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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA

FORT LAUDERDALE DIVISION

CASE NO. 22-cr-80144-RS-1

UNITED STATES OF AMERICA,

Plaintiff,

vs.

JOFF STENN WROY PHILOSSAINT,

Defendant.

Miami, Florida

November 14, 2022

12:00 p.m. to 12:52 p.m.

Courtroom 202B

(Pages 1 to 35)

CHANGE OF PLEA

BEFORE THE HONORABLE RODNEY SMITH,

UNITED STATES DISTRICT JUDGE

APPEARANCES:

FOR THE GOVERNMENT: MARC OSBORNE, ESQ.

Assistant United States Attorney

99 Northeast Fourth Street, Suite 430

Miami, FL 33132-2131

(561) 209-1014

Marc.osborne@usdoj.gov

FOR THE DEFENDANT: IAN JEREMY GOLDSTEIN, ESQ.

Law Offices of Ian Goldstein, P.A.

330 Clematis Street, Suite 209

West Palm Beach, FL 33401-4602

(561) 600-0950

Ian@iangoldsteinlaw.com

REPORTED BY: STEPHANIE A. McCARN, RPR

Official Court Reporter

400 North Miami Avenue

Thirteenth Floor

Miami, Florida 33128

(305) 523-5518

Stephanie_McCarn@flsd.uscourts.gov

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I N D E X

WITNESSES

WITNESSES FOR THE GOVERNMENT: Page

--

WITNESSES FOR THE DEFENDANT: Page

--

EXHIBITS

EXHIBITS IN EVIDENCE IDENTIFIED ADMITTED

-- --

MISCELLANEOUS

Page

Proceedings....................................... 3

Court Reporter's Certificate...................... 35

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(The following proceedings were held at 12:00 p.m.)

THE COURTROOM DEPUTY: United States of America vs.

Joff Stenn Wroy Philossaint. The case number is

22-cr-80144-Smith.

Counsel, please state your appearances for the record.

MR. OSBORNE: Good afternoon, Your Honor. Marc

Osborne on behalf of the United States.

MR. GOLDSTEIN: Good afternoon, Your Honor. Ian

Goldstein on behalf of Mr. Philossaint.

THE COURT: All right. Good afternoon, as well.

MR. GOLDSTEIN: He's in custody. He's here. I saw

him upstairs.

THE COURTROOM DEPUTY: Okay.

(Pause in proceedings.)

THE COURTROOM DEPUTY: Should I swear the Defendant?

THE COURT: Sure.

THE COURTROOM DEPUTY: Okay.

Mr. Philossaint, please stand and raise your right

hand.

(The Defendant was sworn.)

THE DEFENDANT: Yes.

THE COURTROOM DEPUTY: Thank you. You may be seated.

THE COURT: All right. Do you understand that you're

now under oath and if you answer any of my questions falsely,

all your answers may be used against you in another prosecution

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for perjury, or for making a false statement, sir?

THE DEFENDANT: Yes, Your Honor.

THE COURT: All right. What is your full name?

THE DEFENDANT: Joff Stenn Wroy Philossaint.

THE COURT: All right. And have you been known by any

other name or alias?

THE DEFENDANT: No.

THE COURT: And where were you born?

THE DEFENDANT: In Haiti.

THE COURT: All right. And when did you come to the

United States?

THE DEFENDANT: January 2006 -- '16, yeah.

THE COURT: All right. And what is your date of birth

and age?

THE DEFENDANT: March 15, 1990.

THE COURT: How old are you?

THE DEFENDANT: 32.

THE COURT: How far did you go in school and where?

THE DEFENDANT: I have a master's degree in political

since from Haiti.

THE COURT: All right. And are you a citizen or a

resident?

THE DEFENDANT: I'm a U.S. citizen.

THE COURT: When did you become a citizen?

THE DEFENDANT: I think it was beginning of 2021.

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THE COURT: All right. And have you ever been treated

for any mental illness or addiction to alcohol or narcotic

drugs of any kind?

THE DEFENDANT: No, Your Honor.

THE COURT: Are you currently under the influence of

any prescription drug, narcotic medication or alcoholic

beverage of any kind?

THE DEFENDANT: No.

THE COURT: Have you taken any drugs or medication or

alcohol in the last 48 hours?

THE DEFENDANT: No.

THE COURT: Are you currently under the care or

treatment of any physician, psychologist or psychiatrist?

THE DEFENDANT: No, Your Honor.

THE COURT: Do you have a physical or mental condition

or illness that would prevent you from understanding what is

happening in court today?

THE DEFENDANT: No.

THE COURT: Do you understand everything that I'm

saying and everything that is going on here today?

THE DEFENDANT: Yes, Your Honor.

THE COURT: Mr. Osborne, do you agree to the

competency of your client -- I'm sorry.

Mr. Goldstein, are you confident in your client

entering a plea?

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MR. GOLDSTEIN: Yes, sir.

THE COURT: All right. And have you received a copy

of the Indictment, Mr. Philossaint? That is the written

charges pending against you, sir.

THE DEFENDANT: Yes, Your Honor.

THE COURT: And have you fully discussed those charges

and the case in general with your attorney, Mr. Goldstein?

THE DEFENDANT: Yes.

THE COURT: And have you discussed the possible

defense strategy with your attorney as well?

THE DEFENDANT: Yes.

THE COURT: And are you fully satisfied with the

counsel, representation and advice given to you in this case by

your attorney, Mr. Goldstein?

THE DEFENDANT: Yes, so far, Your Honor.

THE COURT: All right. And is there anything

concerning your representation that you're not satisfied with?

THE DEFENDANT: No.

THE COURT: All right. Because you said so far. Is

there anything else that gives reason that you would not be

satisfied?

THE DEFENDANT: I said, Yes, so far, because, you

know, it's an ongoing process. But yes, everything he has done

so far is good.

THE COURT: All right. Fair enough.

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If that's it, he's pleading guilty to which count?

MR. OSBORNE: Counts 1 through 3, Your Honor.

THE COURT: Counts 1, 2 and 3.

Count 1 -- Count 1 charges you with conspiracy to

commit wire fraud. Count 2 is money laundering conspiracy.

Count 3 -- let me make sure I got this right -- conspiracy to

commit money laundering.

THE DEFENDANT: Yes.

THE COURT: Do you understand those charges?

THE DEFENDANT: Yes, Your Honor.

THE COURT: All right. I'll ask, for the record, the

Government would set forth the elements of Counts 1, 2 and 3

respectively.

MR. OSBORNE: Yes, Your Honor. Count 1 charges

conspiracy to commit wire fraud. The elements are that two or

more people in some way or manner agreed to accomplish a common

and unlawful plan to commit wire fraud as set forth in the

Indictment; and second, that the Defendant, knowing the

unlawful purpose of the plan, willfully joined in it.

As I say, Your Honor, the object of the conspiracy was

to commit wire fraud. The Defendant's not pleading guilty to

that offense, but it's the object of the conspiracy.

In order to prove that a person committed wire fraud,

the Government would have to prove that the Defendant knowingly

devised or participated in a scheme to defraud by means of

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false or fraudulent pretenses, representations or promises;

second, that the false and fraudulent pretenses,

representations and promises were about a material fact; third,

that the Defendant acted with the intent to defraud; and

fourth, that the Defendant transmitted by wire a communication

in interstate commerce to help carry out the scheme.

Count 2 charges the Defendant with conspiring to

launder money. And the elements of that offense are, first,

that two or more people in some way or manner agreed to

accomplish a common and unlawful plan to launder money as

charged in the Indictment; and second, that the Defendant,

knowing the unlawful purpose of the plan, voluntarily joined in

it.

In Count 2, Your Honor, the object of the conspiracy

is violation of 18 USC 1956a(1)(B)(1). That's one of the

various types of money laundering prohibited by law.

The elements of that offense are, first, that the

Defendant knowingly conducted a financial transaction; second,

that the Defendant knew that the transaction was made with

proceeds of some form of unlawful activity; third, that the

money was, in fact, proceeds of specified unlawful activity --

which in this case is wire fraud; and fourth, that the

transaction was designed to conceal or disguise the nature,

location, source, ownership or control of the proceeds.

Count 3 also charges the Defendant with a conspiracy

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to commit money laundering, Your Honor, so the elements of the

offense are the same. The objects of the conspiracy are

different. There is two -- two objects of the conspiracy.

The first one is a violation of Section

1956a(2)(A)(1). The elements of that offense are that the

Defendant knowingly -- or they would be if the Defendant were

charged with a substantive offense -- would be that the

Defendant knowingly transmitted or transferred money from a

place in the United States to or through a place outside the

United States; second, that the Defendant knew that the money

was proceeds of unlawful activity; third, that the money was,

in fact, proceeds of specified unlawful activity --

specifically in this case, wire fraud; and fourth, that the --

the transfer or transmittal was designed to conceal or disguise

the nature, location, source, ownership or control of the

proceeds.

The second object of the conspiracy charged in Count 3

is a violation of 18 United States Code Section 1957. The

elements of that offense would be that, first, the Defendant

knowingly engaged in a monetary transaction; second, that the

Defendant knew that the transaction involved proceeds of some

form of criminal activity; third, that the transaction involved

money -- in this case, of a value of greater than $10,000;

fourth, that the money was, in fact, proceeds of specified

unlawful activity -- in this case, wire fraud.

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THE COURT: All right.

Mr. Goldstein, are you satisfied that that was a

correct statement of the elements stated by the prosecutor?

MR. GOLDSTEIN: Yes, Your Honor.

THE COURT: Also, would you state for the record the

steps that you have taken to familiarize your client with the

Indictment, the charges against him, and specifically Counts 1,

2 and 3 of the Indictment and its elements, sir?

MR. GOLDSTEIN: Yes, Your Honor. We have reviewed

both the original Indictment, as well as the superseding

Indictment. We reviewed a lot of the -- not all of, but a lot

of the discovery, particularly the most damaging parts. We

have reviewed the sentencing guidelines, discussed how they

would apply to Mr. Philossaint whether he were to go to trial

or to plead guilty.

And based upon our conversations, he had decided to

plead guilty to Counts, 1, 2 and 3.

THE COURT: All right.

And is that your understanding, Mr. Philossaint?

THE DEFENDANT: Yes, Your Honor.

THE COURT: Now, do you understand that if you went to

trial, the Government would have to prove beyond a reasonable

doubt those elements just stated by the prosecutor?

THE DEFENDANT: Yes, Your Honor, but I know what I

did, and I am willing to plead guilty to those charges. And I

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don't want the Government to spend more money on research and

stuff like that.

THE COURT: All right.

Is that the forfeiture allegations in this Indictment

as well?

MR. OSBORNE: Yes, Your Honor.

THE COURT: All right.

Mr. Philossaint, do you understand that the Government

is seeking to forfeit, or take from you, the property listed in

the Indictment or any property derived from or used in or

traceable to the crimes alleged in the Indictment?

THE DEFENDANT: Yes, Your Honor.

THE COURT: And do you agree to forfeit to the

Government that property identified in the forfeiture

allegations of the Indictment?

THE DEFENDANT: I don't think there is any property in

this Indictment.

THE COURT: Yes. But whether it is or not, I want to

know: Do you agree to forfeit to the Government any property

identified in the forfeiture allegation?

THE DEFENDANT: Oh, yes, Your Honor. If there is any

property that I have that's derived from the illegal activity,

yes, they can get it.

THE COURT: All right.

And also, there is no written plea agreement, correct?

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MR. GOLDSTEIN: Correct.

THE COURT: The Defendant would be given -- for

acceptance of responsibility, they would be moving pursuant to

Section 3E1.1?

MR. GOLDSTEIN: Yes, Your Honor.

THE COURT: All right.

Now, would the Government please advise me of the

maximum penalty provided by the law and any mandatory minimum

penalty as well?

MR. OSBORNE: Yes, Your Honor. There is no mandatory

minimum penalty. For each of the three counts, the maximum

penalty provided by law is up to 20 years in prison. For

Count 1, there is a maximum fine of $250,000. Counts 2 and 3,

the maximum fine is either $500,000 or twice the amount of the

proceeds involved in the offense, whichever is greater.

In addition to that, all the counts carry a maximum

penalty of three years of supervised release.

THE COURT: All right.

Mr. Philossaint, the United States Sentencing

Commission has issued guidelines for judges to follow in terms

of sentencing in a criminal case; and have you and your

attorney had the opportunity to talk about how the sentencing

guidelines may apply to the charge that you're prepared to

plead guilty to; that is, Counts 1, 2 and 3 of the Indictment?

THE DEFENDANT: Yes, Your Honor.

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THE COURT: And do you understand that your sentence

will be calculated pursuant to the sentencing guidelines, which

assigns a score to your offense and to your criminal history?

THE DEFENDANT: Yes, Your Honor.

THE COURT: Do you understand any estimate of the

sentence given to you by your attorneys or others is only an

estimate and that I will not determine the sentence until I

have reviewed a presentence investigation report?

THE DEFENDANT: Yes, Your Honor.

THE COURT: Do you understand that you will not be

allowed to withdraw your plea of guilty solely as a result of

the sentence that you receive?

THE DEFENDANT: Yes, Your Honor.

THE COURT: Do you understand that under some

circumstances, you or the Government may have the right to

appeal the sentence that I impose?

THE DEFENDANT: Yes, Your Honor.

THE COURT: Do you understand that I can depart or

vary from the sentencing guidelines and give you a sentence

that is higher or lower than the sentence given by the

sentencing guidelines?

THE DEFENDANT: Yes, Your Honor.

THE COURT: Do you understand that if I depart or vary

upward from the sentencing guideline, you may appeal the

sentence?

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THE DEFENDANT: Yes, Your Honor.

THE COURT: Do you understand that if I depart or vary

downward from the sentencing guidelines, you or the Government

may appeal the sentence?

THE DEFENDANT: Yes, Your Honor.

THE COURT: Has it been explained to you that parole

has been abolished in the federal system? So if you were

sentenced to prison, Mr. Philossaint, you would not be released

early on parole, sir.

THE DEFENDANT: Yes.

THE COURT: All right. Has anyone made any other or

different promise or assurance of any kind to you in an effort

to induce you to plead guilty in this case?

THE DEFENDANT: No, Your Honor.

THE COURT: Has anyone attempted in any way to force

you to plead guilty in this case?

THE DEFENDANT: No, Your Honor.

THE COURT: Has your lawyer done everything that you

have asked him to do regarding your case?

THE DEFENDANT: Yes, so far.

THE COURT: Is there anything that has not been done

in your case?

THE DEFENDANT: Only the Count 4 that he's working on

to go to trial. That's it, Your Honor.

THE COURT: Yeah, but you're not pleading guilty to

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Count 4.

THE DEFENDANT: No.

THE COURT: All right. So like I said, are you saying

that everything has been completed and there's nothing left to

view; is that correct?

THE DEFENDANT: Yes, Your Honor.

THE COURT: And do you understand that the offense for

which you're pleading guilty is a felony offense? That is, if

your plea is accepted, you will be adjudged guilty of that

offense and that adjudication may deprive you of valuable civil

rights.

THE DEFENDANT: Yes, Your Honor.

THE COURT: It includes the right to vote, the right

to hold office, the right to serve on a jury and the right to

possess any type of firearm.

THE DEFENDANT: Yes, Your Honor.

THE COURT: Now, do you understand that if you

committed a crime from where you're pleading guilty before

you're naturalized, the court may initiate denaturalization

proceedings against you?

THE DEFENDANT: Yes, Your Honor.

THE COURT: All right. Also, regardless of any

discussion or advice that you had or did not have with your

attorney or anyone else, are you pleading guilty of your own

free will because you are, in fact, guilty, sir?

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THE DEFENDANT: Yes, Your Honor.

THE COURT: And by pleading guilty, Mr. Joff Stenn

Wroy Philossaint, I am now going to advise you of your

constitutional rights that you are waiving, or giving up, by

entering a plea of guilty. They are as follows, so please

listen carefully as well:

Do you understand that you have a right to plead not

guilty to any of the offenses charged against you and to

persist in a plea through a trial?

THE DEFENDANT: Yes, Your Honor.

THE COURT: Do you understand that if you plead not

guilty, you would then have a right to have a trial by jury?

THE DEFENDANT: Yes, Your Honor.

THE COURT: Furthermore, do you understand that at a

trial, you would be presumed to be innocent and the Government

would have to prove that you are guilty of and to the exclusion

beyond every reasonable doubt?

THE DEFENDANT: Yes, Your Honor.

THE COURT: You would have the right to the assistance

of effective and competent counsel for your defense at trial

and at every other proceeding in this case. And that includes,

if you need it, the right to have counsel appointed for you if

you cannot afford to hire a lawyer on your own.

THE DEFENDANT: Yes, Your Honor.

THE COURT: You would have the right to see and hear

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all of the witnesses and the evidence brought against you.

THE DEFENDANT: Yes, Your Honor.

THE COURT: You would have the right to have the

witnesses and evidence confronted and cross-examined in your

defense.

THE DEFENDANT: Yes, Your Honor.

THE COURT: You would have the right to the issuance

of subpoenas, or the compulsory process, to compel the

attendance of witnesses and evidence for the promotion of your

defense. Do you understand that, sir?

THE DEFENDANT: Yes, Your Honor.

THE COURT: You also have the right to decline to

testify, unless you voluntarily elected to do so in your

defense. And if you decided not to testify, your silence could

not be used against you in any way and you would keep the

presumption of innocence.

THE DEFENDANT: Yes, Your Honor.

THE COURT: If you are convicted, you would have the

right to appeal your conviction. Do you understand that as

well?

THE DEFENDANT: Yes, Your Honor.

THE COURT: Now, do you first understand, sir, if you

enter a plea of guilty, there will be no trial and that you

would've waived, or given up, your right to a trial, as well as

the other rights associated with a trial that I just described?

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THE DEFENDANT: Yes, Your Honor.

THE COURT: All right.

Would the Government please set forth the factual

basis with regard to Count 1, 2 and 3?

MR. OSBORNE: Yes, Your Honor. The Government and

Mr. Philossaint and his attorney have signed a factual -- a

proffer, which we agree is truthful and meets the elements of

the offenses. The Defendant also understands that the

Government may present evidence at future proceedings that his

criminal conduct was more extensive than I'm going to describe

at this time, Your Honor. But this is -- these facts are

accurate and do meet the elements of the offense.

In the first case, Your Honor, this case involves the

Payroll Protection Program and the Economic Injury Disaster

Loan program. Those programs are described in Paragraphs 1

through 9 of the general allegations of the superseding

Indictment, and the parties agree that those general

allegations accurately describe those programs.

Turning to the Defendant's conduct, beginning no later

than in or around May or June of 2020, and continuing through

no earlier than in or around June of 2021, Mr. Philossaint

assisted numerous conspirators to submit fraudulent

applications for PPP loans and EIDLs on behalf of businesses

owned and controlled by the conspirators.

At first, Mr. Philossaint carried out this scheme by

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working for a company identified in the factual proffer as

Company 1, which was operated by Conspirator 1. Later,

Mr. Philossaint began working for himself in carrying out the

same scheme.

Mr. Philossaint prepared loan applications for the

conspirator business owners and caused the applications to be

sent to his conspirators to digitally sign and electronically

submit to various financial institutions and to the Small

Business Administration. The application contained material

misrepresentations about the businesses, such as substantial

overstatement of the businesses' gross revenues, the number of

employees and the average monthly payroll.

Based on the fraudulent applications, various private

financial institutions and the SBA loaned money, generally

hundreds of thousands of dollars, to the conspirator's

businesses.

Mr. Philossaint later prepared -- later prepared

applications on behalf of the conspirator businesses for

forgiveness of the PPP loans. These applications falsely

stated that the businesses had met the preconditions of loan

forgiveness by using the loans to pay payroll and/or for other

permissible expenses.

Could I have a minute to consult with Defense counsel,

Your Honor? I just see him reacting in a manner that suggests

there could be an issue.

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THE COURT: Sure.

(Pause in proceedings.)

MR. OSBORNE: Thank you, Your Honor. I'll continue.

Automatic Data Processing, Incorporated, also known --

or commonly known as ADP, provided payroll and other services

to other businesses. Conspirator 1 and/or Mr. Philossaint

opened ADP accounts on behalf of their conspirators with

themselves, Conspirator 1 and Mr. Philossaint, as the account

administrators. It caused ADP to make payments purportedly for

payroll to individuals with the loan proceeds.

Although these individuals either do not work for the

loan recipients or were not entitled to payroll in the amounts

paid, Mr. Philossaint attempted to obtain and use ADP records

to support the applications for loan forgiveness.

Brianna Monique Gayle, a codefendant in this case, had

previously worked for a subsidiary of ADP. During the

conspiracy, she worked as an assistant for Mr. Philossaint.

Records obtained from ADP show that Gayle, while working for

Mr. Philossaint, contacted ADP on multiple occasions between

May 2021 and April 2022.

Ms. Gayle contacted ADP to manage payroll accounts

enrolled by one of the Defendant's businesses, such as adding

or removing accounts. Ms. Gayle also contacted ADP to retrieve

payroll documents and W-2s for the payroll accounts.

Ms. Gayle called ADP on January 26, 2022, and

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conferenced Mr. Philossaint into the call. They stated that

their entire client list should have been terminated as going

out of business and, therefore, should have received W-2s for

2021. Ms. Gayle continued to make calls to ADP on behalf of

the companies enrolled by the Defendant's business to obtain

W-2s.

Shortly after the conspirator business owners received

their loan proceeds, they paid either Conspirator 1 or

Mr. Philossaint a fee of approximately 10 percent of the value

of the loans. In many cases, the fee was paid to shell

companies that Mr. Philossaint controlled, which did no true

business, or inaccurate notations were made on the checks or

other incidents of payment. These payments were made from and

to financial institutions; that is, banks, the deposits of

which were insured by the Federal Deposit Insurance

Corporation.

Mr. Philossaint assisted codefendants and conspirators

to apply for fraudulent loans and apply for such loans himself.

The conspirators applied for loans on behalf of: Ms. Gayle,

applying as a sole proprietor; The Cinda Foundation,

Incorporated; DDZ Family Enterprises, LLC; Ferro's

Entertainment and Production, LLC; JREAM Vision TV, LLC; One

Solution Group, LLC; Royal Elite Trans, LLC; Sunrise City

Construction Development, LLC; Unfold Perception, LLC, and

other businesses.

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Based on these applications, lenders and the SBA paid

at least $2,020,328.17 in loans to which the conspirators were

not entitled. The conspirators who received these loans paid

Mr. Philossaint approximately 10 percent of the value of the

loans.

The fraudulent PPP and EIDL applications involved in

this scheme were submitted electronically to servers located

outside of Florida. Mr. Philossaint and most of the other

conspirators resided and worked in the Southern District of

Florida and submitted their applications from this district.

The applications for PPP loans submitted by Unfold

Perception, LLC, are a representative example of the scheme and

conspiracy. Unfold Perception was a Florida limited liability

company. It was organized on May 28th, 2019. Codefendant

Regine Rene was the sole managing member. Unfold's principal

place of business was in West Palm Beach, Florida.

On June 18, 2020, Unfold applied for a PPP loan. The

loan application was digitally signed by Ms. Rene. The

application was electronically submitted to Celtic Bank servers

which were located in Utah. The application stated that Unfold

had three employees and average monthly payroll of $32,781.66.

For the 12 months preceding this application, records of

Unfold's bank account revealed that the company had gross

revenue of approximately $10,000 and no payroll.

A copy of an IRS Form 941, Employer's Quarterly Tax

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Returns, was submitted with the application. This form

appeared to corroborate the payroll figure on the application.

However, Unfold did not submit the form to the IRS. Based on

this application, on June 22, 2020, Celtic Bank transferred a

PPP loan to Unfold's Wells Fargo bank account in the amount of

$81,954.

Trust Alliance Enterprises, Incorporated, was a

Florida corporation. It was incorporated on June 15, 2020.

Conspirator 1 was the sole officer. On June 25, 2020, Ms. Rene

signed a check from the Unfold bank account made out to Trust

Alliance Enterprises in the amount of $10,654.02.

On June 30, 2020, eight days after Unfold received its

PPP loan, a payroll account was created at ADP for Unfold.

Conspirator 1 was the primary contact. From July through

December 2020, using proceeds of the PPP loan, Unfold paid

$49,172.24 in payments purportedly for payroll via ADP,

including $29,999.97 to Ms. Rene.

On February 22, 2021, Unfold applied for a second PPP

loan. The application was electronically transmitted to Celtic

Bank's servers which were located in Utah. The application

stated that Unfold had three employees, an average monthly

payroll of $32,781. For the 12 months preceding this

application, Unfold had gross revenues of approximately

$24,000, not including the PPP and EIDL funds, and payroll of

$2,300, not including the ADP payments I just described.

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A copy of the same IRS Form 941 that had accompanied

Unfold's previous application, which had not been submitted to

the IRS, was submitted with this new application. Based on

this application, on February 23, 2021, Celtic Bank transferred

a PPP loan to Unfold's Wells Fargo bank account in the amount

of $81,952.

Dad Money Investment Group, LLC, and Elite

International Venture Capital, LLC, were Florida limited

liability companies. They were both organized on July 6th,

2020. Mr. Philossaint was the president of Dad Money. Dad

Money was Elite International's sole managing member. The

companies' principal places of business were two different

suites in the same office building in Hallandale Beach,

Florida.

On March 5, 2021, Ms. Rene signed a check from the

Unfold's Wells Fargo bank account made out to Elite

International Venture Capital in the amount of $5,597, which is

somewhat less than 10 percent of the amount of Unfold's second

PPP loan. In the memo line of the check written was the word

"accounting."

On May 6th, 2021, Unfold opened a new ADP account.

Mr. Philossaint was the only authorized firm representative

listed on the account. From May through August 2021, using

proceeds of the second PPP loan, Unfold paid $49,194.05 in

payments purportedly for payroll via ADP, including $30,044.28

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to Ms. Rene. The last payment was made on August 25, 2021.

On August 6th, 2021, Ms. Rene sent Mr. Philossaint a

voice recording over WhatsApp. She stated that she was,

Wondering when is the last date of the payroll so that I can

call them so they can pause it. Please let me know.

On August 18, 2021, Ms. Rene wrote to Mr. Philossaint

by WhatsApp, Please inform me of when the date payroll ends. I

believe it has been six months. Law enforcement agents

subsequently recovered these messages from Mr. Philossaint's

phone.

On May 24, 2021, Unfold applied for forgiveness of its

first PPP loan. The application claimed that Unfold had three

employees at the time of the application and that Unfold had

spent $49,172.24 of the loan on payroll expenses. As a result

of Unfold's application, the loan was forgiven.

On September 8, 2021, Unfold applied for forgiveness

of its second PPP loan. The application claimed that Unfold

had three employees at the time of the application and that

Unfold had spent $49,761.07 of the loan on payroll expenses.

As a result of Unfold's application, that loan was also

forgiven.

I'll turn now, Your Honor, to the facts involved in

Count 3. Royal Elite Trans, LLC, was a Florida limited

liability company. Mr. Philossaint was the sole managing

member. Its principal place of business changed several times

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but was always in Miami-Dade or Broward County, Florida.

Mr. Philossaint was the only signatory on Royal Elite Trans's

bank accounts.

On April 1, 2020, Royal Elite Trans applied for an

EIDL. The application was electronically transmitted to the

servers of the Small Business Administration which were located

outside of Florida. The application required Royal Elite Trans

to describe its detailed business activity. The application

listed limousine and transportation as the detailed business

activity.

SBA initially declined the application, but

Mr. Philossaint requested reconsideration of that decision and

administratively appealed it and eventually the loan was

granted.

On December 16, 2021, Mr. Philossaint electronically

signed a loan authorization and agreement with the Small

Business Administration. The agreement included the

requirement that borrow -- open quote -- begin quote, Borrower

will use all of the proceeds of this loan solely as working

capital to alleviate economic injury caused by disaster

occurring in the months of January 31, 2020, and continuing

thereafter.

On December 21, 2021, SBA transferred an EIDL to Royal

Elite Trans's Bank of America checking account in the amount of

$289,400. Mr. Philossaint was the only signatory on this

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account.

Royal Elite Trans had not, in fact, suffered economic

injury in 2020. Royal Elite Trans's bank records indicate that

the company's gross revenue increased from 136,766.93 in 2019

to $237,755.07, excluding PPP and EIDL funds. The records

contain no indication that Royal Elite Trans operated a

limousine or similar transportation business and no indication

that Royal Elite Trans paid any significant business expenses.

An attorney's Interest on Trust Account is an

interest-bearing trust account used by members of the Florida

Bar to hold nominal or short-term funds in trust for a client

or third party when it would not be feasible to earn income on

the funds for the client or third party. The income on an

Interest on Trust Account benefits charitable causes designated

by the Florida Bar.

Tollinchi Law, PA, was a Florida corporation engaged

in the practice of law. The sole officer was Mariel Tollinchi,

a codefendant in this case. Ms. Tollinchi was an attorney and

was in a romantic relationship with Mr. Philossaint. Tollinchi

Law maintained an Interest on Trust Account at Chase Bank.

On December 22, 2021, two checks were written from the

Royal Elite Trans account: One for Tollinchi Law for $34,000

and the other to Ms. Tollinchi personally for $6,573.63.

On January 5, 2022, $26,371.30 was wired from Royal

Elite Trans's Bank of America checking account to Tollinchi

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Law's Interest on Trust Account. On January 6, 2022, Tollinchi

Law wired the same sum, $26,371.30, from the same account to an

account in the Dominican Republic. The notation associated

with the wire read, Joff Philossaint real estate purchase.

On January 20, 2022, the same Royal Elite Trans

account wired $190,000 to the same Tollinchi Law account.

On January 25, 2022, Tollinchi Law wired $200,000 from

the same account -- that is, its Interest on Trust Account --

to an account in the Dominican Republic. The notation

associated with the wire included Joff Philossaint's name and

the words "real estate." Royal Elite Trans's bank records

contained no indication that its business involved real estate

transactions before it obtained its EIDL.

Before the EIDL, or Economic Injury Disaster Loan, was

deposited in Royal Elite Trans's Bank of America account, the

balance in the account was approximately $2,000. Between the

time of the deposit of that loan and the wire of January 20,

2022, that I've just described, the account received

approximately $31,650 in deposits. Therefore, Royal Elite

Trans could not have transferred the funds to Tollinchi Law as

described above without the Economic Injury Disaster Loan.

Wells Fargo, Bank of America and Chase Bank were

financial institutions; that is, banks the deposits of which

were insured by the Federal Deposit Insurance Corporation.

THE COURT: All right.

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Mr. Philossaint, did you hear what the Government has

said?

THE DEFENDANT: Yes, Your Honor.

THE COURT: And do you agree that it's a true and

correct statement of what the prosecutor has said?

THE DEFENDANT: I have objections, Your Honor.

THE COURT: All right. What objections or changes

would you like to address?

(Pause in proceedings.)

MR. GOLDSTEIN: Your Honor, if I may?

THE COURT: Sure.

MR. GOLDSTEIN: Two minor things. On the top of the

second page on the factual proffer where it says, Was operated

by Conspirator 1. Later, Philossaint began working for himself

in carrying out the same scheme, he is saying that he was

always working under Conspirator 1. I don't think that that

has any effect on the -- on any of the elements of the crime.

THE COURT: All right.

MR. GOLDSTEIN: So we're asking to strike that.

THE COURT: I won't strike it. It will be a note --

it will be noted for the record, his objection to it.

MR. GOLDSTEIN: Okay. And finally, in Paragraph 26,

the Government makes reference to the Bank of America account

in which there were $2,039.50. Mr. Philossaint would add that

he had actually three different accounts for that business, not

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just that one account.

THE COURT: All right. Anything else?

MR. GOLDSTEIN: That's it, Your Honor.

THE COURT: All right. Mr. Goldstein, do you -- or

are you satisfied with your client's understanding of his

rights and what he's giving up today?

MR. GOLDSTEIN: Yes, Your Honor.

THE COURT: And are you satisfied that there has been

a sufficient statement, a factual basis, with regards to Count

1, 2 and 3 of the Indictment?

MR. GOLDSTEIN: I do.

THE COURT: All right.

Mr. Philossaint, how do you now plead to the charges

set fort in Counts 1, 2 and 3 of the Indictment? Guilty or not

guilty?

THE DEFENDANT: Guilty.

THE COURT: It is the finding of this Court in this

case that the Defendant, Joff Stenn Wroy Philossaint, is fully

competent and capable of entering an informed plea and that

Joff Stenn Wroy Philossaint is aware of the nature of the

charges and the consequences of the plea based upon his

conversations with his attorney and the colloquy before the

Court and that the plea of guilty is a knowing, intelligent and

voluntarily plea supported by an independent basis in fact

containing each of the essential elements of the offense.

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The Court finds that the plea presented to the Court

was voluntarily entered into and the plea was not entered as a

result of force, threats or coercion. I also find that the

plea has been entered into with the advice and assistance of

effective and competent counsel.

The plea is, therefore, accepted. And the Defendant,

Joff Stenn Wroy Philossaint, is now adjudged guilty of the

offense charged in Counts 1, 2 and 3 of the Indictment and a

judgment of guilty is now entered as to Counts 1, 2 and 3.

Mr. Philossaint, prior to sentencing, sir, a probation

officer will be contacting you to inquire about matters that

will be included in your PSI report, which is the presentence

investigation report. And at that time, you will meet with the

probation officer. Your attorney may be with you, if you wish.

And you will be given a copy of the report. You will

have an opportunity of filing objections or requests associated

with it, and at your sentencing hearing, I will hear and decide

all of those matters. And at that time, I should hear from

you, if you wish, to make a statement on your own behalf and

also from anyone else who wishes to come to court to talk to

you.

Do you understand that, Mr. Philossaint?

THE DEFENDANT: Yes, Your Honor.

THE COURT: All right.

Patricia, order the presentence investigation report

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and set a sentencing date for Mr. Philossaint, please.

THE COURTROOM DEPUTY: Yes, Judge. Sentencing will be

Wednesday, January 25th, at 9 a.m.

THE COURT: All right.

Did you hear what she said, Mr. Philossaint?

THE DEFENDANT: Yes, Your Honor.

MR. GOLDSTEIN: Your Honor, if I may. We still have

the fourth count to try.

THE COURT: Yes.

MR. GOLDSTEIN: So we're going to do the sentencing

before the trial?

THE COURT: Well, we don't know. If he's acquitted,

it doesn't matter, right?

MR. GOLDSTEIN: Right. But if he's convicted --

THE COURT: He can wait until the PSI perhaps comes

from that as well, if that's the case.

MR. GOLDSTEIN: Okay.

THE COURT: All right. So I'll leave this subject to

the outcome of the case. Right now, he's presumed innocent.

He's -- all right?

MR. GOLDSTEIN: I agree. This is one case I think it

should travel together.

THE COURT: All right. It depends what happens at the

trial, or we can adjust that, okay?

MR. GOLDSTEIN: Okay. May I address tomorrow's

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calendar call briefly?

THE COURT: Sure.

MR. GOLDSTEIN: I know we're set for a phone calendar

call tomorrow. We originally had a plea on all four counts, so

we joined in that motion to continue. But I would join in it

to -- understanding that it's already been denied. I am

starting a trial Wednesday before Judge Middlebrooks.

THE COURT: Which one? This Wednesday?

MR. GOLDSTEIN: This Wednesday. Yes, sir.

THE COURT: Okay. How long is that trial?

MR. GOLDSTEIN: That -- I think it's probably going to

run four to five days. So, you know, up into Thanksgiving.

THE COURT: All right. And if that's the case, we'll

address that and it won't be a problem. So we have more than

one week to go try the case.

MR. GOLDSTEIN: We are not. Okay.

THE COURT: All right.

MR. GOLDSTEIN: I just wanted to make sure.

THE COURT: Okay.

MR. GOLDSTEIN: All right. Thank you, Your Honor.

THE COURT: All right. Is there anything else from

the Government we need to hear?

MR. OSBORNE: No. Thank you, Your Honor.

THE COURT: All right. Have a good day.

MR. GOLDSTEIN: Thank you, Your Honor.

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THE COURT: Also, Mr. Goldstein, your case is

definitely going to trial with Mr. Middlebrooks, or you don't

know?

MR. GOLDSTEIN: Yes, Your Honor. It's a two-defendant

case. The defendants just turned down a misdemeanor plea

and --

THE COURT: Okay.

MR. GOLDSTEIN: -- I'll be going to trial.

THE COURT: When trying misdemeanors, I've had cases

go to trial too, so I've had my share. I get it.

MR. GOLDSTEIN: It's not getting any better than that,

and the Defendants have rejected that offer, so we totally

expect to pick a jury on Wednesday.

THE COURT: All right. Fine. Thank you.

MR. OSBORNE: Thank you, Your Honor. Thank you,

Judge.

THE COURT: Thank you.

(The proceedings concluded at 12:52 p.m.)

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C E R T I F I C A T E

I hereby certify that the foregoing is an

accurate transcription of the proceedings in the

above-entitled matter.

_01/15/2023_

DATE STEPHANIE A. McCARN, RPR

Official United States Court Reporter

400 North Miami Avenue, Thirteenth Floor

Miami, Florida 33128

(305) 523-5518

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