United States v. Salmat Deyji — Plea Agreement, Southern District of Georgia (Document 17)

Summary

In this plea agreement filed 11/03/22 in the Southern District of Georgia, Savannah Division, Salmat Deyji, represented by Michael Duponte, agrees to waive indictment and plead guilty to Count One of the Information, which charges a violation of 18 U.S.C. § 371 (Conspiracy). Deyji agrees that between April 2021 and June 2021, Deyji and coconspirators including Jerrod Bellamy used cellular devices and the internet to create fraudulent PPP applications and IRS Form Schedule C documents that falsely reported business revenue. The agreement states that Bellamy and others agreed to pay Deyji several thousand dollars per PPP application. The maximum possible sentence listed is 5 years' imprisonment, 3 years' supervised release and a $250,000 fine.

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Case 4:22-cr-00143-LGW-BWC Document17_ Filed 11/03/22 Page1of13

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF GEORGIA
SAVANNAH DIVISION

UNITED STATES OF AMERICA )
)
v. ) CR: 422-13
)
SALMAT DEYJI )

PLEA AGREEMENT

Defendant Salmat Deyji, represented by her counsel Michael Duponte, and the
United States of America, represented by Assistant United States Attorney Chris
Howard, have reached a plea agreement in this case. The terms and conditions of

that agreement are as follows.

1. Guilty Plea

Defendant, having been advised of the right to be charged by Indictment,
agrees to waive that right and enter of plea of guilty to Count One of the Information,
which charges a violation of 18 U.S.C. § 371 (Conspiracy).

2. Elements and Factual Basis

The elements necessary to prove the offense charged in Count One are (1) that
two or more persons in some way agreed to try to accomplish a shared and unlawful
plan; (2) the Defendant knew the unlawful purpose of the plan and willfully joined in
it; (3) during the conspiracy, one of the conspirators knowingly engaged in at least
one overt act as described in the Information; and (4) the overt act was committed at
or about the time alleged and with the purpose of carrying out or accomplishing some

object of the conspiracy.
Case 4:22-cr-00143-LGW-BWC Document17_ Filed 11/03/22 Page2of13

Defendant agrees that she is, in fact, guilty of this offense. She agrees to the
accuracy of the following facts, which satisfy each of the offense’s required elements:

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a
federal law enacted in or about March 2020 designed to provide emergency financial
assistance to the millions who are suffering the economic effects caused by the
COVID-19 pandemic. Among other relief efforts, the United States sought to provide
financial support to eligible businesses that could be used to offset certain business
expenses.

The Small Business Administration (“SBA”) was an executive branch agency
of the United States government that provided support to entrepreneurs and small
businesses. The SBA was headquartered in Washington, DC and maintained its
computer servers outside of the State of Georgia. The SBA’s mission was to maintain
and strengthen the nation’s economy by enabling the establishment and viability of
small businesses and by assisting in the economic recovery of communities after
disasters. As part of this effort, the SBA enabled and provided for loans through
banks, credit unions, and other lenders. These loans have government-backed
guarantees. In addition, the SBA provided loans that came directly from the U.S.
Government.

A source of relief provided by the CARES Act was the authorization of up to
$3.49 billion in forgivable loans to small businesses for job retention and certain other
expenses, through a program referred to as the Paycheck Protection Program (“PPP”).

In or around April 2020, Congress authorized over $300 billion in additional PPP
funding. To obtain a PPP loan, a qualifying business had to submit a PPP loan
application 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 to be
eligible to obtain the PPP loan. In the PPP loan application, the small business
(through its authorized representative) had to state, among other things, its: (a)
average monthly payroll expenses; and (b) number of employees. These figures were
then used to calculate the amount of money the small business was eligible to receive
under the PPP.

A PPP loan application must be processed by a participating lender, such as a
financial institution. If a PPP loan is approved, the participating lender funds the
PPP loan using its own monies, which are 100% guaranteed by the SBA. Data from
the application, including the information about the borrower, the total amount of
the loan, and the listed number of employees, is transmitted by the lender to the SBA
in the course of processing the loan. The PPP loan proceeds must be used by the
business on certain permissible expenses—payroll costs, interest on mortgages, rent,
and utilities. The PPP allows the interest and principal of the PPP loan to be entirely
forgiven if the business spends the loan proceeds on these expense items within a
designated period of time and uses a certain percentage of the PPP loan proceeds on
payroll expenses.

Beginning no later than April 2021 and continuing through at least June 2021,

within the Southern District of Georgia, Northern District of Georgia, and elsewhere,
Case 4:22-cr-00143-LGW-BWC Document17_ Filed 11/03/22 Page4of13

Defendant, aided and abetted by others, did knowingly and willfully combine,
conspire, confederate, and agree with at least one other person to:

° commit wire fraud, that is to devise and intend to devise a scheme and artifice
to defraud and to obtain money and property by means of false and fraudulent
pretenses, representations and promises, and for the purpose of executing the
scheme and artifice and to obtain money and property, caused to be
transmitted wires and signals in interstate and foreign commerce, namely
interstate communications to be made over the internet, in furtherance of the
scheme and artifice to defraud, in violation of 18 U.S.C. § 1348; and

° commit money laundering, that is to knowingly conduct and attempt to conduct
a financial transaction affecting interstate and foreign commerce, which
involved the proceeds of a specified unlawful activity, that is wire fraud with
the intent to promote the carrying on of wire fraud, and that while conducting
and attempting to conduct such financial transaction knew that the property
involved in the financial transaction represented the proceeds of some form of
unlawful activity, in violation of 18 U.S.C. § 1956.

The object of the conspiracy was for Defendant and her coconspirators to
unjustly enrich themselves by making false PPP applications to lenders, to
unlawfully induce the lenders to disburse SBA-backed loans to coconspirators in
amounts to which they were not entitled, and who, in turn, would pay a portion of the
ill-gotten funds to Defendant as a kickback.

In furtherance of this scheme, and to effect the objects thereof, the following
acts were committed in furtherance of the conspiracy:

It was part of the conspiracy that between April 2021 and June 2021,
Defendant and her coconspirators, including Jerrod Bellamy, utilized cellular devices
and the internet to create fraudulent PPP applications. One or more coconspirators

would send the personal identifying information and banking information of

themselves and others to Defendant. Defendant, in turn, would use the internet to
Case 4:22-cr-00143-LGW-BWC Document17_ Filed 11/03/22 Page5of13

create fraudulent PPP applications and IRS Form Schedule C documents that would
accompany the PPP applications. The applications and Schedule C forms would
falsely report the purported business’ revenue, and on occasions, refer to businesses
that did not exist. Defendant, and the applicant, would then cause the PPP
application to be submitted to the lender.

In reliance on false representations made in PPP applications created by
Defendant, lenders headquartered outside the State of Georgia, by means of wire
communication, disbursed hundreds of thousands of dollars in loans.

In exchange for Defendant completing a fraudulent PPP application, Bellamy
and others agreed to pay Defendant several thousand dollars per PPP application.
Bellamy and others transmitted the kickbacks, which they knew represented the
proceeds of a specified unlawful activity, to Defendant through electronic bank
transfers to her account at Navy Federal Credit Union or through cash payments.
Through these financial transactions, Defendant ultimately received tens of
thousands of dollars in kickbacks for preparing the fraudulent loans for others.

All of this was done in violation of 18 U.S.C. § 371.

3. Possible Sentence

Defendant’s guilty plea in Count One will subject her to the following
maximum possible sentence: 5 years’ imprisonment, 3 years’ supervised release, a
$250,000 fine, and such restitution as may be ordered by the Court. The Court

additionally must impose a $100 special assessment per count of conviction.
—)

Case 4:22-cr-00143-LGW-BWC Document17_ Filed 11/03/22 Page6of13

4, No Promised Sentence

No one has promised Defendant that the Court will impose any particular
sentence or a sentence within any particular range. The Court is not bound by any
estimate of sentence given or recommendations made by Defendant’s counsel, the
government, the U.S. Probation Office, or anyone else. The Court may impose a
sentence up to the statutory maximum. Defendant will not be allowed to withdraw
her plea of guilty if she receives a more severe sentence than she expects.

5, Court’s Use of Sentencing Guidelines

The Court is obligated to use the United States Sentencing Guidelines to
calculate the applicable guideline range for Defendant’s offense. The Sentencing
Guidelines are advisory; the Court is not required to impose a sentence within the
range those Guidelines suggest. The Court will consider that range, possible
departures under the Sentencing Guidelines, and other sentencing factors under 18
U.S.C. § 3553(a), in determining the Defendant’s sentence. The Sentencing
Guidelines are based on all of Defendant’s relevant conduct, pursuant to U.S.S.G. §
1B1.3, not just the conduct underlying the particular Count or Counts to which
Defendant is pleading guilty.

6. Agreements Regarding Sentencing Guidelines

a. Use of Information

Nothing in this agreement precludes the government from providing full and
accurate information to the Court and U.S. Probation Office for use in calculating the

applicable Sentencing Guidelines range. Any incriminating information provided by
Case 4:22-cr-00143-LGW-BWC Document17_ Filed 11/03/22 Page/7of13

the defendant during her cooperation will not be used in determining the applicable
Guidelines range, pursuant to Section 1B1.8 of the Sentencing Guidelines.

b. Acceptance of Responsibility

If the Court determines that Defendant qualifies for an adjustment under
U.S.S.G. § 3E1.1(a), and the offense level prior to operation of § 3E1.1(a) is 16 or
greater, the government will move for an additional one-level reduction in offense
level pursuant to Section 3E1.1(b) based on Defendant’s timely notification of her

intention to enter a guilty plea.

fb c. Low End of Guidelines Range

[WAY The government will recommend that Defendant be sentenced to the low end
of the advisory Guidelines range determined by the Court at sentencing.
7. Cooperation
a. Complete and Truthful Cooperation

If Defendant elects to cooperate, she must provide full, complete, candid, and
truthful cooperation in the investigation and prosecution of the offenses charged in
her Information and any related offenses. Defendant shall fully and truthfully
disclose her knowledge of those offenses and shall fully and truthfully answer any
question put to her by law enforcement officers about those offenses.

This agreement does not require Defendant to “make a case” against any
particular person. Her benefits under this agreement are conditioned only on her
cooperation and truthfulness, not on the outcome of any trial, grand jury, or other

proceeding.
Case 4:22-cr-00143-LGW-BWC Document17_ Filed 11/03/22 Page8of13

b. Motion for Reduction in Sentence Based on Cooperation

The government, in its sole discretion, will decide whether Defendant’s
cooperation qualifies as “substantial assistance” pursuant to U.S.S.G. § 5K1.1 or Fed.
R. Crim. P. 35 and thereby warrants the filing of a motion for downward departure
or reduction in Defendant’s sentence. If such a motion is filed, the Court, in its sole
discretion, will decide whether, and to what extent, Defendant’s sentence should be
reduced. The Court is not required to accept any recommendation by the government
that the Defendant’s sentence be reduced.

8. Financial Obligations and Agreements

a. Restitution

The amount of restitution ordered by the Court shall include restitution for the
full loss caused by Defendant’s total criminal conduct. Restitution is not limited to
the specific counts to which Defendant is pleading guilty. Any restitution judgment
is intended to and will survive Defendant, notwithstanding the abatement of any
underlying criminal conviction.

b. Special Assessment

Defendant agrees to pay a special assessment in the amount of $100, payable
to the Clerk of the United States District Court, which shall be due immediately at
the time of sentencing.

9. Waivers

a. Waiver of Appeal
Case 4:22-cr-00143-LGW-BWC Document17_ Filed 11/03/22 Page9of13

Defendant entirely waives her right to a direct appeal of her conviction and
sentence on any ground (including any argument that the statute to which the
defendant is pleading guilty is unconstitutional, that venue does not lie with the
count, or that the admitted conduct does not fall within the scope of the statute). The
only exceptions are that the Defendant may file a direct appeal of her sentence if (1)
the court enters a sentence above the statutory maximum, (2) the court enters a
sentence above the advisory Sentencing Guidelines range found to apply by the court
at sentencing; or (3) the Government appeals the sentence. Absent those exceptions,
Defendant explicitly and irrevocably instructs her attorney not to file an appeal.

b. Waiver of Collateral Attack

Defendant entirely waives her right to collaterally attack her conviction and
sentence on any ground and by any method, including but not limited to a 28 U.S.C.
§ 2255 motion. The only exception is that Defendant may collaterally attack her
conviction and sentence based on a claim of ineffective assistance of counsel.

c. FOIA and Privacy Act Waiver

Defendant waives all rights, whether asserted directly or through a
representative, to request or receive from any department or agency of the United
States any record pertaining to the investigation or prosecution of this case under the
authority of the Freedom of Information Act, 5 U.S.C. § 552, or the Privacy Act of
1974, 5 U.S.C. § 552a, and all subsequent amendments thereto.

d. Fed. R. Crim. P. 11(f) and Fed. R. Evid. 410 Waiver
Case 4:22-cr-00143-LGW-BWC Document17_ Filed 11/03/22 Page 10 of 13

Rule 11(f) of the Federal Rules of Criminal Procedure and Rule 410 of the
Federal Rules of Evidence ordinarily limit the admissibility of statements made by a
defendant during the course of plea discussions or plea proceedings. Defendant
knowingly and voluntarily waives the protections of these rules. If Defendant fails to
plead guilty, or her plea of guilty is later withdrawn, all of Defendant’s statements in
connection with this plea, and any leads derived therefrom, shall be admissible for
any and all purposes.

10. Defendant’s Rights

Defendant has the right to be represented by counsel, and if necessary have
the court appoint counsel, at trial and at every other critical stage of the proceeding.
Defendant possesses a number of rights which she will waive by pleading guilty,
including: the right to plead not guilty, or having already so pleaded, to persist in
that plea; the right to a jury trial; and the right at trial to confront and cross-examine
adverse witnesses, to be protected from compelled self-incrimination, to testify and
present evidence, and to compel the attendance of witnesses.

11. Satisfaction with Counsel

Defendant has had the benefit of legal counsel in negotiating this agreement.
Defendant believes that her attorney has represented her faithfully, skillfully, and
diligently, and she is completely satisfied with the legal advice given and the work

performed by her attorney.

12: Breach of Plea Agreement

10
If Defendant fails to plead guilty, withdraws or attempts to withdraw her
guilty plea, commits any new criminal conduct following the execution of this
agreement, or otherwise breaches this agreement, the government is released from
all of its agreements regarding Defendant’s sentence, including any agreements
regarding the calculation of Defendant’s advisory Sentencing Guidelines. In addition,
the government may declare the plea agreement null and void, reinstate any counts
that may have been dismissed pursuant to the plea agreement, and/or file new
charges against Defendant that might otherwise be barred by this plea agreement.
Defendant waives any statute-of-limitations or speedy trial defense to prosecutions

reinstated or commenced under this paragraph.

A

11
13. Entire Agreement

This agreement contains the entire agreement between the government and

Defendant.

DAVID H. ESTES

UNITED STATES ATTORNEY
Date Patricia G. Rhodes

Assistant United States Attorney
Criminal Chief

Date | Chris Howard
Assistant United States Attorney

12
Case 4:22-cr-00143-LGW-BWC Document17_ Filed 11/03/22 Page 13 of 13

I have read and carefully reviewed this agreement with my attorney. I
understand each provision of this agreement, and I voluntarily agree to it. I hereby

stipulate that the factual basis set out therein is true and accurate in every respect.

Date Salmat Deyji ~
Defendant

I have fully explained to Defendant all of her rights, and I have carefully

reviewed each and every part of this agreement with her. I believe that she fully and

\
completely understands it, and that her decision to entgr“into this agreement is an

informed, intelligent, and voluntary one.

ate

/ —

LA A,

Michael Duponte
Defendant’s Attorney

13


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