United States v. John Duncan — Plea Agreement, District of Kansas (Document 29)

Summary

In this plea agreement filed 04/28/26, in the District of Kansas (Case No. 25-20099-HLT-ADM-2), John Duncan agrees to plead guilty to Count One of the Indictment, Conspiracy to Commit Wire Fraud under 18 U.S.C. § 1349, which carries not more than 20 years of imprisonment. The agreed facts state that Joseph Campbell hired Duncan in February 2019 and that on or about February 24, 2021, Campbell and Duncan applied for a PPP loan through Kansas City Cattle Company, LLC with DreamSpring while that company was not actively engaged in business, claiming average monthly payroll of $8,333. They state Duncan created a false invoice showing cattle purchased for $12,166.25. The United States agrees to recommend a sentence at the low end of the applicable Guideline range and a two (2) level reduction for acceptance of responsibility.

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Case 2:25-cr-20099-HLT Document 29 Filed 04/28/26 Page1of10

Filed ir

Skyler B, O'Hara

IN THE UNITED STATES DISTRICT COURT Deputy
FOR THE DISTRICT OF KANSAS
UNITED STATES OF AMERICA,
Plaintiff,
v. Case No. 25-20099-HLT-ADM-2
JOHN DUNCAN,
Defendant.

PLEA AGREEMENT

The United States of America, by and through Assistant United States Attorney, D.
Christopher Oakley, and John Duncan, the defendant, personally and by and through his counsel,
Lydia Krebs Albert, hereby enter into the following Plea Agreement pursuant to Rule 11 of the
Federal Rules of Criminal Procedure:

1. Defendant’s Guilty Plea. The defendant agrees to plead guilty to Count One of

the Indictment charging a violation of 18 U.S.C. § 1349, that is, Conspiracy to Commit Wire Fraud.
By entering into this Plea Agreement, the defendant admits to knowingly committing the offense,
and to being guilty of the offense. The defendant understands that the maximum sentence which
may be imposed as to Count One of the Indictment to which he has agreed to plead guilty is not
more than 20 years of imprisonment, a $250,000 fine, 3 years of supervised release, restitution in
an amount to be determined by the Court and a $100.00 mandatory special assessment.

2. Factual Basis for the Guilty Plea. The parties agree the facts constituting the

offense to which the defendant is pleading guilty are as follows:

Joseph Campbell owned and operated several real estate, development, sales and
asset acquisition businesses in the Kansas City area. One of those businesses
included Kansas City Cattle Co. LLC (KC Cattle Co)... KC Cattle Co was organized
in the State of Kansas on October 1, -2014, with Campbell identified as the

Ver. 03-01-24
Case 2:25-cr-20099-HLT Document 29 Filed 04/28/26 Page 2of10

registered agent and organizer. KC Cattle Co.’s status was forfeited’on July 15,
2016, for failure to file its annual report.

In February 2019 Campbell hired Defendant John Duncan to work for him.
Defendant Duncan’s title was Construction Manager, but Campbell referred to
Duncan as Chief Financial Officer (CFO).

Beginning around March 2020, Campbell began applying for Payroll
Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) loans
through his various entities.

The EIDL program, which was administered through the Small Business
Administration (“SBA”), offered loans to small business owners who had suffered
an economic loss during a natural disaster. Congress expanded the financial
resources of the EIDL program when it enacted the CARES Act. Under the CARES
Act, the EIDL program expanded its eligibility to include loans for non-profit
organizations, sole proprietors, and independent contractors. The CARES Acct also
authorized the SBA to provide EIDL loans of up to $2 million per loan. The
CARES Act authorized the SBA to issue loan advances up to $10,000 to small
entities. The amount of the advance was determined by an entity’s number of
employees and the advances do not have to be repaid.

In order to obtain an EIDL loan and/or advance, a qualifying business must
have submitted an application to the SBA and provide particular information about
its operations, such as the number of employees, and the gross revenues and costs
of goods sold for the 12-month period preceding January 31, 2020. The amount of
the loan, if the application was approved, was determined, in part, on the
information provided by the applicant about the employment, revenue, and cost of
goods, as described above. The loan applicant must also certify that all information
provided in the application was true and correct to the best of the applicant’s
knowledge.

EIDL applications were submitted directly to the SBA. Further, any funds
issued under an EIDL loan or advance were issued directly by the SBA. EIDL funds
could be used for payroll expenses, sick leave, production costs, and fixed debts,
such as utilities, rent, and mortgage payments.

To obtain a PPP loan, a qualifying business was required to submit a PPP
loan application, which was signed by an authorized representative of the business.
The PPP loan application required the business, through its authorized
representative, to acknowledge the program rules and make certain affirmative
certifications in order to be eligible to obtain the PPP loan. In the PPP loan
application, the small business was required to state, among other things, its: (a)
average monthly payroll expenses; and (b) number of employees. These figures
were used to calculate the amount of money the small business was eligible to
receive under the PPP. In addition, businesses applying for a PPP loan were
required to provide documentation showing their payroll expenses, typically this
would include payroll expenses reported to the IRS by way of filed tax returns.

PPP loan proceeds were required to be used for certain permissible
expenses, including payroll costs, mortgage interest, rent, and utilities. Under the
applicable PPP rules and guidance, the interest and principal on the PPP loan was
eligible for forgiveness if the business spent the loan proceeds on these expense
Case 2:25-cr-20099-HLT Document 29 _ Filed 04/28/26 Page 3of10

items within a designated period of time and used a certain portion of the loan
towards payroll expenses.

Defendant Duncan assisted Campbell in the application for both PPP and
EIDL loans for Campbell’s businesses. On or about February 24, 2021, Campbell
and Duncan applied for a PPP loan through Kansas City Cattle Company, LLC with
DreamSpring. At the time Kansas City Cattle Company, LLC was not actively
engaged in business. In the PPP Application Campbell and Duncan claimed that
Kansas City Cattle Company had average monthly payroll of $8,333. As part of the
PPP loan application, Duncan created a false invoice that showed cattle being
purchased for $12,166.25. The invoice was false because no such sale took place.
The invoice was presented as part of the PPP loan application which was submitted
via wire transfer from Kansas to DreamSpring located outside of Kansas. Campbell
and Duncan both knew there was no such sale of cattle and the invoice was
fraudulent.

Campbell used email communication as part of the EIDL and PPP loan
application process. For instance, On May 6, 2020, Campbell emailed an SBA
employee and stated, “Kansas City Cattle, LLC cost of operations was $210,414
for 2019.” This was a false statement. This email was sent from Kansas to the SBA
employee who was located outside of Kansas.

3, Application of the Sentencing Guidelines. The parties request that the Court

apply the United States Sentencing Guidelines (Guidelines) to calculate the applicable sentence
and impose a sentence consistent with the Guidelines. The defendant agrees to waive all
constitutional challenges to the validity of the Guidelines. The defendant understands and
acknowledges that the Court will find, by a preponderance of the evidence, the facts used to
determine the offense level, and in making its findings, that the Court may consider any reliable
evidence, including hearsay. Nothing in this section prevents the parties from filing objections to
the Presentence Report prepared by the United States Probation Office, or from arguing the
application of specific sections of the Guidelines. The parties agree that the Court will determine
the final Guideline range. The parties understand this Plea Agreement binds the parties only and
does not bind the Court.

4. Relevant Conduct. The parties have agreed to the application of the Guidelines.

Therefore, the defendant agrees that the conduct charged in any dismissed counts, as well as all

other uncharged related criminal activity, will be considered as relevant conduct for purposes of

3
Case 2:25-cr-20099-HLT Document 29 _ Filed 04/28/26 Page 4of10

calculating the offense level for the. count(s) of conviction, in accordance with United States
Sentencing Guidelines (U.S.S.G.) § 1B1.3.

5. Government’s Agreements, In return for the defendant’s plea of guilty as set forth

herein, the United States Attorney for the District of Kansas agrees:

(a) to not file any additional charges against the defendant arising out of the facts
forming the basis for the present Indictment;

(b) torecommend a sentence at the low end of the applicable Guideline range, provided
that the defendant does not request a downward departure or a variance; and

(c) to recommend the defendant receive a two (2) level reduction in the applicable
offense level under U.S.S.G. § 3E1.1 for acceptance of responsibility. In addition,
if his offense level is 16 or greater, prior to any reduction for acceptance of
responsibility, and the Court finds he qualifies for a two-level reduction, the United
States will move at the time of sentencing for an additional one-level reduction for
acceptance of responsibility because he timely notified the government of his
intention to enter a plea of guilty.

The United States’ obligations under this Paragraph are contingent upon the defendant’s
continuing to manifest an acceptance of responsibility. If the defendant denies or gives conflicting
statements as to his involvement, falsely denies or frivolously contests relevant conduct the Court
determines to be true, willfully obstructs or impedes the administration of justice, as defined by
U.S.S.G. § 3C1.1 (or willfully attempts to do so), or has engaged in additional criminal conduct,
the United States reserves the right to petition the Court for a hearing to determine if he has
breached this Plea Agreement.

If the Court finds by a preponderance of the evidence that the defendant (1) has breached
or violated this Plea Agreement; (2) has willfully obstructed or impeded the administration of
justice, as defined by U.S.S.G. § 3C1.1 (or willfully attempted to do so); (3) has engaged in

additional criminal conduct; or (4) has otherwise failed to adhere to this Plea Agreements terms,

the United States shall not be bound by this Paragraph, and may pursue any additional charges
Case 2:25-cr-20099-HLT Document 29 _ Filed 04/28/26 Page5of10

arising from the criminal activity under investigation, as well as any charges for any perjury, false
statement, or obstruction of justice that may have occurred.

If the Court finds the defendant has violated this Plea Agreement, he understands and
agrees that all statements he made, any testimony he gave before a grand jury or any tribunal, or
any leads from such statements or testimony, shall be admissible against him in any and all
criminal proceedings. The defendant waives any rights which might be asserted under the United
States Constitution, any statute, Federal Rule of Criminal Procedure 11(f), Federal Rule of
Evidence 410, or any other federal rule that pertains to the admissibility of any statements he made
subsequent to this Plea Agreement.

6. Sentence to be Determined by the Court. The defendant understands that the

sentence to be imposed will be determined solely by the United States District Judge. The United
States cannot and has not made any promise or representation as to what sentence he will receive.

7. Restitution. The defendant knowingly and voluntarily agrees and consents to pay
restitution pursuant to 18 U.S.C. § 3663(a)(3) for all losses caused by defendant’s relevant conduct
in this case, not just losses resulting from the counts of conviction, in an amount to be determined
by the Court. Defendant understands:

(a) Irrespective of any payments by other defendants that are ordered to be jointly and severally
liable for restitution, defendant understands he is liable for the full amount of restitution
ordered until defendant has paid that amount in full or the victim’s loss is repaid in full,
whichever occurs first.

(b) Defendant acknowledges that the liability to pay restitution does not terminate until 20
years from entry of judgment or 20 years after defendant’s release from imprisonment,

whichever is later pursuant to 18 U.S.C. § 3613(b).

8. Identification of Assets and Agreement Concerning Monetary Penalties. In

order to facilitate the collection of criminal monetary penalties, including restitution, fines, and

assessments, to be imposed in connection with this case, defendant agrees as follows:
(b)

(c)

(e)

(f)

(g)

(h)

Payments toward anticipated criminal monetary penalties made prior to
sentencing will be held by the Court ‘Clerk and then applied to the criminal
monetary penalties following entry of the Judgment in a Criminal Case. If the
amount paid prior to sentencing exceeds the amount ordered at sentencing, the
United States Attorney’s Office will request language to be included in the
Judgment in a Criminal case to authorize the Court Clerk to refund any
overpayment to defendant. Payments made prior to sentencing can be sent to
the following address and should reference defendant’s name and case number:

Clerk, U.S. District Court
401 N. Market, Room 204
Wichita, Kansas 67202

Defendant agrees not to encumber, transfer, or dispose of any monies, property,
or assets under defendant’s custody or control of more than $2,000 in value,
without written approval from the United States Attorney’s Office.

Within 30 days of any request by the United States Attorney’s Office, defendant
agrees to execute a financial statement and provide supporting documentation.
Defendant expressly authorizes the United States to obtain a credit report before
sentencing. Further, defendant agrees to execute authorizations for the release
of all financial information requested by the United States.

Defendant agrees the United States Attorney’s Office may, pursuant to
F.R.Civ.P. Rule 45, subpoena any records it deems relevant to conduct a full
financial investigation of defendant’s assets prior to sentencing.

Defendant authorizes the United States to file a Notice of Lis Pendens prior to
judgment on any real property in which defendant holds an ownership interest.

Defendant agrees that all information defendant provides to the United States
Probation Office or independently obtained by the United States Probation
Office may be provided to the United States Attorney’s Office. Likewise, all

-information defendant provides to the United States Attorney’s Office or

independently obtained by the United States Attorney’s Office in the course of
its financial investigation of defendant may be provided to the United States
Probation Office.

All monetary penalties (including any fine, restitution, assessment, or forfeiture
judgment) imposed by the Court, will be due and payable immediately and
subject to immediate enforcement by the United States. Any payment schedule
set by the Court is a minimum schedule of payment and not a limitation on the
United States to enforce the judgment.

Defendant waives any requirement for demand of payment on any criminal
monetary penalties or forfeiture judgment entered by this Court.
Case 2:25-cr-20099-HLT Document 29 Filed 04/28/26 Page 7 of 10

(i) Defendant waives the administrative requirements of the Treasury Offset
Program, including the requirement of default.

(j) If defendant posted funds as security for defendant’s appearance in this case,
the defendant authorizes the Court to release the funds posted the Court Clerk
to be applied to the criminal monetary impositions at the time of sentencing.

(k) Defendant understands he has an obligation to notify the court and the United
States Attorney’s Office of any material change in defendant’s economic
circumstances that might affect defendant’s ability to pay restitution pursuant
to 18 U.S.C. § 3664(k).

(1) Defendant understands that failure to comply with the provisions of this section
may constitute a breach of this plea agreement, as outlined in Paragraph 5,
above.

9, Withdrawal of Plea Not Permitted. The defendant understands that if the Court

accepts this Plea Agreement, but imposes a sentence with which he does not agree, he will not be
permitted to withdraw his guilty plea.

10. Payment of Special Assessment. The defendant understands that a mandatory

special assessment of $100.00 per count of conviction will be entered against him at the time of
sentencing. The defendant agrees to deliver to the Clerk of the United States District Court
payment in the appropriate amount no later than the day of sentencing. The defendant has the
burden of establishing an inability to pay the required special assessment. The parties
acknowledge that if the Court finds the defendant is without resources to pay the special
assessment at the time of sentencing, the Court may allow payment during his period of
incarceration.
11. Waiver of Appeal and Collateral Attack. The defendant knowingly and
voluntarily waives any right to appeal or collaterally attack any matter in connection with this
_prosecution, his conviction, or the components: of the sentence to be imposed herein, including
assessments and restitution, as well as the length and conditions of supervised release. The

defendant is aware that 18 U.S.C. § 3742 affords him the right to appeal the conviction and

7
Case 2:25-cr-20099-HLT Document 29 _ Filed 04/28/26 Page 8of10

sentence imposed. The defendant also waives any right to challenge his sentence, or the manner
in which it was determined, or otherwise attempt to modify or change his sentence, in any collateral
attack, including, but not limited to, a motion brought under 28 U.S.C. § 2255 (except as limited
by United States v. Cockerham, 237 F.3d 1179, 1187 (10th Cir. 2001)), or a motion brought under
Federal Rule of Civil Procedure 60(b). In other words, the defendant waives the right to appeal
the sentence imposed in this case, except to the extent, if any, the Court departs or varies upwards
from the sentencing Guideline range that the Court determines to be applicable. However, if the
United States exercises its right to appeal the sentence imposed, as authorized by 18 U.S.C. §
3742(b), the defendant is released from this waiver and may appeal the sentence received, as
authorized by 18 U.S.C. § 3742(a). Notwithstanding the foregoing waivers, the parties understand
that the defendant in no way waives any subsequent claims with regards to ineffective assistance
of counsel or prosecutorial misconduct.

12. FOlAand Privacy Act Waiver. The defendant 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
limitation, any records that may be sought under the Freedom of Information Act, 5 U.S.C. § 552.
The defendant further waives any rights conferred under the Privacy Act of 1974, 5 U.S.C. § 552a,
to prevent or object to the disclosure of records or materials pertaining to this case.

13. Full Disclosure by United States. The defendant understands the United States
will provide to the Court and the United States Probation Office all information it deems relevant
to determining the appropriate sentence in this case. This may include information concerning his
background, character, and conduct, including the entirety of his criminal activities. The defendant
understands these disclosures are not limited to the count to which he is pleading guilty. The

United States may respond to comments he or his attorney makes, or to positions he or his attorney

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Case 2:25-cr-20099-HLT Document 29 _ Filed 04/28/26 Page 9of10

takes, and to correct any misstatements or inaccuracies. The United States further reserves its right
to make any recommendations it deems appropriate regarding the disposition of this case, subject
only to any limitations set forth in this Plea Agreement. The defendant also has the right to provide
information concerning the offense and to make recommendations to the Court and the United
States Probation Office.

14. Parties to the Agreement. The defendant understands this Plea Agreement binds

only him and the United States Attorney for the District of Kansas, and that it does not bind any
other federal, state, or local prosecution authority.

15. Voluntariness of Guilty Plea. The defendant has had sufficient time to discuss

this case, the evidence, and this Plea Agreement with his attorney and he is fully satisfied with the
advice and representation his attorney provided. Further, the defendant acknowledges that he has
read the Plea Agreement, understands it, and agrees it is true and accurate and not the result of any
threats, duress or coercion. The defendant further understands that this Plea Agreement supersedes
any and all other agreements or negotiations between the parties, and unless subsequently
supplemented in writing with the joint approval of the parties, this Plea Agreement embodies each
and every term of the agreement between the parties. The defendant acknowledges that he is
entering into this Plea Agreement and is pleading guilty because he is guilty. He further

acknowlgyges that he is entering his guilty plea freely, voluntarily, and knowingly.

D. Chesfopher Oakley
Assistant United States Attorney
500 State Avenue, Suite 360
Kansas City, KS 66101
Chris.Oakley@usdoj.gov
913-551-6730

Ks Bar No. 19248
Case 2:25-cr-20099-HLT

s/ Larry Fadler

Larry Fadler
Assistant United States Attorney
Supervisor

me, (Xe koe

(eta Be Federal Public Defender
632 SW Van Buren Street
Suite 200
Topeka, KS 66603
785.232.9828
Counsel for defendant

Document 29

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Filed 04/28/26 Page 10 of 10

Date:

Date:

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