CERTIFIEDATRI'E COPT

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IN THE UNITED STATES DISTRICT COURT '
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FOR THE NORTHERN DTSTRICT OF FLORIDA
GAINESVILLE DIYISION

UNITE} STATES OT' AMERICA

SEALED
v. INDICTMENT

JOSEPH HARDING l,7zo*z-frwlrnru

THE GRAi\\ID,IURY CHARGES:

COUNTS ONE AND TWO

A. INTRODUCTION
At all times material to this lndictment:

1. The United States Small Business Administration ("SBA") \,vas an

executive-branch agency of the United States government that provides support to

entrepreneurs and srnall businesses. The mission of the SBA w'as to maintain and

strengthen the nation's economy by enabling the establishraent and viability of

small businesses and by assisting in the economic recovery of communities after

disasters.

2. As part of this eflbrt, the SBA enabled and provided for loans directly,

and through banks. credit unions, and other lenders

3. A response to the COVID-19 outbreak was an expansion of an

existing disaster-related program - the Economic Injtrry Disaster Loan ("EIDL") -

to provide tbr loan assistance (including $10,000 advances) for small businesses
and other eligible entities for loans up to $2 million. The EIDL proceeds could

have been used to pay fixed debts, payroll, accounts payable, and other bills that

could have been paid had the disaster not occurred; however, such loan proceeds

were not intended to replace lost sales or profits, or for the expansion of a business.

4. Unlike certain other types of SBA-guaranteed loans, EIDL funds were

issued directly from the United States Treasury, and applicants applied for EIDL

funds directly through the SBA via an online portal and application. The EIDL

application process, which also used certain outside contractors for system suPPort,

collected information concerning the business and the business owner, including

information about the gross revenues for the business prior to January 31,2020,

and the cost of goods sold. Applicants electronically certified that the information

provided was true and accurate and were wamed that any false statement or

misrepresentation to the SBA, or any misapplication of loan proceeds may result in

sanctions, including criminal penalties.

5. EIDL applications were received in and processed using computer

servers located in the states of Iowa, Virginia, and Washington. EIDL

disbursement payments were initiated by the SBA using comPuter servers located

in the state of Colorado, which transmitted the payment information to the

Treasury using computer servers located in the state of Virginia.

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 B. THE CHARGE

Between on or about December l, 2020, and on or about March l, 2021, in

the Northem District ofFlorida and elsewhere, the defendant

JOSEPH HARDING,

did knowingly and willfully devise, and intend to devise, a scheme to defraud and

for obtaining money and property by means of materially false and fraudulent

pretenses, representations, and promises, and for the purpose ofexecuting such

scheme, did cause a wire communication to be transmitted in interstate commerce.

C. SCHEMETODEFRAUD

It was part of the scheme to defraud that:

l. JOSEPH IIARDING made and caused to be made false and

fraudulent representations in SBA EIDL loan applications and in supporting loan

documents submitted to the SBA in the names of dormant business entities,

namely, The Vak Shack Inc. and Harding Farms LLC, in order to and in an attempt

to falsely qualifi for SBA EIDL loans.

2. JOSEPH IIARDING specifically attempted to cause and caused the

SBA to issue SBA EIDL loans, and to disburse SBA EIDL loan proceeds to him

based upon loan applications, loan documents, and emails that falsely represented

the number ofemployees and gross revenues for The Vak Shack Inc. and Harding

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Farms LLC. Further, HARDING falsely represented that these business entities

were active businesses during 2019 and 2020 when in fact they were not.

3. JOSEPH HARDING knowingly obtained fraudulently-created bank

statements for Harding Farms LLC for September 2020 and October 2020 which

were used as supporting documentation for his fraudulent EIDL loan application.

4. On or about the day that he submitted his false and fraudulent EIDL

loan applications to the SBA for The Vak Shack Inc. and Harding Farms LLC,

JOSEPH HARDING opened bank accounts at J.P. Morgan Chase Bank

("Chase") for The Vak Shack Inc. and Harding Farms LLC. In his false and

fraudulent EIDL loan applications, JOSEPH HARDING directed the SBA to

deposit the loan proceeds into these newly-opened bank accounts.

5. JOSEPH IIARDING electronically mailed and submitted, and

caused to be electronically mailed and submitted, false and fraudulent

documentation to the SBA in support of the EIDL loan applications.

6. Just days before he submitted his false and fraudulent SBA EIDL loan

application to the SBA for The Vak Shack [nc., and on the day that he submitted

his false and fraudulent SBA EIDL loan application to the SBA for Harding Farms

LLC, JOSEPII HARDING filed 2020 Florida Limited Liability Company

Reinstatements for The Vak Shack Inc. and Harding Farms LLC with the State of

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Florida Department of State Division of Corporations in order to make it appear

that The Vak Shack Inc. and Harding Farms LLC had been active businesses.

7. JOSEPH HARDING communicated, via email and telephone, with

the SBA about the false and fraudulent EIDL loan applications and their status, and

the funding of such loans.

8. By this conduct, JOSEPH HARDING fraudulently obtained and

attempted to obtain more than S150,000 in funds from the SBA to which he was

not entitled.

D. EXECUTION OFTHE SCHEME

On or about the following dates, for the purpose of executing and attempting

to execute the scheme to defraud, the defendant,

JOSEPH HARDING,

knowingly did cause wire communications to be transmitted in interstate

commerce, as set forth below:

COUNT DATE WIRE COMMUNICATI ON

Between on or about
Submission of an EIDL application for
One December 18,2020, and on
The Vak Shack Inc. to the SBA
or about December 21,2020
Between on or about Submission of an EIDL application and
Two December 18,2020, and on supporting documentation for Harding
or about December 21,2020 Farms LLC to the SBA

In violation of Title 18, United States Code, Sections 1343 andZ.

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 COUNTS THREE AND FO[]R

A. INTRODUCTION

The allegations ofSections A and C ofCounts One and Two are hereby

realleged and incorporated by reference as iffully set forth herein.

B. THECHARGE

Between on or about December 21,2020, and on or about March l,2Q2l,in

the Northem District of Florida and elsewhere, the defendant,

JOSEPH HARDING,

did knowingly engage and attempt to engage in a monetary transaction by,

through, and to a financial institution, affecting interstate commerce, in criminally

derived property of a value greater than $10,000, namely, the withdrawal, deposit,

and transfer of funds and monetary instruments, as identified below, such properly

having been derived from a specified unlawfi.rl activity, that is, wire fraud, in

violation of Title 18, United States Code, Section 1343, as charged in Counts One

and Two of this lndictment:

COt]NT DATE MONETARY SACTION

Transfer of$30,000 from Chase
Three On or about Janvry 5,2027 accountending in 1365 to Chase
account ending in 3103
Transfer of$15,235.93 from Chase
Four On or about February 3,2021 account ending in 1365 to Chase
account ending in 85 13

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 In violation of Title 18, United States Code, Section 1957 and 2.

COUNT FIVE

A. INTRODUCTION
The allegations ofSections A and C ofCounts One and Two are hereby

realleged and incorporated by reference as if fully set forth herein.

B. THE CIIARGE

On or about December 1 8, 2020, in the Northern District of Florida and

elsewhere, in a matter within the jurisdiction of the executive branch of the

Govemment of the United States, that is, the SBA's administration of its EIDL

program, the defendant,

JOSEPH IIARDING,

did knowingly and willfully falsiff a material fact; make materially false, fictitious,

and fraudulent statements and representations; and make and use a false document

knowing the same to contain any materially false, fictitious, or fraudulent

statement or entry, to wit, the defendant falsely stated in an SBA EIDL application

that he submitted to the SBA to obtain EIDL funds that:

a The Vak Shack Inc. had gross revenues of$420,874.00 for the

twelve months prior to January 31,2020, the date of the disaster (namely,

the COVID-I9 pandemic),

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 b. The Vak Shack Inc. had Costs ofGoods Sold of$32,998.00 for

the twelve months prior to January 31,2020, the date of the disaster

(namely, the COVID-I9 pandemic),

The Vak Shack Inc. had four employees, and

d. the information and supporting documentation submitted with

the SBA EIDL application was true and conect,

whereas, in truth and in fact, and as the defendant well knew;

a. The Vak Shack lnc. had been a dormant business entity with

the Florida Departrnent of State Division of Corporations between on or

about May 2017 and on or about December 16,2020, and therefore, had no

gross revenues for the twelve months prior to January 31,2020, the date of

the disaster (namely, the COVID-19 pandemic),

b. The Vak Shack Inc. had no business activity in years 2019 or

2020; and therefore, had no revenues or Costs of Goods Sold in years 20 l9 or

2020,

c The Vak Shack Inc. had no employees, and

d. the information and supporting documentation submifted with

the SBA EIDL application for The Vak Shack Inc. was false.

In violation ofTitle 18, United States Code, Section l00l(a).

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 COUNTSD(

A. INTRODUCTION
The allegations ofSections A and C ofCounts One and Two are hereby

realleged and incorporated by reference as iffully set forth herein.

B. THECHARGE

On or about December 18,2020, in the Northern District of Florida and

elsewhere, in a matter within the jurisdiction of the executive branch of the

Govemment of the United States, that is, the SBA's administration of its EIDL

program, the defendanl

JOSEPH HARDING,

did knowingly and willfully falsift a material fact; make materially false, fictitious,

and fraudulent statements and representations; and make and use a false document

knowing t}re same to contain any materially false, fictitious, or fraudulent

statement or enty, to wit, the defendant falsely stated in an SBA EIDL application

that he submitted to the SBA to obtain EIDL funds that:

a. Harding Farms LLC had gross revenues of $392,000.00 for the

twelve months prior to January 31,2020, the date of the disaster (namely,

the COVID-19 pandemic),

b. Harding Farms LLC had two employees, and

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 c. the information and supporting documentation submitted with

the SBA EIDL application was true and corect,

whereas, in truth and in fact, and as the defendant well knew:

a. Harding Farms LLC had been a donnant business entity with the

Florida Department of State Division of Corporations between on or about

May 20L7 and on or about December 18,2020, and therefore, had no gross

revenues for the twelve months prior to January 31,2020, the date of the

disaster (namely, the COVID-19 pandemic),

b. Harding Farms LLC had no employees, and

c. the information and supporting documentation submitted with

the SBA EIDL application for Harding Farms LLC was false.

In violation of Title 18, United States Code, Section l00l(a).

CRIMINAL FORFEITURE

The allegations contained in Counts One through Four of this Indictment are

hereby realleged and incorporated by reference for the purpose of alleging

forfeiture. From his engagement in the violations alleged in Counts One through

Four of this Indictment, the defendant,

JOSEPH HARDING,

shall forfeit to the United States of America:

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 (A) pursuant to Title 18, United States Code, Section 982(a)(2), and Title

28, United States Code, Section 2461(c), upon conviction ofan offense in violatron

of Title 18, United States Code, Section 1343, as alleged in Counts One and Two

of this Indictment, any and all of the Defendant's right, title, and interest in any

property, real and personal, constituting and derived from proceeds traceable to

such offense;

(B) pursuant to Title 18, United States Code, Section 982(a)(l), upon

conviction of an offense in violation of Title 18, United States Code, Section 1957,

as alleged in Counts Three and Four of this Indictment, any and all of the

Defendant's right, title, and interest in any property, real and personal, involved in

such offense, and any property traceable to such property.

The United States will also seek a forfeiture money judgment in an amount

that is equal to the value ofany property, real or personal, which: 1) constitutes or

is derived from proceeds traceable to these offenses, and 2) is involved in such

offenses and any property traceable to such property.

Ifany ofthe property described above as being subject to forfeiture, as a

result ofacts or omissions ofthe defendant:

cannot be located upon the exercise ofdue diligence;

11. has been transferred, sold to, or deposited with a third party;

I ll. has been placed beyond thejurisdiction ofthis Court;

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 iu. has heen substantially dirninished in value; ar

v. hrs heen commingled with other prCIperty that cannot b*

subdivided without di{fieulty,

it is the inient of the United Stales, pursuant to Title ? 1, United States Code,

Section S53{pJ, as incoqporated by Title 28, United States Code, Section ?461(c},

to seek forfeitune r:f any other property of said defendanr up to the v*lue r:f the

fcrfeitable property.

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