UNITED STATESDISTRICT COURT

SOU TH ERN DISTRICT O F FLO RIDA

CASENO.22-CR-80144.SMlTH/MA> ARD(s)

UNITED STATESOFAM ERICA

JOFFSTENN W ROYPHILOSSAINT,

Defendant.

FAG UA L PROFFER

TheUnitedStatesAtorney'sOfficefortheSouthernDistrictofFlorida(dthisOffice'')and

thedefendant,JoffStennW royPhilossaint,agreethatthefollowingstatementoffactsisaccurate

andprovidesafactualbasisforthedefendant'spleaofguilt'y.Al1factsweretrueatalltimesrelevant

totheofinseconductunles amorespeciftcdateortimeisspecified.Thedefendantunderstands

tlaatthegovernmentmaypresentevidenceatfutureproceedingsthathiscriminalconductwasmore

extensivetlaanisdescribedinthisproffer.

Paragraphs1-9oftheGeneralAllegationsoftheSklpersedingIndictmentaccurately

describethePayrolProtectionProgram (''PPP'')andtheEconomicInjuryDisasterLoan(tfEIDL'')

program.Theyareincorporatedintothisstatementoffactsasiffullysetforthherein.

GeneralSum maryofOffenseConduct

BeginningnolaterthaninoraroundMayorJune2020andcontinuingthroughno

earlierthan in orar'ouad June 2021,Philossaintassisted numerous conspiratorsto submit

fraudtllentapplicacionsforPPPloansandEIDL'oubehalfofbusinessesowneclandcotatroledby

theconspirators.Atfirst,PhilossaintcarriedotltthisschemewhileworkingforCompany1,which

Case 9:22-cr-80144-RS Document 94 Entered on FLSD Docket 11/14/2022 Page 1 of 9
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wasoperatedbyConspirator1.Later,Philossaintbegan workingforhimselfandcarryingoutthe

sanle'schenRe.

Philossaintprepared loan applications forthe conspiratorbusinessownersand

caused theapplicationstobesenttohisconspiratorsto digitallysign andelectronicallysubmitto

variousfinancialinstitutionsandtheSmallBusinessAdministration (ï(SBA'').Theapplications

contained materialmisrepresentationsaboutthebusinesses,sttt!h assubstantialoverstatementsof

thebusinesses'grossrevenues,numberofemployees,andaveragemonthlypayrolt.Basedontlnese

fratldulentapplications,variousprivptefinancialinstitutionsand SBA' loaned money,generaly

hundreds of thotlsands of dolars,to the conspirators'busirtesses.Philossaintlater prepared

applicationson behalfofthe conspirator btlsinesses forforgiveness ofthe PPP loans.These

applicationsfalselystatedthatthebtlsinesseshadmetthepreconditionsofloanforgivenessbyusing

theloanstopaypayrolland/orforotherpermissibleexpenses.

4. AtltolnaticDataProcessing,Inc.(tdADP'')provided porollandotherservicesto

businesses.Conspirator1and/orPhilossaintopenedADPaccotlntsonbehalfoftheirconspirators,

witlathemselves(Conspirator1orPlnilossaint)ast13eaccountadministrators.TheycausedADPto

make paymentsptlrportedly forpayroltto individtlalswith tlRe loan proceeds,although these

individualseitherdidnotworkfortheloanrecipientsorwerenotentitledtopayrolintheamounts

paid.Philossaintattèmpted to obtain and useADP recordsto s'upporttheapplicationsforloan

forgiveness.

BriannaM oniqueGaylehadpreviotlslyworketlforADP.Durëngtheconspiracy,she

workedasanassistanttoPhilossaint.Recordsobtainedfrom ADPshowedthatGayle,whileworking

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forPhilossaint,contactedADP on mtlltipleoccasionsbetween M ay2021and April2022.Gayle

contactedADPtomanagepayrollaccount.senrolledbyEIVC,suchasaddingorremovingaccounts.

GaylealsocontactedADPtoretzievepayrolldocument.sandW -2'sforthepayroll

accounts.GaylecaledADPonJanuary26,2022,andconferencedPhilossaintintothecall.They

statedthattheirentireclientlistshouldhavebeenterm inatedasgoingoutofbusinessandtherefore

should havereceived W -2'sfor2021.Gaylecontinued to makecallsto ADP on behalfofthe

companiesenrolledbyEIVC tooltain'WL2's.

Shortlyafiertlneconspiratorbusinessownersreceivedtheirloanproceeds,theypaid

eitherConspirator1or'Philossaintafeeofapproximately10% ofthevaltleoftheloans.Inmany

cases,thefeewaspaidtoshellcompaniesthatPhilossaintcontrolled,whichdidnotrtlebusiness,or

inacctlratenotationsweremadeonihechecksorotherinstrumentsofpayment.Thesepayments

weremadefrom andtofinancialinstitutions,thatis,bank.sthedeposit.sofwhichwereinsuredby

theFederalDepositlnsuranceCorporation.

Philossaintassi'stedcodefendantsandconspiratorstoapplyforfraudulentloansand

applied forsuclaloanshimself.Tlaeconspiratorsapplied on belaalfof:Gayte,applyingasasole

proprietor;Cinda Foundacion lnc;DDZ Family Enterprises LLC;Ferro's Entertainmentand

ProdtlctionLLC;JREAM VisionTV LLC;OneSolutton GroupLLC;RoyalEliteTrans,LLC;

SunriseCityConstructionDmrelopmentLLC;UnfoldPerception,LLC;andotkerbusinesses.Based

these applications,lenders and SBA

conspirators were not elatitled.The conspirators who received fhese loans paid Philossaint

which the

approxilnately10% oftllevalkleoftheloans.

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The fraudulentPPP loan and EIDL applications involved in the scheme were

submitted electronically to selwerslocated outside Rorida.Philossaint,Tolinchi,Rene,Gayle,

Shazier,Johnson,andmostoftheotherconspiratorsresidedandworkedintheSoutlwrnDistrict

ofFloridaandsubrnittedtheirapplicationsfrom thisdistrict.

U nfoldPerception,LLC

The applications for PPP loans submkted by Unfold Perception,LLC are a

representative example ofthe scheme anul conspiracy.

company.ltwasorganized on M ay 28,2019.Renewas

principalplaceofbusilaesswasinq/estPalm Beach,Florida.

Unfold was a Florida limited liability

chesolemanaging member.Unfold's

OnJune18,2020,UnfoldappliedforaPPPloan.Theloanapplicationwasdigitally

signedbyRene.TheappticationwaselectronicallytransmittedtoCelticBank'sservers,whichwere

located in Utah.Theapplication stated thatUnfold had threeemployeesand averagemonthly

payrollof$32,781.66.Forthetwelvemonthsprecedingthisapplication,recordsofUnfold'sbank

accountrevealdaatthecompanyhadgrossrevenueofapproximately$10,000andnopayroll.A copy

ofanIRSForm 941(Employer'sQuarterlyTaxReturns)wassubmiteulwiththeapplication.This

form appearedtocorroboratethepayrollfigttreontheapplication.However,Unfolddidnotsubmit

loantoUnfold'sW ellsFargobankaccountintheamotlntof$81,954.

Trust Aliance Enterprises lnc.(t'Trust'') was a Florida corporation.It was

incorporatedonJune1..5,2020.Conspirator1wasthesoleofficer.OnJune2.5,2020,Renesigned

acheck.from theUnfoldbankaccountmadeouttoTrustintheamountof$10,654.02.

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OnJune30,2020,eight-daysafterUnfoldreceiveditsPPPloan,apayroilaccount

wascreated atADP forUnfold.Conspirator1wasthe primarycontact.From July through

December2020,usingproceedsofthePPPloan,Unfoldpaid$49,172.24inpaymentspurportedly

forpayrolviaADP,including$29,999.97toRene.

14. On Februaw 22.2021,Unfoldappliedfbr81secondPPP loan.Theapplicationwas

electronicallytransmitted to CelticBank'sservers,which werelocated in Utah.Theapplication

statedtlatUnfoldhadthreeemployeesalclaveragemontlalypayrollof$32,781.Forthetwelve

monthspreceding tlnisapplication,Unfold haclgrossrevenueofapproximately$24,000 (not

includingPPPand EIDL l'unds)andpayrollofapproximately$2,300 (notincludingtheADP

payments).A copyofthesame1RSForm 941thathadaccompaniedUnfold'spreviousapplication,

whichhadnotbeen submittedtotheIRS,wasstlbnlittedwith thenew application.Basedon this

application,onFebruat-y23,2021,CelticBanktransferredaPPPloantoUnfokl's'W ellsFargobank

accotlntintheamountof$81,952.

DadM oneylnvestmentGroup,LLC andEliteInternationalVenttlreCapital,LLC

PhilossaintwasthePresidentofDadMoney.DadM oneywasEIVC'Ssolemanagingmember.Tlae

companiesprincipalplacesofbusinessweretwo differentsuitesin the sameofficebuilding in

HallandaleBeach,Florida.

OnM arch5,2021,Renesignedacheckfrom theUnfoldW elsFargobankaccotlnt

madeoklttoEIVC intheamotlntof$5,597-somewl4atles than 10% oftheamountofUnfold's

secondPPPloan.Inthelnemolineofthecheckwaswrittenthewordïtaccounting.''

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On M ay 6,2021,Unfold opened a new ADP account.Philossaintwastheonly

authorized firm representative listed on the account.From M ay through August,2021,using

proceedsofthePPPloan,Unfoldpaid$49,194.0.5inpaymentspurportedlyforpayrollviaADP,

including$30,044.28toRene.ThelastpaymentwasmadeonAugust25,2021.

18. OnAugust6,2021,RenesentPhilossaintavoicerecordingoverMfhatsApp.She

statedthatshewas'Cwonderingwhenisthelastdateofthepayrollsothatwaylcancallthem sothey

canpauseit.PleaseIetmeknow-''0nAugust18,2021,RenewrotetoPhilossaintbyW hatsApp,

tpleaseit-tform meofwlnendaedarepayrolends.1believeichasbeensixmontlas-''Law enfbrcement

agentssubseqtlentlyrecoveredthesemessagesfrom Philossaint'sphone.

19. On M ay 24,2021,Unfold applied for f'orgiveness ofits firstPPP loan.The

applicationclaimedthatUnfoldhadthreeemployeesatthetim eoftheapplicationandthatUnfold

hadspent$49,172.24oftheloanonpaypllexpenses.AsaresultofUnfold'sapplication,theloan

wasforgiven.

20. OnSeptember8,2021,UnfoldappliedforforgivenessofitssecondPPPloan.The

applicationclaimedthatUnfoldhadtlreeemployeesarthetimeoftlleapplicationandt13atU nfold

hadspent$49,761.07oftheloanonpayrollexpenses.AsaresutofUnfold'sapplication,theloan

wasforgivetl.

RoyalEliteTrans

RoyalEliteTrans,LLC wasaFloridalimited liabilitycompany.Philossaintwasthe

solemanagingmember.ltsprincipalplaceofbusinesschanged severaltimes,butwasalwaysin

M ianai-DadeorBrowardCounty,Ftorida.Philossaintwastheonlysignatow on RoyalEliteTrans's

bankaccounts.

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22. On April1,2020,RoyalEliteTransapplied foran EIDL.The appllcation was

electronicallytransmittedtotheselwersoftheSmallBtlsinessAdministl-ation(d'SBA''),whichwere

iocared oursideofFlorida.The application required RoyalEliteTransto describe irsï'detailed

businessactivity-''Theapplicationlisted''Limosinelsicq& Transportation-''SBA initiallydeclined

theapplication,butPhilossaintrequestedreconsiderationofthatdecisionandthenadministratively

appealeclit,and theloanwasgranted.On December16,2021,Philossaintelectronicallysigned a

Loan Authorization and Agreementwitl,SBA.The agreementil4cluded the requirementthat

tfblorrowerwirlusealltlaeproceedsoftlaisLoansolelyasworkingcapitaltoalleviateeconomic

injurycausedbydisasteroccurringintlnemonthofJanuary31,2020andcontinuingthereafter-''

On December21,2021,SBA transferredan EIDLtoRoyalEliteTrans'BankofAmericachecking

accotlntintheamotlntof$289,400.Philossaintistheonlysignatoryonthisaccount.

RoyalEliteTranshadnotstlfferedeconomicinjtlryin2020.RoyalEliteTrans'sbank

records indicate thatthe colnpany's grossrevenue increased frolu $136,766.93 in 2019 to

$237,755.07in2020(exuludingPPPanclEIDLfunds).Therecordscontainnoindicationsthat

RoyalEliteTransoperatedalimousineorsimilartransportasionbusinessand noindicationsrhat

RoyalEliteTranspaidanysignificantbusinesjexpenses.

Anatorney'slnterestonTrustAccount(t'1OTA'')isaninterest-bearingtrustaccount

usedbymembersoftheFloridaBartoholdnominalorshort-term futldsintrustforaclientorthird

partywhel itwottld notbefeasibletoearnincomeonchefundsfortheclientorchirdparty.The

incomeon theIOTA accoklntbenefltscharitablecausestlesignatedbytheFloridaBar.Tolinchi

Law,PA wasaFloridacorporation engageulin thepractice oflaw.The soleofficerwasMariel

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Tollinchi.TollinchiwasanattorneyandwasinaromanticrelationshipwithPhilossaint.To'llinchi

Law maintainedanIOTA accountatChaseBank.

OnDecember22,2021,twocheckswerewrittenfrom theRoyalEliteTransaccount,

onetoTollinchiLawfor$34,000andrheothertoTollinchipersonallyfor$6,573.63.OnJanua'v5,

2022.$26,371.30waswiretlfrom RoyalEliteTrans'BankofAmericacheckingaccounttoTollinchi

Law'sIOTAaccount.OnJanuary6,2022,TolinchiLawwiredthesamesum,$26,371.30,from the .

salneaccoulAttoanaccountintheDomilicaïàRepublic.Tlenotationassociaredwiththewireread,

''JoffPbilossaintrealestatepurclaase-''OnJanuary20,2022,tlaesana.eRoyalElireTransaccounr

wired$190,000.00tothesameTolinchiLawIOTA account.OnJanuary25,2022,TollinchiLaw

wired$200,000from itsIOTA accounttoanaccountintheDominicanRepublic.Thenotation

associatedwiththewireincludedJoffPhilossaint'snameandthewords,'ïlkealestate-''RoyalElite

Trans'sbankrecordscontainnoindic'ationthatitsbusinessitwolvedrealestatetransactionsbefore

itobtained theEIDL.

2.6. BeforetheElDl-zwasdepositedintoRoyalEliteTrans'BankofAmericaaccotlnt,the

January2O,2022,theaccountreceivedappl-oximately$31,650indeposits.Therefore,RoyalElite

TranscouldnothavetransferredthefundstoTollinchidescribedabovewithouttl4eEIDL.

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Fitaanciallnstitutions

W ellsFargo,BankofAmerica,and ChaseBankwerefinancialinstitutions,thatis,

banksrhedeposit-sofwhichwereinsuredbyrheFederalDeposirlnstlranceCorporation.

JUAN ANTONIO GONM LEZ

UNITED STATESAU ORNEY

M ARC OSBORNE

ASSISTANT UNITED STATESAU ORNEY

IAN GOLD. N

AU ORNE OR DEFENDANT

Date:

ï1/,#1.,y.

oate: l

oate, tl11/:z'F <.

JO FSTENN W ROYPHILOSSAINT

D EFEN DANT

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