Superseding Indictment, United States v. Sonya Lenise Davis (E.D.N.C., September 21, 2023)
Summary
A superseding indictment in United States v. Sonya Lenise Davis, Case 5:23-cr-00299-M-RJ, in the U.S. District Court for the Eastern District of North Carolina, Western Division, filed September 21, 2023 as Document 6. Count One charges conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349, and Count Two charges wire fraud in violation of Section 1343. It alleges that from about April 2020 until at least about April 2021 Davis and co-conspirators submitted PPP applications with false employee, revenue and income figures supported by false IRS Tax Forms 1040 and Schedule C. It alleges that on February 19, 2021 Davis applied at a Wake County Fidelity Bank branch in the name of Sonya’s Braiding and received $10,578. A forfeiture notice seeks a money judgment for the gross proceeds.
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“Superseding Indictment, United States v. Sonya Lenise Davis (E.D.N.C., September 21, 2023).”
Original at ecf.nced.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/superseding-indictment-usa-v-davis-dkt-6-e-d-n-c-68c4195a7c/
, SHA-256 935ca450cbecc7f3ce23b485e8a73bc5f222753dacaa47b18b94026469dbb068.Full text
FILED IN OPEN COURT
ON q\;;\\\;>,~ ~
Peter A. Moore, Jr., Clerk
US District Court
Eastern District of NC
UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF NORTH CAROLINA
WESTERN DIVISION
NO. 5:23-0l2-2gq
UNITED STATES OF AMERICA )
)
v. ) SUPERSEDING INDICTMENT
)
SONYA LENISE DAVIS )
The Grand Jury charges that:
GENERAL ALLEGATIONS
At all times relevant to this Superseding Indictment:
1. The defendant, SONYA LENISE DAVIS, resided in the Eastern District
of North Carolina.
COVID-19 Pandemic and Legislation
2. On March 13, 2020, the President of the United States declared a
national emergency recognizing the threat that the novel coronavirus, known as
SARS-CoV-2, and COVID-19, the disease caused by SARS-Co-V-2, posed to the
nation's healthcare systems. The President also determined that same day that the
COVID-19 outbreak constituted an emergency, of nationwide scope, pursuant to
section 501(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act
(Stafford Act), Title 42, United States Code, Section 5191(b).
3. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was
signed into law on March 27, 2020. The CARES Act was designed to provide
Case 5:23-cr-00299-M-RJ Document 6 Filed 09/21/23 Page 1 of 10
emergency financial assistance to millions of Americans who were suffering the
economic effects caused by the pandemic. The Consolidated Appropriations Act of
2021 (CAA) was signed into law on December 27, 2020. The CAA included $900 billion
in federal support for additional economic assistance and stimulus relief to address
the pandemic.
4. The United States Small Business Administration ("SBA") is an
executive-branch agency of the United States government that provides support to
entrepreneurs and small businesses. The mission of the SBA is to maintain and
strengthen the nation's economy by enabling the establishment and viability of small
business and by assisting in the economic recovery of communities after disasters. As
part of this effort, the SBA facilitated loans through banks, credit unions, and other
lenders. These loans had government-backed guarantees. The two main types of
loans facilitated by the SBA were through the Paycheck Protection Program ("PPP")
and the Economic Injury Disaster Loan Program.
DefendanCs Exploitation of COVID-19 Programs
5. Between approximately June 2020 and April 2021, the defendant,
SONYA LENISE DAVIS, by means of false and fraudulent pretenses, obtained, and
attempted to obtain, monies from one or more government-funded assistance
programs related to the COVID-19 pandemic, including the PPP, as described below.
The Paycheck Protection Program
6. 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
2
Case 5:23-cr-00299-M-RJ Document 6 Filed 09/21/23 Page 2 of 10
certain other expenses, through a program referred to as the Paycheck Protection
Program ("PPP"). In or around April 2020, Congress authorized over $300 billion in
additional PPP funding.
7. In order to obtain a PPP loan, a qualifying business was required to
submit a PPP loan application, 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) was required
to state its average monthly payroll expenses and its number of employees, among
other things. 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 were required to provide documentation showing their payroll expenses.
8. A PPP loan application was processed by a participating financial
institution ("lender"). If a PPP loan application was approved, the participating
lender would fund the loan using its own monies, which were guaranteed by the SBA.
Data from the application, including information about the borrower, the total
amount of the loan, and the listed number of employees, was transmitted by the
lender to the SBA in the course of processing the loan.
9. PPP loan proceeds were required to be used by the business on certain
permissible expenses, including payroll costs, mortgage interest, rent, and utilities.
Under the applicable PPP rules and guidance, the interest and principal on the PPP
3
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loan was eligible for forgiveness if the business was eligible for the ~pp loan it
received, spent the loan proceeds on these permissible expense items within a
designated period of time, and used a certain portion of the loan proceeds for payroll
expenses.
COUNT ONE
1. The preceding paragraphs of this Superseding Indictment are
incorporated herein by reference as factual allegations.
2. From on or about April 2020, and continuing until at least on or about
April 2021, both dates being approximate and inclusive, in the Eastern District of
North Carolina and elsewhere, the defendant, SONYA LENISE DAVIS (hereinafter,
"DAVIS") did knowingly and willfully combine, conspire, confederate, and agree with
one or more persons to commit Wire Fraud, that is:
3. To knowingly devise and intend to devise a scheme and artifice to
defraud and for obtaining money and property by means of materially false and
fraudulent pretenses, representations, and promises, for which one or more
conspirators transmitted and caused to be transmitted by means of wire
communications in interstate commerce certain writings, signs, signals, pictures, and
sounds, for the purpose of executing the scheme and artifice, in violation of Title 18,
United States Code, Section 1343.
Purpose of the Conspiracy
4. The primary purpose of the conspiracy and the scheme and artifice was
for the defendant, DAVIS, ~nd her conspirators, to fraudulently obtain monies
4
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through the PPP, by: (1) falsifying PPP loan applications, forms, and other documents
("fraudulent loan applications"); (2) submitting and causing to be submitted
fraudulent loan applications in order to obtain funds through the PPP; and (3)
receiving and obtaining PPP loan proceeds based on the fraudulent loan applications
submitted.
Manner and Means
5. To carry out the scheme, it was part of the conspiracy that from on or
about April 1, 2020, and continuing until at least on or about April 7, 2021, both dates
being approximate and inclusive, DAVIS and her co-conspirators electronically, and
in person, caused to be submitted materially false and fraudulent PPP applications.
On these applications, DAVIS and her co-conspirators made false representations
regarding number of employees, gross revenue, gross income, and submitted false
and fraudulent supporting documentation, including, but not limited to, IRS Tax
Forms 1040 and IRS Tax Form Schedule C.
6. It was further part of the conspiracy that DAVIS and her co-conspirators
signed the PPP applications, and certified that the application and all information
provided therein, as well as the supporting documents and forms, were true and
accurate. Among other things, DAVIS and her conspirators certified that the PPP
funds would be used for "payroll costs," as well as for making other permissible
expenses.
7. It was further part of the conspiracy that the conspirators caused the
PPP loan proceeds to be disbursed via interstate wire transmissions into Fidelity
5
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bank accounts owned and controlled by them within the Eastern District of North
Carolina, including $10,578 in PPP loan proceeds disbursed to DAVIS on February
19, 2021.
All in violation of Title 18, United States Code, Section 1349.
COUNT TWO
8. The preceding paragraphs of this Superseding Indictment are
incorporated herein by reference as factual allegations.
The Scheme to Defraud
9. On February 19, 2021, in the Eastern District of North Carolina and
elsewhere, the Defendant, SONYA LENISE DAVIS, devised and intended to devise
a scheme to defraud, and to obtain money and property by means of materially false
and fraudulent pretenses, representations, and promises.
Purpose ofthe Scheme
10. The purpose of the scheme and artifice was for DAVIS to unjustly enrich
herself by (1) falsifying the PPP application, forms, and other documents (the
"fraudulent loan application"); (2) submitting and causing to be submitted the
fraudulent loan application in order to obtain funds through the PPP; (3) receiving
and obtaining payment from Fidelity Bank based upon the fraudulent loan
application submitted (the "PPP funds"); and (4) misusing the PPP funds in
furtherance of the scheme to defraud.
6
Case 5:23-cr-00299-M-RJ Document 6 Filed 09/21/23 Page 6 of 10
Manner and Means of the Scheme
11. Paragraphs 1 through 9 are re-alleged and incorporated herein as
though fully set forth in this count.
12. On or about February 19, 2021, DAVIS submitted and caused to be
submitted a false and fraudulent PPP application in the name of Sonya's Braiding,
from Wake County, North Carolina, seeking PPP funds. DAVIS filled out the PPP
application at a Wake County Fidelity Bank branch location and certified that the
application and all information provided therein, was true and accurate. In fact, the
application contained materially false representations, such· as the number of
employees and gross income. DAVIS signed a loan agreement for $10,578 on behalf
of Sonya's Braiding, and certified that the funds would be used solely for payroll to
alleviate the economic injury caused by the COVID-19 pandemic.
13. Based on DAVIS' material misrepresentations set forth in the
fraudulent PPP application and supporting documents, on or about February 19,
2021, Fidelity Bank approved the PPP application, and that same day, Fidelity Bank
disbursed approximately $10,578 in loan benefits to account number x9290, held by
DAVIS at Fidelity Bank.
Use of the Wires
14. On or about the date set forth below, in the Eastern District of North
Carolina and elsewhere, the Defendant, SONYA LENISE DAVIS, for the purpose of
executing the scheme described above, and attempting to do so, caused to be
transmitted by means of wire communication in interstate commerce the signals and
7
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sounds described as a $10,578 wire transfer from Fidelity Bank to DAVIS' Fidelity
Bank account ending in x9290 on February 19, 2021.
All in violation of Title 18, United States Code, Section 1343.
[Remainder of page intentionally left blank]
8
Case 5:23-cr-00299-M-RJ Document 6 Filed 09/21/23 Page 8 of 10
FORFEITURE NOTICE
Notice is hereby given that all right, title, and interest 1n the property
described herein is subject to forfeiture.
Upon conviction of any offense charged herein constituting "specified unlawful
activity" (as defined in 18 U.S.C. §§ 1956(c)(7) and 1961(1)), or a conspiracy to commit
such offense, the defendant shall forfeit to the United States, pursuant to 18 U.S.C.
§ 981(a)(l)(C), as made applicable by 28 U.S.C. § 2461(c), any property, real or
personal, which constitutes or is derived from proceeds traceable to the said offense.
The forfeitable property includes, but is not limited to, the following:
Forfeiture Money Judgment:
a) A sum of money representing the gross proceeds of the offense charged
herein against SONYA LENISE DAVIS.
If any of the above-described forfeitable property, as a result of any act or
omission of a defendant: cannot be located upon the exercise of due diligence; has
been transferred or sold to, or deposited with, a third party; 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 divided without difficulty;
9
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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 said defendant up to the
value of the forfeitable property described above.
ATRUEBILL;f
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Date: Cf , t/- ;lo;/_}
MICHAEL F. EASLEY, JR.
United States Attorney
Ll¼<~-~
BY: LISA K. LABRESH
Special Assistant United States Attorney
Date: Di / J.--1 / }.3
10
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