Windsor Mill Couple Facing Federal Charges for Allegedly Obtaining and Attempting to Obtain Multiple Fraudulent COVID-19 Cares Act Loans and Fraudulent Unemployment Insurance Benefits
BY KEN ROSSIGNOL
THE CHESAPEAKE TODAY
BALTIMORE, MD – The United States Attorney for the District of Maryland has brought federal indictments against two Maryland residents for allegedly committing wire fraud in a conspiracy to defraud the taxpayers of the United States of funds allocated to aid small businesses and their employees during the infamous Wuhan Covid Pandemic perpetrated by Communist China.
The US Attorney for Maryland, Erek Barron, has yet to bring charges against a father and son who operate an illegal gambling establishment, Woodville Pines LLC, in Waldorf.
The pair, Maryland Judge Michael White and his son, Maryland State Police Lt. George White, the commander of the Forestville Barrack of the State Police, applied for a PPP loan and made false statements to obtain the loan, which was eventually forgiven. THE CHESAPEAKE TODAY reported on their activities in 2022.
TRADE SECRETS THEFT SAGA Auditors for Ascential Twice Warned of Possible Fraud Involving Flywheel
In addition, both Lt. George White and Judge Michael White have been named as defendants in a multimillion-dollar RICO-based civil suit in federal court alleging they stole from Compass Marketing and, along with others, participated in a massive trade secrets fraud involving Flywheel Digital and Ascential LLC in the UK, which bought Flywheel l for over $400 million. Auditors for Ascential warned the firm that the litigation involving Flywheel and fraud indicators should have been noticed and disclosed to those investing in the company but were not.
FLYWHEEL DIGITAL ATTORNEY BAILS OUT OF LITIGATION ON FEB. 1, 2023
Fried Frank Harris Shriver and Jacobson LLP
PRO HAC VICE
In addition to PPP fraud, State Police Lt. George White has been committing fraud against the taxpayers of Maryland by working his IT job at Compass Marketing and running his gambling gig while on duty at the Maryland State House. He must really have the goods on the State Police and the top legislators – after all, the bodyguards knew where Governor Glendening was banging his Deputy Chief of Staff in Annapolis and on foreign trips…
Lt. White operated the illegal gambling operation from his basement office in the Maryland State House, where he was the politically connected commander of the Executive Protection Service, answering directly to the Superintendent of the Maryland State Police.
The gambling operation was attended by and subscribed to by cops, retired cops, lawyers, and politically connected grand Poobas of Maryland.
Included in the participants were St. Mary’s County Sheriff’s Captain Stephen Simonds and former St. Mary’s Sheriff K-9 Commander and 2022 Sheriff Candidate Todd Fleenor. When St. Mary’s Convict Sheriff Steve Hall was elected, he promoted Simonds to the rank of Captain.
When THE CHESAPEAKE TODAY made an inquiry to St. Mary’s Sheriff Tim Cameron if he knew Fleenor and Simonds were involved, an investigation began, and Fleenor suddenly quit and filed to run for Sheriff.
THE PPP LOANS WERE ADMINISTERED BY COMMUNITY BANK OF THE CHESAPEAKE – which is rumored to have computers on the desk of loan officers, enabling a loan officer at a shady bank to check and see if a customer applying for a PPP loan meets the requirements or has any questionable banking history…
Baltimore, Maryland – A federal criminal complaint has been filed charging Tomeka Glenn, age 46, and Kevin Davis, age 42, both of Windsor Mill, Maryland, for conspiracy to commit wire fraud, relating to the submission of fraudulent COVID-19 CARES Act Paycheck Protection Program and Economic Injury Disaster Loan applications and their receipt of over $300,000 in fraudulently obtained funds. The complaint was filed on December 16, 2022, and unsealed on January 25, 2023, upon the defendant’s arrest.
Federal complaint against Kevin Davis. Attorney Tyler L Mann of Towson represents Davis.
United States Attorney announced the charges for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Interim Chief Dennis J. Delp of the Baltimore County Police Department.
Attorney Christopher Carlos Nieto of Baltimore represents Glenn.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic, including forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program, administered through the Small Business Administration (SBA). The SBA also offered an Economic Injury Disaster Loan (EIDL) and/or an EIDL advance to help businesses meet their financial obligations. An EIDL advance did not have to be repaid, and small businesses could receive an advance, even if they were not approved for an EIDL loan. The maximum advance amount was $10,000.
According to the affidavit filed in support of the criminal complaint, in September 2020, a Baltimore County Police Department detective investigating fraudulent PPP loans associated with targets of a criminal investigation identified several other individuals, including Glenn, who applied for and received PPP loans and EIDLs, using false and fraudulent information. As detailed in the affidavit, a review of the PPP and EIDL applications submitted by Glenn for businesses that she owns and/or controls were found to contain false statements and misrepresentations as to the legitimacy of the business; the number of employees; the financial earnings and payroll expenses of the businesses; and the income taxes withheld by the businesses. The affidavit alleges that how Glenn spent the loan proceeds was inconsistent with payroll and other business expenses allowable under the loan program.
For example, on June 19, 2020, Glenn allegedly filed an EIDL application for “Kdonsvanity décor.” An entity called K’Dons Vanity Décor was formed in Maryland on December 17, 2019. Glenn was listed as the registered agent for the entity, with her home address as the address of the company. The application claimed that the business had gross revenues of $175,000 and had 10 employees. IRS records indicate that there were no business tax filings for K’Don’s Vanity Décor LLC for tax years 2019 or 2020. Glenn also responded “no’ to the question as to whether she had been convicted for any felony within the last five years. In fact, Glenn had been convicted of felonious credit card fraud in Fairfax County, Virginia in 2016 and of access device fraud in York County, Pennsylvania. Glenn received a $10,000 EIDL advance due to the application, but the SBA ultimately declined the larger EIDL loan sought in the application due to “unsatisfactory credit history.”
The affidavit alleges that Glenn submitted a similar fraudulent application for a PPP loan on behalf of K’Dons Vanity Décor and on August 8, 2020, received loan proceeds of $70,357.50. A review of Glenn’s bank accounts reveals that shortly after receiving the PPP loan funds, Glenn made purchases inconsistent with those allowable under the PPP loan program. For instance, Glenn purchased luxury goods, including multiple pairs of Christian Louboutin brand shoes, and resort travel with Davis. On July 19, 2021, Glenn submitted an application for loan forgiveness, claiming that $67,390 of the PPP loan had been spent on payroll costs, and the loan was forgiven.
During the course of the investigation, law enforcement discovered multiple other business entities (or purported business entities) associated with Glenn that applied for EIDL or PPP loans, including TD Innovative Consulting, referenced above, and Epoxy By S.H.E. LLC, in addition to “Kaydon Vanity Décor.” As detailed in the affidavit, the loan applications contained similar false statements as to the legitimacy of the businesses, number of employees, and financial condition of the entities and the loans were ultimately denied.
Romance among the shifty loan docs…
The affidavit further alleges that Glenn engaged in a scheme to assist Davis, with whom she is in a romantic relationship, to submit and receive fraudulent PPP and EIDL loans. Specifically, Davis allegedly submitted a fraudulent PPP loan application on behalf of For Keepsake Investment Realty, which included false statements as to the number of employees and amount of payroll, as well as including a fraudulent bank statement and IRS Form 940—Employer’s Annual Federal Unemployment Tax Return for 2019—in support of the application. Davis also responded “no’ to the question as to whether he had been placed on any form of parole or probation within the last five years, when in fact, on March 24, 2017, Davis began four years of supervised release for a 2013 federal conviction in Arizona for conspiracy to distribute marijuana. On March 18, 2021, Davis received PPP loan proceeds of $145,369 on behalf of For Keepsake Investment Realty.
Further, a fraudulent EIDL loan application on behalf of For Keepsake Investment Realty, listing Davis as the owner of the business, was submitted on June 30, 2020, which claimed, among other things, that the business had gross revenues of $250,000 and employed 10 employees. On July 2, 2020, and July 15, 2020, Davis received an EIDL advance of $10,000 and EIDL loan proceeds of $64,900, respectively, on behalf of For Keepsake Realty.
As detailed in the affidavit, in the months following the disbursement of the EIDL loans, Davis purchased multiple airline tickets, and luxury goods and paid for vacations. Moreover, on December 7, 2021, For Keepsake Realty sent $7,000 via a teller transfer to KDons Vanity Décor LLC’s bank account, which Glenn controlled.
In addition to the fraudulent PPP and EIDL loans obtained by Glenn and Davis, the affidavit alleges that Glenn received approximately $21,000 and Davis received approximately $13,000 in unemployment compensation based on fraudulent applications they submitted.
Glenn and Davis each face a maximum sentence of 20 years in federal prison for the wire fraud conspiracy if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
The District of Maryland Strike Force is one of three strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Erek L. Barron commended the FBI and the Baltimore County Police Department for their work in the investigation. Barron thanked Assistant U.S. Attorney Paul A. Riley, who is prosecuting the case. He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber.