UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA

Case N o.

18 U.S.C. j 1349

18 U.S.C. j 1343

I8.U.S.C. j 982

UNITED STATES OF AM ERICA

VS.

ER ICH JA W ER A LFON SO BA M TA ,

D efendant.

/

INFORM ATION

The United States Attotney charges that:

GENERAL ALLEGATION S

At a11 times relevant to this lnformation:

The Sm all B usiness A dm inistration

The United States Small Business Administration (E1SBA'') was all executive

branch agency of the United States government that provided support to entreprenetlrs and small

businesses. The m ission of the SBA was to maintain and strengthen the nation's econom y by

enabling the establishm ent and viability of sm all businesses and by assisting in the econom ic

recovery of com munities aftçr disasters.

As part of this effort, the SBA enabled and provided for loans through bnnks, credit

lznions, and other lenders. These loans had govem ment-backed guarantees.

22-20487-CR-BLOOM/OTAZO-REYES

Oct 7, 2022

Case 1:22-cr-20487-BB Document 15 Entered on FLSD Docket 10/07/2022 Page 1 of 9

MM
ThePaycheckProtectionProgram

3. TheCoronavirusAid,Relief,andEconomicSecurity(ItCAltES'')Actwasafederal

1aw enactedin oraroundM arch 2020anddesignedtoprovideem ergency financialassistanceto

them illionsofAm ericanswhoweresufferingfrom theeconom iceffectscausedbytheCOVID19pandem ic.OnesourceofreliefprovidedbytheCARESActwastheauthorizationofforgivable

loanstosmallbusinessesforjobretentionandcertainotherexpenses,throughaprogrnm referred

toasthePaycheckProtectionProgrnm (:TPP''). '

4. In order to obtain a PPP loan,a qualifying business subm itted a PPP loan

application,which wassigned by al authorized representativeofthe business. The PPP loan

application requiredthebusiness(through itsauthorizedrepresèntative)to acknowledgethe

progrnm rulesandm akecertain affirmativecertificqtionsinordertobeeligibletoobtainthePPP

loan.InthePPPloanapplication(SBA Form 2483),thesmallbusiness(throughitsauthorized

representative)wasrequiredtoprovide,amongotherthings,its:(a)averagemonthlypayrol

expenses;and(b)numberofemployees.Thesefigureswereusedtocalculatethenmotmtofmoney

thesmallbusinesswaselijibletoreceivetmderthePPP.Inaddition,businessesapplyingfora

èPPloanwererequiredtoprovidedoclmentationcontirmingtheirpayrolexpenses.

5. A PPP loan application wasprocessed by aparticipating lender. Ifa PPP loan

app.lication wasapproved,theparticipating lenderftmded the PPP loatlusing its own monies.

W hileitwastheparticipating lenderthatissuedthePPP loan,theloanwas100% guaranteedby

theSBA.Datafrom theapplication,including information abouttheborrower,thetotalamotmt

oftheloan,andthelistèdnum berofemployees,wastransmittedbythelendertotheSBA in the

courseofprocessingtheloan.

'

2

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6. PPP loanproceedswererequiredtobeusedbythebusinessoncertainperm issible

expenses- payrollcosts,interestonm ortgages,rent,andutilities.ThePPP allowedtheinterest

andprincipalonthePPP loanto beentirely forgiven ifthebusinessspenttheloan proceedson

theseexpenseitemswithinadesignatedperiodoftimeandusedadefmedportfonofthePPPloan

proceedsonpayrollexpenses.

TheDefendant.Related Entities,andConspirator

DefendantERICH JAVIER AI,FONSO BARATA was a residentofM iam iDadeCotmty,Florida.

8. BlackHookahInc.(çtBlackHookalf')wasaFloridacorporationwithitslisted

principal address located in M inmi-Dade Cotmty, Florida. Defendant ERICH JAW ER

AI,FONSO BAR ATA servedasPresidentofBlackHookah.

9. EJ Networldng & Seclzrity Service Inc.(IGEJ Networkinf') was a Florida

cprporationwith itslistedprincipaladdresslocated in M inm i-DadeCounty,Florida. Defendant

ERICH JAVIERALFONSO BAM TA servedasPresidentofEJNev orking.

10. DanielHem andez,aresidentofM iam i-DadeCounty,Florida,wasanem ployeeof

Bank landaconspiratorofthedefendant.

RelevantBanks

Bank1wtasanationalbnnkbasedinNew Jersey.

Bank2wasanationalbankbasedinNorth Carolina.

BothBank 1andBnnk2wereapprovedSBA lendersofPPP loansand inslzredby

theFederalDepositInstlranceCorporation(çTD1C'').

COUNT 1

Conspiracyto Com m itW ireFraud

(18U.S.C.j1349)

Case 1:22-cr-20487-BB Document 15 Entered on FLSD Docket 10/07/2022 Page 3 of 9
TheGeneralAllegationssection ofthisInform ation isre-alleged andincorporated

byreferenceasthoughftzlly setforthherein.

2. From in orarotmd April2020,continuingthrough atleastJuly 2020,in M iam iDadeCotinty,intheSouthem DistrictofFlorida,andelsewhere,thedefendant,

ERICH JAW ER ALFONSO BAR ATA,

didwillfully,thatis,withtheintenttofurthertheobjectoftheconspiracy,andknowinglycombine,

conspire,confederate,and agreewith DanielH ernandez and othersknown andunknownto the

United StatesAttorneytoknowingly,andwiththeintenttodefraud,devise,andintendtodevise,

aschem eandartitk eto deâaud,andto obtain money andpropertyby m eansofmaterially false

and gaudulent pretenses, representations, and promises, knowing that the pretenses,

represçntations,and prom iseswere false and fraudulentwhen m ade,and,forthe purpose of

executingtheschem eandartitk e,didknowinglytransm itand causetobetransm itted,by means

ofwire commllnications in interstate and foreign commerce,certain writings,signs,signals,

pictures,and sotmds,inviolationofTitle 18,UnitedStatesCode,Section 1343.

PURPOSE OF THE CONSPIRACY

Itwastheptlrposeoftheconspiracyforthedefendantandhisconspiratorstolmjustly

endchthemselvesby,amongotherthings:(a)submittingandcausingthesubmissionoffalseand

fraudulentapplicationsforloansandgrantsm adeavailabletllroughtheSBA toproviderelieffor

theeconomiceffectscausedbytheCOVID-19pandemic,nnmely,PPPloans;(b)offering,paying,

and receivingkickbacksinret'tzrn forreferring otherindividualsforthesubm ission offalseand

fraudulentloan applications;and (c)diverting fraud proceedsforthe defendant'sand lis

conspirators'personaluse,theuseandbenetitofothers,andtofurthertheconspiracy.

M AM ER AND M EANS OF THE CONSPIM CY

4

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Them nnnerandm eansbywhichthedefendantandhisconspiratorssoughttoaccomplish

theobjectandpurposeoftheconspiracyincluded,amongothers,thefolowing:

3. ERICH JAW ER ALFONSO BAR ATA agreedwithDanielHernandezto assist

inpreparingfalseandfraudulentPPP loan applicationson behalfofcom paniescontrolledbythe

defendantandotherconspiratorstobesubm ittedatBank 1andBarlk2.

ERICH JAW ER ALFONSO BAR ATA atld his conspirators subm itted and

caused to be subm itted via interstate wire com mlmications false and fraudulentPPP loan

applicationsonbehalfofFlorida-basedentitiesthatthey controlled,includingBlackHookah and

.EJNetworking,usingthecompanies'FloridaaddressesandEmployerldentificationNllmbers.

lnfurtheranceoftheconspiracy,ERICH JAVIER AI,FO NSO BARATA andhis

conspirators subm itled and caused the submission of false and fraudulent information and

docllmentation in supportofthe PPP loan applications,including falsified copiesof Internal

RevenueServiceCç1RS'')forms,bnkstatements,andpayrolltaxforms,amongotherthings,and

falsely and fraudulently represented each com pany'sntzmberofem ployees,am ountofmonthly

payroll,andnm otmtofgrossrevenue.

Asaresultofthefalseand fraudulentPPP loatlapplicationssubm itted aspartof

thisscheme,Bank 1andBank2approvedPPPloanstoentitiesbelongingtothedefendantandllis

conspiratorsanddisblzrsedover$6,500,000inloanproceedsintobnnkaccountscontrolledbythe

defendantandhisconspirators,viainterstatewiretransm ission.

Co-conspiratorspaidERICH JAW ER ALFONSO BARATA,Daniell-lernandez,

andothersakickbackbasedon eachfalseandfraudulentloanfunded.

8. Thedefendantandhisconspiratorsusedtheproceedsfrom thefraudulentschem e

toerlrichthem selvesandothers,andtofurthertheconspiracy.

Case 1:22-cr-20487-BB Document 15 Entered on FLSD Docket 10/07/2022 Page 5 of 9
A11inviolationofTitle 18,UlzitedStatesCode,Section 1349.

FORFEITURE ALLEGATIONS

The allegations contained in thisInform ation arehereby re-alleged and by this

referencefully incorporated herein forthepurposeofalleging forfeituretotheUrlited Statesof

certainpropertyinwhichthedefendant,ERICH JAVIER ATT ONSO BARATA,hasarlinterest.

Upon conviction ofaviolation ofTitle 18,United SatesCode,Section 1349,a

conspiracy toviolateTitle 18,United StatesCode,Section 1343,asallegedinthisInformation,

thedefendantshallforfeittotheUnitedStatesanypropertyconstituting,orderivedfrom ,proceeds

obtained directly orindirectly,astheresultofsuch offense,pursuantto Title 18,United States

CodeSection982(a)(2)(B).

AlpursuanttoTitle18,UnitedStatesCode,Section982(a)(1),andtheproceduressetforth

atTitle21,United StatesCode,Section 853,asincop orated by Title 18,United StatesCode,

Section982(b)(1).

..

'

/ g -

, wx,

DJA ANTON IO ALEZ

UNITED STATES ATTORNEY

6 %.

ELIS. UBIN

ASSIS NT UNITED STATESATTORNEY

Case 1:22-cr-20487-BB Document 15 Entered on FLSD Docket 10/07/2022 Page 6 of 9
UNITED STATESOF AM ERICA

V.

ErichJavierAlfonso Barata,

/

Defendant.

CourtDivision(selectone)

ElM iami IZ'IKeyW est D FTP

L FTL 1.ZIWPB

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA

CASE NO.:

CERTIFICATE OF TRIAL ATTORNEY W

SupersedingCaseInformation:

New Defendantts)(YesorNo)

NumberofNew Defendants

TotalnumberofNew Counts

1doherebycertifythat: -.

1. lhave carefully consideredtheallegationsoftheindictment,thenumberofdefendants,thenumberofprobable

witnessesandthelegalcom plexitiesofthelndictm ent/lnformationattachedhereto.

1nmawarethattheinformationsupyliedonthisstatelnentwilbçrelieduponbytheJudgesofthisCourtinseting

theircalendarsandschedulingcrimlnaltrialsunderthemandateoftheSpeedyTrialAct,Title28U.S.C.53161.

lnterpreter:(YesorNo)Yes

Listlanguageand/ordialect:Spanish

4. Thiscasewilltake0 daysforthepartiestotry.

Pleasecheckappropriatecategoryandtypeofoffenselistedbelow :

(Checkonlyone) (Checkonlyone)

I IZI0to 5days EIpetty

11 IZI6to10days L. Minor

II1 El11to20days L.M isdemeanor

IV IZI21to60days z,y'elony

V E'.161daysandover

HasthiscasebeenpreviouslyfiledinthisDistrictCourt?(YesorNo)No

lfyes,Judge CaseNo.

Hasacomplaintbeenfiledinthismatter?(YesorNo)Yes

lfyes,M agistrateCaseNo.22-3095-M J-JG .

DoesthiscaserelatetoapreviouslyfiledmatterinthisDistrictCourt?@ esorNo)Yes

lfyes,JudgeM artinez CaseNo.22-20194-CR-.TEM ;22-20420-C11.-M M

9. Defendantts)infederalcustodyasof

10. Defendantts)instatecustodyasof

11. Rule20from the Districtof

12. Isthisapotentialdeathpenaltycase?(YesorNo)No

13. Doesthiscaseoriginatefrom amatterpendingintheNorthernRegionoftheU.S.Attorney'sOffice

priortoAugust8,2014(Mag.JudgeShaniekM aynard?(YesorNo)No

14. Doesthiscaseoriginatefrom amatterpendingintheCentralRegionofiheU.S.Attorney'sOftice

priort:October3,2019(M ag.JudgeJaredStrauss?(YesorNo)No

B jlm

y:

EliS. bin

Assista UnitedStatesAttorney

CourtID No. A5502535

Case 1:22-cr-20487-BB Document 15 Entered on FLSD Docket 10/07/2022 Page 7 of 9
UM TED STATESDISTRICT COURT

SOUTHERN DISTRICT OF FLOIUDA

PENALTY SHEET

Defendant'sNam e:ErichJavierAlfonsoBarata

CaseNo:

Count#:1

ConspiracvtoCom mitW ireFraud

Title18,United StatesCode-Section 1349

*M ax.Term ofIm prisonm ent:20Years'Im prisonm ent

*M andatoryM in.Term ofImprisonment(ifapplicable):N/A

*M ax.SupervisedRelease:3Years'SupervisedRelease

*M ax.Fine: $250,000.00

*Refersonlytopossibleterm ofincarceration,supervisedreleaseand fines. Itdoesnotinclude

restitution,specialassessm ents,paroleterm s,orforfeituresthatm aybeapplicable.

Case 1:22-cr-20487-BB Document 15 Entered on FLSD Docket 10/07/2022 Page 8 of 9
AO455(Rev.01/09)WaiverofanIndictment

NITED STATESD ISTRICTCOURT

forthe

SouthernDistrictofFlorida

UnitedStatesofAmerica )

v. ) CaseNo.

)

ErichJavierAlfonsoBarata, )

Defendant )

W AW ER OF AN INDICTM ENT

1understandthat1havebeenaccusedofoneormoreoffensesptlnishablebyilnprisomnentform orethanone

year.Iwasadvisedinopen coxurtofmyrightsandthenattlreoftheproposedchargesagainstm e.

Afterreceivingthisadvice,1waivemyrighttoprosecutionbyhzdictmentandconsenttoprosecutionby

ilzfonuation. .

Date:

Defendant'ssignatlre

qWgntz/lreofde#ndant'.çattorney

ALEJANDRO SOLA,ESQ.

Printednameofdefendant'sattorney

.

guage,ssynature

Judge'sprintednameandtitle

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