United States v. Kyle Waldron — Plea Agreement, Southern District of Georgia (Document 22)

Summary

Plea Agreement, Document 22 in United States v. Kyle Waldron, Case No. 5:23-cr-00009-LGW-BWC, U.S. District Court for the Southern District of Georgia, Waycross Division, filed November 27, 2023. Defendant agrees to plead guilty to Count One of the Information, which charges money laundering involving transactions greater than $10,000, in violation of 18 U.S.C. § 1957. The agreement states a maximum sentence of 10 years' imprisonment, 3 years' supervised release and a $250,000 fine or twice the amount of the criminally derived property, whichever is greater. It records an agreed recommendation that the amount of loss is greater than $550,000 and less than $1,500,000, forfeiture of approximately $326,461.33, and waivers of appeal and collateral attack.

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Case 5:23-cr-00009-LGW-BWC Document 22 Filed 11/27/23. Page1of14

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF GEORGIA

WAYCROSS DIVISION
UNITED STATES OF AMERICA

KYLE WALDRON )

PLEA AGREEMENT

Defendant Kyle Waldron, represented by his counsel Harry D. Dixon, Jr., and
the United States of America, represented by Assistant United States Attorney
Matthew A. Josephson, have reached a plea agreement in this case. The terms and
conditions of that agreement are as follows.
ay Guilty 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 that the defendant engaged in money laundering involving
transactions greater than $10,000, in violation of 18 U.S.C. § 1957.
2s Elements and Factual Basis

The elements necessary to prove the offense charged in Count One are as
follows:

(1) the Defendant knowingly engaged or attempted to engage ina
monetary transaction;

(2) the Defendant knew the transaction involved property or funds that
Case 5:23-cr-O0009-LGW-BWC Document 22 Filed 11/27/23 Page 2of14

were the proceeds of some criminal activity;

(8) the property had a value of more than $10,000;

(4) the property was in fact proceeds of specified unlawful activity, specifically
wire fraud in violation of 18 U.S.C. § 1343; and

(5) the transaction took place in the United States.

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

On or about June 18, 2021, in Coffee County, within the Southern District of
Georgia, the defendant, KYLE WALDRON, did knowingly engage in a monetary
transaction by, through, or to a financial institution, in and affecting interstate
commerce, in criminally derived property of a value greater than $10,000, that is the
defendant wrote a check in the amount of $300,000 from an account associated with
KEL Transport Inc. to his spouse, and the defendant deposited that check into his
spouse’s personal bank account. The funds transferred by this check were the
proceeds of fraud, such property having been derived from a specified unlawful
activity, that is, wire fraud, in violation of 18 U.S.C. § 1343, and the defendant knew
that the property was criminally derived. All in violation of Title 18, United States
Code, Section 1957(a).

Defendant agrees and stipulates that, from on or about May 2020 through on
or about April 2021, Defendant knowingly devised and participated in a scheme to

defraud the United States Small Business Administration (“SBA”) by submitting
Case 5:23-cr-O0009-LGW-BWC Document 22 Filed 11/27/23. Page 3of 14

false and fraudulent loan applications under the Paycheck Protection Program (“PPP)
and the Economic Injury Disaster Loan Program (“EIDL”). Defendant’s fraudulent
PPP and EIDL applications were sent electronically from within the Southern
District of Georgia to and through servers located outside the State of Georgia.

Specifically, Defendant knowingly and intentionally submitted PPP loan
applications that contained materially false statements regarding the number of
people the defendant purportedly employed and the defendant’s average monthly
payroll for a particular business. Defendant also submitted fake IRS forms with these
applications. In addition, Defendant knowingly and intentionally submitted EIDL
applications that contained materially false statements regarding the number of
people defendant purportedly employed and the defendant’s gross revenues for the
twelve months prior to January 1, 2020. In reliance on Defendant’s false statements
in these loan applications, SBA deposited significant loan proceeds into bank
accounts controlled by Defendant.
3. Possibl ence

Defendant’s guilty plea will subject the Defendant to the following maximum
possible sentence: 10 years’ imprisonment, 3 years’ supervised release, a $250,000
fine or twice the amount of the criminally derived property, whichever amount is
greater, and such restitution as may be ordered by the Court. 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
Defendant's plea of guilty if the Defendant receives a more severe sentence than the
Defendant 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.

KE
Case 5:23-cr-00009-LGW-BWC Document 22 Filed 11/27/23. Page5of14

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.

b. Acceptance of Responsibilit

The government will not object to a recommendation by the U.S. Probation
Office that Defendant receive a two-level reduction in offense level for acceptance of
responsibility pursuant to Section 3E1.1(a) of the Sentencing Guidelines. If the U.S.
Probation Office makes that recommendation, and Defendant's offense level is 16 or
greater prior to any reduction for acceptance of responsibility, the government will
move for an additional one-level reduction in offense level pursuant to Section
3H1.1(b) based on Defendant’s timely notification of his intention to enter a guilty
plea.

c. Amount of Loss

The government and Defendant agree to recommend to the U.S. Probation
Office and the Court at sentencing that the amount of loss, for purposes of Section
2B1.1 of the Sentencing Guidelines, is greater than $550,000 and less than
$1,500,000.

d. Low End of Guidelines Range

The government will recommend that Defendant be sentenced to the low end

of the advisory “apy? range determined by the Court at sentencing.

5
7, Financial Obligations and Agreement
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.

C. Release of Appearance Bond

Defendant authorizes the Clerk of the United States District Court to release
the funds posted as security for an appearance bond in this case to be applied to
satisfy any of the financial obligations imposed by judgment of the Court in this case.

d. Required Financial Disclosures

By the date that Defendant enters a guilty plea, Defendant shall complete a
financial disclosure form listing all Defendant’s assets and financial interests,
whether held directly or indirectly, solely or jointly, in Defendant’s name or in the
name of another. Defendant shall sign the financial disclosure form under penalty of
perjury and provide that form to the Financial Litigation Unit of the United States

Attorney’s Mp pl the United States Probation Office. Defendant authorizes

KKB

6
Case 5:23-cr-O00009-LGW-BWC Document 22 Filed 11/27/23 Page 7 of 14

the United States to obtain credit reports on Defendant and to share the contents of
those reports with the Court and the United States Probation Office. Defendant also
authorizes the United States Attorney’s Office to inspect and copy all financial
documents and information held by the United States Probation Office.

e. Financial Examination

Defendant will submit to an examination under oath on the issue of
Defendant’s financial disclosures and assets if deemed necessary by the United
States. Such examination will occur not later than 30 days after the entry of
Defendant’s guilty plea.

f. No Transfer of Assets

Defendant certifies that Defendant has made no transfer of assets in
contemplations of this prosecution for the purpose of evading or defeating financial
obligations created by this Agreement or that may be imposed upon Defendant by the
Court at sentencing. Defendant promises that Defendant will make no such transfers
in the future.

g. Material Change in Circumstances

Defendant agrees to notify the United States of any material change in
circumstances, as described in 18 U.S.C. § 3664(k), that occurs prior to sentencing in
this case. Such notification will be made within seven days of the event giving rise

to the changed circumstances, and in no event later than the date of sentencing.
Case 5:23-cr-O0009-LGW-BWC Document 22 Filed 11/27/23 Page 8 of 14

h. @ ent

Any payment schedule imposed by the Court is without prejudice to the United
States to take all actions and remedies available to it to collect the full amount of the
financial obligations imposed by the judgment of the Court in this case. Defendant
understands and agrees that the financial obligations /and forfeiture] imposed by the
judgment of the Court in this case will be placed on the Treasury Offset Program so
that any federal payment that Defendant receives may be offset and applied to the
judgment debt without regard to or affecting any payment schedule imposed by the
Court.
8. Waivers

a. Waiver of Appeal

Defendant entirely waives Defendant’s right to a direct appeal of Defendant’s
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 Defendant’s 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 jrrevocably instructs Defendant’s attorney not to file an appeal.

Ke
b. Waiver of Collateral Attack

Defendant entirely waives Defendant’s right to collaterally attack Defendant’s
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 Defendant’s 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. x _ Crim. P. 11(6 and Fed. R. Evid. 410 Waiver

Rule 11( 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 Defendant’s 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.
Case 5:23-cr-O0009-LGW-BWC Document 22 Filed 11/27/23. Page 10 of 14

9. Forfeiture

a. Defendant agrees to forfeit any and all funds seized from Douglas
National Bank account number ending in 6227, in the approximate amount of
$326,461.33 in U.S. currency, including any and all accrued interest in the account
(“Subject Property”). Defendant agrees that the Subject Property is subject to
forfeiture under 18 U.S.C. §§ 981(a)(1)(A) and (C) and 982(a)(1), and 28 U.S.C.
§ 2461(c), on the grounds that the Subject Property is any property, real or personal,
which constitutes or is derived from proceeds traceable to wire fraud in violation 18
U.S.C. § 1343, and is any property, real or personal, involved in or attempted to be
involved in, or any property traceable to such property involved in, money laundering
in violation of 18 U.S.C. §§ 1956 and 1957.

b. Defendant waives and abandons all right, title, and interest in the
Subject Property. Defendant agrees to take all steps requested by the government to
facilitate transfer of title of the Subject Property to the government. Defendant
further agrees not to file any claim, answer, or petition for remission or mitigation in
any administrative or judicial proceeding pertaining to the Subject Property. If any
such document has already been filed, Defendant hereby withdraws that filing.

Cc. Defendant agrees to hold the government and its agents and employees
harmless from any claims made in connection with the seizure, forfeiture, or disposal
of property connected to this case. Defendant further agrees to waive the

requirements of the Federal Rules of Criminal Procedure 32.2 and 43(a) regarding

10
notice of the forfeiture in the charging instrument, announcement of the forfeiture at
sentencing, and incorporation of the forfeiture in the judgment.

d. Defendant waives and abandons Defendant’s interest in any other
property that may have been seized in connection with this case. Additionally,
Defendant waives any and all challenges on any grounds to the seizure, forfeiture,
and disposal of any property seized in connection with this case. Defendant
specifically agrees to waive any challenges arising under the Double Jeopardy Clause
of the Fifth Amendment and the Excessive Fines Clause of the Eighth Amendment.
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 Defendant 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 Defendant's attorney has represented Defendant faithfully,

skillfully, and diligently, and Defendant is completely satisfied with the legal advice

given and Wa performed by Defendant’s attorney.

KE

11
Case 5:23-cr-O0009-LGW-BWC Document 22 Filed 11/27/23. Page 12 of 14

12. Breach of Plea Agreement

If Defendant fails to plead guilty, withdraws or attempts to withdraw
Defendant's 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.
13. Entire Agreement

This agreement contains the entire agreement between the government and

Defendant.

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Dat

JILL E. STEINBERG

UNITED STATES ATTORNEY

E. Greg Gillily Jr. 4}
Deputy Chief, Criminal Division

Matthew A. Josephédn

Georgia Bar No. 367216
Assistant United States Attorney

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 Kyle Waldron
Defendant

I have fully explained to Defendant all of Defendant’s rights, and I have
carefully reviewed each and every part of this agreement with Defendant. I believe
that Defendant fully and completely understands it, and that Defendant’s decision to

enter into this agreement is an informed, intelligent, and voluntary one.

Date Harry D Aixon, J a

Defendant’s Attorme

14


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