Indictment (Sealed) — United States of America v. Lauren Marcel Duhart, Case 6:20-cr-00537 (District of South Carolina, Document 3)

Summary

Sealed indictment filed 09/08/20 as Document 3 in Case 6:20-cr-00537-CRI in the District of South Carolina, Greenville Division. The grand jury charges Lauren Marcel Duhart, Joshua Bernard Smith, Steve Ronald Lewis, Christopher J. Agard, Henry Duffield, Jeremy Brandon Latourneau and Derick Keane with conspiracy to commit wire fraud and conspiracy to commit money laundering, from about October 2019 through June 2020. It alleges that Agard obtained a $396,875 PPP loan for Wild Stylz Entertainment LLC with a falsified IRS Form 941 and Form 940, and that Duhart, Smith and Lewis brokered bank accounts to receive fraud proceeds for a share. It also describes a $378,000 transfer from Wild Stylz to Duffield's business account, part of it cashed as $100,000 checks at Harrah's Cherokee Casino and Resort. Forfeiture covers funds seized from 12 listed bank accounts.

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Case 6:20-cr-00537-CRI *SEALED* Document 3 Filed 09/08/20 Page 1 of 15

IN THE DISTRICT COURT OF THE UNITED STATES
FOR THE DISTRICT OF SOUTH CAROLINA
GREENVILLE DIVISION

UNITED STATES OF AMERICA

Vv.

LAUREN MARCEL DUHART,
a/k/a “LA,”
JOSHUA BERNARD SMITH,
a/k/a “J-Roc,”
STEVE RONALD LEWIS,
a/k/a “Q,”
CHRISTOPHER J. AGARD,
HENRY DUFFIELD,
JEREMY BRANDON LATOURNEAU,
DERICK KEANE

THE GRAND JURY CHARGES THAT:

Background

At times relevant to this Indictment:

The Defendants

CR. NO. lp ‘ance 537

18 U.S.C. § 981(a)(1)(C)

18 U.S.C. § 982(a)(1)

18 U.S.C. § 1343

18 U.S.C. § 1349

18 U.S.C. § 1956(a)(1)(B)(i)
18 U.S.C. § 1956(h)

18 U.S.C. § 1957

21 U.S.C. § 853

21 U.S.C. § 881

28 U.S.C. § 2461(c)

SEALED INDICTMENT

02:2 Wd 8- dis 0202

l. LAUREN MARCEL DUHART, a/k/a “LA” (“DUHART”) was an individual

residing in Georgia.

2. JOSHUA BERNARD SMITH, a/k/a “J-Roc,” (“SMITH”) was an individual!

residing in Georgia.

3. STEVE RONALD LEWIS, a/k/a “Q,” (“LEWIS”) was an individual residing in

Georgia.

4. CHRISTOPHER J. AGARD (“AGARD”) was an individual residing in the

state of Georgia who claimed ownership of Wild Stylz Entertainment LLC (“Wild Stylz”), a

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Georgia corporation. AGARD submitted Paycheck Protection Program loan applications on behalf
of Wild Stylz.

5. HENRY DUFFIELD (“DUFFIELD”) was an individual residing in South
Carolina.

6. JEREMY BRANDON LATOURNEAU (“LATOURNEAU”) was an
individual! residing in South Carolina.

7. DERICK KEANE (“KEANE”) was an individual residing in South
Carolina.

The Small Business Administration

8. The United States Small Business Administration (“SBA”) was an executive branch
agency of the United States government that provided support to entrepreneurs and small
businesses. The mission of the SBA 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.

9. 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.

The Paycheck Protection Program

10. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal
law enacted in or around March 2020 and designed to provide emergency financial assistance to
the millions of Americans who are suffering the economic effects caused by the COVID-19
pandemic.

11. | One source of relief that the CARES Act provided for was the authorization of up

to $349 billion in forgivable loans to small businesses for payroll, mortgage interest, rent/lease,

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and utilities, through a program referred to as the Paycheck Protection Program (“PPP”). In April
2020, Congress authorized up to $310 billion in additional PPP funding.

12. The PPP allows qualifying small businesses and other organizations to receive PPP
loans. Businesses must use PPP loan proceeds on payroll costs, interest on mortgages, rent, and
utilities. The PPP allowed the interest and principal on the PPP loan to be entirely forgiven if the
business spent the loan proceeds on these expense items within a designated period of time and
used a certain percentage of the PPP loan proceeds on payroll expenses.

13. The amount of a PPP loan that a smal! business may be entitled to receive is
determined by the number of employees employed by the business and the business’s average
monthly payroll costs.

14. In order to obtain a PPP loan, a qualifying business was required to submit a PPP
loan application, which was 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 in order 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 used to calculate the amount of money the small business was
eligible to receive under the PPP. In addition, businesses applying for a PPP loan had to provide
documentation showing their payroll expenses.

15. | The SBA oversees the PPP. However, individual PPP loans are issued by private,
approved lenders who receive and process PPP applications and supporting documentation, and
then make loans using the lenders’ own funds, which are 100% guaranteed by the SBA. Data from

the application, including information about the borrower, the total amount of the loan, and the

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Nae ee ——

Case 6:20-cr-00537-CRI *SEALED* Document 3 Filed 09/08/20 Page 4 of 15

listed number of employees, was transmitted by the lender to the SBA in the course of processing
the loan.

16. Financial Institution 1 was a Federal Deposit Insurance Corporation (“FDIC”)
insured financial institution headquartered in Salt Lake City, Utah. Financial Institution |
participated in the SBA’s PPP as a lender, and as such, was authorized to lend funds to eligible
borrowers under the terms of the PPP.

17. Company 1 was a publicly traded company that specialized in small-business
lending. Company | was based in Redwood City, California. Company | participated in the
SBA’s PPP by, among other things, acting as a service provider between small businesses and
certain banks, including Financial Institution 1. Small businesses seeking PPP loans could apply
through Company | for PPP loans. Company | would review the loan applications. Ifa loan
application received by Company | was approved for funding, a partner bank, such as Financial
Institution 1 or Financial Institution 2, disbursed the loan funds to the applicant.

18. Bank 1 was a federally insured financial institution based in Charlotte, North
Carolina with branches throughout the United States.

The Fraudulent PPP Loan Applications and Supporting Documentation

19. On or around May 9, 2020, AGARD submitted, or assisted in the submission of,
a PPP loan application for Wild Stylz, to Financial Institution 1, a lender approved by the SBA to
issue PPP loans.

20. AGARD electronically signed the Wild Stylz PPP Borrower Application Form on

May 9, 2020.

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21. In addition, the loan application contained the initials of AGARD to certify each
of the following representations:

a. The Applicant business was in operation on February 15, 2020, and had
employees for whom it paid salaries and payroll taxes or paid independent
contractors, as reported on Form(s) 1099-MISC;

b. The funds will be used to retain workers and maintain payroll or make
mortgage interest payments, lease payments, and utility payments; and

C. The information provided in the application and the information provided
in all supporting documents and forms is true and accurate in all material
respects.

22. AGARD submitted, or assisted in the submission of, a falsified IRS Form 941 for
the first quarter of 2020 and a falsified IRS form 940 for 2019. The falsified form 940 purported
to show that Wild Stylz made $1,905,000 in payments to all employees in 2019. The falsified form
941 purported to show that the company had 20 employees who were paid a total of $476,250 in
the first quarter of 2020. A check with the Georgia Department of Labor did not document any
reported income for AGARD in the state of Georgia in 2019.

PPP Loan Funding and Transfers of Money

23. Based on the fraudulent and false representations and submissions made by
AGARD, on or about May 26, 2020, Financial Institution | distributed approximately $396,875
of PPP loan funds to Wild Stylz.

24. After the PPP loans were deposited in the Wild Stylz accounts AGARD transferred
or directed the transfer of some of the PPP proceeds to other individuals and entities known and
unknown to the Grand Jury, in an effort to conceal and disguise the ownership and control of the

fraudulent loan proceeds.

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Count One
Conspiracy to Commit Wire Fraud — 18 U.S.C. § 1349
(Defendants DUHART, SMITH, LEWIS, AGARD, DUFFIELD, LATOURNEAJU, and
KEANE)

25. | The Grand Jury re-alleges and incorporates by reference the factual allegations

contained in paragraphs 1 through 24 of this Indictment as if fully set forth herein.

THE SCHEME TO DEFRAUD
26. From in or about October 2019 through in or about June 2020, the exact dates

unknown, in the District of South Carolina and elsewhere, the Defendants,

LAUREN MARCEL DUHART, a/k/a “LA,” JOSHUA BERNARD SMITH, a/k/a “J-Roc,”
STEVE RONALD LEWIS, a/k/a “Q,” CHRISTOPHER J. AGARD, HENRY DUFFIELD,
JEREMY BRANDON LATOURNEAU and DERICK KEANE

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 intend to
devise a scheme and artifice to defraud, and to obtain money and property, by means of materially
false and fraudulent pretenses, representations, and promises, and by the omission of material facts,
well knowing and having reason to know that said pretenses were and would be false and
fraudulent when made and caused to be made and that said omissions were and would be material,
and, in so doing, caused interstate and foreign wire communications to be made, in furtherance of
the scheme and artifice to defraud, in violation of Title 18, United States Code, Section 1343.

Purpose of the Scheme to Defraud

27. The purpose of the scheme was for Defendants DUHART, SMITH, LEWIS,
AGARD, DUFFIELD, LATOURNEAU, and KEANE to unjustly enrich themselves by

fraudulently obtaining money, including PPP Ioan proceeds, under false and misleading pretenses.

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Manner and Means

28. DUHART, SMITH, and LEWIS served as brokers between individuals who
perpetrate fraud schemes and co-conspirators that have bank accounts who were willing to receive
the proceeds of the fraud scheme. In exchange for serving as a broker, DUHART, SMITH, and
LEWIS received a portion of the proceeds. In exchange for the co-conspirators allowing their
bank accounts to be utilized, the co-conspirators received a portion of the fraud proceeds. Proceeds
from the scheme were deposited into the co-conspirator accounts and funneled to other members
of the conspiracy.

29. In or around October of 2019, LEWIS recruited DUFFIELD to participate in a
fraud scheme. As part of the scheme, DUFFIELD allowed fraud proceeds to be deposited into his
business account in return for a portion of the proceeds. After the proceeds were deposited,
Roosevelt Hunt (“Hunt”), LATOURNEAU, and KEANE withdrew the funds from DUFFIELD’s
account by cashing business checks written by DUFFIELD.

30. On October 3, 2019 DUHART and LEWIS arranged for DUFFIELD’s business
account to receive a wire transfer of $378,000 from Wild Stylz. After receiving the funds,
DUFFIELD gave Hunt a $100,000 check payable to Harrah’s Cherokee Casino and Resort
(“Harrah’s”) with Hunt’s name on the “memo/purchaser” line, and gave LATOURNEAU a
$100,000 check payable to Harrah’s with LATOURNEAU’s name on the “memo/purchaser” line,
for a total of $200,000 worth of checks from DUFFIELD’s business account.

31. On October 4, 2019, Hunt, LATOURNEAU, and KEANE traveled from
Greenville, South Carolina to Harrah’s in North Carolina. Hunt and LATOURNEAU each cashed
the $100,000 checks from DUFFIELD’s business account at Harrah’s for $100,000 worth of

gambling chips.

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32. After gambling for less than two hours, Hunt, KEANE, and LATOURNEAU
cashed out from the casino and left with approximately $198,750 in cash. Hunt cashed out from
the casino with $99,300. At approximately the same time, LATOURNEAU cashed out from the
casino with $99,450. On October 7, 2019, both KEANE and LATOURNEAU attempted to each
cash a $50,000 check from DUFFIELD ($100,000 total) at Harrah’s. Harrah’s declined to accept
both checks due to the suspicious behavior by Hunt, LATOURNEAU, and KEANE on October
4, 2019. DUFFIELD distributed the remaining money from the $378,000 Wild Stylz transfer by
writing additional checks. LEWIS met with Hunt to retrieve the cash which had been withdrawn
from DUFFIELD’s account. LEWIS delivered a portion of the cash he picked up from Hunt
to DUHART.

33. In approximately May 2020, AGARD submitted a fraudulent Wild Stylz PPP loan
application. AGARD submitted false materials, such as a false PPP loan application, false IRS
Form 941s, and a false IRS Form 940 to Financial Institution 1 to obtain PPP loan funding.

34. AGARD submitted false documents to a lender when applying for a PPP loan,
including a fabricated IRS Form 941 listing falsified payroll information, and false loan application
documentation that listed false payroll information, false employment information, and false
purposes for the loan funding.

35. Asaresult of and based on AGARD?’s false representations and certifications and
falsified supporting documents, a federally insured lender issued a $396,875 PPP loan to Wild
Stylz on or about May 22, 2020. AGARD disseminated the fraudulently obtained funds to other
members of the conspiracy to conceal] the true nature of their fraudulently obtained funds. On May
27, 2020, AGARD made a $200,000 counter withdrawal at a branch of Bank 1. On May 28, 2020,

AGARD withdrew $50,000 in cash from Bank | and made a $96,000 counter withdrawal.

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36, In June 2020, DUHART, SMITH, and LEWIS requested that Hunt provide
DUHART, SMITH and LEWIS with bank accounts in which to deposit fraudulent funds. Hunt
had previously participated in drug trafficking and financial fraud with two South Carolina
business owners. The two South Carolina business owners agreed to let LEWIS use their
business bank accounts in return for a percentage of the fraudulent funds deposited in their
account. Hunt provided the two South Carolina business owners banking information and
additional account access information to LEWIS.

37. During multiple recorded calls in early June 2020 DUHART, LEWIS, SMITH,
and Hunt discussed the bank and wire fraud conspiracies. In one call, LEWIS informed Hunt
that the scheme involved fraudulent bank applications and that they needed to submit as many
applications to the bank as possible by June 30th. LEWIS requested the social security numbers
or employer identification number associated with the business bank accounts that would receive
the transfers. During another call between Hunt, LEWIS, and SMITH, SMITH explained that
“basically just like when you open a business account, you need the EIN and the SSN, it’s the same
with the loan... so they can verify you are who you say you are... basically, we are doing the
SBA loans, Small Business loans... the payout is... the lenders get 50, we charge 10% on our
end and y’all walk away with 40% total... we just need the social, the EIN for the business, we
already got the articles of organization, so we good on that... I'll get with my mentor and let you
know the timing on everything.” During a different call, DUHART attempted to recruit LEWIS
to assist the fraud ring in laundering money that was obtained from fraudulently claiming
unemployment benefits.

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

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Count Two

Conspiracy to Commit Money Laundering — 18 U.S.C. § 1956(h)
(Defendants DUHART, SMITH, LEWIS, AGARD, DUFFIELD, LATOURNEAJU, and

KEANE)

38. | The Grand Jury re-alleges and incorporates by reference the factual allegations

contained in paragraphs | through 24 and 27 through 37 of this Indictment as if fully set forth

herein.

39. From in or about October 2019 through in or about June 2020, the exact dates

unknown, in the District of South Carolina and elsewhere, the Defendants,

LAUREN MARCEL DUHART, a/k/a “LA,” JOSHUA BERNARD SMITH, a/k/a “J-Roc,”
STEVE RONALD LEWIS, a/k/a “Q,” CHRISTOPHER J. AGARD, HENRY DUFFIELD,
JEREMY BRANDON LATOURNEAU and DERICK KEANE

did knowingly and willfully did combine, conspire, agree and have tacit understanding with others,

both known and unknown to the grand jury, to:

a.

knowingly conduct and attempt to conduct financial transactions affecting
interstate and foreign commerce, which involved the proceeds of a specified
unlawful activity, that is, bank fraud and wire fraud, knowing that the
transactions were designed in whole or in part to conceal or disguise the nature,
location, source, ownership, and control of the proceeds of a specified unlawful
activity, and that while conducting and attempting to conduct such financial
transactions, knew that the property involved in the financial transactions
represented the proceeds of some form of unlawful activity, in violation of Title
18, United States Code, Section 1956(a)(1)(B)(i); and

knowingly engage and attempt to engage in monetary transactions by, through,
and to a financial institution, affecting interstate and foreign commerce, in
criminal derived property of a value greater than $10,000, such property having
been derived from a specified unlawful activity, that is, bank fraud and wire
fraud, in violation of Title 18, United States Code, Section 1957.

In violation of Title 18, United States Code, Section 1956(h).

10

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FORFEITURE

CONSPIRACY:

Upon conviction for violation of Title 18, United States Code, Section 1349 (conspiracy to
violate 18 U.S.C. § 1343) as charged in this Indictment, the Defendants, LAUREN MARCEL
DUHART, a/k/a “LA,” JOSHUA BERNARD SMITH, a/k/a = “J-Roc,”
STEVE RONALD LEWIS, a/k/a “Q,” CHRISTOPHER J. AGARD, HENRY DUFFIELD,
JEREMY BRANDON LATOURNEAU and DERICK KEANE, shall forfeit to the United
States, any property, real or personal, which constitutes or is derived from any proceeds the
Defendants obtained, directly or indirectly, as the result of such violations, and any property
traceable to such offenses.

MONEY LAUNDERING:

Upon conviction for violation of Title 18, United States Code, Sections 1956 and 1957 as
charged in this Indictment, the Defendants, LAUREN MARCEL DUHART, a/k/a “LA,”
JOSHUA BERNARD SMITH, a/k/a “J-Roc,” STEVE RONALD LEWIS, a/k/a “Q,”
CHRISTOPHER J. AGARD, HENRY DUFFIELD, JEREMY BRANDON LATOURNEAU
and DERICK KEANE, 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 and any property, real or personal, involved in a transaction or attempted
transaction in violation of 18 U.S.C. §§ 1956 and 1957, as charged in the Indictment, or any

property traceable to such offenses.

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PROPERTY:

Pursuant to Title 18, United States Code, Sections 981(a)(1)(C) and 982(a)(1), and Title 28,
United States Code, Section 2461(c), the property subject to forfeiture includes, but is not limited

to, the following:

1. Proceeds/Forfeiture Judgment:

A sum of money equal to all proceeds the Defendants obtained directly or
indirectly from the offenses charged in this Indictment, and all interest and
proceeds traceable thereto, in that such sum equals property, that the Defendants
obtained as the result of their violation of 18 U.S.C. §§ 1343 and 1349.

2. Money Laundering Proceeds/Forfeiture Judgment:

Asum of money equal to all property involved in the money laundering offenses
charged in the Indictment, and all interest and proceeds traceable thereto, for
which the Defendants are liable as the result of their violation of 18 U.S.C. §§
1956 and 1957.

3. Bank Accounts:

a. $86,353.92 in funds seized from Regions Bank
Account Number: x1169
In the name of Jonathan Lewis / Factory Consulting Group

b. $100,736.17 in funds from Regions Bank account
Account Number: x1988
In the name of: Michael Wells / TMA World Endeavors

c. $189,841.24 in funds seized from Regions Bank
Account Number: x0805
In the name of: Fitz Industries LLC, Quintel Myree

d. $300,000.00 in funds seized from Regions Bank
Account Number: x3093
In the name of: About Face Facial Boutique, Francetta Cage

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$136,389.98 in funds seized from Bank of America
Account Number: x5519
In the name of: BBQ Brothers Catering, Kervon Henry

$50,374.16 in funds seized from Bank of America
Account Number: x4119

In the name of: Wild Stylz Entertainment LLC,
Christopher Agard

. $190,413.26 in funds seized from SunTrust Bank

Account Number: x2873
In the name of: ECO Salon & Spa LLC - Kristina Green

. $9,114.74 in funds seized from SunTrust Bank

Account Number: x2865
In the name of: ECO Salon & Spa LLC, Kristina Green

$397,266.95 in funds seized from PNC Bank
Account Number: x4683
In the name of: ATL Promotions Group, Daniel Dartez

$266,321.35 in funds seized from US Bank
Account Number: x9623
In the name of: BOE Entertainment LLC, Donald P. Spivey

. $15,000.00 in funds seized from Navy Federal Credit Union

Account Number: x5659
In the name of: ATL Promotions Group, Daniel Dartez

$520,103.32 in funds seized from Wells Fargo
Account Number: x2139
In the name of: Dreams Come True Records LLC

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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) cannot be located upon the exercise of due diligence;

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

(c) has been placed beyond the jurisdiction of the Court;

(d) has been substantially diminished in value; or

(e) has been commingled with other property which cannot be subdivided without

difficulty;

it is the intent of the United States, pursuant to Title 21, United States Code, Section 853(p) 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, Sections 981(a)(1)(C) and 982(a)(1), and Title 21,

United States Code, Sections 853 and 881, and Title 28, United States Code, Section 2461 (c).

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A TRUE Bill

FOREPERSON

PETER M. MCCOY, JR. (SRE/kr)
United States Attorney

DANIEL §S. KAHN
CHIEF, FRAUD SECTION
U.S. DEPARTMENT OF JUSTICE

SIJI MOORE
Trial Attorney, Fraud Section
United States Department of Justice

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