Sealed Complaint — Ngoc Manh Nguyen — No. MAG 12908 (S.D.N.Y.)
Summary
SBA Office of the Inspector General Special Agent Simon Y. Dinits swore this sealed complaint, 20 MAG 12908 (S.D.N.Y.), before Magistrate Judge Katharine H. Parker in December 2020. It charges Ngoc Manh Nguyen, also known as Peter Nguyen, Victoria Dieuy Ho, also known as Vicky Ho, and Dat Tat Ho with major fraud against the United States, conspiracy to commit wire fraud and bank fraud, and conspiracy to make false statements. The complaint alleges a scheme to obtain more than $13 million in PPP loans for related nail salons and other companies, the Victoria Companies. It says more than $13 million in loans were approved and approximately $7.8 million was disbursed into accounts controlled by Nguyen, Dat Ho and other family members. One example is a $1,384,680 loan Bank-1 approved for Victoria Company-4 on May 12, 2020.
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Original
Approved: ______________________________ ___
MICHAEL MCGINNIS / SAGAR K. RAVI
Assistant United States Attorneys
Before: THE HONORABLE KATHARINE H. PARKER
20 MAG 12908
United States Magistrate Judge
Southern District of New York
- - - - - - - - - - - - - - - - - -X SEALED COMPLAINT
:
UNITED STATES OF AMERICA : Violations of
: 18 U.S.C. §§ 371,
- v. - : 1031, 1349, and 2
:
NGOC MANH NGUYEN, : COUNTY OF OFFENSE
a/k/a “Peter Nguyen,” : NEW YORK
VICTORIA DIEUY HO, :
a/k/a “Vicky Ho,” and :
DAT TAT HO, :
:
Defendants. :
:
- - - - - - - - - - - - - - - - - -X
SOUTHERN DISTRICT OF NEW YORK, ss.:
SIMON Y. DINITS, being duly sworn, deposes and says that he
is a Special Agent with the United States Small Business
Administration (“SBA”), Office of the Inspector General, and
charges as follows:
COUNT ONE
(Major Fraud Against the United States)
1. From at least in or about April 2020 through at least
in or about June 2020, in the Southern District of New York and
elsewhere, NGOC MANH NGUYEN, a/k/a “Peter Nguyen,” VICTORIA
DIEUY HO, a/k/a “Vicky Ho,” and DAT TAT HO, the defendants,
willfully and knowingly executed, and attempted to execute, a
scheme and artifice with the intent to defraud the United
States, and to obtain money and property by means of false and
fraudulent pretenses, representations, and promises, in a grant,
contract, subcontract, subsidy, loan, guarantee, insurance, and
other form of Federal assistance, including through an economic
stimulus, recovery and rescue plan provided by the Government,
the value of which was $1,000,000 and more, to wit, the
defendants engaged in a scheme to obtain more than $13 million
in Government-guaranteed loans by means of false and fraudulent
pretenses, representations, and documents, for several related
nail salons and other companies (the “Victoria Companies”)
through a loan program of the United States Small Business
Administration (the “SBA”) designed to provide relief to small
businesses during the novel coronavirus/COVID-19 pandemic,
namely the Paycheck Protection Program (the “PPP”).
(Title 18, United States Code, Sections 1031 and 2.)
COUNT TWO
(Conspiracy to Commit Wire Fraud and Bank Fraud)
2. From at least in or about April 2020 through at least
in or about June 2020, in the Southern District of New York and
elsewhere, NGOC MANH NGUYEN, a/k/a “Peter Nguyen,” VICTORIA
DIEUY HO, a/k/a “Vicky Ho,” and DAT TAT HO, the defendants, and
others known and unknown, willfully and knowingly, did combine,
conspire, confederate, and agree together and with each other to
commit wire fraud, in violation of Title 18, United States Code,
Section 1343, and bank fraud, in violation of Title 18, United
States Code, Section 1344.
3. It was a part and an object of the conspiracy that
NGOC MANH NGUYEN, a/k/a “Peter Nguyen,” VICTORIA DIEUY HO, a/k/a
“Vicky Ho,” and DAT TAT HO, the defendants, and others known and
unknown, having devised and intending to devise a scheme and
artifice to defraud and for obtaining money and property by
means of false and fraudulent pretenses, representations, and
promises, knowingly and willfully would and did transmit and
cause to be transmitted by means of wire, radio, and television
communication in interstate and foreign commerce, writings,
signs, signals, pictures, and sounds for the purpose of
executing such scheme and artifice, in violation of Title 18,
United States Code, Section 1343, to wit, the defendants engaged
in a scheme to obtain Government-guaranteed loans for the
Victoria Companies through the PPP by means of false and
fraudulent pretenses, representations, and documents, including
through electronic communications transmitted into and out of
the Southern District of New York.
4. It was further a part and an object of the conspiracy
that NGOC MANH NGUYEN, a/k/a “Peter Nguyen,” VICTORIA DIEUY HO,
a/k/a “Vicky Ho,” and DAT TAT HO, the defendants, and others
known and unknown, knowingly and willfully would and did execute
and attempt to execute a scheme and artifice to defraud a
financial institution, the deposits of which were then insured
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by the Federal Deposit Insurance Corporation (“FDIC”), and to
obtain moneys, funds, credits, assets, securities, and other
property owned by, and under the custody and control of, such
financial institution, by means of false and fraudulent
pretenses, representations, and promises, in violation of Title
18, United States Code, Section 1344, to wit, the defendants
engaged in a scheme to obtain Government-guaranteed loans for
the Victoria Companies from FDIC-insured banks through the PPP
by means of false and fraudulent pretenses, representations, and
documents.
(Title 18, United States Code, Section 1349.)
COUNT THREE
(Conspiracy to Make False Statements)
5. From at least in or about April 2020 through at least
in or about June 2020, in the Southern District of New York and
elsewhere, NGOC MANH NGUYEN, a/k/a “Peter Nguyen,” VICTORIA
DIEUY HO, a/k/a “Vicky Ho,” and DAT TAT HO, the defendants, and
others known and unknown, willfully and knowingly, did combine,
conspire, confederate, and agree together and with each other to
commit offenses against the United States, to wit, violations of
Title 18, United States Code, Sections 1014 and 1001.
6. It was a part and an object of the conspiracy that NGOC
MANH NGUYEN, a/k/a “Peter Nguyen,” VICTORIA DIEUY HO, a/k/a
“Vicky Ho,” and DAT TAT HO, the defendants, and others known and
unknown, would and did make a false statement and report for the
purpose of influencing the actions of a financial institution,
the accounts of which were insured by the FDIC, in connection
with an application and loan, in violation of Title 18, United
States Code, Section 1014, to wit, the defendants agreed to make
false statements regarding, among other things, the number of
employees of and wages paid by the Victoria Companies, for the
purpose of obtaining Government-guaranteed loans for the
Victoria Companies from FDIC-insured banks through the PPP.
7. It was further a part and an object of the conspiracy
that NGOC MANH NGUYEN, a/k/a “Peter Nguyen,” VICTORIA DIEUY HO,
a/k/a “Vicky Ho,” and DAT TAT HO, the defendants, and others
known and unknown, in a matter within the jurisdiction of the
executive branch of the Government of the United States, would
and did falsify, conceal and cover up by a trick, scheme and
device a material fact, make a materially false, fictitious, and
fraudulent statement and representation, and make and use a
false writing and document knowing the same to contain a
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materially false, fictitious, and fraudulent statement and
entry, in violation of Title 18, United States Code, Section
1001, to wit, the defendants agreed to make false and misleading
statements regarding, among other things, the number of
employees of and wages paid by the Victoria Companies, for the
purpose of obtaining Government-guaranteed loans for the
Victoria Companies through the PPP administered by the SBA.
Overt Acts
8. In furtherance of the conspiracy and to effect the
illegal objects thereof, the following overt acts, among others,
were committed in the Southern District of New York and
elsewhere:
a. On or about April 27, 2020, VICTORIA DIEUY HO,
a/k/a “Vicky Ho,” the defendant, submitted a PPP loan
application for Victoria’s Day Spa & Nails 2000 Inc. (defined
herein as “Victoria Company-1”) to a financial institution
(defined herein as “Bank-1”) that contained false statements
inflating the number of employees and total average payroll of
Victoria Company-1.
b. On or about April 29, 2020, NGOC MANH NGUYEN,
a/k/a “Peter Nguyen,” the defendant, submitted fabricated tax
forms, which contained false statements inflating the number of
employees and payroll of Victoria Company-1, to a Bank-1
representative based in Manhattan, New York.
c. On or about May 4, 2020, Bank-1 received a PPP
loan application for ND – Victoria’s Nails and Spa Inc. (defined
herein as “Victoria Company-3”) signed by DAT TAT HO, the
defendant. The application contained false statements inflating
the number of employees and total average payroll of Victoria
Company-3.
(Title 18, United States Code, Section 371.)
The bases for my knowledge and for the foregoing charges
are, in part, as follows:
9. I am a Special Agent with the Office of the Inspector
General of the SBA and I have been personally involved in the
investigation of this matter. This affidavit is based upon my
personal participation in the investigation of this matter, my
conversations with law enforcement agents, witnesses, and
others, as well as my examination of report and records.
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Because this affidavit is being submitted for the limited
purpose of establishing probable cause, it does not include all
the facts that I have learned during the course of my
investigation. Where the contents of documents and the actions,
statements, and conversations of others are reported herein,
they are reported in substance and in part, except where
otherwise indicated. Where figures, calculations, and dates are
set forth herein, they are approximate, unless stated otherwise.
Overview of the Conspiracy
10. NGOC MANH NGUYEN, a/k/a “Peter Nguyen,” VICTORIA DIEUY
HO, a/k/a “Vicky Ho,” and DAT TAT HO, the defendants, are
members of a family of Vietnamese origin that owns a chain of
over 15 nail salons called “Victoria Nails & Spa” and other
companies, referred to herein as the Victoria Companies, in or
around the New York metropolitan area, including the Bronx,
Brooklyn, and Long Island.
11. The Victoria Companies consist of the following nail
salon entities and other companies:
a. Nails & Spa 2000 Inc.;
b. NC - Victoria’s Nails Bar Inc.;
c. NC Nails & Spa 2000 Inc.;
d. ND – Victoria’s Nails and Spa Inc.;
e. NM – Victoria’s Nails & Spa Inc.;
f. N T Nails 2000, Inc.;
g. N T Nail Spa Inc.;
h. NT – Victoria’s Nails & Spa Inc.;
i. Top Ten Nails Spa 9 Inc.;
j. V – Victoria’s Nails Bar Inc.;
k. V - Victoria’s Nails & Spa Inc.;
l. Victoria’s Day Spa & Nails 2000 Inc.;
m. Victoria’s Hair Salon Inc.;
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n. Victoria’s Nails Bar Inc.;
o. Victoria’s Nails & Spa Inc.;
p. VN - Victoria’s Nail & Spa Inc.;
q. N&D Contract Inc.;
r. HD New York Property Inc.;
s. HT New York Property Inc.;
t. Phan’s Property Inc.;
u. VN Property Inc.; and
v. William Property Realty Inc.
12. From at least in or about April 2020 through at least
in or about June 2020, NGOC MANH NGUYEN, a/k/a “Peter Nguyen,”
VICTORIA DIEUY HO, a/k/a “Vicky Ho,” and DAT TAT HO, the
defendants, engaged in a scheme to submit online applications to
at least two financial institutions for a total of over $13
million in government-guaranteed loans for the Victoria
Companies through the SBA’s PPP. As discussed in further detail
below, in connection with these loan applications, the
defendants falsely and grossly overstated the number of
employees at the Victoria Companies and wages paid to those
employees in order to obtain larger loans. In order to support
the false representations in the loan applications about the
number of employees at and the wages paid by the Victoria
Companies, the defendants submitted fraudulent and doctored
payroll and tax records. In addition, the defendants falsely
listed the same employees in applications for different nail
salons to support the loan amounts applied for, and some
purported employees were listed as employees of as many as seven
different nail salons during the same time period.
13. Based on the fraudulent PPP loan applications
submitted by NGOC MANH NGUYEN, a/k/a “Peter Nguyen,” VICTORIA
DIEUY HO, a/k/a “Vicky Ho,” and DAT TAT HO, the defendants, a
total of more than $13 million in PPP loans were approved for
the Victoria Companies and approximately $7.8 million in loan
proceeds were disbursed into bank accounts controlled by NGUYEN,
DAT HO, and other family members. After the defendants learned
that a hold was placed on bank accounts of the Victoria
Companies that received PPP loans issued by one financial
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institution due to suspicion of fraudulent activity, the
defendants withdrew the applications for and/or repaid the PPP
loans for the Victoria Companies issued by that financial
institution.
Background on SBA Lending in Response to COVID-19
14. The SBA is a federal agency of the Executive Branch
that administers assistance to American small businesses. This
assistance includes guaranteeing loans that are issued by
certain lenders to qualifying small businesses. Under the SBA
loan guarantee programs, the actual loan is issued by a
commercial lender, but the lender receives the full faith and
credit backing of the United States Federal Government on a
percentage of the loan. Therefore, if a borrower defaults on an
SBA-guaranteed loan, the commercial lender may seek
reimbursement from the SBA, up to the percentage of the
guarantee. By reducing the risk to commercial lenders, the SBA
loan guarantee programs enable lenders to provide loans to
qualifying small businesses when financing is otherwise
unavailable to them on reasonable terms through normal lending
channels. When a borrower seeks an SBA-guaranteed loan, the
borrower must meet both the commercial lender’s eligibility
requirements for the loan as well as the SBA’s eligibility
requirements.
15. The Coronavirus Aid, Relief, and Economic Security
(“CARES”) Act is a federal law enacted on March 29, 2020
designed to provide emergency financial assistance to the
millions of Americans who are suffering the economic effects
caused by the COVID-19 pandemic. One 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 business expenses through the PPP. On April 24,
2020, the Paycheck Protection Program and Health Care
Enhancement Act was signed into law, authorizing over $300
billion in additional PPP funding.
16. The PPP allows qualifying small businesses and other
organizations to receive unsecured SBA-guaranteed loans with a
maturity of two years and interest rate of one percent. PPP
loan proceeds must be used by businesses on payroll costs,
mortgage interest, rent, and/or utilities. The PPP allows the
interest and principal to be forgiven if businesses spend the
proceeds on these expenses under certain conditions. Pursuant
to the CARES Act, the amount of PPP funds a business is eligible
to receive is determined by the number of employees employed by
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the business and their average payroll costs. Businesses
applying for a PPP loan must provide documentation to confirm
that they have in the past paid employees the compensation
represented in the loan application. The PPP is overseen by the
SBA, which has authority over all PPP loans, but individual PPP
loans are issued by approved commercial lenders who receive and
process PPP applications and supporting documentation, and then
make loans using the lenders’ own funds.
17. The CARES Act also expanded the separate Economic
Injury Disaster Loan (“EIDL”) Program, which provided small
businesses with low-interest loans of up to $2 million prior to
in or about May 2020 and up to $150,000 beginning in or about
May 2020, which can provide vital economic support to help
overcome the temporary loss of revenue they are experiencing due
to COVID-19. To qualify for an EIDL under the CARES Act, the
applicant must have suffered “substantial economic injury” from
COVID-19, based on a company’s actual economic injury determined
by the SBA. EIDLs may be used for payroll and other costs as
well as to cover increased costs due to supply chain
interruption, to pay obligations that cannot be met due to
revenue loss, and for other similar uses. Unlike the PPP, the
SBA directly makes loans to applicants under the EIDL Program.
Email Correspondence Among the Defendants Prior to Submission of
Fraudulent Loan Applications
18. Based on my review of email subscriber records, I have
learned the following, in substance and in part:
a. An email account with the username
“ncgocnguyen_ny09" (the “Nguyen Email Account”) was subscribed
to NGOC MANH NGUYEN, a/k/a “Peter Nguyen,” the defendant, with a
phone number ending in 1999 (the “1999 Number”).
b. An email account with the username “vicky.ho3689”
(the “Vicky Email Account”) was subscribed to VICTORIA DIEUY HO,
a/k/a “Vicky Ho,” the defendant.
c. An email account with the username “hotukiet68"
(the “Dat Email Account”) was subscribed to “kiet ho tu” with a
recovery email account with the username “hotatdat87,” which
contains the name of DAT TAT HO, the defendant.
19. Based on my review of email search warrant returns for
the (i) Nguyen Email Account, which I believe to be controlled
by NGOC MANH NGUYEN, a/k/a “Peter Nguyen,” the defendant; (ii)
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the Vicky Email Account, which I believe to be controlled by
VICTORIA DIEUY HO, a/k/a “Vicky Ho,” the defendant; and (iii)
the Dat Email Account, which I believe to be controlled by DAT
TAT HO, the defendant (collectively, the “Email Search Warrant
Returns”),1 I have learned the following, in substance and in
part:
a. On or about April 1 and 2, 2020, the Nguyen Email
Account sent an email to the Vicky Email Account forwarding
information from third-party sources about the PPP and other SBA
resources during the COVID-19 pandemic.
b. On or about April 2 and 4, 2020, the Vicky Email
Account conducted multiple Internet searches relating to the PPP
and various financial institutions.
c. On or about April 3, 2020, the Nguyen Email
Account sent an email to the Dat Email Account forwarding
information from a third-party source about COVID-19 loan relief
options. The Vicky Email Account was blind copied on the email.
d. On or about April 14, 2020, the Nguyen Email
Account sent an email to the Vicky Email Account forwarding
information from the SBA about the EIDL Program.
e. On or about April 18, 2020, the Nguyen Email
Account forwarded Excel templates for employee wage and
withholding for several of the Victoria Companies to the Vicky
Email Account and the Dat Email Account. The templates listed
the names and partial social security numbers of purported
employees of each of the Victoria Companies. The number of
employees listed in the Excel templates was significantly lower
than the number of employees represented in the PPP loan
applications for the Victoria Companies discussed herein.
f. On or about April 18, 2020, the Vicky Email
Account conducted multiple Internet searches relating to IRS
1I believe that the Nguyen Email Account, the Vicky Email
Account, and the Dat Email Account are respectively controlled
by NGOC MANH NGUYEN, a/k/a “Peter Nguyen,” VICTORIA DIEUY HO,
a/k/a “Vicky Ho,” and DAT TAT HO, the defendants, based on the
subscriber information for each account described above in
paragraph 18 as well as the content of the email accounts.
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Form 941 (Employer’s Quarterly Federal Tax Return) 2 and New York
State and federal employee withholding rates. As discussed
below, false representations regarding the number of employees
at and wages paid by the Victoria Companies, which were used to
support the PPP loan amounts requested, were submitted to
financial institutions on IRS Forms 941 that were never in-fact
filed with the IRS.
The PPP Application for Victoria’s Day Spa & Nails 2000 Inc.
20. Based on my review of records in connection with an
EIDL application for Victoria’s Day Spa & Nails 2000 Inc.
(“Victoria Company-1”) submitted to the SBA, a PPP loan
application for Victoria Company-1 submitted to an FDIC-insured
financial institution (“Bank-1”), and the Email Search Warrant
Returns, I have learned the following, in substance and in part:
a. On or about April 2, 2020, the SBA received an
online application for an EIDL for Victoria Company-1, which was
a nail salon located at the Broadway Commons shopping mall in
Hicksville, New York. The application represented that Victoria
Company-1 had 12 employees and the primary contact was the
spouse (the “Nguyen Spouse”) of NGOC MANH NGUYEN, a/k/a “Peter
Nguyen,” the defendant, with the Nguyen Email Account.
b. On or about April 27, 2020, Bank-1 received an
online application for a PPP loan in the amount of $828,110 for
Victoria Company-1. The loan application represented, among
other things, the following, in substance and in part:
i. Victoria Company-1 had 55 employees and a
total average monthly payroll of $331,244.
ii. The loan applicant was the Nguyen Spouse,
who was the sole owner of Victoria Company-1.
iii. The email address for the Nguyen Spouse
provided in the application was the Nguyen Email Account.
2
IRS Form 941 is used to report wages a business has paid as
well as employment taxes withheld on a quarterly basis. Form
941 is generally due by the last day of the month following the
end of the quarter.
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iv. The phone number for Victoria Company-1 and
the Nguyen Spouse provided in the application was the 1999
Number.
v. The information provided in the loan
application and all supporting documents and forms was “true and
accurate in all material respects.”
vi. In order to support the representations
regarding the number of employees and average monthly payroll
for Victoria Company-1 in the loan application, Bank-1 was
provided with an Excel spreadsheet listing 55 employees of
Victoria Company-1 and a total of $3,974,928 in wages paid to
those employees in 2019 and of $1,023,544 paid to those
employees in the first quarter of 2020. The metadata of the
spreadsheet indicates that it was created on or about April 18,
2020 and listed “Vicky Ho” as the author.
c. On or about April 27, 2020, approximately one
minute after the PPP loan application for Victoria Company-1 was
submitted to Bank-1, the Vicky Email Account sent the Nguyen
Email Account a printout of a copy of the submitted application
and the confirmation page for the submission from Bank-1’s
website.
d. On or about April 28, 2020, the Nguyen Email
Account forwarded correspondence from Bank-1 requesting
documents supporting the requested PPP loan amount for Victoria
Company-1 to the Vicky Email Account. Shortly thereafter, the
Vicky Email sent an email signed by “Vicky” to a Bank-1
representative based in Manhattan, New York (the “Bank-1
Representative”), copying the Nguyen Email Account, which stated
the following: “In reagrds [sic] to the [PPP] application, do
we need to support all of the forms you mentioned (2019 940
form, 2020 941 form and bank statements), or we can only use
one? Currently, we only have the company’s payroll statements
(which was uploaded with the application) and the bank
statements evidencing the payments to employees each month.”
The Vicky Email Account also informed the Bank-1 Representative,
in response to an inquiry from Bank-1, that the calculation for
the average monthly payroll “is included in the first tab of the
file uploaded,” which file is described in paragraph 20(b)(vi)
above.
e. Also on or about April 28, 2020, the Nguyen Email
Account sent an email to the Vicky Email Account forwarding two
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tax documents prepared by a tax preparer (the “Tax Preparer”)
for Victoria Company-1:
i. An IRS Form 940 (Employer’s Annual Federal
Unemployment (“FUTA”) Tax Return)3 for Victoria Company-1 for
2019, which was unsigned and reported total payments of $132,275
to employees in 2019.
ii. An IRS Form 941 for Victoria Company-1 for
the first quarter of 2020, which was unsigned and reported total
payments of $50,050 in the first quarter of 2020.
f. On or about April 29, 2020, in response to the
request from Bank-1 for documentation supporting the PPP loan
amount, the Nguyen Email Account sent the following documents to
the Bank-1 Representative, copying the Vicky Email Account:
i. A purported IRS Form 940 for Victoria
Company-1 for 2019, which appears to be signed by NGUYEN and
reported total payments of $3,974,928 to employees in 2019.
ii. A purported IRS Form 941 for Victoria
Company-1 for the first quarter of 2020, which appears to be
signed by NGUYEN and reported total payments of $1,023,554 to
employees in the first quarter of 2020.
g. On or about May 2, 2020, Bank-1 approved a
$828,110 PPP loan to Victoria Company-1. The Nguyen Spouse
purportedly signed the promissory note for the loan.
21. Based on my review of bank records relating to the
Victoria Company-1, I have learned, in substance and in part,
that the $828,100 PPP loan to Victoria Company-1 was disbursed
to an account in the name of Victoria Company-1 controlled by
NGOC MANH NGUYEN, a/k/a “Peter Nguyen,” the defendant, and the
Nguyen Spouse.
22. Based on my review of records maintained by the New
York State Department of Labor (“NYSDOL”), which requires wage
reporting for employees in New York State, I have learned, in
substance and in part, that contrary to the representations made
3
IRS Form 940 is used to report an employer’s annual FUTA tax.
Together with state unemployment tax systems, the FUTA tax
provides funds for paying unemployment compensation to workers
who have lost their jobs.
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to Bank-1 that Victoria Company-1 had 55 employees and a total
payroll of $3,974,928 in 2019 and $1,023,544 in the first
quarter of 2020, Victoria Company-1 reported a total payroll to
NYSDOL of only (i) $132,275 for no more than 10 employees in
2019 and (ii) $50,050 for 14 employees in the first quarter of
2020.
23. Based on my review of tax records for Victoria
Company-1 obtained from the IRS, I have learned, in substance
and in part, that Victoria Company-1 reported $132,275 in wages
paid to employees in 2019, which is consistent with the amount
reported to NYSDOL and on the IRS Form 940 prepared by the Tax
Preparer, which is referenced above in paragraph 20(e)(ii).
The PPP Application for NC - Victoria’s Nails Bar Inc.
24. Based on my review of records in connection with an
EIDL application for NC - Victoria’s Nails Bar Inc. (“Victoria
Company-2”) submitted to the SBA, a PPP loan application for
Victoria Company-2 submitted to Bank-1, and the Email Search
Warrant Returns, I have learned the following, in substance and
in part:
a. On or about April 2, 2020, the SBA received an
online application for an EIDL for Victoria Company-2, which was
a nail salon located at the Kings Plaza Shopping Center in
Brooklyn, New York. The application represented that Victoria
Company-2 had nine employees. The primary contact listed in the
application (the “Nguyen Relative-1”) is related to NGOC MANH
NGUYEN, a/k/a “Peter Nguyen,” VICTORIA DIEUY HO, a/k/a “Vicky
Ho,” and DAT TAT HO, the defendants.
b. On or about April 22, 2020, the Nguyen Email
Account sent an email to the Vicky Email Account forwarding an
IRS Form 941 for Victoria Company-2 prepared by the Tax
Preparer, which was unsigned and reported a total payment of
$14,300 in the fourth quarter of 2019.
c. On or about April 27, 2020, Bank-1 received an
online application for a PPP loan in the amount of $483,367 for
Victoria Company-2. The loan application represented, among
other things, the following, in substance and in part:
i. Victoria Company-2 had 34 employees and a
total average monthly payroll of $193,347.
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ii. The loan applicant was Nguyen Relative-1,
who was the sole owner of Victoria Company-2.
iii. The email address for the Nguyen Relative-1
provided in the application was the Nguyen Email Account.
iv. The phone number for Victoria Company-2 and
the Nguyen Relative-1 provided in the application was the 1999
Number.
v. The information provided in the loan
application and all supporting documents and forms was “true and
accurate in all material respects.”
vi. In order to support the representations
regarding the number of employees and average monthly payroll
for Victoria Company-2 in the loan application, Bank-1 was
provided with an Excel spreadsheet listing 34 employees of
Victoria Company-2 and a total of $2,320,170 in wages paid to
those employees in 2019 and of $598,409 paid to those employees
in the first quarter of 2020. The metadata of the spreadsheet
indicates that it was created on or about April 25, 2020 and
listed “Vicky Ho” as the author.
d. On or about April 27, 2020, approximately seven
minutes after the PPP loan application for Victoria Company-2
was submitted to Bank-1, the Vicky Email Account sent the Nguyen
Email Account a printout of a copy of the submitted application
and the confirmation page for the submission from Bank-1’s
website.
e. On or about April 28, 2020, the Nguyen Email
Account forwarded correspondence from Bank-1 requesting
documents supporting the requested PPP loan amount for Victoria
Company-2 to the Vicky Email Account. Shortly thereafter, the
Nguyen Email Account sent an email to the Vicky Email Account
forwarding two tax documents prepared by the Tax Preparer for
Victoria Company-2:
i. An IRS Form 940 for Victoria Company-2 for
2019, which was unsigned and reported total payments of $14,300
to employees in 2019.
ii. An IRS Form 941 for Victoria Company-2 for
the first quarter of 2020, which was unsigned and reported total
payments of $17,875 in the first quarter of 2020.
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f. On or about April 29, 2020, in response to the
request from Bank-1 for documentation supporting the PPP loan
amount, the Nguyen Email Account sent the following documents to
Bank-1, which the Nguyen Email Account also forwarded to the
Vicky Email Account:
i. A purported IRS Form 940 for Victoria
Company-2 for 2019, which appears to be signed by NGUYEN and
reported total payments of $2,320,170 to employees in 2019.
ii. A purported IRS Form 941 for Victoria
Company-2 for the first quarter of 2020, which appears to be
signed by NGUYEN and reported total payments of $598,409 to
employees in the first quarter of 2020.
g. On or about May 2, 2020, Bank-1 approved a
$483,367 PPP loan to Victoria Company-2. The Nguyen Relative-1
purportedly signed the promissory note for the loan.
25. Based on my review of bank records relating to the
Victoria Company-2, I have learned, in substance and in part,
that the $483,367 PPP loan to Victoria Company-2 was disbursed
to an account in the name of Victoria Company-2 controlled by
NGOC MANH NGUYEN, a/k/a “Peter Nguyen,” the defendant, and the
Nguyen Relative-1.
26. Based on my review of records maintained by the
NYSDOL, I have learned, in substance and in part, that contrary
to the representations made to Bank-1 that Victoria Company-2
had 34 employees and a total payroll of $2,320,170 in 2019 and
$598,4094 in the first quarter of 2020, Victoria Company-2
reported a total payroll to NYSDOL of only (i) $14,300 for four
employees in 2019 and (ii) $17,875 for five employees in the
first quarter of 2020.
27. Based on my review of tax records for Victoria
Company-2 obtained from the IRS, I have learned, in substance
and in part, that Victoria Company-2 reported $14,300 in wages
paid to employees in 2019, which is consistent with the amount
reported to NYSDOL and on the IRS Form 940 prepared by the Tax
Preparer, which is referenced above in paragraph 24(e)(i).
The PPP Application for ND – Victoria’s Nails and Spa Inc.
28. Based on my review of records in connection with an
EIDL application for ND – Victoria’s Nails and Spa Inc.
(“Victoria Company-3”) submitted to the SBA, a PPP loan
15
application for Victoria Company-3 submitted to Bank-1, and the
Email Search Warrant Returns, I have learned the following, in
substance and in part:
a. On or about April 4, 2020, the SBA received an
online application for an EIDL for Victoria Company-3, which is
a nail salon located on East 175th Street in the Bronx, New
York. The application represented that Victoria Company-3 had
12 employees and the primary contact was DAT TAT HO, the
defendant, with the Dat Email Account.
b. On or about April 18, 2020, the Vicky Email
Account forwarded to the Nguyen Email Account an Excel
spreadsheet listing the names, partial social security numbers,
and wages paid to 16 purported employees of Victoria Company-3.
c. On or about April 29, 2020, the Vicky Email
Account forwarded to the Dat Email Account an IRS Form 941 for
Victoria Company-3 for the first quarter of 2020, which was
unsigned and reported total payments of $242,411 to employees in
the first quarter of 2020. In response, the Dat Email Account
stated, “ok I got it.”
d. On or about May 4, 2020, Bank-1 received an
online application for a PPP loan in the amount of $874,395 for
Victoria Company-3. The loan application represented, among
other things, the following, in substance and in part:
i. Victoria Company-3 had 45 employees and a
total average monthly payroll of $349,758.
ii. The loan applicant was DAT HO, who was the
sole owner of Victoria Company-3.
iii. The email address for DAT HO provided in the
application was the Dat Email Account.
iv. The information provided in the loan
application and all supporting documents and forms was “true and
accurate in all material respects.”
v. In order to support the representations
regarding the number of employees and average monthly payroll
for Victoria Company-3 in the loan application, Bank-1 was
provided with the following documents:
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1. An Excel spreadsheet listing 45
employees of Victoria Company-3 and a total of $3,777,116 in
wages paid to those employees in 2019 and of $1,049,276 paid to
those employees in the first quarter of 2020. The metadata of
the spreadsheet indicates that it was created on or about April
18, 2020 and listed “Vicky Ho” as the author.
2. A purported IRS Form 940 for Victoria
Company-3 for 2019, which appears to be signed by DAT HO and
reported total payments of $3,777,116 to employees in 2019.
3. A purported IRS Form 941 for Victoria
Company-3 for the first quarter of 2020, which appears to be
signed by DAT HO and reported total payments of $1,049,276 to 45
employees in the first quarter of 2020.
e. On or about May 9, 2020, Bank-1 approved a
$874,395 PPP loan to Victoria Company-3. DAT HO purportedly
signed the promissory note for the loan.
29. Based on my review of bank records relating to the
Victoria Company-3, I have learned, in substance and in part,
that the $874,395 PPP loan to Victoria Company-3 was disbursed
to an account in the name of Victoria Company-3 controlled by
NGOC MANH NGUYEN, a/k/a “Peter Nguyen” and DAT TAT HO, the
defendants.
30. Based on my review of records maintained by NYSDOL, I
have learned, in substance and in part, that contrary to the
representations made to Bank-1 that Victoria Company-3 had 45
employees and a total payroll of $3,777,116 in 2019 and
$1,049,276 in the first quarter of 2020, Victoria Company-3
reported a total payroll to NYSDOL of only (i) $82,225 for no
more than six employees in 2019 and (ii) $28,600 for eight
employees in the first quarter of 2020.
31. Based on my review of tax records for Victoria
Company-3 obtained from the IRS, I have learned, in substance
and in part, that Victoria Company-3 reported $82,225 in wages
paid to employees in 2019, which is consistent with the amount
reported to NYSDOL.
The PPP Applications for N T Nail Spa Inc.
32. Based on my review of records in connection with an
EIDL application for N T Nail Spa Inc. (“Victoria Company-4”)
submitted to the SBA, PPP loan applications for Victoria
17
Company-4 submitted to Bank-1 and another FDIC-insured financial
institution (“Bank-2”), and the Email Search Warrant Returns, I
have learned the following, in substance and in part:
a. On or about April 2, 2020, the SBA received an
online application for an EIDL for Victoria Company-4, which was
a nail salon located at the Green Acres shopping mall in Valley
Stream, New York. The application represented that Victoria
Company-4 had 10 employees and the primary contact was NGOC MANH
NGUYEN, a/k/a “Peter Nguyen,” the defendant.
b. On or about April 18, 2020, the Vicky Email
Account forwarded to the Nguyen Email Account an Excel
spreadsheet listing the names, partial social security numbers,
and wages paid to 21 purported employees of Victoria Company-4.
c. On or about April 18, 2020, Bank-2 received an
online application for a PPP loan for Victoria Company-4 in the
amount of $259,300 submitted by NGUYEN. The application
represented that Victoria Company-4 had 21 employees and a total
payroll of $1,150,800 in 2019.
d. On or about May 11, 2020, the Nguyen Email
Account sent an email to a representative of Bank-2 requesting
to withdraw the PPP loan for Victoria Company-4.
e. On or about May 12, 2020, Bank-1 received an
online application for a PPP loan in the amount of $1,384,680
for Victoria Company-4. The loan application represented, among
other things, the following, in substance and in part:
i. Victoria Company-4 had 80 employees and a
total average monthly payroll of $553,872.
ii. The loan applicant was NGUYEN, who was the
sole owner of Victoria Company-4.
iii. The email address for NGUYEN provided in the
application was the Nguyen Email Account.
iv. The phone number for Victoria Company-4 and
NGUYEN provided in the application was the 1999 Number.
v. The information provided in the loan
application and all supporting documents and forms was “true and
accurate in all material respects.”
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vi. In order to support the representations
regarding the number of employees and average monthly payroll
for Victoria Company-4 in the loan application, Bank-1 was
provided with the following documents:
1. An Excel spreadsheet listing 76
employees of Victoria Company-4 and a total of $6,646,469 in
wages paid to those employees in 2019 and of $2,154,494 paid to
those employees from January 1, 2020 through April 15, 2020.
The metadata of the spreadsheet indicates that it was created on
or about April 18, 2020 and listed “Vicky Ho” as the author.
2. A purported IRS Form 940 for Victoria
Company-4 for 2019, which appears to be signed by NGUYEN and
reported total payments of $6,646,469 to employees in 2019.
3. A purported IRS Form 941 for Victoria
Company-4 for the first quarter of 2020, which appears to be
signed by NGUYEN and reported total payments of $1,846,709 to 76
employees in the first quarter of 2020.
f. On or about May 12, 2020, Bank-1 approved a
$1,384,680 PPP loan to Victoria Company-4. NGUYEN purportedly
signed the promissory note for the loan.
33. Based on my review of bank records relating to the
Victoria Company-4, I have learned, in substance and in part,
that the $1,384,680 PPP loan to Victoria Company-4 was disbursed
to an account in the name of Victoria Company-4 solely
controlled by NGOC MANH NGUYEN, a/k/a “Peter Nguyen,” the
defendant.
34. Based on my review of records maintained by NYSDOL, I
have learned, in substance and in part, that contrary to the
representations made to Bank-1 that Victoria Company-4 had 76
employees and a total payroll of $6,646,469 in 2019 and
$1,846,709 in the first quarter of 2020, Victoria Company-4
reported a total payroll to NYSDOL of only (i) $114,400 for no
more than eight employees in 2019 and (ii) $39,325 for eleven
employees in the first quarter of 2020.
35. Based on my review of tax records for Victoria
Company-4 obtained from the IRS, I have learned, in substance
and in part, that Victoria Company-4 reported $114,400 in wages
paid to employees in 2019, which is consistent with the amount
reported to NYSDOL.
19
The PPP Applications for William Property Realty Inc.
36. Based on my review of records in connection with an
EIDL application for William Property Realty Inc. (“Victoria
Company-5”) submitted to the SBA, PPP loan applications for
Victoria Company-5 submitted to Bank-1 and Bank-2, and the Email
Search Warrant Returns, I have learned the following, in
substance and in part:
a. On or about April 4, 2020, the SBA received an
online application for an EIDL for Victoria Company-5, which was
a purported real estate company located in a residential
neighborhood of Hicksville, New York. The application
represented that Victoria Company-5 had one employee and the
primary contact was NGOC MANH NGUYEN, a/k/a “Peter Nguyen,” the
defendant.
b. On or about April 18, 2020, the Vicky Email
Account forwarded to the Nguyen Email Account an Excel
spreadsheet listing the names, partial social security numbers,
and wages paid to five purported employees of Victoria Company-
5.
c. On or about April 18, 2020, Bank-2 received an
online application for a PPP loan for Victoria Company-5 in the
amount of $79,562 submitted by NGUYEN. The application
represented that Victoria Company-5 had five employees and a
total payroll of $402,000 in 2019.
d. On or about May 8, 2020, the Nguyen Email Account
sent an email to a representative of Bank-2 requesting to
withdraw the PPP loan for Victoria Company-5 as well as other
PPP loan applications submitted to Bank-2 for other Victoria
Companies.
e. On or about May 9, 2020, Bank-1 received an
online application for a PPP loan in the amount of $991,897 for
Victoria Company-5. The loan application represented, among
other things, the following, in substance and in part:
i. Victoria Company-5 had 58 employees and a
total average monthly payroll of $991,897.
ii. The loan applicant was NGUYEN, who was the
sole owner of Victoria Company-5.
20
iii. The email address for NGUYEN provided in the
application was the Nguyen Email Account.
iv. The phone number for Victoria Company-5 and
Nguyen provided in the application was the 1999 Number.
v. The information provided in the loan
application and all supporting documents and forms was “true and
accurate in all material respects.”
vi. In order to support the representations
regarding the number of employees and average monthly payroll
for Victoria Company-5 in the loan application, Bank-1 was
provided with the following documents:
1. An Excel spreadsheet listing 58
employees of Victoria Company-5 and a total of $4,761,114 in
wages paid to those employees in 2019 and of $1,764,486 paid to
those employees from January 1, 2020 through April 1, 2020. The
metadata of the spreadsheet indicates that it was created on or
about April 18, 2020 and listed “Vicky Ho” as the author.
2. A purported IRS Form 940 for Victoria
Company-5 for 2019, which appears to be signed by NGUYEN and
reported total payments of $4,761,114 to employees in 2019.
3. A purported IRS Form 941 for Victoria
Company-5 for the first quarter of 2020, which appears to be
signed by NGUYEN and reported total payments of $1,323,360 to 58
employees in the first quarter of 2020.
f. On or about May 18, 2020, Bank-1 approved a
$991,897 PPP loan to Victoria Company-5. NGUYEN purportedly
signed the promissory note for the loan.
37. Based on my review of bank records relating to the
Victoria Company-5, I have learned, in substance and in part,
that the $991,897 PPP loan to Victoria Company-5 was disbursed
to an account in the name of Victoria Company-5 controlled by
NGOC MANH NGUYEN, a/k/a “Peter Nguyen,” the defendant.
38. Based on my review of records maintained by the
NYSDOL, I have learned, in substance and in part, that the
NYSDOL did not have any wage reporting records related to
Victoria Company-5.
21
39. Based on my review of correspondence with the IRS, I
have learned, in substance and in part, that the IRS did not
have any tax records for Victoria Company-5 for tax year 2019.
The PPP Application for Top Ten Nails Spa 9 Inc.
40. Based on my review of records in connection with a PPP
loan application for Top Ten Nails Spa 9 Inc. (“Victoria
Company-6”) submitted to Bank-1 and the Email Search Warrant
Returns, I have learned the following, in substance and in part:
a. On or about May 2, 2020, the Vicky Email Account
forwarded the following documents to an email account believed
to belong to Nguyen Relative-1:
i. A purported IRS Form 940 for Victoria
Company-6 for 2019, which was unsigned and reported total
payments of $2,733,330 to employees in 2019.
ii. A purported IRS Form 941 for Victoria
Company-6 for the first quarter of 2020, which was unsigned and
reported total payments of $697,073 to 40 employees in the first
quarter of 2020.
b. On or about May 5, 2020, Bank-1 received an
online application for a PPP loan in the amount of $569,442 for
Victoria Company-6, which was a nail salon located at the Smith
Haven shopping mall in Lake Grove, New York. The loan
application represented, among other things, the following, in
substance and in part:
i. Victoria Company-6 had 40 employees and a
total average monthly payroll of 227,777.
ii. The loan applicant was another relative (the
“Nguyen Relative-2”) of NGOC MANH NGUYEN, a/k/a “Peter Nguyen,”
VICTORIA DIEUY HO, a/k/a “Vicky Ho,” and DAT TAT HO, the
defendants. Nguyen Relative-2 was the sole owner of Victoria
Company-2.
iii. The information provided in the loan
application and all supporting documents and forms was “true and
accurate in all material respects.”
iv. In order to support the representations
regarding the number of employees and average monthly payroll
22
for Victoria Company-6 in the loan application, Bank-1 was
provided with the following documents:
1. An Excel spreadsheet listing 40
employees of Victoria Company-6 and a total of $2,733,330 in
wages paid to those employees in 2019 and of $697,073 paid to
those employees in the first quarter of 2020. The metadata of
the spreadsheet indicates that it was created on or about April
25, 2020 and listed “Vicky Ho” as the author. The figures in
the spreadsheet are consistent with the tax forms emailed by the
Vicky Email Amount described above in paragraph 40(a).
2. A purported IRS Form 940 for Victoria
Company-6 for 2019, which appears to be signed by the Nguyen
Relative-2 on or about January 20, 2020 and reported total
payments of $2,733,330 to employees in 2019.
3. A purported IRS Form 941 for Victoria
Company-6 for the first quarter of 2020, which appears to be
signed by the Nguyen Relative-2 on or about April 28, 2020 and
reported total payments of $697,073 to 40 employees in the first
quarter of 2020.
c. On or about May 12, 2020, VICTORIA HO used the
Vicky Email Account to write the following to a representative
of Bank-1: “I submitted an application for our family business
. . . for Top Ten Nails [Victoria Company-6]. I accidentally
put incorrect email address so I haven’t heard back anything
from [Bank-1]. Is there any way I can go back and update the
email address? Or would you be able to look into who at [Bank-
1] has the application and help me with this? This loan is very
very important to our business.”
d. On or about May 15, 2020, in response to a
representative of Bank-1 regarding why Victoria Company-2,
Victoria Company-6, and another Victoria Company had different
signatories and how they were related, VICTORIA HO used the
Vicky Email Account to write the following to a representative
of Bank-1: “We are all one family business, just have different
companies.”
e. On or about May 21, 2020, Bank-1 approved a
$569,442 PPP loan to Victoria Company-6.
41. Based on my review of records maintained by the
NYSDOL, I have learned, in substance and in part, that the
23
NYSDOL did not have any wage reporting records related to
Victoria Company-6.
Withdrawal of PPP Loan Applications from Bank-1
42. Based on my interview of representatives of Bank-1 and
my review of email correspondence with Bank-1 and the Email
Search Warrant Returns, I have learned the following, in
substance and in part:
a. On or about May 23, 2020, Bank-1 placed a hold on
accounts of the Victoria Companies at Bank-1 that received PPP
loan funds due to suspicion of fraudulent activity.
b. On or about May 24 and 25, 2020, NGOC MANH
NGUYEN, a/k/a “Peter Nguyen,” the defendant, informed a Bank-1
representative based in White Plains, New York that he was
withdrawing the applications for and/or repaying the PPP loans
for Victoria Company-1 through Victoria Company-6 discussed
above, as well as several other of the Victoria Companies,
including HD New York Property Inc. (“Victoria Company-7”).
After receiving a confirmation email from Bank-1 on or about May
25, 2020, NGUYEN forwarded the confirmation email to the Vicky
Email Account and the Dat Email Account.
c. On or about May 24, 2020, DAT TAT HO, the
defendant, used the Dat Email Account to inform Bank-1 that he
was withdrawing the PPP loans for Victoria Company-3 and
Victoria Company-7.
d. On or about May 24 and 25, 2020, the Dat Email
Account conducted Internet searches for “PPP Fraud,” "PPP Loan
Fraud Arrests," and "How to get rid of a PPP Loan." In
addition, the Dat Email account visited a website titled, in
substance and in part, “Could you face PPP Fraud Charges,” as
well as websites for articles regarding prosecution of PPP loan
fraud.
e. On or about May 24, 2020, the Vicky Email Account
conducted multiple Internet searches relating to how to withdraw
a PPP loan application, including specifically with respect to
Bank-1.
24
WHEREFORE, I respectfully request that a warrant be issued
for the arrest of NGOC MANH NGUYEN, a/k/a “Peter Nguyen,”
VICTORIA DIEUY HO, a/k/a “Vicky Ho,” and DAT TAT HO, the
defendants, and that they be arrested and imprisoned or bailed,
as the case may be.
/s/ Simon Dinits
_______________________________
SIMON Y. DINITS
Special Agent
SBA, Office of the Inspector General
Sworn to me through the transmission
of this Affidavit by reliable electronic means,
pursuant to Federal Rules of Criminal Procedure
41(d)(3) and 4.1, this 2nd day of December, 2020
__________________________________
THE HONORABLE KATHARINE H. PARKER
UNITED STATES MAGISTRATE JUDGE
SOUTHERN DISTRICT OF NEW YORK
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