Superseding Indictment, United States v. Mubarak Sulaiman Ukashat (April 19, 2023)

Summary

A Superseding Indictment in United States of America v. Mubarak Sulaiman Ukashat, Case 2:23-cr-00111-HCN, in the U.S. District Court for the District of Utah, filed April 19, 2023 as Document 31. It charges Counts 1-4 for wire fraud under 18 U.S.C. § 1343, Count 5 for aggravated identity theft under 18 U.S.C. § 1028A in relation to the wire fraud in Count 3, and Counts 6-7 for money laundering under 18 U.S.C. § 1957(a). It alleges that Ukashat, a former graduate student at Utah State University, submitted four fraudulent EIDL applications between June 15, 2020 and July 6, 2020 for agricultural businesses that never applied, with proceeds sent to a club account he controlled. It alleges that he obtained $333,900 and used it for personal expenses, a GMC Yukon for approximately $45,900 in cash, and wires to Nigeria and Dubai.

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“Superseding Indictment, United States v. Mubarak Sulaiman Ukashat (April 19, 2023).” Original at ecf.utd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/superseding-indictment-usa-v-ukashat-dkt-31-03156030cf/, SHA-256 92efbd79c95cc0a01b7580377c4dcfb661cab9c0f45534092920e7174909207e.

Full text

Case 2:23-cr-00111-HCN Document 31 Filed 04/19/23 PageID.86 Page 1 of 11

TRINA A. HIGGINS, United States Attorney (#7349)
TODD C. BOUTON, Assistant United States Attorney (#17800)
Attorneys for the United States of America
Office of the United States Attorney
111 South Main Street, Suite 1800
Salt Lake City, Utah 84111-2176
Telephone: (801) 524-5682
Email: todd.bouton@usdoj.gov,

IN THE UNITED STATES DISTRICT COURT
DISTRICT OF UT AH .

UNITED STATES OF AMERICA, SUPERSEDING INDICTMENT

Plaintiff, VIOLATIONS:

vs. COUNTS 1-4: 18 U.S.C. § 1343
Wire Fraud
MUBARAK SULAIMAN UKASHAT,
COUNT 5: 18 U.S.C. § 1028A
Defendant. Aggravated Identity Theft

COUNTS 6-7: 18 U.S.C. § 1957(a)
Money Laundering

The Grand Jury Charges:
I. BACKGROUND
At all times relevant to this Indictment:
1. Defendant MUBARAK SULAIMAN UK.ASHAT ("UK.ASHAT") was a
resident of Taylorsville, Utah in the District of Utah.
2. UKASHAT had been a graduate student at Utah State University and the
president of the US USA Muslim Students Club. As the actual or nominal club president,
UK.ASHAT had custody and control of the US USA Muslim Students Club Account
("Club Account"), which was a bank account at America First ending in -5012.
Case 2:23-cr-00111-HCN Document 31 Filed 04/19/23 PageID.87 Page 2 of 11

3. UK.ASHAT had ownership and control over a bank account at America
First Credit Union ("America First") ending in 9711 that he held jointly with Relative 1
("Joint Bank Account").
4. UKASHAT's Relative 1 also had ownership and control over checking and
savings accounts at Security Service Federal Credit Union ("Security Service") ending in
-0000 (savings) and -0071 (checking).
The COVID-19 Pandemic and the EIDL Loan Program
5. By March 2020, the COVID-19 pandemic had threatened the United States
economy. Offices, restaurants, and businesses began closing. In response, Congress acted
to keep small businesses afloat-ultimately spending trillions of dollars to help protect
millions of workers, business owners, and citizens from economic disruption caused by
the pandemic.
6. To facilitate this economic rescue effort, on March 25, 2020, Congress
passed the Coronavirus Aid, Relief, and Economic Security Act, 15 U.S.C. § 9001 et seq.
(the "CARES Act"). The CARES Act was designed to provide ' emergency financial
assistance to millions of Americans who were suffering the economic effects caused by
the COVID-19 pandemic.
7. As part of the CARES Act, Congress authorized the U.S. Small Business
Association ("SBA") to provide low-interest Economic Injury Disaster Loans ("EIDL
Loans") of up to $2 million to eligible small businesses experiencing substantial financial
disruption due to the COVID-19 pandemic. In addition, the CARES Act authorized the
SBA to issue advances ofup to $10,000 to small businesses within three days of applying
for an EIDL Loan.
How EIDL Loan Applications Were Processed
8. EIDL Loan applications were submitted directly to and processed by the
SBA. The applications were received in cloud-based platforms. The location of the server
through which EIDL Loan applications were submitted was based on the date a given
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application was processed by the SBA and the application number. During the time period
relevant to this Indictment, the EIDL Loan applications and supporting documents were
received in a cloud-based platform through SBA servers located in Des Moines, Iowa.
9. After an EIDL Loan was approved, the applicant business received the
EIDL Loan proceeds through an electronic funds transfer directly from the SBA into a
financial account reportedly under the control of the applicant business.
Required Certifications in EIDL Loan Applications
10. From March 2020 on, to obtain an EIDL Loan, a qualifying business was
required to submit a loan application to the SBA and provide information about its
business and ownership. Each EIDL Loan applicant was required to certify under penalty
of perjury that all the information in the loan application was true and correct to the best of
his or her knowledge.
11. This certified infonnation included infonnation about the borrower
business's operations, such as the number of its employees, its gross revenues for the 12-
month period preceding the disaster, and the cost of goods it sold in the 12-month period
preceding the disaster. In the case of EIDL Loans for COVID-19 relief, the 12-month
period was the year preceding January 31, 2020. The applicant also had to certify that all
the information in the application was true and correct, and agree in the required Loan
Authorization and Agreement that the EIDL Loan funds would be used solely as working
capital to alleviate economic injury caused by disaster.
The SBA Clarified the Limits on Using EIDL Loan Proceeds, and Some Penalties for
False Statements in Loan Applications and Agreements and for Misusing Proceeds
12. Starting March 30, 2020 through at least June 2020, the SBA made clear on
its website that the SBA was offering EIDL Loans "for working capital to small
businesses suffering substantial economic injury as a result of the Coronavirus (COVID-
19)," and that these loans were intended "to help alleviate economic injury caused by the
Coronavirus (COVID-19)." Coronavirus (COVID-19) SBA Disaster Assistance in
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Response to the Coronavirus (posted on SBA website on March 30, 2020 and May 4,
2020). During this same timeframe, the SBA further made it clear, that EIDL Loan
proceeds could be used only "to pay fixed debts, payroll, accounts payable and other bills
that [could not] be paid because of the [COVID-19] disaster's impact." Id. Any applicant
who had any questions regarding the EIDL Loan program was directed to "contact the
SBA disaster assistance customer service center at 1-800-659-2955 ... or [to] e-mail [the
SBA at] disastercustomerservice@sba.gov." Id. SBA customer service representatives
were available to answer any questions an applicant might have about the EIDL Loan
program.
13. From March 30, 2020 to at least July 8, 2020, EIDL Loan Agreements also
included a specific provision entitled "USE OF LOAN PROCEEDS" which stated that:
Borrower will use all the proceeds of this loan solely as working
capital to alleviate economic injury caused by disaster occurring
in the month of January 31, 2020 and continuing thereafter ....
(emphasis added).
14. From March 30, 2020 to at least July 8, 2020, EIDL Loan Agreements also
included a certification at the end of the Agreement that was signed by the Borrower and
stated:
The undersigned agree( s) to be bound by the terms and conditions herein
during the terms of this Loan, and further agree(s) that no provision stated
herein will be waived without prior written consent of SBA. Under penalty
of perjury of the United States of America, I hereby certify that I am
authorized to apply for and obtain a disaster loan on behalf of
Borrower, in connection with the effects of the COVID-19 emergency.
(emphasis in original).
15. From March 30, 2020 to at least July 8, 2020, EIDL Loan Agreements also
included a provision entitled "CIVIL AND CRIMINAL PENALTIES" that advised the
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Case 2:23-cr-00111-HCN Document 31 Filed 04/19/23 PageID.90 Page 5 of 11

Borrower of civil and criminal penalties for misapplying proceeds from an EIDL Loan
and for making false statements on an EIDL Loan application.
II. THE SCHEME AND ARTIFICE TO DEFRAUD
16. Beginning in and around June 15, 2020, and continuing to and including
August 2020, within the District of Utah and elsewhere, the defendant,
MUBARAK SULAIMAN UKASHAT,
knowingly devised and executed a scheme and artifice to defraud and sought to obtain
money and property by means of materially false and fraudulent pretenses, representations
and promises, and omissions of material facts.
17. In executing and attempting to execute the scheme and artifice to defraud,
and in furtherance thereof, UKASHAT:
a. Submitted or caused to be submitted four fraudulent EIDL Loan
applications to the SBA between June 15, 2020 and July 6, 2020:
1. That listed as the loan applicants four persons and entities that
never applied for any EIDL Loans; and
11. Directed the EIDL Loan proceeds to be sent to the Club Account
(ending in -5012) which he controlled.
b. Applied for and obtained $333,900 in EIDL Loan proceeds and advances
for the four listed applicant agricultural businesses even though he knew
none of the businesses had applied for an EIDL Loan;
c. Made false certifications in four EIDL Loan Agreements between
approximately June 19, 2020 and July 8, 2020 that:
1. The EIDL Loan proceeds would be used solely as working
capital to alleviate economic injury caused by [COVID-19-
related] disaster occurring in the month of January 31, 2020 and
continuing thereafter;

5
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11. The listed loan applicants would be bound by the terms and
conditions of the Loan Agreements that were signed under
penalty of perjury; and
d. Knowingly and willfully misused approximately $333,900 of the EIDL
Loan proceeds for personal expenses, wire transfers to Nigeria and
Dubai, and the purchase of a GMC Yukon for approximately $45,900 in
cash.
III. THE OBJECT OF THE SCHEME AND ARTIFICE TO DEFRAUD
18. It was the object of the scheme and artifice to defraud for defendant

UKASHAT to obtain money from the SBA in the form of EIDL Loan proceeds through
false statements, misrepresentation, deception, and omissions of material facts, and
thereafter to divert the money for his own use to make unauthorized purchases unrelated
to any of the ostensible loan applicants and to transfer EIDL Loan proceeds to Nigeria and
Dubai.
19. The fraudulently obtained EIDL Loan proceeds were used by defendant
UKASHAT for his own personal benefit, including:
a. Purchasing an approximately $45,900 GMC Yukon in cash;
b. Using EIDL Loan proceeds to pay personal expenses, including at least
$27,000 to electronic retailers, at least $21,000 to pay off a car loan, at
least $20,000 in apparent debt payments, at least $10,000 in earnest
money to buy a house, at least $5,200 for college expenses, and other
cash withdrawals, wires, and miscellaneous household purchases;
c. Wiring at least $15,000 to someone in Nigeria; and
d. Wiring at least $20,000 to someone in Dubai.
20. It was further part of the scheme and artifice to defraud that UKASHAT

used wire transfers to move the EIDL Loan proceeds into accounts under his control and
the control of Relative 1 and Unnamed Abettor 1, to then use the EIDL Loan proceeds-
6
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which were intended for other ostensible borrowers who, in fact, never applied for the
loans-to pay for UK.ASHAT's own unauthorized personal expenses and international
wires to Nigeria and Dubai.

IV.OVERT ACTS IN FURTHERANCE OF THE SCHEME
AND ARTIFICE TO DEFRAUD
21. It was part of the scheme and artifice to defraud that UK.ASHAT knowingly
attempted to and did, without lawful authority, transfer, possess and use a means of
identification of another person as indicated below; and did knowingly transmit or cause
to be transmitted the following EIDL Loan applications on behalf of persons and entities
who never applied for such loans and had no association with UK.ASHAT:

DATE MEANS OF INTERSTATE WIRE
(on or about) IDENTIFICATION

6115120 Used name and SSN Submitted EIDL Loan Application No. -3787
ofL.K. ostensibly on behalf of Apex Farms, Inc. and
ostensibly through L.K. (for $81,200 Loan and
$10,000 EIDL Advance)
6122120 Used name and SSN Submitted EIDL Loan Application No. -1028
ofA.S. ostensibly on behalf of Swanstrom Farm, LLC
and ostensibly through A.S. (for $48,800 Loan
and $6,000 EIDL Advance)
7102120 Used name and SSN Submitted EIDL Loan Application No. -4952
ofG.N. ostensibly on behalf ofDBA Nelson Farms and
ostensibly through G.N. (for $125,500 Loan)
7106120 Used name and SSN Submitted EIDL Loan Application No. -3694
ofM.L. ostensibly on behalf ofDBA Lambright and
ostensibly through M.L. (for $62,400 Loan)
All of these EIDL Loan applications were submitted through a server located in West Des
Moines, Iowa, and the loan funds were deposited into an account in Utah.
Ill
Ill
Ill

7
Case 2:23-cr-00111-HCN Document 31 Filed 04/19/23 PageID.93 Page 8 of 11

COUNTS 1-4
18 U.S.C. § 1343)
(Wire Fraud)
22. The allegations set forth above are incorporated herein by reference and
realleged as though fully set forth in this Count.
23. Beginning around June 15, 2020 and continuing in and through at least
August 2020, in the District of Utah and elsewhere, the defendant,
MUBARAK SULAIMAN UKASHAT,

having devised and intended to devise a scheme and artifice to defraud, and for obtaining

money and property from the SBA (ostensibly on behalf of persons and entities with

whom UKASHAT had no connection) by means of false and fraudulent pretenses,

representations, promises, and omissions of material facts, for the purpose of executing

said scheme and artifice to defraud, caused the following items to be transmitted by

means of wire communication in interstate commerce described below for each count,

each transmission constituting a separate count:

COUNT DATE WIRE COMMUNICATIONS
'
(on or
about)
1 6/15/20 Submitted EIDL Loan Application No. -3787 ostensibly on
behalf of Apex Farms, Inc. and ostensibly through L.K. (for
$81,200 Loan +$10,000 EIDL Advance)
2 6/22/20 Submitted EIDL Loan Application No. -1028 ostensibly on
behalf of Swanstrom Farm, LLC and ostensibly through A.S.
(for $48,800 Loan and $6,000 EIDL Advance)
3 7/02/20 Submitted EIDL Loan Application No. -4952 ostensibly on
behalf ofDBA Nelson Farms and ostensibly through G.N. (for
$125,500)
4 7/06/20 Submitted EIDL Loan Application No. -3694 ostensibly on
behalf ofDBA Lambright and ostensibly through M.L. (for
$62,400 Loan)

All in violation of 18 U.S.C. § 1343.
8
Case 2:23-cr-00111-HCN Document 31 Filed 04/19/23 PageID.94 Page 9 of 11

COUNTS
18 U.S.C. § 1028A
(Aggravated Identity Theft)
24. The allegations set forth above are incorporated herein by reference and
realleged as though fully set forth in this Count.
25. On or about the dates alleged below, in the Central Division of the District
of Utah, and elsewhere, the defendant,
MUBARAK SULAIMAN UKASHAT,
knowingly attempted to and did, without lawful authority, transfer, possess and use a
means of identification of another person, to wit, the name and Social Security number of
"G.N." which is associated with an actual person, used in an EIDL Loan application on
July 2, 2020, during and in relation to a felony violation, to wit, Wire Fraud in violation
of 18 U.S.C. § 1343, as alleged in Count 3 of this Indictment, incorporated herein by
reference.
All in violation of 18 U.S.C. § 1028A(a)(l).

COUNTS 6-7
18 U.S.C. § 1957(a)
(Money Laundering)
26. The allegations set forth above are incorporated herein by reference and
realleged as though fully set forth in this Count.
27. On or about the dates alleged below, in the District of Utah, and elsewhere,
the defendant,
MUBARAK SULAIMAN UKASHAT,
did knowingly engage and attempt to engage in the following monetary transactions 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 was derived from a
specified unlawful activity that constitutes a violation of 18 U.S.C. § 1343, in instances,
including but not limited to each count below:

9
Case 2:23-cr-00111-HCN Document 31 Filed 04/19/23 PageID.95 Page 10 of 11

COUNT DATE MONETARY TRANSACTIONS
(On or About)
UKASHAT used his America First Club Account (-
5012), his America First Joint Account (-9711), and
6 July 8, 2020
Relative l's Security Service Savings Account (-0000)
to transfer $15,000 to an account in Nigeria the same
day.
UK.ASHAT used his America First Club Account (-
5012) to transfer $40,000 to Unnamed Abettor l's
7 July 13, 2020
America First Account (-8097) and then arranged to
have Unnamed Abettor 1 transfer $20,000 to an
account in Dubai the same day.

All in violation of Title 18 U.S.C. §§ 1957 and 2:

NOTICE OF INTENT TO SEEK FORFEITURE

Pursuant to 18 U.S.C. § 981(a)(l)(C) and 28 U.S.C. § 2461(c), upon conviction of

any offense violating 18 U.S.C. § 1343, the defendant(s) shall forfeit to the United States

of America any property, real or personal, that constitutes or is derived from proceeds

traceable to the scheme to defraud. The property to be forfeited includes, but is not

limited to:

■ A money judgment equal to the value of any property not available for

forfeiture as a result of any act or omission of the defendant(s) for one or more

of the reasons listed in 21 U.S.C. § 853(p).

■ Substitute property as allowed by 28 U.S.C. § 2461(c) and 21 U.S.C. § 853(p).

Pursuant to 18 U.S.C. § 982(a)(l), upon conviction of any offense in violation of

18 U.S.C. § 1957, the defendants shall forfeit to the United States of America any

property, real or personal, involved in such violations, and any property traceable to such

property. The property to be forfeited includes, but is not limited to:

10
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Case 2:23-cr-00111-HCN Document 31 Filed 04/19/23 PageID.96 Page 11 of 11

■ A money judgment equal to the value of all property not available for

forfeiture as a result of any act or omission of the defendant(s) for one or more

of the reasons listed in 21 U.S.C. § 853(p); and

■ Substitute property as allowed by 18 U.S.C. § 982(b) and 21 U.S.C. § 853(p).

A TRUE BILL:

FOREPEL~k OF GRAND JURY

TRINA A. HIGGINS
United States Attorney

TODD.UfON
Assistant United States Attorney

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