agreement is voided as a result of a breach of its terms
by him, and he is subsequently tried for his 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 Mr. Powell or of any of his witnesses, or in rebuttal of any
testimony introduced by him or on his behalf. Mr. Powell knowingly
and voluntarily waives, see United States v. Mezzanatto, 513 U.S.
196 (1995), any right he 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.

The United States and Mr. Powell 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. Mr. Powell
knowingly and voluntarily waives his right to seek appellate review
of his conviction and of any sentence of imprisonment, fine, or
term of supervised release 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(a),
except that the defendant may appeal any sentence that exceeds the
maximum penalty prescribed by statute. Mr. Powell 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. §
1349 is unconstitutional, and (2) Mr. Powell conduct set forth in
the Stipulation of Facts (Plea Agreement Exhibit A) does not fall

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Natalie Atkinson, Esq.
February 10, 2025 Re: William Powell
Page 6

within the scope of 18 U.S.C. § 1349.

The United States also agrees to waive its right to appeal
any sentence of imprisonment, fine, or term of supervised release
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.

Mr. Powell also knowingly and voluntarily waives the right to
challenge his 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.

13. WAIVER OF FOIA AND PRIVACY RIGHT. Mr. Powell 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

wand

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Natalie Atkinson, Esq.
February 10, 2025 Re: William Powell
Page 7

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 Mr. Powell;

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

(g) Address the Court regarding the issue of Mr. Powell’s
acceptance of responsibility.

15. VOIDING OF AGREEMENT. If either the United States or
Mr. Powell violates the terms of this agreement, the other party
will have the right to void this agreement. If the Court refuses
to accept this agreement, it shall be void.

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

or recommendations as to any other pending or future charges
against Mr. Powell 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 EUaEBS:

WILLIAM S. fiomes Nn

By:
Wilson

‘Assistant United St s Attorney

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Natalie Atkinson, Esq.
February 10, 2025 Re: William Powell

Page 8

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 8-
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.

William Powell Date Signed
Defendant

Natalie Atkinson, Esq. Date Signed

Counsel for Defendant

Defendant’s
Case 2:24-cr-00192 Document155 ~~ Filed 03/25/25 Page 9 of 11 PagelD #: 671

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF WEST VIRGINIA
CHARLESTON

UNITED STATES OF AMERICA

Vv. CRIMINAL NO. 2:24-CR-00192

WILLIAM POWELL ET AL.

STIPULATION OF FACTS

The United States and WILLIAM POWELL {hereinafter
“defendant,” “I,” “me,” and “my”) stipulate and agree that the
facts comprising the offense of conviction (Count One of the
Indictment in 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”).

I 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
representative) to acknowledge the program rules and make

PLEA AGREEMENT EXHIBIT B
Case 2:24-cr-00192 Document155 _ Filed 03/25/25 Page 10 of 11 PagelD #: 672

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 195,
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 Huntington, Cabell 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 Lenders
1, 2, and 3 were financial institutions within the meaning of 18

U.S.C. § 20 that participated in the PPP by funding loans. (<

In or around April of 2021, in the Southern District of West
Virginia, I knowingly conspired with Kisha Sutton deere tq VOM
obtain a fraudulent PPP loan. I agreed to provide my personal and wh
banking information to Kisha Sutton so that she could apply for a
fraudulent PPP loan on my behalf. I further agreed that when the
PPP funds were deposited in my bank account, I would remit a
portion of the money to Kisha Sutton as compensation for her
facilitation of the loan.

On April 19, 2021, Kisha Sutton submitted a PPP loan
application on my behalf to Lender 3. The application contained
materially false information in at least two respects. First, the
application falsely represented that I was a sole proprietor hair
stylist who received $75,000 in gross income during 2020. Second,
the application attached a fraudulent Schedule C form, Profit or
Loss from Business Forms(“IRS Form 1040”), for the year 2020. The
IRS Form 1040 falsely stated that I had earned $75,000 in gross
income during 2020. I never earned $75,000 in gross income as a
hair stylist in one 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.

PLEA AGREEMENT EXHIBIT A
Case 2:24-cr-00192 Document155_ Filed 03/25/25 Page 11 of 11 PagelD #: 673

Lender 3 approved the fraudulent application.

On June 29, 2021, I received a $15,625 ACH transfer disbursed
by Lender 3, and the funds were electronically deposited in my
Bancorp bank account.

Between July 6, 2021, and July 20, 2021, I used CashApp to
transfer $2,000 to Kisha Sutton from the fraudulent PPP loan
proceeds, as compensation for facilitating my 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

7/6/2021 | $1000 William Powell Kisha Sutton
7/13/2021 | $500 William Powell Kisha Sutton
7/20/2021 | $500 William Powell Kisha Sutton

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

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

Stipulated-and agreed to:

CD | Q | \a las

WILLIAM POWELL Date >
Defendant
NATALIE ATKINSON~ — Date C
Counsel fowWDefe At

4-26-25

Date

sistant United atés Attorney

PLEA AGREEMENT EXHIBIT A
3


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