Redacted Indictment — USA v. Liticker (Dkt. 29)

Summary

A sealed indictment in the U.S. District Court for the District of South Carolina, Columbia Division, case 3:22-cr-00823, filed 09/27/22 as Entry Number 29, charges Kehinde Mubarak Ladepo, an Air Force enlisted member stationed at Shaw Air Force Base in Sumter, with conspiracy to commit wire fraud related to PPP loans under 18 U.S.C. § 1349. The grand jury alleges that redacted co-conspirators prepared PPP applications for others using fabricated information in exchange for a share of the proceeds, and that Ladepo submitted an application for a non-existent business with falsified income on May 7, 2021 and received a PPP loan of $20,832 on June 10, 2021, later forgiven. The indictment puts the national scheme at Total Funds Attempted: $1,853,229 and total funds disbursed at $936,611. Other participants' names are redacted; the charge is an allegation.

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3:22-cr-00823-CRI *SEALED* Date Filed 09/27/22 Entry Number 3*SEALED* Pagel
3:22-cr-00823-MGL Date Filed 09/2722 Entry Number 29 Page 1 of 8

IN THE DISTRICT COURT OF THE UNITED STATES
DISTRICT OF SOUTH CAROLINA
COLUMBIA DIVISION

UNITED STATES OF AMERICA ) CR.NO.: 2. QQL
) 8Q3
) 18 U.S.C. § 1349

vs. ) 18 U.S.C. § 981(a)(1)(C)
) 28 U.S.C. § 2461(c)
)
. ) SEALED INDICTMENT

KEHINDE MUBARAK LADFPO. )
)
)

RECEIVED
THE GRAND JURY CHARGES: SeP: 2'7 2022
BACKGROUND FLORENCE, S.C.

At times material to this Indictment:

1.

2. DEFENDANT KEHINDE MUBARAK LADEPO was stationed in the District
of South Carolina as an enlisted member of the United States Air Force stationed at Shaw Air

Force Base in Sumter.

3.
3:22-cr-00823-CRI *SEALED* Date Filed 09/27/22 Entry Number 3*SEALED* Page 2
3:22-cr-00823-MGL Date Filed 09/2782 Entry Number 29 Page 2 of 8

The Paycheck Protection Program

3 The Paycheck Protection Program (“PPP”) was a COVID-19 pandemic relief
program administered by the Small Business Administration (“SBA”) that provided forgivable
loans to small businesses for job retention and certain other expenses. The PPP permitted
participating third-party lenders to approve and disburse SBA-backed PPP loans to cover payroll,
fixed debts, utilities, rent/mortgage, accounts payable and other bills incurred by qualifying
businesses during, and resulting from, the COVID-19 pandemic. PPP loans were fully guaranteed
by the SBA. |

6. To obtain a PPP loan, a qualifying business had to submit a PPP loan application,
which was supposed to be 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,
including that the business was in operation and either had employees for whom it paid salaries
and payroll taxes or paid independent contractors. A business applying for a PPP loan was required
to provide documentation showing its payroll expenses, such as filed federal income tax
documents.

TV PPP loan applications were electronically submitted or caused to be submitted by
the borrower and received through SBA servers located in Virginia or Oregon. Once approved, the
business received the PPP loan proceeds via an electronic funds transfer from the third-party lender

to a financial account under the control of the business.

8. The proceeds of a PPP loan could be used for certain specified items, such as payroll
costs, costs related to the continuation of group health care benefits, or mortgage interest payments.

The proceeds of a PPP loan were not permitted to be used by the borrowers to purchase consumer

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3:22-cr-00823-CRI *SEALED* Date Filed 09/27/22 Entry Number 3 *SEALED* Page 3

3:22-cr-00823-MGL Date Filed 09/2782 Entry Number 29 Page 3 of 8

goods, automobiles, personal residences, clothing, jewelry, to pay the borrower’s personal federal
income taxes, or to fund the borrower’s ordinary day-to-day living expenses unrelated to the
specified authorized expenses.

COUNT 1
(Conspiracy to Commit Wire Fraud Related to PPP Loans)

THE GRAND JURY FURTHER CHARGES:
9. Paragraphs | through 8 of this Indictment are incorporated herein by reference.

The Conspiracy

10. That beginning approximately in or about 2020 and continuing up and to the date
of this Indictment, in the District of South Carolina and elsewhere,

KEHINDE MUBARAK LADEPO,

did knowingly and willfully combine, conspire, confederate,
agree and have a tacit understanding with each other and with others known and unknown to the
Grand Jury, to devise and execute a scheme and artifice to defraud and to obtain money and
property by means of false and fraudulent pretenses, representations, and promises, and during
such period, in the course of executing said scheme and artifice, attempted to transmit, transmitted,
and caused to be transmitted in interstate commerce, wire communications, including writings,
signs, signals, pictures, and sounds, for the purpose of executing the scheme and artifice to defraud,
in violation of Title 18, United States Code, Section 1343.

Object of the Conspiracy

11. The object of the conspiracy was for DEFENDANTS, along with others known
and unknown to the Grand Jury, to fraudulently enrich themselves and others by filing, and often

receiving, fraudulent PPP loans for businesses that were often fictitious.

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3:22-cr-00823-MGL Date Filed 09/2782 Entry Number 29 Page 4 of 8

Manner and Means of the Conspiracy

The manner and means by which DEFENDANTS, along with others known and

unknown to the Grand Jury, sought to accomplish the object of the conspiracy included the

following:

a.

ii.

ili.

iv.

would create or assist in the creation of PPP loans on
behalf of others throughout the United States, including here in the District of South
Carolina, using information that was either fabricated by

or that otherwise knew to be false. PPP

applicants were also aware that the information summitted to the SBA was false.
The scheme generally worked as follows:
Putative PPP applicants would send their
personal identifying information (“PII”), which he would use to create or
modify already created applications and, often, he would create the
purported tax documentation and other paperwork to be submitted with the
application.

would have the putative PPP applicant e-sign
and electronically submit the application, or he would electronically submit
the application himself on behalf of the putative PPP applicant.

would track the progress of the applications
using several alternative phone numbers he created. He would alert the PPP
applicants of the loan status.
In exchange for his services, the putative PPP applicant would remit a

portion of the received PPP funds back to

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3:22-cr-00823-MGL Date Filed 09/272 Entry Number 29 Page 5of 8

usually through internet-based cash transaction applications.
v. would also assist many of the PPP applicants
in successfully applying for forgiveness for their loans.

b. Understanding that DEFENDANT KEHINDE LADEPO wished to acquire PPP
funds and had previously been denied,
arranged for who in turn arranged for

to assist DEFENDANT KEHINDE LADEPO in the District of
South Carolina.

; had each
recently received a fraudulent PPP loan themselves by overstating income and
claiming ownership of non-existent businesses.

d. DEFENDANT KEHINDE LADEPO provided his
PII, completed an online PPP application for a non-
existent business with falsified income amounts, and DEFENDANT KEHINDE
LADEPO submitted the application containing false information on May 7, 2021.

e. DEFENDANT KEHINDE LADEPO received a PPP loan in the amount of
$20,832 on June 10, 2021, and caused payment to be delivered to

This loan was ultimately forgiven.
f. DEFENDANTS accordingly caused numerous wires to be submitted in

furtherance of the fraudulent scheme.

g. In total, national scheme attempted to procure nearly
$2 million in PPP loans, and did procure nearly $1 million in PPP loans.

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

Page 5 of 8
Total Funds Attempted: $1,853,229
Total Punde Disbursed: $936,611

3:22-cr-00823-CRI *SEALED* Date Filed 09/27/22 Entry Number 3*SEALED* Page6
3:22-cr-00823-MGL Date Filed 09/2782 Entry Number 29 Page 6 of 8

Financial Lnstitution 2 - Funds Atbempted: $749,952
Financial Institution 2 - Funds Disbursed: $291,648

Figure 1: DEFENDANT National Scheme

Financial Institution 1 - Funds Attempted: $999,107
Financial Institution 1 - Funds Disbursed: $644,963

he
+.
3:22-cr-00823-CRI *SEALED* Date Filed 09/27/22 Entry Number 3*SEALED* Page /7
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FORFEITURE

FRAUD/CONSPIRACY:

Upon conviction to violate Title 18, United States Code, Sections 1343 and 1349 as

charged in this Indictment, KEHINDE

MUBARAK LADEPO,

shall forfeit to the United States any property, real or personal,

constituting, derived from, or traceable to proceeds the Defendants obtained directly or indirectly

as a result of such offenses.

PROPERTY:

Pursuant to 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(©), the property which is subject to

forfeiture upon conviction of the Defendants for the offenses charged in this Indictment includes,

but is not limited to, the following:

Cash Proceeds/Forfeiture Judgment:

A sum of money equal to all property the Defendants obtained as a result of
the wire fraud conspiracy offense charged in this Indictment, and all interest
and proceeds traceable thereto as a result of their violations of 18 U.S.C.
§§ 1343 and 1349.

SUBSTITUTION OF ASSETS:

If any of the property described above as being subject to forfeiture, as a result of any act

or omission of the Defendants:

(a)
(b)
(c)
(d)
(e)

cannot be located upon the exercise of due diligence;

has been transferred or sold to, or deposited with, a third person;

has been placed beyond the jurisdiction of the Court;

has been substantially diminished in value; or

has been commingled with other property which cannot be subdivided
without difficulty;

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3:22-cr-00823-CRI *SEALED* Date Filed 09/27/22 Entry Number 3*SEALED* Page 8
3:22-cr-00823-MGL Date Filed 09/2782 Entry Number 29 Page 8 of 8

it is the intent of the United States, pursuant to Title 21, United States Code, Section 853(p), as
incorporated by 18 U.S.C. § 982(b)(1) to seek forfeiture of any other property of Defendants up to
an amount equivalent to the value of the above-described forfeitable property;

Pursuant to Title 18, United States Code, Section 981(a)(1)(C) and Title 28, United States

Code, Section 2461(c).

ADAIR F. BOROUGHS
UNITED STATES ATTORNEY

By: ¢ (FS

Derek A. Shoemake (#10825)
Assistant U.S. Attorney
401 West Evans Street, Suite 222
Florence, South Carolina 29501
Tel.: (843) 665-6688
Fax: (843) 678-8809
Email: Derek.Shoemake@usdoj.gov

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