United States v. Shakeena Hamilton — Plea Agreement, Southern District of Georgia (Document 21)

Summary

A plea agreement in United States of America v. Shakeena Hamilton, No. 3:22-cr-00005, in the U.S. District Court for the Southern District of Georgia, Dublin Division, filed April 14, 2022 as Document 21, between Hamilton, represented by Mitchell M. Shook, and the United States, represented by Assistant United States Attorney Chris Howard. Hamilton agrees to plead guilty to Count One of the Information, conspiracy under 18 U.S.C. § 371, and stipulates to facts including more than 120 fraudulent PPP applications, more than approximately $2,300,000 disbursed and more than $300,000 in kickbacks. The agreement lists a maximum of 5 years' imprisonment, 3 years' supervised release and a $250,000 fine, and a $100 special assessment. It includes waivers of appeal and collateral attack and closes with a court order accepting the guilty plea.

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“United States v. Shakeena Hamilton — Plea Agreement, Southern District of Georgia (Document 21).” Original at ecf.gasd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/plea-agreement-usa-v-hamilton-dkt-21-949cf1d91e/, SHA-256 e23b381bec089a88d41cfa864e5c2d8b9fc2401196d18973ee3893cfdb490aac.

Full text

Case 3:22-cr-00005-DHB-BKE Document 21 Filed 04/14/22 Page 1 of 14

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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF GEOR(5j^\
DUBLIN DIVISION 0""V

UNITED STATES OF AMERICA

V. CR: 322-

SHAKEENA HAMILTON

PLEA AGREEMENT

Defendant Shakeena Hamilton,represented b^^^ounsel Mitchell M.Shook,
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.

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 accomphshing some

object of the conspiracy.
Case 3:22-cr-00005-DHB-BKE Document 21 Filed 04/14/22 Page 2 of 14

Defendant agrees that she is, in fact, guilty of this offense|^Sh^grees 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 ofthe State of Georgia. The SBA's mission was to maintain

and strengthen the nation's economy by enabhng the estabhshment 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

$349 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
Case 3:22-cr-00005-DHB-BKE Document 21 Filed 04/14/22 Page 3 of 14

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 apphcation, 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 apphcation, including the information about the borrower, the total amount of

the loan, and the hsted 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 utihties. 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 February 2021 and continuing through at least April

2021, in Telfair County, within the Southern District of Georgia, and elsewhere.
Case 3:22-cr-00005-DHB-BKE Document 21 Filed 04/14/22 Page 4 of 14

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 offalse 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, § 1343.

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

The object of the conspiracy was for Defendant and\her coconspirators to

unjustly enrich themselves by making false PPP apphcations to the SBA and to

financial institutions, to unlawfully induce the SBA and PPP lenders to dispense

money and funds to coconspirators 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 February 2021 and April 2021,

Defendant and^^^conspirators utilized cellular devices,email,and the internet to
create fraudulent PPP applications. Coconspirators would send their personal

identifying information and banking information to Defendant. Defendant, in turn,

would use the internet to access Company 1, which is a lender service provider that

partners with banks to apply for and secure PPP loans.
Case 3:22-cr-00005-DHB-BKE Document 21 Filed 04/14/22 Page 5 of 14

For each PPP loan, Defendant would use a coconspirator's information with

his/her knowledge and consent to create fraudulent PPP apphcations falsely

reporting the existence of businesses that did not exist, falsely reporting the number

of employees, and falsely reporting revenue. Next, a coconspirator would login to

Company 1 and verify his/her identity by taking a self-photograph. Once an

application was prepared, a coconspirator would electronically verify his/her identity

with Company 1, then Defendant would complete and submit the fraudulent PPP

application through interstate wires. After a PPP application was approved by a

lender, a coconspirator would electronically receive, sign, and submit loan documents

to the lender.

In reliance on false representations made in PPP applications created by

Defendant in conjunction with her coconspirators, banks headquartered outside the

State of Georgia, by means of wire communication, deposited millions of dollars into

coconspirators' bank accounts resulting from this scheme.

In exchange for Defendant completing a fraudulent PPP application.

Defendant's coconspirators agreed to pay Defendant in amounts as high as $5,000

per PPP application. Coconspirators transmitted the kickback to Defendant via

CashApp, ZeUe, or by cash transactions.

Between in or around February 2021 through in or around April 2021,

Defendant, while in the Southern District of Georgia, caused to be submitted more

than 120 fraudulent PPP applications on behalf of herself and conspirators, which

resulted in more than approximately $2,300,000 being disbursed from banks to
Case 3:22-cr-00005-DHB-BKE Document 21 Filed 04/14/22 Page 6 of 14

members of the conspiracy. Of that, Defendant obtained more than $300,000 in

unlawful kickbacks disbursed from coconspirators to her as payment for submitting

the fraudulent PPP applications. Defendant used proceeds of the conspiracy to

purchase a Mercedes vehicle and other items unrelated to the purpose of the PPP's

creation.

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, such restitution as may be ordered by the Court, and forfeiture of all

forfeitable assets. The Court additionally must impose a $100 special assessment per

count of conviction.

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

Guidehnes are advisory; the Court is not required to impose a sentence within the
Case 3:22-cr-00005-DHB-BKE Document 21 Filed 04/14/22 Page 7 of 14

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^of Defendant's relevant conduct, pursuant to U.S.S.G. §

IB 1.3, not just the conduct underlying the particular Count or Counts to which

Defendant is pleading guilty.

6. Agreements Regarding Sentencing Guidehnes

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

the defendant during her cooperation will not be used in determining the applicable

Guidelines range, pursuant to Section IB 1.8 of the Sentencing Guidelines.

b. Acceptance of Resnonsibilitv

If the Court determines that Defendant qualifies for an adjustment under

U.S.S.G. § 3El.l(a), and the offense level prior to operation of § 3El.l(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.

7. Cooperation

a. Complete and Truthful Cooperation
Case 3:22-cr-00005-DHB-BKE Document 21 Filed 04/14/22 Page 8 of 14

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 Indictment 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.

b. Motion for Reduction in Sentence Based on Cooperation

The government, in its sole discretion, will decide whether Defendant's

cooperation quahfies as "substantial assistance" pursuant to U.S.S.G.§ 5K1.1 or Fed.

R. Grim. P. 35 and thereby warrants the fihng 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. Abandonment of Pronertv

Defendant waives and abandons her interest in any property that may have

been seized in connection with this case,including but not limited to certain electronic

devices, including a cellular phone, and all funds and assets seized and sought to be

forfeited in the related case pending in Telfair County, Georgie, Superior Court.

8
Case 3:22-cr-00005-DHB-BKE Document 21 Filed 04/14/22 Page 9 of 14

9. 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 count to which Defendant is pleading guilty. Any restitution judgment is

intended to and will survive Defendant, notwithstanding the abatement of any

underlying criminal conviction. The United States agrees to recommend that the

funds seized by state authorities following Defendant's arrest on July 2, 2021, to

which Defendant has agreed to waive and abandon any interest be credited towards

the amount of Defendant's restitution ordered by the Court at sentencing.

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.

10. Waivers

a. Waiver of Appeal

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 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
Case 3:22-cr-00005-DHB-BKE Document 21 Filed 04/14/22 Page 10 of 14

Gmdelines 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 Privacv 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. IKfi and Fed. R. Evid. 410 Waiver

Rule 11(f) of the Federal Rules of Criminal Procedure and Rule 410 of the

Federal Rules of Evidence ordinarily hmit the admissibihty 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 gudty 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
Case 3:22-cr-00005-DHB-BKE Document 21 Filed 04/14/22 Page 11 of 14

11. 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.

12. Satisfaction with Counsel

Defendant has had the benefit of legal counsel in negotiating this agreement.

Defendant beheves 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.

13. Breach of Plea Agreement

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.

11
Case 3:22-cr-00005-DHB-BKE Document 21 Filed 04/14/22 Page 12 of 14

Defendant waives any statute-of-limitations or speedy trial defense to prosecutions

reinstated or commenced under this paragraph.

14. Entire Agreement

This agreement contains the entire agreement between the government and

Defendant.

DAVID H.ESTES
UNITED STATES ATTORNEY

Date Karl Knoche
Assistant United States Attorney
Criminal Chief

Date Chris Hofward
Assistant United States Attorney

12
Case 3:22-cr-00005-DHB-BKE Document 21 Filed 04/14/22 Page 13 of 14

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.

)ab Shakeena Hamilton
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 enter into this agreement is an

informed, intelhgent, and voluntary one.

itchell M.Shook
eienaant s torney

13
Case 3:22-cr-00005-DHB-BKE Document 21 Filed 04/14/22 Page 14 of 14

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF GEORGIA
DUBLIN DIVISION

UNITED STATES OF AMERICA

V. CR: 322-05

SHAKEENA HAMILTON

ORDER

The aforesaid Plea Agreement, having been considered by the Court in

conjunction with the interrogation by the Court of the defendant and the

defendant's attorney at a hearing on the defendant's motion to change her plea and

the Court finding that the plea of guilty is made freely, voluntarily and knowingly,

it is thereupon,

ORDERED that the plea of guilty by defendant be, and it is, hereby accepted

and the foregoing Plea Agreement be, and it is, hereby ratified and confirmed.

This day of 2022.

HON. DUDI^Y H. BOWEN,JR
JUDGE, UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF GEORGIA

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