Superseding Indictment, United States v. Ramaci (District of South Carolina, January 10, 2024)

Summary

A superseding indictment in United States v. Jonathan Ramaci, CR. NO. 2:22-cr-00993, in the United States District Court for the District of South Carolina, Charleston Division, filed January 10, 2024 as Entry Number 85 and numbered through Page 24. Counts 1 through 7 charge wire fraud under 18 U.S.C. § 1343, alleging a scheme to defraud investors and board members of Elements of Genius, which was developing a wearable smart health device called Wellnest. The indictment alleges that Elements of Genius raised more than four million dollars from investors and that at least $600,000.00 was diverted to Mobile Life Labs. Counts 8 through 10 charge wire fraud in a scheme to defraud the Small Business Administration and its approved third-party lenders.

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2:22-cr,00993-RMG Date Filed 01/10/24 = Entry Number 85 Page 1 of 24 |

bh : IN THE UNITED STATES DISTRICT COURT
San FOR THE DISTRICT OF SOUTH CAROLINA

CHARLESTON DIVISION

UNITED STATES OF AMERICA CR. NO.: 2:22-cr-00993
oo 18 U.S.C. § 2
v. 18 U.S.C. § 1343

i | 18 U.S.C. § 1957

JONATHAN RAMACT'

26 U.S.C. § 7203

18 U.S.C. § 981(a)(1C)

18 U.S.C. § 982(a)(1) |
28 U.S.C. § 2461(c)

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i

SUPERSEDING INDICTMENT

' BACKGROUND

1. The Defendant, JONATHAN RAMACL, at all times pertinent to this Superseding
Indictment, was, and is, a resident of Charleston County, South Carolina.

2. JONATHAN RAMACT, at all times pertinent to this Superseding Indictment, was
the founder and Chief Executive Officer of Elements of Genius, a Delaware corporation, which
was incorporated with the Delaware Secretary of State on November 26, 2012. Elements of Genius
was headquartered in Charleston County, South Carolina,

3. At all times pertinent to this Superseding Indictment, Elements of Genius was
developing a wearable smart health device, called Wellnest. If developed successfully, Wellnest
was represented as a device that would monitor a user’s vital signs, remind them to take

medication, and contact doctors, among other things.

18 U.S.C. § 1349 I

26 ULS.C. § 7206(1) a
etd 21c1-0090 993- RMG | ' Date Filed 01/10/24 Entry Number 85 _— Page 2 of a4 |

board of direotors ahd. board of advisors for Elements of Genius. Moreover, rONaTiCA

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RAMACI solicited investors to fund the development and planned manufacture of the Wellnest,

Ss. JONATHAN RAMACT also owns and controls a company named Mobile Life
Labs LLC. Mobile Life Labs LLC is a South Carolina limited liability company. According to
documents filed with the South Carolina Secretary of State, Mobile Life Labs is a single-member
LLC controlled by JOHNATHAN RAMACTI,

6. BPHAV LLC d/b/a Charleston Classics is a Wyoming limited liability company,
In the documents filed with the Wyoming Secretary of State, BPHAV LLC’s address is listed as
an address in Charleston County, South Carolina. Haverly Ramaci, JONATHAN RAMACT’s
wife, is the managing member of BPHAV LLC. At all times pertinent to this Superseding

Indictment, JONATHAN RAMACT’s personal boat was registered to BPHAV LLC.

The Small Business Administration and Coronavirus Aid, Relief, and Economic Security Act

7. The United States Small Business Administration (“SBA”) is an executive branch
agency of the United States government that provided 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 businesses and by assisting in the economic
recovery of communities after disasters. As part of this effort, the SBA enables and provides for
loans through banks, credit unions, and other lenders. These loans have government-backed
guarantees.

8. In March 2020, Congress enacted the Coronavirus Aid, Relief, and Economic
Security Act (“CARES Act”) to help businesses impacted by COVID-19 to continue paying their

employees.

4, _ To succeed in the development of the Wellnest, JONATHAN RAMACI seated a. E
'2:22-ct-00993-RMG Date Filed 01/10/24 = Entry Number 85 Page 3 of 24.

PPP Loans i!

9. | One source of relief provided by the CARES Act was the authorization of upito |

$349 billion ‘ forgivable loans to small businesses for job retention and certain other expenses
through a program referred to as the Paycheck Protection Program (“PPP”). In or around Api

2020, Congress authorized over $300 billion in additional PPP funding.

1

10. The PPP program 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.

11. To obtain a PPP loan, a qualifying business had 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 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,

12, PPP loan applications were electronically submitted or caused to be submitted by
the borrower and received through SBA servers located in Virginia and/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.

13. The proceeds ofa 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. _
2:22-cr-00993-RMG Date Filed 01/10/24 = Entry Number 85 Page 4 of 24

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

14. Capital Trust Financial and Wells Fargo were third-party participating lenders in
the PPP programs, |

EIDL Loans

15. | The SBA was authorized to provide Economic Injury Disaster Loan (“EIDL”) loans
to eligible small businesses, private non-profits, agricultural businesses, and religious institutions
experiencing substantial financial disruptions due to the COVID-19 pandemic. The CARES Act
also authorized the SBA to issue emergency advances of up to $10,000.00 depending on the
number of employees a small business employed.

16. These funds could only be used to pay legitimate business expenses, such as wages,
operating costs, rent or mortgage payments, and other business debt. An EIDL applicant seeking
relief due to the COVID-19 pandemic was required to submit an online application to the SBA
and provide information about the business, such as the number of employees, gross revenue for
the 12-month period preceding January 31, 2020, and operating costs or cost of goods sold during
that same period.

17. The information provided by the applicant was used by the SBA to determine the
amount of the EIDL principal and emergency advance. Although supporting documentation was
not required unless requested by SBA personnel during the EIDL evaluation process, the applicant

had to certify under penalty of perjury that all information in the application was true and correct.
2:22-cr-00993-RMG Date Filed 01/10/24 = Entry Number 85 Page 5 of 24

Applicants were warned that providing false statements to the SBA may result in criminal

sanctions.
The Internal Revenue Service and Federal Tax Forms
18. The Internal Revenue Service (“IRS”) was and is an executive branch agency of

the United States Department of the Treasury responsible for the enforcement and administration
of the tax laws of, and the collection of taxes owed to, the United States government. |

19. Form 1040, United States Individual Income Tax Return (“Form 1040”), was and
is an IRS form used to report an individual taxpayer’s income, deductions, credits, and other
matters relevant to the assessment of federal income tax due by the taxpayer to the United States.

20. Schedule 1, Additional Income and Adjustments to Income (“Schedule 1” or “Sch.
1”), was and is an IRS form used to report, among other items, an individual taxpayer’s additional
incomes, separate from the taxpayer’s wages, and losses, such as income or loss resulting from the
taxpayer’s personal business.

21. Schedule C, Profit or Loss from Business (“Schedule C” or “Sch. C”), was and is

IRS form used to calculate the profit or loss from an individual taxpayer’s personal business,

reported on Form 1040 or Schedule 1.
2:22-cr-00993-RMG Date Filed 01/10/24 = Entry Number 85 Page 6 of 24

Counts 1 through 7
18 U.S.C. § 1343
(Wire Fraud)

THE GRAND JURY CHARGES:
22, Paragraphs | through 6 and 18 through 21 of this Superseding Indictment are
incorporated herein by reference.

The Scheme to Defraud

23. From on or about January 2016 and continuing at least through 2021, in the District
of South Carolina and elsewhere, the Defendant, JOHNATHAN RAMACT, knowingly devised
and intended to devise a scheme and artifice to defraud investors and board members of Elements
of Genius and to obtain money and property by means of false and fraudulent pretenses,
representations and promises, and the concealment of material facts, by soliciting and receiving
investor funds represented to be for the development of the Wellnest when, in fact, JONATHAN
RAMACT was diverting investor funds for his own personal use, in violation of Title 18, United
States Code, Section 1343.

Manner and Means of the Scheme to Defraud

24. It was part of the scheme that JONATHAN RAMACTI raised money from
investors to fund the product development and planned manufacture of the Wellnest device
through his company Elements of Genius.

25. JONATHAN RAMACTI created a board of directors and board of advisors for

Elements of Genius to whom he would provide executive summaries that detailed progress relating

to the development of the Wellnest device as well as updates on the financials of Elements of .

Genius, to include investor funds raised and spent.
2:22-cr-00993-RMG Date Filed 01/10/24 = Entry Number 85 Page 7 of 24

26. JONATHAN RAMACT, and others acting on behalf of Elements of Genius,
solicited investors for the Welinest device. Throughout the time-period set forth in this
Superseding Indictment, JONATHAN RAMACTI and his company Elements of Genius raised
more than four million dollars from investors.

27. At various times through the development of the Wellnest device, JONATHAN
RAMACT represented to investors and board members to have contracts and/or agreements in
place with companies that would carry and sell the Wellnest device when, in fact, there were no
such contracts or agreements in place and/or the contracts or agreements with the companies had
been cancelled.

28. Throughout the development of the Weilnest, JONATHAN RAMACT approached
an engineering company about manufacturing the Wellnest. Sometime in 2019, JONATHAN
RAMACIT was advised by the engineering company that the Wellnest still required many hours of
engineering design and electrical work before it could be manufactured. After being told the
Wellnest needed more hours of engineering design and electrical work, JONATHAN RAMACI
declined to finish the product; however, he continued to raise money from investors based on
material misrepresentations and omissions.

29. During the time period set forth in this Superseding Indictment, JONATHAN
RAMACT represented to investors and board members that the money being raised for Elements
of Genius was being used to develop the Wellnest.

30. During the time period set forth in this Superseding Indictment, JONATHAN
RAMACI further represented and/or implied to investors, board members, and purported

employees that he was not taking a salary from Elements of Genius.
2:22-cr-00993-RMG Date Filed 01/10/24 Entry Number 85 Page 8 of 24

31. Onor about March 2019, JONATHAN RAMACT provided an unaudited expense
by vendor sheet to at least two board members and investors, which showed, among other
expenses, less than $50 being sent to himself and $254,447.13 being sent to an entity called Mobile
Life Labs LLC between April 1, 2016 to March 1, 2019.

32. At no time prior to March 2019 did JONATHAN RAMACT disclose to the board
of directors and/or board of advisors that Mobile Life Labs is a single member LLC controlled by
JONATHAN RAMACI,

33. It was further part of the scheme that JONATHAN RAMACT paid personal
expenses, to include his personal credit card and personal residence rent, from the Elements of
Genius’ Wells Fargo Account ending in 1069.

34. It was further part of the scheme that JONATHAN RAMACT did not report and/or
did not accurately report as income on his yearly taxes the funds he diverted to Mobile Life Labs
and/or the personal expenses he paid out of Elements of Genius’ Wells Fargo Account ending in
1069. Moreover, JONATHAN RAMACT did not submit Form 1099s to the IRS for the funds
sent to Mobile Life Labs and/or the personal expenses.

35, Through the scheme described above, JONATHAN RAMACT fraudulently
diverted at least $600,000.00 in funds from Elements of Genius’ Wells Fargo Account ending in
1069 to Mobile Life Labs’ PNC Bank Account ending in 5352 for his own personal use.

36. Moreover, through the scheme described above, JONATHAN RAMACI
fraudulently paid at least $300,000.00 in personal expenses directly out of Elements of Genius’
Weils Fargo Account ending in 1069.

37. On or about the dates specified below in the District of South Carolina, and

elsewhere, JONATHAN RAMACT, for the purpose of executing the scheme and artifice
2:22-cr-00993-RMG

Date Filed 01/10/24 = Entry Number 85 Page 9 of 24

described above, did transmit and cause to be transmitted in interstate commerce, by means of wire

communications, the writings, signs, and signals, further described below, on or about the dates

specified:

Count

Date

Amount

Description of Wire Communication

1

11/19/2018

$10,000.00

Wire transfer from Elements of Genius Wells
Fargo Account ending in 1069 to Mobile Life
Labs PNC Bank Account ending in 5352.

10/9/2019

$447.25

Electronic payment transaction from Elements of
Genius Wells Fargo Account ending in 1069 to
HC, an entity known to the Grand Jury.

10/16/2019

$10,000.00

Wire transfer from Elements of Genius Wells
Fargo Account ending in 1069 to Mobile Life
Labs PNC Bank Account ending in 5352.

5/28/2020

$5,000.00

Payment to RB, an individual known to the Grand
Jury via wire transaction from Elements of
Genius Wells Fargo Account ending in 1069,

9/8/2020

$5,237.57

Payment of JONATHAN RAMACT’s personal
Chase credit card account ending in 2541 from
Elements of Genius Wells Fargo Account ending
in 1069.

8/9/2021

$15,065.94

Wire transfer from Elements of Genius Wells
Fargo Account ending in 1069 to Mobile Life
Labs PNC Bank Account ending in 5352.

9/7/2021

$4,077.23

Payment of JONATHAN RAMACTI’s personal
Chase credit card account ending in 2541 from

Elements of Genius Wells Fargo Account ending
in 1069,

All in violation of Title 18, United States Code, Section 1343.
2:22-cr-00993-RMG Date Filed 01/10/24 —= Entry Number 85 Page 10 of 24

Counts 8 through 10
18 U.S.C. § 1343
(Wire Fraud)

THE GRAND JURY FURTHER CHARGES:
38. The factual allegations of paragraphs 1 through 17 of this Superseding Indictment
are re-alleged as though fully set forth herein.

The Scheme to Defraud

39. From on or about April 2020 to the present, in the District of South Carolina and
elsewhere, the Defendant, JONATHAN RAMACT, as a principal and/or aider and abettor,
knowingly devised and intended to devise a scheme to defraud the Small Business Administration
and its approved third-party lenders, and to obtain money and property by means of materially
false and fraudulent pretenses, representations, promises, and the concealment of material facts,
and during such period, knowingly transmitted and caused to be transmitted in interstate
commerce, by means of wire communications, certain electronic signals, for the purpose of
executing the scheme and artifice to defraud relating to the fraudulent applications for, and receipt
of, EIDL and PPP loan funds, in violation of Title 18, United States Code, Section 1343.

Manner and Means of the Scheme to Defraud

40. It was part of the scheme that JONATHAN RAMACT did submit multiple EIDL
and PPP loan applications on behalf of various entities, including but not limited to, Elements of
Genius, Mobile Life Labs, and himself individually.

41. In submitting these EIDL and PPP loan applications, JONATHAN RAMACI
made representations to the SBA pertaining to the gross revenues, costs of goods sold, number of

employees, and/or percentage of ownership he had in each of the companies. These

10
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representations were materially false and/or were inconsistent throughout the various EIDL and
PPP loan applications.

42. It was further part of JONATHAN RAMACT’s scheme that in the application and
receipt of an EIDL loan for Elements of Genius, JONATHAN RAMACTI applied for an
advance/grant from the SBA. In requesting this advance, JONATHAN RAMACTI made
materially false representations regarding the number of employees Elements of Genius employed
to induce the SBA to fund the maximum amount allowed for the grant.

Count 8
EIDL Loan — Elements of Genius

43. The factual allegations of paragraphs 1 through 17 and 39 through 42 of this
Superseding Indictment are re-alleged as though fully set forth herein.

44, On or about June 2, 2020, in the District of South Carolina, and elsewhere, the
Defendant, JONATHAN RAMACT, for the purpose of executing the scheme and artifice
described above and/or attempting to do so, and by means of materially false and fraudulent
pretenses, representations, promises, and the concealment of material facts, specifically the
misrepresentation of Elements of Genius’ gross revenue for the twelve-month period preceding
January 31, 2020 on an EIDL loan application submitted to the SBA, did transmit and cause to be
transmitted in interstate commerce, by means of wire communications, certain writings, signs, and
signals; that is a, $149,900.00 wire from the U.S. Treasury on behalf of the SBA of EIDL funds to
Elements of Genius’ bank account ending in 1069 at Wells Fargo Bank.

All in violation of Title 18, United States Code, Sections 1343 and 2.

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2:22-cr-00993-RMG Date Filed 01/10/24 —= Entry Number 85 Page 12 of 24

Count 9
EIDL Loan — Mobile Life Labs

45. The factual allegations of paragraphs 1 through 17 and 39 through 42 of this
Superseding Indictment are re-alleged as though fully set forth herein.

46. On or about June 24, 2020, in the District of South Carolina, and elsewhere, the
Defendant, JONATHAN RAMACT, for the purpose of executing the scheme and artifice
described above and/or attempting to do so, and by means of materially false and fraudulent
pretenses, representations, promises, and the concealment of material facts, specifically, the
misrepresentation of Mobile Life Labs’ gross revenue for the twelve-month period preceding
January 31, 2020 on an EIDL loan application submitted to the SBA, did transmit and cause to be
transmitted in interstate commerce, by means of wire communications, certain writings, signs, and
signals; that is, a $33,900.00 wire from the U.S. Treasury on behalf of the SBA of EIDL funds to
Mobile Life Labs’ bank account ending in 5352 at PNC Bank.

47, It was further part of the scheme that once the EIDL loan funds were deposited in
Mobile Life Labs’ PNC Bank Account ending in 5352, JONATHAN RAMACI did cause the
funds to be spent on non-qualifying, non-business-related purposes, in violation of the EIDL loan
program including, but not limited to, payment of personal credit card expenses, retail expenses,
and rent for his personal residence.

All in violation of Title 18, United States Code, Sections 1343 and 2.

Count 10
Jonathan Ramaci PPP Loan Application

48. The factual allegations of paragraphs 1 through 21 and 39 through 42 of this
Superseding Indictment are re-alleged as though fully set forth herein.
49, On or about March 19, 2021, in the District of South Carolina, and elsewhere, the

Defendant, JONATHAN RAMACTI, for the purpose of executing the scheme and artifice

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2:22-cr-00993-RMG Date Filed 01/10/24 —= Entry Number 85 Page 13 of 24

described above and/or attempting to do so, and by means of materially false and fraudulent
pretenses, representations, promises, and the concealment of material facts, specifically, the
submission of a falsified Schedule C with a PPP loan application, did transmit and cause to be
transmitted in interstate commerce, by means of wire communications, certain writings, signs, and
signals; that is, a $19,540.00 wire from Capital Trust Financial, a lender approved by the SBA to
issue PPP loans, of PPP loan funds to Mobile Life Labs’ bank account ending in 5352 at PNC
Bank.

50. It was also part of the scheme that once the PPP loan funds were deposited in
Mobile Life Labs’ PNC bank account ending in 5352, JONATHAN RAMACT did cause the funds
to be spent on non-qualifying, non-business-related purposes, in violation of the PPP loan program,
including, but not limited to, payment of personal credit card expenses, retail expenses, and rent
for his personal residence.

All in violation of Title 18, United States Code, Sections 1343 and 2.

Counts 11 through 13
18 U.S.C. §§ 1343 and 1349
(Wire Fraud/Attempted Wire Fraud)
THE GRAND JURY FURTHER CHARGES:
51. The factual allegations of paragraphs 1 through 17 of this Superseding Indictment
are re-alleged as though fully set forth herein.

The Scheme to Defraud

52. From on or about April 2020 to the present, in the District of South Carolina and
elsewhere, the Defendant, JONATHAN RAMACT, as a principal and/or aider and abettor,
knowingly devised and intended to devise a scheme to defraud the Small Business Administration

and its approved third-party lenders, and to obtain money and property by means of materially

13
2:22-cr-00993-RMG Date Filed 01/10/24 —= Entry Number 85 Page 14 of 24

false and fraudulent pretenses, representations, promises, and the concealment of material facts,
and during such period, knowingly transmitted and caused to be transmitted in interstate
commerce, by means of wire communications, certain electronic signals, for the purpose of
executing and/or attempting to execute the scheme and artifice to defraud relating to the fraudulent
applications for, and receipt of, EIDL and PPP loan funds, in violation of Title 18, United States
Code, Sections 1343 and 1349.

Manner and Means of the Scheme

53. It was part of the scheme that JONATHAN RAMACT did submit multiple EIDL
and PPP loan applications on behalf of various entities, including but not limited to, Elements of
Genius, Mobile Life Labs, himself individually, and BPHAV LLC.

54. In submitting these EIDL and PPP loan applications, JONATHAN RAMACI
made representations to the SBA pertaining to the gross revenues, costs of goods sold, number of
employees, and/or percentage of ownership he had in each of the companies. These
representations were either materially false and/or were inconsistent throughout the various EIDL
and PPP loan applications.

Count 11
BPHAV LLC EIDL Application

55. The factual allegations of paragraphs 1 through 17 and 52 through 54 of this
Superseding Indictment are re-alleged as though fully set forth herein.

56. On or about January 17, 2021, in the District of South Carolina, and elsewhere, the
Defendant, JONATHAN RAMACT, for the purpose of executing the scheme and artifice
described above and/or attempting to do so, and by means of materially false and fraudulent
pretenses, representations, promises, and the concealment of material facts, specifically, the

misrepresentation of the gross revenue and cost of goods sold for BPHAV LLC for the twelve-

14
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month period preceding January 31, 2020, did transmit and cause to be transmitted in interstate
commerce, by means of wire communications, certain writings, signs, and signals; that is, the
submission of an EIDL loan application to the SBA for BPHAV LLC d/b/a Charleston Classics.

All in violation of Title 18, United States Code, Sections 1343, 1349, and 2.

Count 12
Elements of Genius PPP Application

57. The factual allegations of paragraphs 1 through 21 and 52 through 54 of this
Superseding Indictment are re-alleged as though fully set forth herein.

58. On or about April 20, 2020, in the District of South Carolina, and elsewhere, the
Defendant, JONATHAN RAMACT, for the purpose of executing the scheme and artifice
described above and/or attempting to do so, and by means of materially false and fraudulent

pretenses, representations, promises, and the concealment of material facts, specifically, the

submission of fraudulent Form 1099s, did transmit and cause to be transmitted in interstate

commerce, by means of wire communications, certain writings, signs, and signals; that is, the
submission of a PPP loan application to Wells Fargo, an approved lender by the SBA, to issue a
PPP loan, for Elements of Genius.

All in violation of Title 18, United States Code, Sections 1343, 1349, and 2.

Count 13
Elements of Genius PPP Application

59. The factual allegations of paragraphs 1 through 21 and 52 through 54 of this
Superseding Indictment are re-alleged as though fully set forth herein.

60. On or about March 14, 2021, in the District of South Carolina, and elsewhere, the
Defendant, JONATHAN RAMACT, for the purpose of executing the scheme and artifice

described above and/or attempting to do so, and by means of materially false and fraudulent

15
2:22-cr-00993-RMG Date Filed 01/10/24 —= Entry Number 85 Page 16 of 24

pretenses, representations, promises, and the concealment of material facts, specifically, the

submission of a falsified Form 944 for the tax year 2019, did transmit and cause to be transmitted

in interstate commerce, by means of wire communications, certain writings, signs, and signals;
that is, the submission of a PPP loan application to Wells Fargo, an approved lender by the SBA,
to issue a PPP loan, for Elements of Genius.

All in violation of Title 18, United States Code, Sections 1343, 1349, and 2.
Count 14
18 U.S.C, § 1957
(Money Laundering)
THE GRAND JURY FURTHER CHARGES:

61. The factual allegations of paragraphs 1 through 17, 39 through 42, 49, and 50 of
this Superseding Indictment are re-alleged as though fully set forth herein.

62. That on or about April 29, 2021, in the District of South Carolina, the Defendant,
JONATHAN RAMACTI, did knowingly engage in a monetary transaction, by through and to a
financial institution, affecting interstate and foreign commerce, in criminally derived property of
a value greater than $10,000.00, that is JONATHAN RAMACTI wired $40,000.00 from Mobile
Life Labs’ PNC bank account ending in 5352 to a bank account in the name of RB, a person known
to the grand jury, at USAA ending in 9289, knowing such property had been derived from a
specific unlawful activity, that is, wire fraud, in violation of Title 18, United States Code, Section

1343.

All in violation of Title 18, United States Code, Sections 1957 and 2.

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Counts 15 to 17
26 U.S.C. § 7206(1)
(Filing a False Individual Income Tax Return)

THE GRAND JURY FURTHER CHARGES:

63. The factual allegations of paragraphs 1 through 6, 18 through 21, and 23 through
36 of this Superseding Indictment are re-alleged as though fully set forth herein.

64, During calendar years 2019, 2020, and 2021, the Defendant, JONATHAN
RAMACT, fraudulently diverted at least $154,717 in funds from Elements of Genius’ Wells Fargo
Account ending in 1069 to Mobile Life Labs’ PNC Bank Account ending in 5352 for his own
personal use and fraudulently paid at least $250,301 in personal expenses directly out of Elements

of Genius’ Wells Fargo Account ending in 1069, as set forth below:

Year Diverted Personal Total
Funds Expenses Paid

2019 $80,000 $35,997 $115,997

2020 $52,000 $134,244 $186,244

2021 $22,717 $80,060 $102,777

65. On or about each approximate date set forth below, in the District of South
Carolina, and elsewhere, the Defendant, JONATHAN RAMACT, did willfully make, subscribe,
and file with the IRS false Forms 1040 and accompanying schedules, for calendar years 2019,
2020, and 2021, each of which was verified by a written declaration that it was made under the
penalties of perjury, and each of which JONATHAN RAMACT did not believe to be true and
correct as to every material matter. The returns were false and fraudulent as to material matters,
in that they represented, among other falsities, that JONATHAN RAMACTI earned income in the
amounts set forth below, whereas JONATHAN RAMACTI then and there knew and believed his

income was greater than those amounts:

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Count Tax Year | Date Return Filed Materially False Statement(s)
(On or about)

15 2019 July 17, 2023 Sch, C, Ln. 1, Gross Receipts ($86,825)

Sch. 1, Ln. 3, Business Income ($34,457)

c. Form 1040, Ln. 7(a), Other Income
($34,457)

d. Form 1040, Ln. 7(b), Total Income

($34,457)

16 2020 February 13,2021 | a. Sch. C, Ln. 1, Gross Receipts ($20,000)

b. Sch. 1, Ln. 3, Business Income ($20,000)

c. Form 1040, Ln. 8, Other Income
($31,261)

d. Form 1040, Ln. 9, Total Income ($31,261)

17 2021 March 2, 2022 a. Sch. C, Ln. 1, Gross Receipts ($41,000)

b. Sch. I, Ln. 3, Business Income ($18,844)

c. Form 1040, Ln. 8, Other Income
($30,083)

d. Form 1040, Ln. 9, Total Income ($30,083)

All in violation of Title 26, United States Code, Section 7206(1).

Counts 18 and 19
26 U.S.C. § 7203
(Failure to File an Individual Income Tax Return)

THE GRAND JURY FURTHER CHARGES:

66. The factual allegations of paragraphs 1 through 6, 18 through 21, and 23 through
36 of this Superseding Indictment are re-alleged as though fully set forth herein.

67. During calendar years 2017 and 2018, the Defendant, JONATHAN RAMACTI,
was married and under the age of sixty-five.

68. Married individuals, under the age of sixty-five, in the United States or who were
citizens of the United States, receiving gross income of at least $22,050 during calendar 2017, or
$25,300 during calendar year 2018, were required to file with the IRS an income tax return for

each of those years, respectively.

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69. All individuals, in the United States or who were citizens of the United States,
receiving net earnings from self-employment of at least $400 during calendar year 2017, or $400
for calendar year 2018, were required to file with the IRS an income tax return for each of those
years, respectively,

70. During calendar years 2017 and 2018, the Defendant, JONATHAN RAMACT,
fraudulently diverted at least $416,000 in funds from Elements of Genius’ Wells Fargo Account
ending in 1069 to Mobile Life Labs’ PNC Bank Account ending in 5352 for his own personal use
and fraudulently paid at least $228,678 in personal expenses directly out of Elements of Genius’

Wells Fargo Account ending in 1069, as set forth below:

Year Diverted Personal Total
Funds Expenses Paid

2017 $286,000 $201,640 $487,640

2018 $130,000 $27,038 $157,038

71. The Defendant, JONATHAN RAMACL having received gross income of more
than the established IRS filing thresholds for calendar years 2017 and 2018, was required by law,
following the close of, and on or before the filing deadline for, those years, to file with the IRS
income tax returns, stating specifically the items of his gross income and any deductions and

credits to which he was entitled.

72. Knowing and believing all the foregoing, the Defendant, JONATHAN RAMACTI,
on or about the established filing deadlines for the calendar years 2017 and 2018, set forth below,
in the District of South Carolina, and elsewhere, did willfully fail to file with the IRS an income

tax return for either year:

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Count Calendar Year Filing Deadline
18 2017 October 15, 2018
19 2018 April 15, 2019

All in violation of Title 26, United States Code, Section 7203.

Counts 20 through 24
26 U.S.C. § 7203
(Failure to File a Corporate Income Tax Return)

THE GRAND JURY FURTHER CHARGES:

73. The factual allegations of paragraphs 1 through 6, 18 through 21, and 23 through
36 of this Superseding Indictment are re-alleged as though fully set forth herein.

74. During calendar years 2017, 2018, 2019, 2020, and 2021, the Defendant,
JONATHAN RAMACT, was the Chief Executive Officer and Founder of Elements of Genius, a
corporation not expressly exempt from tax, with its principal place of business in Charleston
County, South Carolina.

75. All corporation in the United States, unless expressly exempt from tax, were
required to file with the IRS an income tax return for each calendar year, regardless of whether
they received taxable income during the year.

76. JONATHAN RAMACT, as a result of his position at and control of Elements of
Genius, was required by law, after the close of, and on or before the filing deadline for, calendar
years 2017, 2018, 2019, 2020, and 2021, to file with the IRS income tax returns, for and on behalf
of the corporation, stating specifically the items of the corporation’s gross income and the
deductions and credits allowed by law. Knowing and believing all the foregoing, JONATHAN

RAMACT, on or about the filing deadlines for calendar years 2017, 2018, 2019, 2020, and 2021,

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2:22-cr-00993-RMG Date Filed 01/10/24 —= Entry Number 85 Page 21 of 24

set forth below, in the District of South Carolina, and elsewhere, did willfully fail file with the IRS

an income tax return for each of those years.

Count Calendar Year Filing Deadline
20 2017 April 17, 2018
21 2018 April 15, 2019
22 2019 July 15, 2020
23 2020 April 15, 2021
24 2021 April 18, 2022

All in violation of Title 26, United States Code, Section 7203.

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2:22-cr-00993-RMG Date Filed 01/10/24 —= Entry Number 85 Page 22 of 24

FORFEITURE

WIRE FRAUD/ATTEMPTED WIRE FRAUD:

Upon conviction to violate Title 18, United States Code, Sections 1343 and 1349 as
charged in this Superseding Indictment, the Defendant, JONATHAN RAMACT, shall forfeit to
the United States, any property, real or personal, which constitutes, is traceable, or is derived from
proceeds traceable to such violations.

MONEY LAUNDERING:

Upon conviction to violate of Title 18, United States Code, Section 1957 as charged in this
Superseding Indictment, the Defendant, JONATHAN RAMACT, shall forfeit to the United States
any property, real or personal, constituting, derived from or traceable to proceeds the Defendant
obtained directly or indirectly as a result of such offense, and any property, real or personal,
involved in a transaction or attempted transaction in violation of 18 U.S.C. § 1957.

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:

A. Proceeds/Forfeiture Judgment:

A sum of money equal to all proceeds the Defendant obtained, directly or
indirectly, from the offenses charged in the Superseding Indictment, that is,
a minimum of approximately $851,461.00 in United States currency, and
all interest and proceeds traceable thereto, and/or such sum that equals all
property which constitutes or is derived from proceeds traceable to his
violations of 18 U.S.C. §§ 1343 and 1349,

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2:22-cr-00993-RMG Date Filed 01/10/24 —= Entry Number 85 Page 23 of 24

B. Money Laundering /Forfeiture Judgment:

A sum of money equal to all property involved in the money laundering offense
charged in the Superseding Indictment, and all interest and proceeds traceable
thereto, for which the Defendant is liable as the result of his violation of 18 U.S.C.
§ 1957.

C, Vehicle:

2017 Alfa Romeo Giulia
VIN: ZARFAECN7H7555208
Asset ID: 23-FBI-000900

SUBSTITUTE ASSETS:
If any of the property described above as being subject to forfeiture, as a result of any act
or omission of the Defendant-

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;

it is the intention of the United States, pursuant to Title 18, United States Code, Section 982(b)(1),
incorporating Title 21, United States Code, Section 853(p), to seek forfeiture of any other property
of the Defendant up to the value of the forfeitable 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).

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2:22-cr-00993-RMG Date Filed 01/10/24 Entry Number 85 Page 24 of 24

A True, BILL

ADAIR F, BOROUGHS
UNITED STATES ATTORNEY

Anny F. Bowdl, Id No. 11784
Assistant United States Attorney
151 Meeting Street, Suite 200
Charleston, South Carolina 29401
Telephone: (843) 727-4381
Facsimile: (843) 727-4443
Email: amy.bower(@usdoj.gov

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