9 W\ referred to as the "TEZNA"), agree that had this matter

IN

THE

UNITED

STATES

DISTRICT

COURT

FOR

THE

EASTERN

DISTRICT

OF

VIRGINIA

ALEXANDRIA

DIVISION

RLED

fN

OPEN

COURT

9

W\

CLERK,

U.S.

Dir

ALEXAI\lDRi/>

,

UNITED

STATES

OF

AMERICA

ANDREW

ALEXANDER

TEZNA

a/k/a

N.

ANDREW

TEZNA

a/k/a

NESTOR

ANDRES

TEZNA

Defendant.

Case

No.

l:21-cr-77-CMH

STATEMENT

OF

FACTS

The

United

States

and

the

defendant,

ANDREW

ALEXANDER

TEZNA

(hereinafter

referred

to

as

the

"TEZNA"),

agree

that

had

this

matter

proceeded

to

trial,

the

United

States

would

have

proven

the

following

facts

beyond

a

reasonable

doubt

with

admissible

and

credible

evidence:

I.

Factual

Background

1.

TEZNA

resided

in

Leesburg,

Virginia,

within

the

Eastern

District

of

Virginia.

From

January

2015

to

the

present,

TEZNA

worked

as

a

full-time

employee

of

the

National

Aeronautics

and

Space

Administration

("NASA")

who

makes

approximately

$170,801

per

year.

Since

June

2020, he

has

been

a

Senior

Executive

Service

("SES")

employee.

2.

TEZNA

also

resides

with

his

wife,

T.T.,

who

was

also

a

full-time

government

employee,

and

with

his

mother-in

law,

B.I.

As

TEZNA

knew,

B.I.

has

not

had

full-time

employment

since

at

least

2016.

3.

C.M.

was

a

friend

of

T.T.,

who

TEZNA

hired

at

NASA,

on

or

about

September

2019,

and

was

thereafter

a

NASA

employee

who

reported

at

first

directly

and

later

indirectly

to

TEZNA.

Case 1:21-cr-00077-CMH Document 9 Filed 04/19/21 Page 1 of 18 PageID# 45

4.

Sonabank

and

Celtic

Bank

each

were

banks

with

deposits

insured

by

the

Federal

Deposit

Insurance

Corporation

("FDIC").

Sonabank

and

Celtic

Bank

each

therefore

constituted

a

"financial

institution"

for

purposes

of

18

U.S.C.

§§

20,

1344,

and

1957.

Additionally,

Sonabank

was

a

Virginia

chartered

bank

headquartered

in

Tappahannock,

Virginia

within

the

Eastern

District

of

Virginia.

The

Paycheck

Protection

Program

5.

The

Coronavirus

Aid,

Relief,

and

Economic

Security

("CARES")

Act

was

a

federal

law

enacted

in

or

around

March

2020

and

was

designed

to

provide

emergency

fi

nancial

assistance

to

the

millions

of

Americans

who

are

suffering

the

economic

effects

caused

by

the

COVID-19

pandemic.

One

source

of

relief

provided

by

the

CARES

Act

was

the

authorization

of

billions

in

forgivable

loans

to

small

businesses

for

job

retention

and

certain

other

expenses,

through

a

program

referred

to

as

the

Paycheck

Protection

Program

("PPP").

6.

In

order

to

obtain

a

PPP

loan,

a

qualifying

business

had

to

submit

a

PPP

loan

application

signed

by

an

authorized

representative

of

the

business.

The

applicant

of

a

PPP

loan

was

required

to

acknowledge

the

program

rules

and

make

certain

affirmative

certifications

in

order

to

be

eligible

to

obtain

the

PPP

loan.

In

the

PPP

loan

application,

the

applicant

had

to

state,

among

other

things,

the:

(a)

average

monthly

payroll

expenses

and

(b)

number

of

employees.

In

addition,

businesses

applying

for

a

PPP

loan

had

to

provide

documentation

showing

their

payroll

expenses.

7.

A

PPP

loan

application

had

to

be

processed

by

a

participating

fi

nancial

institution

(the

lender).

If

the

PPP

loan

application

was

approved,

the

lender

funded

the

PPP

loan

using

its

own

monies,

which

were

100%

guaranteed

by

the

Small

Business

Administration

("SBA").

Data

from

the

application,

including

information

about

the

borrower,

the

total

amount

of

the

Case 1:21-cr-00077-CMH Document 9 Filed 04/19/21 Page 2 of 18 PageID# 46

loan,

and

the

listed

number

of

employees,

was

transmitted

by

the

lender

to

the

SBA

in

the

course

of

processing

the

loan.

1.

PPP

loan

proceeds

could

only

be

used

by

the

business

for

certain

permissible

expenses—^payroll

costs,

interest

on

mortgages,

rent,

and

utilities.

The

proceeds

of

a

PPP

loan

were

not

permitted

to

be

used

towards

the

purchase

of

a

personal

automobile,

a

dog,

to

pay

personal

credit

card

debt,

to

pay

debt

a

residential

pool,

to

pay

costs

associated

with

a

Disney

Vacation

Club

membership,

or

to

fund

the

borrower's

ordinary

day-to-day

living

expenses

unrelated

to

the

specified

authorized

expenses.

The

Economic

Injury

Disaster

Loan

Program

8.

The

Economic

Injury

Disaster

Loan

("EIDL")

program

was

a

SBA

program

that

provided

low-interest

financing

to

small

businesses,

renters,

and

homeowners

in

regions

affected

by

declared

disasters.

The

CARES

Act

also

authorized

the

SBA

to

provide

EIDLs

to

eligible

small

businesses

that

experienced

substantial

financial

disruptions

due

to

the

COVID-19

pandemic.

In

addition,

the

CARES

Act

authorized

the

SBA

to

issue

advances

of

up

to

$10,000

to

small

businesses

within

three

days

of

applying

for

an

EIDL.

The

advances

do

not

have

to

be

repaid.

9.

In

order

to

obtain

an

EIDL

and

advance,

a

qualifying

business

had

to

submit

an

application

to

the

SBA

and

provide

information

about

its

operations,

such

as

the

number

of

employees,

gross

revenue

for

the

12-month

period

preceding

the

disaster,

and

cost

of

goods

sold

in

the

12-month

period

preceding

the

disaster.

In

the

case

of

EIDLs

for

COVID-19

relief,

the

12-month

period

was

the

timeframe

preceding

January

31,

2020.

The

applicant

had

to

also

certify

that

all

of

the

information

in

the

application

was

true

and

correct

to

the

best

of

the

applicant's

knowledge.

Any

funds

issued

under

an

EIDL

or

EIDL

advance

were

issued

directly

Case 1:21-cr-00077-CMH Document 9 Filed 04/19/21 Page 3 of 18 PageID# 47

by

the

SBA.

EIDL

funds

could

be

used

for

payroll

expenses,

sick

leave,

production

costs,

and

business

obligations,

such

as

debts,

rent,

and

mortgage

payments.

If

the

applicant

also

obtained

a

PPP

loan,

the

EIDL

funds

could

not

be

used

for

the

same

purpose

as

the

PPP

funds.

Unemployment

Benefits

10.

Unemployment

Insurance

("UI")

was

a

joint

state-federal

program

that

was

intended

to

provide

temporary

financial

assistance

to

unemployed

workers

who

were

unemployed

through

no

fault

of

their

own.

Each

state

administered

a

separate

UI

program,

but

all

states

followed

the

same

guidelines

established

by

federal

law.

11.

The

Virginia

Employment

Commission

("VEC")

was

responsible

for

administering

the

unemployment

compensation

program

in

the

Commonwealth

of

Virginia.

Eligible

recipients

received

a

minimum

of

$158

per

week

in

traditional

UI

benefits.

12.

As

part

of

the

CARES

Act

and

the

Lost

Wage

Assistance

Program

("LWA"),

which

included

unemployment

assistance

that

took

affect

after

the

CARES

Act

supplements

expired,

there

were

additions

to

the

traditional

UI

benefits.

Specifically,

the

VEC

had

the

following

UI

components

as

a

result

of

the

CARES

Act

and

LWA:

a.

Federal

Pandemic

Unemployment

Compensation

Program

("FPUC")

-

the

CARES

Act

increased

benefits

for

workers

collecting

UI

by

$600

per

week

for

claims

effective

March

29th

through

July

31st,

2020,

increasing

the

weekly

benefit

to

$758

per

week.

b.

Pandemic

Unemployment

Assistance

("PUA")

-

PUA

provided

unemployment

benefits

for

individuals

who

did

not

qualify

for

traditional

UI

benefits.

Case 1:21-cr-00077-CMH Document 9 Filed 04/19/21 Page 4 of 18 PageID# 48

c.

Pandemic

Emergency

Unemployment

Compensation

("PEUC")

-

the

CARES

Act

included

a

provision

for

up

to

13

weeks

of

regular/traditional

unemployment

insurance

benefits

to

those

who

have

exhausted

their

eligibility.

d.

Lost

Wages

Assistance

("LWA")

-

took

affect

after

July

31,2020

and

provided

an

additional

$300

per

week

to

claimants

in

Virginia

who

are

eligible

for

at

least

$100

week

in

unemployment

insurance

compensation.

13.

Unemployed

workers

in

the

Commonwealth

of

Virginia

filed

for

UI

benefits

either

by

phone

or

through

the

VEC

on-line

portal.

To

be

eligible

for

UI

benefits,

the

claimants

had

to

have

been

separated

from

their

employer

or

had

their

hours

reduced

by

their

employer.

Once

the

VEC

approved

the

UI

claim,

claimants

had

to

re-certify

their

unemployment

status

on

a

weekly

basis.

The

claimant

had

to

certify

that

they

were

ready,

willing,

and

able

to

work

each

day

during

the

weeks

they

claimed

UI.

14.

Applicants

were

only

eligible

to

receive

weekly

PUA

benefits

if

they

were

unemployed

for

reasons

the

COVID-19

pandemic.

The

applicant

had

to

certify,

under

penalty

of

perjury,

that

they

were

able

to

go

to

work

each

day

and,

if

offered

a

job,

the

applicant

had

to

be

able

to

accept

it.

II.

Criminal

Conduct

A.

PPP

Loan

Fraud

15.

From

at

least

in

or

around

May

2020

and

continuing

through

at

least

in

or

around

December

2020,

in

the

Eastern

District

of

Virginia

and

elsewhere,

defendant

ANDREW

ALEXANDER

TEZNA,

did

knowingly

devise

and

intend

to

devise

a

scheme

and

artifice

to

obtain

the

moneys,

funds,

credits,

assets,

and

other

property

owned

by,

and

under

the

custody

Case 1:21-cr-00077-CMH Document 9 Filed 04/19/21 Page 5 of 18 PageID# 49

and

control

of,

a

financial

institution,

namely,

Sonabank

and

Celtic

Bank,

by

means

of

materially

false

and

fraudulent

pretenses,

representations,

and

promises.

16.

As

explained

in

greater

detail

below,

TEZNA

engaged

in

and

executed

a

scheme

to

fraudulently

to

obtain

moneys,

funds,

credits,

assets,

and

other

property

owned

by,

and

under

the

custody

and

control

of,

Sonabank

and

Celtic

Bank,

namely,

PPP

loan

proceeds,

and

to

spend

those

proceeds

on

items

that

were

not

authorized

under

the

PPP.

In

furtherance

of

the

scheme

to

defraud,

and

to

accomplish

its

unlawful

objects,

the

following

manner

and

means

were

used,

among

others:

The

Andalasia

Designs

PPP

Loan

ApDlication

17.

On

or

about

May

18,2020,

TEZNA

submitted

and

caused

to

be

submitted

a

fraudulent

loan

application

to

Sonabank

on

behalf

of

Andalasia

Designs.

TEZNA

listed

T.T.'s

social

security

number

on

the

application

and

signed

and

certified

the

application

as

T.T.

With

the

application

TEZNA

submitted

a

copy

of

T.T.'s

Virginia

driver's

license.

In

this

application,

TEZNA

knowingly

made

and

caused

to

be

made

numerous

materially

false

and

fraudulent

representations

to

Sonabank.

Among

other

things,

TEZNA

submitted

and

caused

to

be

submitted

a

PPP

loan

application,

on

behalf

of

Andalasia

Designs,

in

which

he

made

all

of

the

following

materially

false

and

fraudulent

representations:

a.

TEZNA

falsely

claimed

that

Andalasia

Designs

had

three

employees

with

average

monthly

payroll

expenses

of

at

least

$34,700.

TEZNA

knew

that

this

was

false,

and

that

in

truth

and

fact,

Andalasia

Designs

had

at

most

one

employee,

T.T.,

and

Andalasia

Designs

had

no

regular

monthly

payroll

expenses.

b.

TEZNA

falsely

certified

that

"[a]ll

SBA

loan

proceeds

will

be

used

only

for

business-related

purposes

as

specified

in

the

loan

application

and

consistent

with

Case 1:21-cr-00077-CMH Document 9 Filed 04/19/21 Page 6 of 18 PageID# 50

the

Paycheck

Protection

Program

Rule."

TEZNA

knew

that

this

was

false,

and

that

he

intended

to

use

the

PPP

loan

proceeds

for

unauthorized

purposes,

including

paying

off

personally incurred

debt

and

to

pay

for

day-to-day

living

expenses.

c.

TEZNA

falsely

certified

that

"the

funds

will

be

used

to

retain

workers

and

maintain

payroll

or

make

mortgage

payments,

lease

payments,

and

utility

payments;

as

specified

under

the

Paycheck

Protection

Program

Rule."

TEZNA

knew

that

this

was

false

as

he

intended

to

use

the

PPP

loan

proceeds

for

unauthorized

purposes.

d.

TEZNA

falsely

attested

and

certified

that

"the

information

provided

in

[the]

application

and

the

information

provided

in

all

supporting

documents

and

forms

is

true

and

accurate

in

all

material

respects,"

TEZNA

knew

that

this

was

false

as

he

had

made

numerous

false

statements

in

the

PPP

loan

application,

supporting

documentation,

and

forms.

18.

As

a

part

of

the

fraudulent

loan

application

on

behalf

of

Andalasia

Designs,

TEZNA

also

submitted

and

caused

to

be

submitted

to

Sonabank

wholly

fabricated

supporting

documentation

including:

a.

A

purported

"Andalasia

Designs

Payroll

Report"

for

the

"Time

Period:

02/15/2020

-

05/18/2020."

The

document

listed

three

employees,

T.T.,

B.I.,

and

C.M.,

and

listed

the

employees'

purported

weekly

pay

as

$19,200

per

week

and

$67,200

for

the

full

time

period.

The

document

was

a

fabrication;

B.I.

and

C.M.

were

not

employees

of

Andalasia

Designs,

and

the

company

had

not

incurred

the

payroll

expenses

listed.

Case 1:21-cr-00077-CMH Document 9 Filed 04/19/21 Page 7 of 18 PageID# 51

b.

A

purported

2019

Form

1040

Schedule

C,

Profit

or

Loss

fr

om

Business

("Schedule

C")

which

listed

T.T.

as

the

proprietor,

listed

T.T.'s

social

security

number,

and

listed

the

business

name

of

Andalasia

Designs.

This

purported

2019

Schedule

C

listed

"Gross

receipts"

of

$172,810

and

"Total

expenses"

of

$51,060.

The

document

was

a

fabrication;

the

sole

Schedule

C

attached

to

TEZNA's

personal

tax

return.

Form

1040,

submitted

to

the

Internal

Revenue

Service

did

not

match

the

Schedule

C

submitted

to

Sonabank.

The

1040

fi

led

with

the

IRS

reported

only

$5,067.00

in

gross

receipts.

However,

in

truth,

Andalasia

Designs

earned

gross

receipts

totaling

only

$7,260

in

2019.

19.

As

a

result

of

the

misrepresentations

on

the

Andalasia

Designs

PPP

loan

application,

on

or

about

May

20,2020,

Sonabank

disbursed

$25,400

in

PPP

loan

proceeds

to

a

bank

account

that

TEZNA

had

signature

authority

and

managed.

20.

TEZNA

did

not

use

the

PPP

loan

proceeds

for

their

intended

purposes.

Instead,

it

was

further

part

of

the

scheme

that

once

TEZNA

received

the

PPP

loan

proceeds,

he

knowingly

spent

the

proceeds

on

numerous

items

that

he

knew

were

not

authorized

under

the

PPP.

Among

other

things,

TEZNA

knowingly

spent

and

caused

to

be

spent

the

PPP

loan

proceeds

for

the

following

unauthorized

expenses:

a.

to

pay

$

18,447.31

on

an

auto

loan

for

a

2015

Toyota

Sienna;

b.

to

make

a

$5,727.28

payment

on

a

personal

Best

Buy

credit

card

The

B.I.

PPP

Loan

21.

On

or

about

May

22,2020,

TEZNA

submitted

and

caused

to

be

submitted

a

fraudulent

loan

application

to

Celtic

Bank

on

behalf

of

the

business

in

the

name

of

B.I.

TEZNA

listed

B.I.'s

social

security

number

on

the

application

and

signed

the

application

as

B.I.

With

the

Case 1:21-cr-00077-CMH Document 9 Filed 04/19/21 Page 8 of 18 PageID# 52

application,

TEZNA

submitted

a

copy

of

B.I.'s

Virginia

driver's

license.

In

this

application,

•

TEZNA

knowingly

made

and

caused

to

be

made

numerous

materially

false

and

fraudulent

representations

to

Celtic

Bank.

Among

other

things,

TEZNA

submitted

and

caused

to

be

submitted

a

PPP

loan

application,

on

behalf

of

the

business

in

the

name

of

B.I.,

in

which

he

made

all

of

the

following

materially

false

and

fraudulent

representations:

a.

TEZNA

falsely

claimed

that

the

business

in

the

name

of

B.I.

was

a

sole

proprietorship

with

average

monthly

payroll

expenses

of

at

least

$29,567.50.

TEZNA

knew

that

this

was

false,

and

that

in

truth

and

fact,

the

business

in

the

name

of

B.I.

did

not

exist

and,

therefore,

had

no

regular

monthly

payroll

expenses.

b.

TEZNA

falsely

certified

that

"[a]ll

SBA

loan

proceeds

will

be

used

only

for

business-related

purposes

as

specified

in

the

loan

application

and

consistent

with

the

Paycheck

Protection

Program

Rule."

TEZNA

knew

that

this

was

false,

as

he

intended

to

use

the

PPP

loan

proceeds

for

unauthorized

purposes,

including

paying

off

personally

incurred

debt

and

to

pay

for

day-to-day

living

expenses.

c.

TEZNA

falsely

certified

that

the

business

"was

in

operation

on

February

15,

2020

and

had

employees

for

whom

it

paid

salaries

and

payroll

taxes

or

paid

independent

contractors,

as

reported

on

Form(s)

1099-MISC."

TEZNA

knew

that

this

was

false,

and

that

in

truth

and

fact,

the

business

in

the

name

of

B.I.

did

not

exist

and

did

not

have

employees

for

which

it

paid

salaries

and

payroll

taxes.

d.

TEZNA

falsely

certified

that

"the

funds

will

be

used

to

retain

workers

and

maintain

payroll

or

make

mortgage

payments,

lease

payments,

and

utility

payments;

as

specified

under

the

Paycheck

Protection

Program

Rule."

TEZNA

Case 1:21-cr-00077-CMH Document 9 Filed 04/19/21 Page 9 of 18 PageID# 53

knew

that

this

was

false

as

he

intended

to

use

the

PPP

loan

proceeds

for

unauthorized

purposes,

e.

TEZNA

falsely

attested

and

certified

that

"the

information

provided

in

[the]

application

and

the

information

provided

in

all

supporting

documents

and

forms

is

true

and

accurate

in

all

material

respects."

TEZNA

knew

that

this

was

false

as

he

had

made

numerous

false

statements

in

the

PPP

loan

application,

supporting

documentation,

and

forms.

22.

As

a

part

of

the

fraudulent

loan

application

on

behalf

of

the

business

in

the

name

of

B.I.,

TEZNA

submitted

and

caused

to

be

submitted

to

Celtic

Bank

a

purported

2019

Form

1040

Schedule

C,

Profit

or

Loss

from

Business

("Schedule

C")

which

listed

B.I.

as

the

proprietor

and

listed

B.I.'s

social

security

number.

No

business

name

was

listed

on

the

form.

This

purported

2019

Schedule

C

listed

"Gross

receipts"

of

$354,810

and

"Total

expenses"

of

$5,816.

The

document

was

a

fabrication:

the

Internal

Revenue

Service

has

no

record

of

a

2019

Form

1040

Schedule

C,

Profit

or

Loss

from

Business

("Schedule

C")

fi

led

for

B.I.

23.

As

a

result

of

the

misrepresentations

on

the

B.I.

PPP

loan

application,

on

or

about

May

26,2020,

Celtic

Bank

disbursed

$73,918

in

PPP

loan

proceeds

to

a

bank

account

that

TEZNA

had

signature

authority

and

managed.

24.

TEZNA

did

not

use

the

PPP

loan

proceeds

for

their

intended

purposes.

Instead,

it

was

further

part

of

the

scheme

that

once

TEZNA

received

the

PPP

loan

proceeds,

he

knowingly

spent

the

proceeds

on

numerous

items

that

he

knew

were

not

authorized

under

the

PPP.

Among

other

things,

TEZNA

knowingly

spent

and

caused

to

be

spent

the

PPP

loan

proceeds

for

the

following

unauthorized

expenses:

a.

to

pay

$48,961.81

on

a

loan

for

a

residential

swimming

pool;

10

Case 1:21-cr-00077-CMH Document 9 Filed 04/19/21 Page 10 of 18 PageID# 54

b.

to

pay

off

at

least

$19,700

of

personal

credit

card

debt.

The

Nestor

Tezna

PPP

Loan

25.

On

or

about

May

29,2020,

TEZNA

submitted

and

caused

to

be

submitted

a

fraudulent

loan

application

to

Celtic

Bank

on

behalf

of

the

business

in

the

name

Nestor

Tezna.

In

this

application,

TEZNA

knowingly

made

and

caused

to

be

made

numerous

materially

false

and

fraudulent

representations

to

Celtic

Bank.

Among

other

things,

TEZNA

submitted

and

caused

to

be

submitted

a

PPP

loan

application,

on

behalf

of

the

business

in

the

name

Nestor

Tezna,

in

which

TEZNA

made

all

of

the

following

materially

false

and

fr

audulent

representations:

a.

TEZNA

falsely

claimed

that

the

business

in

the

name

of

Nestor

Tezna

was

a

sole

proprietorship

with

average

monthly

payroll

expenses

of

at

least

$69,186.

TEZNA

knew

that

this

was

false,

and

that

in

truth

and

fact,

the

business

in

the

name

of

Nestor

Tezna

did

not

exist

and,

therefore,

had

no

regular

monthly

payroll

expenses.

b.

TEZNA

falsely

certified

that

"[a]

11

SBA

loan

proceeds

will

be

used

only

for

business-related

purposes

as

specified

in

the

loan

application

and

consistent

with

the

Paycheck

Protection

Program

Rule."

TEZNA

knew

that

this

was

false,

and

that

he

intended

to

use

the

PPP

loan

proceeds

for

unauthorized

purposes,

including

paying

off

personally

incurred

debt

and

to

pay

for

day-to-day

living

expenses.

c.

TEZNA

falsely

certified

that

the

business

"was

in

operation

on

February

15,

2020

and

had

employees

for

whom

it

paid

salaries

and

payroll

taxes

or

paid

independent

contractors,

as

reported

on

Form(s)

1099-MISC."

TEZNA

knew

that

11

Case 1:21-cr-00077-CMH Document 9 Filed 04/19/21 Page 11 of 18 PageID# 55

this

was

false,

and

that

in

truth

and

fact,

the

business

in

the

name

of

Nestor

Tezna

did

not

exist

and

did

not

have

employees

for

which

it

paid

salaries

and

payroll

taxes.

d.

TEZNA

falsely

certified

that

"the

funds

will

be

used

to

retain

workers

and

maintain

payroll

or

make

mortgage

payments,

lease

payments,

and

utility

payments;

as

specified

under

the

Paycheck

Protection

Program

Rule."

TEZNA

knew

that

this

was

false,

and

that

he

intended

to

use

the

PPP

loan

proceeds

for

unauthorized

purposes.

e.

TEZNA

falsely

attested

and

certified

that

"the

information

provided

in

[the]

application

and

the

information

provided

in

all

supporting

documents

and

forms

is

true

and

accurate

in

all

material

respects."

TEZNA

knew

that

this

was

false

as

he

had

made

numerous

false

statements

in

the

PPP

loan

application,

supporting

documentation,

and

forms.

26.

As

a

part

of

the

fraudulent

loan

application

on

behalf

of

the

business

in

the

name

of

Nestor

Tenza,

TEZNA

submitted

and

caused

to

be

submitted

to

Celtic

Bank

a

purported

2019

Form

1040

Schedule

C,

Profit

or

Loss

from

Business

("Schedule

C")

which

listed

Nestor

Tezna

as

the

proprietor.

No

business

name

was

listed

on

the

form.

This

purported

2019

Schedule

C

listed

"Gross

receipts"

of

$830,240

and

"Total

expenses"

of

$9,493.

The

document

was

a

fabrication;

the

sole

Schedule

C

attached

to

TEZNA's

personal

tax

return.

Form

1040,

submitted

to

the

Internal

Revenue

Service

did

not

match

the

Schedule

C

submitted

to

Celtic

Bank.

27.

As

a

result

of

the

misrepresentations

on

the

Nestor

Tezna

PPP

loan

application,

on

or

about

June

4,2020,

Celtic

Bank

disbursed

$172,966

in

PPP

loan

proceeds

to

a

bank

account

that

TEZNA

had

signature

authority

and

managed.

12

Case 1:21-cr-00077-CMH Document 9 Filed 04/19/21 Page 12 of 18 PageID# 56

28.

TEZNA

did

not

use

the

PPP

loan

proceeds

for

their

intended

purposes.

Instead,

it

was

further

part

of

the

scheme

that

once

TEZNA

received

the

PPP

loan

proceeds,

he

knowingly

spent

the

proceeds

on

numerous

items

that

he

knew

were

not

authorized

under

the.

Among

other

things,

TEZNA

knowingly

spent

and

caused

to

be

spent

the

PPP

loan

proceeds

for

the

following

unauthorized

expenses:

a.

to

pay

off

over

$140,000.00

of

existing

and

newly

incurred

personal

credit

card

debt;

b.

to

make

a

$6,450.00

payment

to

a

dog

breeder;

c.

to

pay

$4,992.81

towards

a

down

payment

for

Land

Rover

SUV;

d.

to

make

a

$7,200.00

payment

for

home

improvements;

and

e.

to

make

$2,500.00

in

payments

to

Disney

Vacation

Club

for

dues

and

loan

payments.

* * * * *

B.

EIDL

Program

Conduct

29.

Further,

on

or

about

May

20,

2020,

in

the

Eastern

District

of

Virginia

and

elsewhere,

TEZNA

submitted

and

caused

to

be

submitted

a

fraudulent

Andalasia

Designs

EIDL

application,

in

the

name

of

T.T.,

to

the

SBA

seeking

$63,000.

Among

other

things,

on

the

application

TEZNA

submitted

and

caused

to

be

submitted,

TEZNA

claimed

that

Andalasia

Design

earned

$157,000

in

the

prior

twelve

months.

TEZNA

then

and

there

knew

that

Andalasia

Design

earned

far

less

than

the

$157,000

claimed

on

the

EIDL

Application.

The

SBA

rejected

the

application

and

did

not

fund

the

requested

EIDL

advance

or

loan.

30.

On

or

about

June

29,

2020,

in

the

Eastern

District

of

Virginia

and

elsewhere,

TEZNA

submitted

and

caused

to

be

submitted

a

second

fraudulent

Andalasia

Designs

EIDL

13

Case 1:21-cr-00077-CMH Document 9 Filed 04/19/21 Page 13 of 18 PageID# 57

application,

in

the

name

of

T.T.,

to

the

SBA

seeking

$6,500.

Among

other

things,

on

the

application

TEZNA

submitted

and

caused

to

be

submitted,

TEZNA

claimed

that

Andalasia

Designs

earned

$35,000

in

the

prior

twelve

months.

TEZNA

then

and

there

knew

that

Andalasia

Design

earned

far

less

than

$35,000

claimed

on

the

EIDL

Application.

The

SBA

rejected

the

application

and

did

not

fund

the

requested

EIDL

advance

or

loan.

C.

Unemployment

Fraud

31.

On

or

about

May

4,2020,

in

the

Eastern

District

of

Virginia

and

elsewhere,

TEZNA,

in

the

name

of

B.I.,

submitted

and

caused

to

be

submitted

a

fraudulent

application

to

the

VEC

seeking

UI

and

PUA

benefits.

The

VEC

application

required

that

an

applicant

enter,

among

other

things,

his

or

her

social

security

number

and

date

of

birth.

On

the

instant

application,

TEZNA

listed

B.I.'s

social

security

number

and

date

of

birth,

and

then

submitted

the

application

online

without

B.I.'s

knowledge

or

consent.

To

conceal

the

fraud,

TEZNA

listed

his

phone

number

and

email

address

instead

of

B.I.'s

contact

information.

During

the

submission

process,

TEZNA

certified

the

information

presented

in

the

application

was

true

when

he

knew

it

was

not.

32.

On

the

application,

TEZNA

knowingly

made

and

caused

to

be

made

numerous

materially

false

and

fraudulent

representations

to

the

VEC.

Among

other

things,

TEZNA

submitted

and

caused

to

be

submitted

the

application,

on

behalf

of

B.I.,

in

which

TEZNA

made

all

of

the

following

materially

false

and

fraudulent

representations:

a.

TEZNA

falsely

claimed

that

B.I.

was

a

self-employed

nanny

that

was

actively

looking

for

work,

and

that

B.I.

was

willing

to

accept

any

position

offered

by

a

potential

employer.

TEZNA

knew

B.I.

was

neither

self-employed

nor

looking

for

employment

as

a

nanny

or

in

any

other

type

of

position.

14

Case 1:21-cr-00077-CMH Document 9 Filed 04/19/21 Page 14 of 18 PageID# 58

b.

TEZNA

falsely

claimed

B.I.

earned

$2,000.00

per

month

as

a

self-employed

nanny,

that

she

has

been

a

self-employed

nanny

since

November

17,

2017,

and

that

she

was

laid

off

on

March

3,2020.

TEZNA

knew

this

was

false

because

TEZNA

knew

B.l.

had

no

consistent

employment

since

2016

and

was

not

laid

off

from

any

employer

in

2020

or

at

any

other

time

in

the

past

three

years.

c.

TEZNA

falsely

claimed

that

B.l.

was

separated

from

employment

and

entitled

to

PUA

benefits

because

B.l.'s

employment

was

affected

by

the

COVlD-19

pandemic

in

the

following

ways:

i.

B.l."..

.is

unable

to

reach

the

place

of

employment

because

of

a

quarantine

imposed

as

a

direct

result

of

the

COVlD-19

public

health

emergency."

ii.

B.l.

"..

.is

unable

to

reach

the

place

of

employment

because

the

[she]

has

been

advised

by

a

health

care

provider

to

self-quarantine

due

to

concerns

COVlD-19."

iii.

B.l.'s

"..

.place

of

employment

is

closed

as

a

direct

result

of

the

COVID-

19

public

health

emergency."

TEZNA

knew

these

statements

were

false

because

B.l.

was

never

a

self-employed

nanny

and

did

not

seek

employment

outside

TEZNA's

home

and

her

employment

status

was

unaffected

by

any

COVID-19

pandemic

restrictions.

d.

TEZNA

falsely

attested

and

certified

that

"all

of

the

information

1

have

given

on

this

application

is

correct..."

and

"1

understand

that

Federal

funds

are

provided

and

that

the

law

provides

for

fines

and

imprisonment

or

both

in

addition

to

disqualification

of

benefits

if

1

knowingly

fail

to

disclose

or

give

false

information

15

Case 1:21-cr-00077-CMH Document 9 Filed 04/19/21 Page 15 of 18 PageID# 59

in

order

to

obtain

or

increase

PUA

benefits

to

which

I

am

not

entitled."

TEZNA

knew

that

this

certification

was

false

as

he

had

made

numerous

false

statements

in

the

PUA

application.

33.

From

approximately

May

4,2020

until

about

October

19,2020

the

VEC

disbursed

21

payments

in

the

cumulative

amount

of

$15,950.00

to

a

bank

account

for

which

TEZNA

had

signature

authority

and

managed.

In

order

to

continue

receiving

payments,

TEZNA

filed

weekly

additional

claims,

and

continued

to

perpetrate

this

fraud

until

at

least

in

or

around

October

2020.

After

comingling

the

funds

with

the

PPP

loan

fraud

proceeds

and

with

legitimate

funds,

TEZNA

used

the

unemployment

benefits

for

his

personal

enrichment.

D.

False

Financial

Disclosure

34.

Due

to

his

SES

position,

on

or

about

June

23,

2020,

in

the

Eastern

District

of

Virginia

and

elsewhere,

TEZNA

filed

an

Executive

Branch

Personnel

Public

Financial

Disclosure

Report,

OGE

Form

278e

with

NASA.

TEZNA

electronically

signed

the

form

claiming

it

was

true,

complete,

and

correct.

This

form

was

materially

false

in

that

TENZA

listed:

a.

"None"

for

the

following

three

items:

"4.

Filer's

Sources

of

Compensation

Exceeding

$5,000

in

a

year,"

"6,

Other

Assets

and

Income,"

and

"9.

Gifts

and

Travel

Reimbursement."

The

OGE

Form

278e

was

false

in

that

TEZNA

knew

that

C.M.,

another

NASA

employee

who

TEZNA

indirectly

supervised,

was

paying

TEZNA

approximately

$1,900.00

biweekly

since

November

1,

2019,

and,

as

such,

the

funds

received

from

C.M.

should

have

been

reported

in

the

OGE

Form

278e

as

either

compensation,

other

assets

and

income,

or

as

a

gift.

TEZNA

16

Case 1:21-cr-00077-CMH Document 9 Filed 04/19/21 Page 16 of 18 PageID# 60

received

at

least

$46,200.00

from

C.M.

between

August

30,2019

and

September

4,

2020.

b.

The

following

information

in

"8.

Liabilities":

#

CREDITORS

TYPE

OF

AMOUNT

YEAR

INTEREST

RATE

NAME

LIABILITY

INCURRED

1

Bank

of

America

revolving

$15,001

-$50,000

2018

9

2

Navy

Federal

revolving

$15,001

-$50,000

2019

6

3

USAA

revolving

$10,001

-$15,000

2019

6

This

information

was

false

in

that

TEZNA

knew

he

had

the

following

additional

liabilities

that

he

should

have

reported

on

his

OGE

Form

278e:

i.

An

approximate

revolving

liability

of

$

16,000.00

pertaining

to

TEZNA's

credit

card

account

with

JP

Morgan

Chase.

ii.

An

approximate

revolving

liability

of

$20,000.00

pertaining

to

T.T.'s

credit

card

account

with

JP

Morgan

Chase.

III.

Conclusion

35.

This

statement

of

facts

includes

those

facts

necessary

to

support

the

plea

agreement

between

TEZNA

and

the

United

States.

It

does

not

include

each

and

every

fact

known

to

the

TEZNA

or

to

the

United

States,

and

it

is

not

intended

to

be

a

full

enumeration

of

all

of

the

facts

surrounding

the

defendant's

case.

17

Case 1:21-cr-00077-CMH Document 9 Filed 04/19/21 Page 17 of 18 PageID# 61

36.

The

actions

of

the

defendant,

as

recounted

above,

were

in

all

respects

knowing,

willful

and

deliberate,

and

were

not

committed

by

mistake,

accident,

or

other

innocent

reason.

Raj

Parekh

Acting

United

States

Attorney

By:

dmberly

M.

Shartar

Jamar

K.

Walker

Assistant

United

States

Attomeys

After

consulting

with

my

attomey

and

pursuant

to

the

plea

agreement

entered

into

this

day

between

the

defendant,

ANDREW

ALEXANDER

TEZNA,

and

the

United

States,

I

hereby

stipulate

that

the

above

Statement

of

Facts

is

true

and

accurate,

and

that

had

the

matter

proceeded

to

trial,

the

United

States

would

have

proved

the

same

beyond

a

reasonable

doubt.

ANDREW

ALEXANDER

TEZNA

I

am

defendant's

attomey.

I

have

carefully

reviewed

the

above

Statement

of

Facts

with

him.

To

my

knowledge,

her

decision

to

stipulate

to

these

facts

is

an

informed

and

voluntary

one.

Page

Pate

Attomey

for

ANDREW

ALEXANDER

TEZNA

18

Case 1:21-cr-00077-CMH Document 9 Filed 04/19/21 Page 18 of 18 PageID# 62