Baltimore, Maryland – A federal legal complaint has been filed charging Tomeka Glenn, age 46, and Kevin Davis, age 42, equally of Windsor Mill, Maryland, for conspiracy to commit wire fraud, relating to the submission of fraudulent COVID-19 CARES Act Paycheck Safety Program and Financial Damage Catastrophe Mortgage applications and their receipt of about $300,000 in fraudulently acquired money. The grievance was submitted December 16, 2022, and unsealed now upon the arrests of the defendants.
The defendants are expected to have an initial physical appearance in U.S. District Court docket in Baltimore beginning at 2:00 p.m. this afternoon.
The costs have been introduced by United States Attorney for the District of Maryland Erek L. Barron Unique Agent in Demand Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Industry Place of work and Interim Chief Dennis J. Delp of the Baltimore County Police Office.
The Coronavirus Support, Reduction, and Economic Safety (“CARES”) Act was a federal regulation enacted in March 2020 to offer emergency fiscal aid to People in america suffering from the economic results brought about by the COVID-19 pandemic, like forgivable loans to smaller firms for task retention and specified other expenses, through the Paycheck Security Program, administered through the Compact Business Administration (SBA). The SBA also available an Economic Injury Catastrophe Financial loan (EIDL) and/or an EIDL advance to help firms meet their money obligations. An EIDL progress did not have to be repaid, and little corporations could get an progress, even if they have been not accepted for an EIDL financial loan. The most progress amount of money was $10,000.
According to the affidavit submitted in assist of the felony complaint, in September 2020, a Baltimore County Law enforcement Division detective investigating fraudulent PPP loans involved with targets of a felony investigation discovered numerous other persons, which includes Glenn, who utilized for and gained PPP loans and EIDLs, working with fake and fraudulent info. As thorough in the affidavit, a evaluate of the PPP and EIDL applications submitted by Glenn for corporations that she owns and/or controls were observed to consist of phony statements and misrepresentations as to the legitimacy of the organization the quantity of workers the money earnings and payroll charges of the firms and the income taxes withheld by the corporations. The affidavit alleges that how Glenn spent the bank loan proceeds was inconsistent with payroll and other business bills allowable below the financial loan method.
For case in point, on June 19, 2020, Glenn allegedly filed an EIDL application for “Kdonsvanity décor.” An entity simply call K’Dons Self-importance Décor was formed in Maryland on December 17, 2019. Glenn was detailed as the registered agent for the entity with her household tackle as the handle of the company. The application claimed that the business enterprise experienced gross revenues of $175,000 and had 10 personnel. IRS data suggest that there were being no enterprise tax filings for K’Don’s Vainness Décor LLC for tax decades 2019 or 2020. Glenn also responded “no’ to the dilemma as to irrespective of whether she had been convicted for any felony within the last 5 decades. In actuality, Glenn had been convicted of felonious credit score card fraud in Fairfax County, Virginia in 2016 and of entry device fraud in York County, Pennsylvania. Glenn received a $10,000 EIDL progress as a result of the application, but the bigger EIDL loan sought in the application was in the long run declined by the SBA due to “unsatisfactory credit rating record.”
The affidavit alleges that Glenn submitted a similar fraudulent software for a PPP loan on behalf of K’Dons Vanity Décor and on August 8, 2020, obtained loan proceeds of $70,357.50. A evaluate of Glenn’s lender accounts reveals that shortly immediately after getting the PPP loan resources, Glenn designed buys inconsistent with people allowable less than the PPP mortgage software. For occasion, Glenn ordered luxury products, together with various pairs of Christian Louboutin model shoes, and resort vacation with Davis. On July 19, 2021, Glenn submitted an software for personal loan forgiveness, claiming that $67,390 of the PPP financial loan had been spent on payroll fees, and the mortgage was forgiven.
Throughout the course of the investigation, legislation enforcement discovered numerous other business enterprise entities (or purported business entities) connected with Glenn that utilized for EIDL or PPP loans, which include TD Ground breaking Consulting, referenced previously mentioned, and Epoxy By S.H.E. LLC, in addition to “Kaydon Vanity Décor.” As detailed in the affidavit, the bank loan programs contained similar untrue statements as to the legitimacy of the firms, quantity of workers, and fiscal condition of the entities and the financial loans ended up ultimately denied.
The affidavit further more alleges that Glenn engaged in a scheme to aid Davis, with whom she is in a romantic connection, to post and get fraudulent PPP and EIDL loans. Specifically, Davis allegedly submitted a fraudulent PPP personal loan application on behalf of For Memento Expense Realty, which involved fake statements as to the variety of staff and sum of payroll, as nicely as together with a fraudulent financial institution statement and IRS Kind 940—Employer’s Once-a-year Federal Unemployment Tax Return for 2019—in assistance of the application. Davis also responded “no’ to the question as to whether he experienced been placed on any form of parole or probation in the past 5 several years, when in truth, on March 24, 2017, Davis began 4 a long time of supervised launch for a 2013 federal conviction in Arizona for conspiracy to distribute cannabis. On March 18, 2021, Davis been given PPP personal loan proceeds of $145,369 on behalf of For Keepsake Financial investment Realty.
Further, a fraudulent EIDL personal loan application on behalf of For Keepsake Expenditure Realty, listing Davis as the operator of the company, was submitted on June 30, 2020, which claimed, between other points, that the business experienced gross revenues of $250,000 and employed 10 staff members. On July 2, 2020, and July 15, 2020, Davis acquired an EIDL advance of $10,000 and EIDL bank loan proceeds of $64,900, respectively, on behalf of For Memento Realty.
As comprehensive in the affidavit, in the months pursuing the disbursement of the EIDL financial loans, Davis purchased multiple airline tickets, luxury items, and compensated for vacations. In addition, on December 7, 2021, For Memento Realty sent $7,000 by using a teller transfer to KDons Vanity Décor LLC’s financial institution account, which was controlled by Glenn.
In addition to the fraudulent PPP and EIDL loans received by Glenn and Davis, the affidavit alleges that Glenn obtained close to $21,000 and Davis been given somewhere around $13,000 in unemployment compensation based on fraudulent applications they submitted.
If convicted, Glenn and Davis every single encounter a highest sentence of 20 several years in federal prison for the wire fraud conspiracy. Real sentences for federal crimes are usually fewer than the most penalties. A federal district court docket judge will figure out any sentence following getting into account the U.S. Sentencing Recommendations and other statutory factors.
A legal criticism is not a locating of guilt. An unique charged by legal complaint is presumed harmless unless of course and till established responsible at some later on prison proceedings.
The District of Maryland Strike Pressure is just one of 3 strike forces proven all over the United States by the U.S. Section of Justice to investigate and prosecute COVID-19 fraud, such as fraud relating to the Coronavirus Aid, Relief, and Economic Stability (“CARES”) Act. The CARES Act was intended to supply emergency fiscal support to People in america struggling the financial effects induced by the COVID-19 pandemic. The strike forces aim on large-scale, multi-point out pandemic aid fraud perpetrated by felony corporations and transnational actors. The strike forces are interagency legislation enforcement initiatives, applying prosecutor-led and knowledge analyst-pushed teams built to recognize and deliver to justice those who stole pandemic relief money.
For far more details on the Department’s reaction to the pandemic, remember to stop by https://www.justice.gov/coronavirus. Anyone with facts about allegations of tried fraud involving COVID-19 can report it by calling the Office of Justice’s Countrywide Middle for Disaster Fraud (NCDF) Hotline at 866-720-5721 or by way of the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-variety.
United States Lawyer Erek L. Barron commended the FBI and the Baltimore County Policed Division for their operate in the investigation. Mr. Barron thanked Assistant U.S. Legal professional Paul A. Riley, who is prosecuting the scenario. He also recognized the support of the Maryland COVID-19 Strike Drive Paralegal Professional Joanna B.N. Huber.
For far more info on the Maryland U.S. Attorney’s Business, its priorities, and means available to support the group, make sure you take a look at www.justice.gov/usao/md.
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