United States v. Matthew Patsches — Plea Agreement, Southern District of Georgia (Document 32)

Summary

A plea agreement in United States of America v. Matthew Patsches, CR 422-067 (Case 4:22-cr-00067-RSB-CLR), in the U.S. District Court for the Southern District of Georgia, Savannah Division, filed September 19, 2022 as Document 32. Patsches agrees to waive indictment and plead guilty to Count One of the Information, conspiracy under 18 U.S.C. § 1349 to commit wire fraud. In the factual basis Patsches admits that a coconspirator submitted PPP applications in Patsches's name to Fountainhead SBF LLC and Capital Plus claiming a business called "Matt's personal training" with $59,670 in gross income for 2020, that each lender deposited $12,431, and that Patsches paid the coconspirator $3,500 as a kickback. The filing ends with an order of the Hon. William T. Moore, Jr. accepting the plea and ratifying the agreement; the maximum sentence is 20 years' imprisonment.

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Case 4:22-cr-00067-RSB-CLR         Document 32       Filed 09/19/22     Page 1 of 11




                       UNITED STATES DISTRICT COURT
                       SOUTHERN DISTRICT OF GEORGIA
                               SAVANNAH DIVISION



  UNITED STATES OF AMERICA

                      V.                                     CR:422-067

  MATTHEW PATSCHES



                                  PLEA AGREEMENT

        Defendant Matthew Patsches, represented by his counsel Jack Downie, 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.     Guiltv Plea

        Defendant, having been advised of the right to be charged by Indictment,

 agrees to waive that right and enter a plea of guilty to Count One of the Information,

 which charges a violation of 18 U.S.C. § 1349, Conspiracy.

 2.     Elements and Factual Basis

        The elements necessary to prove the offense charged in Count One are (1) two

 or more persons, in some way or manner, agreed to try to accomplish a common and

  unlawful plan to commit wire fraud, in violation of 18 U.S.C. § 1343; and (2) the

  defendant knew the unlawful purpose of the plan and willfully joined in it.

        Defendant agrees that he is, in fact, guilty of this offense. He agrees to the

  accuracy of the following facts, which satisfy each of the offense's required elements:




                                                                                       (A?
Case 4:22-cr-00067-RSB-CLR         Document 32      Filed 09/19/22     Page 2 of 11




       Beginning in or around April 2021 and continuing through in or around June

 2021, within the Southern District of Georgia, Western District of Texas, and

 elsewhere. Defendant and Jerrod Bellamy, did knowingly and willfully, combine,

 conspire, confederate, and agree with each other to devise or intend to devise any

 scheme or artifice to defraud, or for obtaining money or property by means offalse or

 fraudulent pretenses, representations, or promises, to transmit or cause to be

 transmitted by wire communication in interstate commerce any writings, signs,

 signals, pictures, or sounds for the purpose of executing such scheme or artifice, in

 violation of Title 18, United States Code,Section 1343, the conspiracy to commit such

 offense being in violation of Section 1349 of Title 18 of the United States Code.

       The object of the conspiracy was for Defendant and Bellamy to unjustly enrich

 themselves by making false statements in loan applications electronically submitted

 to financial institutions through the Payroll Protection Program (PPP)to unlawfully

 induce the financial institutions to dispense money and funds to Defendant to which

 he was not entitled, and Defendant, In turn, would pay a portion of the ill-gotten

 funds to Bellamy 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 in or about April 2021, Defendant

 and Bellamy utilized cellular devices, email, and the internet to create a fraudulent

 PPP application. Defendant sent his personal identifying information to Bellamy,

 who in turn, would use the internet to create a fraudulent PPP bank loan application.


                                           2
Case 4:22-cr-00067-RSB-CLR        Document 32      Filed 09/19/22     Page 3 of 11




 In particular, the conspirators caused to be submitted a PPP bank loan application

 with Fountainhead SBF LLC in Defendant's name that falsely represented

 Defendant had a business called "Matt's personal training" established on January

 1, 2019, and that such business had $59,670 in gross income for tax year 2020, when

 in truth and fact, as Defendant and Bellamy both knew. Defendant had no such

 business. In support of the fraudulent application, Bellamy caused to be submitted

 a false and fraudulent IRS Schedule C form. Thereafter, in or around June 2021,

 Bellamy caused to be submitted a second draw PPP application through Capital Plus

 financial institution that made false claims similar to those in the first draw


 application.

       In reliance on false representations made in the PPP applications,

 Fountainhead SBF LLC, by means of wire communication, deposited $12,431 into

 Defendant's bank account on or around May 4, 2021, and Capital Plus deposited

 $12,431 into Defendant's bank account on or around June 28, 2021.

       In exchange for Bellamy completing fraudulent PPP loan applications.

 Defendant agreed to pay Bellamy and did pay Bellamy $3,500, which was transmitted

 by wire.

       All done in violation of Title 18, United States Code, Section 1349.

 3.    Possible Sentence


       Defendant's guilty plea will subject him to the following maximum possible

 sentence: 20 years'imprisonment, 3 years' supervised release, a $250,000 fine, such
Case 4:22-cr-00067-RSB-CLR          Document 32       Filed 09/19/22     Page 4 of 11




 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

 his plea of guilty if he receives a more severe sentence than he 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^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 Guidelines

        a.     Use of Information
Case 4:22-cr-00067-RSB-CLR           Document 32    Filed 09/19/22     Page 5 of 11




       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 his cooperation will not be used in determining the applicable

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

       b.      Acceptance of Responsibility

       If the Court determines that Defendant qualifies for an adjustment under

 U.S.S.G. § 3E 1.1(a), and the offense level prior to operation of § 3E 1.1(a) is 16 or

 greater, the government will move for an additional one-level reduction in offense

 level pursuant to Section 3E 1.1(b) based on Defendant's timely notification of his

 intention to enter a guilty plea.

 7.    Cooperation


       a.      Complete and Truthful Cooperation Required

       If Defendant agrees to cooperate, he must provide full, complete, candid, and

 truthful cooperation in the investigation and prosecution of the offenses charged in

 his Information and any related offenses. Defendant shall fully and truthfully

 disclose his knowledge of those offense.s and shall fully and truthfully answer any

 question put to him by law enforcement officers about those offenses.

       This agreement does not require Defendant to "make a case" against any

 particular person. His benefits under this agreement are conditioned only on his

 cooperation and truthfulness, not on the outcome of any trial, grand jury, or other

 proceeding.
Case 4:22-cr-00067-RSB-CLR         Document 32      Filed 09/19/22     Page 6 of 11




        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. Grim. P. 35 and thereby warrants the filing of a motion for downward departure
 or reduction in Defendants 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 ofrestitution 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




                                          6
Case 4:22-cr-00067-RSB-CLR         Document 32       Filed 09/19/22     Page 7 of 11




        Defendant entirely waivco hio right to a direct appeal of hio conviction and

 3cntcnco on any ground (including any argument that the otatute to which the

 defendant U pleading guilty is unconatitutional or that the admitted conduct does not

 fall within the scope of the statute). The only exceptiona are that the Defendant may

 file a direct appeal ofhio oentenec if(1)the court entcro a oentence above the otatutor}^

  maximum,(2) the court entero a oentencc above the advioory Sentencing Guidelinco

 range found to apply by the court at aentcncing; or (3) the Government appealo the

 sentence. Aboent those exceptiono, Defendant explicitly and irrevocably inotructo hio

 attorney not to file an appeal.

        b.     Waiver of Collateral Attack

        Defendant entirely waives hio right to collaterally attack hio conviction and

  acntcncc on any ground and by any method, including but not limited to a JiS U.S.C.

 § 2255 motion. The only exception io that Defendant may collaterally attack hio

  conviction and sentence based on a claim of ineffective assistance of counoel.

        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. 11(f) and Fed. R. Evid. 410 Waiver
Case 4:22-cr-00067-RSB-CLR          Document 32       Filed 09/19/22     Page 8 of 11




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

 Federal Rules of Evidence ordinarily limit the admissibility ofstatements 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 his 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 he 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 his attorney has represented him faithfully, skillfully, and

 diligently, and he is completely satisfied with the legal advice given and the work

  performed by his attorney.

  12.   Breach of Plea Agreement
Case 4:22-cr-00067-RSB-CLR          Document 32      Filed 09/19/22     Page 9 of 11




         IfDefendantfails to plead guilty, withdraws or attempts to withdraw his guilty

  plea, commits any new criminal conduct following the execution ofthis 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 8tatute*of-limitations or speedy trial defense to prosecutions reinstated

  or commenced under this paragraph.

  13.    Entire Agreement

         This agreement contains the entire agreement between the government and

  Defendant.




                                         DAVID H.ESTES
                                         UNITED STATES ATTORNEY



  Date                                   Patricia Rhodes
                                         Chief, Criminal Division


   3
  Date                                   Chris Howard
                                         Assistant United States Attorney
Case 4:22-cr-00067-RSB-CLR         Document 32       Filed 09/19/22     Page 10 of 11




         I have read and carefully reviewed this agreement with my attorney. I

  understand each provision of this agreement, and I voluntarily agree to it. 1 hereby

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



  Date                                    Matthew Patsches, Defendant


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

  reviewed each and every part of this agreement with him. I believe that he fully and

  completely understands it, and that his decision to enter into this agreement is an

  informed, intelligent, and voluntary one.




  Date   '                                Jack Downie, Defendant's Attorney




                                              10
 Case 4:22-cr-00067-RSB-CLR        Document 32      Filed 09/19/22    Page 11 of 11




                      UNITED STATES DISTRICT COURT
                     SOUTHERN DISTRICT OF GEORGIA
                              SAVANNAH DIVISION



 UNITED STATES OF AMERICA


                    V.                                     CR: 422-067


 MATTHEW PATSCHES



                                      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 Defendant's

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 ^^7^                   2022.


                                 HON. WILLIAM T. MOORE,JR.
                                 JUDGE, UNITED STATES DISTRICT COURT
                                 SOUTHERN DISTRICT OF GEORGIA


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