United States v. Keyaira Bostic and Damion McKenzie Indictment (No. 0:20-cr-60139, S.D. Fla., Doc. 17)
Summary
Indictment in United States v. Keyaira Bostic and Damion McKenzie, Case 0:20-cr-60139 in the U.S. District Court for the Southern District of Florida, entered on the docket 12/10/2020. The grand jury charges both defendants with conspiracy to commit bank fraud and wire fraud (Count 1), bank fraud (Counts 2-3) and wire fraud (Counts 4-8). It alleges that from about May 2020 through July 2020 they submitted fraudulent PPP loan applications for Liquid, of which Bostic was president, Five Plus Investment Group LLC, managed by McKenzie, and other entities, using falsified bank statements and payroll-tax forms. The charged transactions include an application for a $84,515 loan for Liquid and transfers of $21,130, $20,000 and $90,000. The forfeiture allegations include up to $41,903.00 in a J.P. Morgan Chase account.
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Case 0:20-cr-60139-WPD Document 17 Entered on FLSD Docket 12/10/2020 Page 1 of YH
FILED by 15 D.C.
Dec 8, 2020
ANGELA E. NOBLE
UNITED STATES DISTRICT COURT CLERK U.S. DIST. CT.
S. D. OF FLA. - MIAMI
SOUTHERN DISTRICT OF FLORIDA
20-6~1s~l~CR-DIMITROULEAS/SNOW
18 u.s.c. § 1349
18 u.s.c. § 1344
18 u.s.c. § 1343
18 u.s.c. § 982
UNITED STATES OF AMERICA
vs.
KEYAIRA BOSTIC and
DAMION MCKENZIE,
Defendants.
_________________ /
INDICTMENT
The Grand Jury charges that:
GENERAL ALLEGATIONS
At all times material to this Indictment:
The Paycheck Protection Program
1. The Coronavirus Aid, Relief, and Economic Security ("CARES") Act was a federal
law enacted in or around March 2020 and designed to provide emergency financial assistance to
the millions of Americans who are suffering the economic effects caused by the COVID-19
pandemic. One source of relief provided by the CARES Act was the authorization of forgivabl e
loans to small businesses for job retention and certain other expenses, through a program referred
to as the Paycheck Protection Program ("PPP").
2. In order to obtain a PPP loan, a qualifying business submitted a PPP loan application,
which was signed by an authorized representative of the business. The PPP loan application
required the business (lhrough its authorized representative) lo acknowledge the program rules and
j
f
Case 0:20-cr-60139-WPD Document 17 Entered on FLSD Docket 12/10/2020 Page 2 of 15
make certain affirmative certifications in order to be eligible to obtain the PPP loan. In the PPP
loan application (Small Business Administration ("SBA") Form 2483), the small business (through
its authorized representative) was required to provide, among other things, its: (a) average monthly
payroll expenses; and (b) number of employees. These figures were used to calculate the amount
of money the small business was eligible to receive under the PPP. In addition, businesses
applying for a PPP loan were required to provide documentation confirming their payroll expenses.
3. A PPP loan application was processed by a participating lender. If a PPP loan
application was approved, the participating lender funded the PPP loan using its own monies.
While it was the participating lender that issued the PPP loan, the loan was 100% 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.
4. PPP loan proceeds were required to be used by the business on certain permissible
expenses-payroll costs, interest on mortgages, rent, and utilities. The PPP allowed the interest
and principal on the PPP loan to be entirely forgiven if the business spent the loan proceeds on
these expense items within a designated period of time and used a defined portion of the PPP loan
proceeds on payroll expenses.
The Defendants, Related Entities, and Individual
5. I Arn Liquid Inc. ("Liquid") was a Florida corporation with its listed principal
address in Pembroke Pines, Florida.
6. Defendant KEYAIRA BOSTIC, a resident of Broward County, Florida, was the
president and registered agent of Liquid.
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7. Five Plus Investment Group LLC ("Five Plus") was a Florida corporation with its
listed address in Miami, Florida.
8. Defendant DAMION MCKENZIE, a resident of Broward County, Florida, was a
manager of Five Plus.
9. Bank 1 was a financial institution based in Salt Lake City, Utah, that was insured
by the Federal Deposit Insurance Corporation ("FDIC"). Bank 1 was an approved SBA lender of
PPP loans.
10. Bank 2 was a financial institution based in Fort Lee, New Jersey, that was insured
by the FDIC. Bank 2 was an approved SBA lender of PPP loans.
11. Bank Processor 1 was a third-party company processor, based in Redwood City,
California, that processed PPP loan applications for Bank 1 and Bank 2.
12. Individual 1 was a resident of Broward County, Florida.
COUNT 1
Conspiracy to Commit Bank Fraud and Wire Fraud
(18 u.s.c. § 1349)
1. The General Allegations section of this Indictment is re-alleged and incorporated
by reference as though fully set forth herein.
2. From in or around May 2020, through in or around July 2020, in Miami-Dade and
Broward Counties, in the Southern District of Florida, and elsewhere, the defendants,
KEYAIRA BOSTIC and
DAMION MCKENZIE,
did willfully, that is, with the intent to further the objects of the conspiracy, and knowingly
combine, conspire, confederate, and agree with each other, Individual 1, and with others known
and unknown to the Grand Jury, to commit offenses against the United States, that is:
a. to knowingly, and with the intent to defraud, execute, and cause the execution o±: a
3
Case 0:20-cr-60139-WPD Document 17 Entered on FLSD Docket 12/10/2020 Page 4 of 15
scheme and artifice to defraud one or more financial institutions, which scheme and artifice would
employ a material falsehood, and to knowingly, and with intent to defraud, execute, and cause the
execution of, a scheme and artifice to obtain moneys and funds owned by, and under the custody
and control of, one or more financial institutions, by means of materially false and fraudulent
pretenses, representations, and promises relating to a material fact, in violation of Title 18, United
States Code, Sections 1344(1) and (2); and
b. to knowingly, and with the intent to defraud, devise, and intend to devise, a scheme
and artifice to defraud, and to obtain money and property by means of materially false and
fraudulent pretenses, representations, and promises, knowing that the pretenses, representations,
and promises were false and fraudulent when made, and, for the purpose of executing the scheme
and artifice, did knowingly transmit and cause to be transmitted, by means of wire communication
in interstate and foreign commerce, certain writings, signs, signals, pictures, and sounds, in
violation of Title 18, United States Code, Section 1343.
PURPOSE OF THE CONSPIRACY
3. It was the purpose of the conspiracy for the defendants and their co-conspirators to
unlawfully enrich themselves by, among other things: (a) submitting and causing the submission
of false and fraudulent applications for loans and grants made available through the SBA to provide
relief for the economic effects caused by the COVID-19 pandemic, including PPP loans; (b)
offering, paying, and receiving kickbacks in return for referring other individuals for the
submission of false and fraudulent loan applications; and (c) diverting fraud proceeds for the
defendants' and co-conspirators' personal use, the use and benefit of others, and to further the
conspiracy.
4
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MANNER AND MEANS OF THE CONSPIRACY
The manner and means by which the defendants and their co-conspirators sought to
accomplish the objects and purpose of the conspiracy included, among others, the following:
4. Individual 1 created online accounts with Bank Processor 1 for Liquid, Five Plus,
and other entities.
5. KEYAIRA BOSTIC, DAMION MCKENZIE, Individual 1, and other co-
conspirators submitted and caused the submission of fraudulent PPP loan applications for Liquid,
Five Plus, and other entities, via interstate wire communications, through Bank Processor 1's
online portal.
6. The PPP loan applications submitted by KEY AIRA BOSTIC, DAMION
MCKENZIE, Individual 1, and other co-conspirators for Liquid, Five Plus, and other entities
included falsified bank statements and payroll-tax forms, among other things, and falsely and
fraudulently represented the borrowing entities' number of employees and amount of monthly
payroll.
7. KEYAIRA BOSTIC, DAMION MCKENZIE, Individual 1, and other co-
conspirators recruited co-conspirators to submit additional fraudulent PPP loan applications, often
in exchange for kickbacks from the proceeds received through the fraudulently obtained PPP loans.
8. KEYAIRA BOSTIC, DAMION MCKENZIE, and other co-conspirators sent text
messages and email communications to Individual 1 that contained the names, addresses, and
personal/business information of other co-conspirators for the purpose of creating and submitting
additional fraudulent PPP loan applications for those co-conspirators.
9. As a result of the false and fraudulent PPP loan applications submitted as part of this
scheme, Bank 1 and Bank 2 disbursed millions of dollars in PPP loan proceeds, which were
5
Case 0:20-cr-60139-WPD Document 17 Entered on FLSD Docket 12/10/2020 Page 6 of 15
transferred to KEYAIRA BOSTIC, DAMION MCKENZIE, Individual 1, and other co-
conspirators via interstate wire transmissions.
10. KEYAIRA BOSTIC, DAMION MCKENZIE, Individual 1, and other co-
conspirators used the proceeds from the fraud scheme for their own use, the use of others, and to
further the conspiracy.
All in violation of Title 18, United States Code, Section 1349.
COUNTS 2-3
Bank Fraud
(18 u.s.c. § 1344)
1. The General Allegations section of this Indictment is re-alleged and incorporated
by reference as though fully set forth herein.
2. From on or about May 15, 2020, and continuing through on or about July 20, 2020,
in Miami-Dade and Broward Counties, in the Southern District of Florida, and elsewhere, the
defendants,
KEYAIRA BOSTIC and
DAMION MCKENZIE,
did knowingly, and with the intent to defraud, execute, and attempt to execute, and cause the
execution of, a scheme and artifice to defraud one or more financial institutions, which scheme
and artifice employed a material falsehood, and did knowingly, and with intent to defraud, execute,
and attempt to execute, and cause the execution of, a scheme and artifice to obtain moneys and
funds owned by, and under the custody and control of, one or more financial institutions, by means
of materially false and fraudulent pretenses, representations, and promises relating to a material
fact, in violation of Title 18, United States Code, Sections 1344(1) and (2).
PURPOSE OF THE SCHEME AND ARTIFICE
3. It was the purpose of the scheme and artifice for the defendants and their
6
Case 0:20-cr-60139-WPD Document 17 Entered on FLSD Docket 12/10/2020 Page 7 of 15
accomplices to unlawfully enrich themselves by, among other things: (a) submitting and causing
the submission of false and fraudulent applications for loans and grants made available through
the SBA to provide relief for the economic effects caused by the COVID-19 pandemic, including
PPP loans; (b) offering, paying, and receiving kickbacks in return for referring other individuals
for the submission of false and fraudulent loan applications; and (c) diverting fraud proceeds for
the defendants' and accomplices' personal use, the use and benefit of others, and to further the
fraud.
THE SCHEME AND ARTIFICE
4. The Manner and Means of the Conspiracy section of Count 1 of this Indictment is
re-alleged and incorporated by reference as though fully set forth herein as a description of the
scheme and artifice.
EXECUTION OF THE SCHEME AND ARTIFICE
5. On or about the dates specified below, in the Southern District of Florida, and
elsewhere, KEYAIRA BOSTIC and DAMION MCKENZIE did execute, and attempt to
execute, and cause the execution of, the above-described scheme and artifice to defraud, as more
particularly described below:
COUNT APPROXIMATE DEFENDANT(S) EXECUTION
DATE
2 May 16, 2020 DAMION MCKENZIE Electronic transmission to
Bank Processor 1 of four (4)
IRS Forms 941 (Employer's
Quarterly Federal Tax Return)
for calendar year 2019 for Five
Plus.
3 May 19, 2020 KEYAIRA BOSTIC and Electronic transmission to
DAMION MCKENZIE Bank Processor 1 of Paycheck
Protection Program Borrower
Application Form requesting
loan in the amount of $84,515
for Liquid.
7
Case 0:20-cr-60139-WPD Document 17 Entered on FLSD Docket 12/10/2020 Page 8 of 15
In violation of Title 18, United States Code, Sections 1344(1) and (2), and 2.
COUNTS 4-8
Wire Fraud
(18 u.s.c. § 1343)
1. The General Allegations section of this Indictment is re-alleged and incorporated
by reference as though fully set forth herein.
2. From on or about May 15, 2020, and continuing through on or about July 20, 2020,
in Miami-Dade and Broward Counties, in the Southern District of Florida, and elsewhere, the
defendants,
KEYAIRA BOSTIC and
DAMION MCKENZIE,
did knowingly, and with the intent to defraud, devise, and intend to devise, a scheme and artifice
to defraud, and to obtain money and property by means of materially false and fraudulent
pretenses, representations, and promises, knowing that the pretenses, representations, and
promises were false and fraudulent when made, and, for the purpose of executing the scheme and
artifice, did knowingly transmit and cause to be transmitted, by means of wire communication in
interstate and foreign commerce, certain writings, signs, signals, pictures and sounds, in violation
of Title 18, United States Code, Section 1343.
PURPOSE OF THE SCHEME AND ARTIFICE
3. It was the purpose of the scheme and artifice for the defendants and their
accomplices to unlawfully enrich themselves by, among other things: (a) submitting and causing
the submission of false and fraudulent applications for loans and grants made available through
the SBA to provide relief for the economic effects caused by the COVID-19 pandemic, including
PPP loans; (b) offering, paying, and receiving kickbacks in return for referring other individuals
for the submission of false and fraudulent loan applications; and (c) diverting fraud proceeds for
8
Case 0:20-cr-60139-WPD Document 17 Entered on FLSD Docket 12/10/2020 Page 9 of 15
the defendants' and accomplices' personal use, the use and benefit of others, and to further the
fraud.
THE SCHEME AND ARTIFICE
4. The Manner and Means of the Conspiracy section of Count 1 of this Indictment is
re-alleged and incorporated by reference as though fully set forth herein as a description of the
scheme and artifice.
USE OF WIRES
5. On or about the dates specified as to each count below, in the Southern District of
Florida, and elsewhere, KEYAIRA BOSTIC and DAMION MCKENZIE, for the purpose of
executing and in furtherance of the aforesaid scheme and artifice to defraud, and to obtain money
and property by means of materially false and fraudulent pretenses, representations, and promises,
knowing that the pretenses, representations, and promises were false and fraudulent when made,
did knowingly transmit and cause to be transmitted in interstate and foreign commerce, by means
I
of wire communication, certain writings, signs, signals, pictures, and sounds, as described below:
COUNT APPROXIMATE DEFENDANT(S) DESCRIPTION OF WIRE
!
DATE
4 May 15, 2020 DAMION MCKENZIE E-mail transm1ss10n from
DAMION MCKENZIE to
Individual 1, in the Southern
District of Florida, through
Google's servers outside of
Florida, attaching signed IRS
Forms 941 for Five Plus for
calendar year 2019.
9
I
Case 0:20-cr-60139-WPD Document 17 Entered on FLSD Docket 12/10/2020 Page 10 of 15
5 May 21, 2020 KEYAIRA BOSTIC and Wire transfer in the amount of
DAMION MCKENZIE $21,130 from the JP Morgan
Chase account ending in 2310,
belonging to Liquid, to the
Citibank account ending in 6828,
belonging to Individual 1,
causing a wire transmission from
the Southern District of Florida to
outside of Florida.
6 May 23, 2020 KEYAIRA BOSTIC E-mail transmission from
KEYAIRA BOSTIC to
Individual 1, in the Southern
District of Florida, through
Google's servers outside of
Florida, attaching a bank
statement and information intake
sheet containing the personal,
business, and banking
information of D.W. and his
company.
7 May 26, 2020 KEYAIRA BOSTIC and Deposit of check in the amount of
DAMION MCKENZIE $20,000 from a company referred
to the scheme into the PNC
account ending m 7116,
belonging to MCKENZIE,
causing a wire transmission from
inside the Southern District of
Florida to outside of Florida.
8 July 2, 2020 DAMION MCKENZIE Deposit of check in the amount of
$90,000 from a company referred
to the scheme into PNC account
ending in 1286, belonging to Five
Plus, causing a wire transmission
from inside the Southern District
of Florida to outside of Florida.
In violation of Title 18, United States Code, Sections 1343 and 2.
FORFEITURE ALLEGATIONS
1. The allegations contained in this Indictment are hereby re-alleged and by this
reference fully incorporated herein for the purpose of alleging forfeiture to the United States of
certain property in which the defendants, KEY AIRA BOSTIC and DAMION MCKENZIE,
10
Case 0:20-cr-60139-WPD Document 17 Entered on FLSD Docket 12/10/2020 Page 11 of 15
have an interest.
2. Upon conviction of a violation of Title 18, United States Code, Sections 1343, 1344
and 1349, as alleged in this Indictment, the defendant so convicted shall forfeit to the United States
any property constituting, or derived from, any proceeds the defendant obtained, directly or
indirectly, as the result of such violation pursuant to Title 18, United States Code, Section
982( a)(2)(A).
3. The property subject to forfeiture as a result of the alleged offenses includes, but is
not limited to, the following: up to and including $41,903.00 on deposit in account number
000000587822310 at J.P. Morgan Chase Bank held in the name ofl Am Liquid Inc.
4. If any of the property subject to forfeiture, as a result of any act or omission of the
defendant:
a. cannot be located upon the exercise of due diligence;
b. has been transferred or sold to, or deposited with, a third party;
c. has been placed beyond the jurisdiction of the court;
d. has been substantially diminished in value; or
e. has been commingled with other property which cannot be divided without difficulty,
the United States shall be entitled to the forfeiture of substitute property under the provisions of
Title 21, United States Code, Section 853(p ).
11
Case 0:20-cr-60139-WPD Document 17 Entered on FLSD Docket 12/10/2020 Page 12 of 15
All pursuant to Title 18, United States Code, Section 982(a)(2)(A), and the procedures set
forth in Title 21, United States Code, Section 853, as incorporated by Title 18, United States Code,
Section 982(b)(1 ).
A TRUE BILL
FOREPERSON /
ARI NA FAJARDO ORSHA p:oqJ) S. KA
UNITED STATES ATTORNE A TING CHIEF, FRAUD SECTION
D~~
ASSISTANT UNITED STATES ATTORNEY
~~ TRIAL ATTORNEY, FRAUD SECTION
12
Case 0:20-cr-60139-WPD Document 17 Entered on FLSD Docket 12/10/2020 Page 13 of 15
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
UNITED ST ATES OF AMERICA CASE NO . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
v.
CERTIFICATE OF TRIAL ATTORNEY*
KEYAIRA BOSTIC, et al.,
Superseding Case Information:
Defendant.
Court Division: (Select One) New defendant(s) Yes No
✓ Miami Key West Number of new defendants
FTL WPB FTP Total number of counts
1. I have carefully considered the allegations of the indictment, the number of defendants, the number of
probable witnesses and the legal complexities of the Indictment/Information attached hereto.
2. I am aware that the information supplied on this statement will be relied upon by the Judges of this
Court in setting their calendars and scheduling criminal trials under the mandate of the Speedy Trial
Act, Title 28 U.S.C. Section 3161.
3. Interpreter: (Yes or No) _N_o__
List language and/or dialect
4. This case will take _3_ days for the parties to try.
5. Please check appropriate category and type of offense listed below:
(Check only one) (Check only one)
✓
I 0 to 5 days Petty
II 6 to 10 days Minor
III 11 to 20 days Misdem.
IV 21 to 60 days Felony ✓
V 61 days and over
6. Has this case previously been filed in this District Court? (Yes or No) No
If yes: Judge Case No.
(Attach copy of dispositive order)
--------------
Has a complaint been filed in this matter? (Yes or No) Yes
If yes: Magistrate Case No. 20-MJ-6318-PMH and 20-MJ-6316-PMH
Related miscellaneous numbers:
Defendant(s) in federal custody as of
Defendant(s) in state custody as of
Rule 20 from the District of
Is this a potential death penalty case? (Yes or No)
7. Does this case originate from a matter pending in the Central Region of the U.S. Attorney's Office
prior to August 9, 2013 (Mag. Judge Alicia 0. Valle)? Yes No ✓
8. Does this case originate from a matter pending in the Northern Region of the U.S. Attorney's Office
prior to August 8, 2014 (Mag. Judge Shaniek Maynard)? Yes No ✓
9. Does this case originate from a matter pending in the Central Re ion of the U.S. Attorney's Office
prior to October 3, 2019 (Mag. Judge Jared Strauss)? Yes No ✓
N
ASSISTANT UNITED STATES ATTORNEY
FLORIDA BAR NO. 28573
*Penalty Sheet(s) attached REV 6/5/2020
Case 0:20-cr-60139-WPD Document 17 Entered on FLSD Docket 12/10/2020 Page 14 of 15
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
PENALTY SHEET
Defendant's Name: DAMION MCKENZIE
Case No: - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Count#: 1
Conspiracy to Commit Bank Fraud and Wire Fraud
Title 18, United States Code, Section 1349
*Max. Penalty: Thirty (30) Years' Imprisonment
Counts#: 2-3
Bank Fraud
Title 18, United States Code, Section 1344
*Max. Penalty: Thirty (30) Years' Imprisonment as to each count
Counts#: 4, 5, 7, and 8
Wire Fraud
Title 18, United States Code, Section 1343
*Max. Penalty: Twenty (20) Years' Imprisonment as to each count
*Refers only to possible term of incarceration, does not include possible fines, restitution,
special assessments, parole terms, or forfeitures that may be applicable.
Case 0:20-cr-60139-WPD Document 17 Entered on FLSD Docket 12/10/2020 Page 15 of 15
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
PENALTY SHEET
Defendant's Name: KEYAIRA BOSTIC
Case No: - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Count#: 1
Conspiracy to Commit Bank Fraud and Wire Fraud
Title 18 United States Code Section 1349
*Max. Penalty: Thirty (30) Years' Imprisonment
Count#: 3
Bank Fraud
Title 18, United States Code, Section 1344
I
*Max. Penalty: Thirty (30) Years' Imprisonment as to each count
Counts #: 5-7
Wire Fraud
Title 18, United States Code, Section 1343
*Max. Penalty: Twenty (20) Years' Imprisonment as to each count
*Refers only to possible term of incarceration, does not include possible fines, restitution,
special assessments, parole terms, or forfeitures that may be applicable.
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