Opinion
2834 Disciplinary Docket 3 146 DB 2021
05-07-2024
OFFICE OF DISCIPLINARY COUNSEL, Petitioner v. JONATHAN EDWARD OLIVETTI Respondent
Attorney Registration No. 206603 (Lackawanna County)
ORDER
PER CURIAM.
AND NOW, this 7th day of May, 2024, upon consideration of the Verified Statement of Resignation, Jonathan Edward Olivetti is disbarred on consent from the Bar of this Commonwealth. See Pa.R.D.E. 215. Respondent shall comply with the provisions of Pa.R.D.E. 217 and pay costs to the Disciplinary Board. See Pa.R.D.E. 208(g).
RESIGNATION UNDER PA.R.D.E. 215
JONATHAN EDWARD OLIVETTI, hereby tenders his unconditional resignation from the practice of law in the Commonwealth of Pennsylvania in conformity with Pa.R.D.E. 215 ("Enforcement Rules") and further states as follows:
1. He is a formerly admitted attorney in the Commonwealth of Pennsylvania, having been admitted to the bar on or about June 30, 2011. His registration number is 206603.
2. He desires to submit his resignation as a member of said bar.
3. His resignation is freely and voluntarily rendered; he is not being subjected to coercion or duress and he is fully aware of the implications of submitting this resignation.
4. He acknowledges that he is fully aware of his right to consult and employ counsel to represent him in the instant proceeding. He has retained, consulted with, and acted upon the advice of counsel in connection with his decision to execute the within resignation.
5. He is aware that there is presently pending an investigation into allegations that he has been guilty of misconduct, the nature of which allegations concern criminal convictions.
6. On May 7, 2021, he entered a plea of guilty in the United States District Court for the Middle District of Pennsylvania before the Honorable Jennifer P. Wilson to one count each of Mail Fraud (18 U.S.C. § 1341) and Tax Evasion (26 U.S.C. § 7201), arising from his scheme to defraud his client and to avoid income tax due. A true and correct copy of the Criminal Information is attached hereto, made a part hereof, and marked as Exhibit 1.
7. On April 1, 2022, he entered a plea of guilty in the United States District Court for the Middle District of Pennsylvania before the Honorable Jennifer P. Wilson to one count of Wire Fraud (18 U.S.C. §1343), arising out of his fraudulent obtaining of funds, including Paycheck Protection Program and Economic Injury Disaster Loan loans. A true and correct copy of the Criminal Information is attached hereto, made a part hereof, and marked as Exhibit 2.
8. On May 9, 2023, he was sentenced on each of those counts to 27 months of imprisonment and 2 years of supervised release. He was ordered to pay restitution in the amount of $267,861.09. On May 31, 2023, an Amended Judgment was entered to change the court's prison facility placement recommendation to the Bureau of Prisons. True and correct copies of the Judgment and Amended Judgment are attached hereto, made a part hereof, and marked as Exhibit 3.
9. He acknowledges that by Order dated December 7, 2021, the Supreme Court of Pennsylvania placed him on temporary suspension pursuant to Enforcement Rule 214 (relating to attorneys convicted of crimes).
10. He acknowledges that the material facts upon which the criminal convictions are predicated, which are contained within the Criminal Information documents at Exhibits 1 and 2, are true.
11. He submits the within resignation because he knows mat if charges were predicated upon the criminal misconduct under investigation he could not successfully defend against them.
12. He is fully aware that the submission of this Resignation Statement is irrevocable and that he can only apply for reinstatement to the practice of law pursuant to the provisions of Enforcement Rule 218(b) and (c).
13. He is aware that pursuant to Enforcement Rule 215(c) the fact that he has tendered his resignation shall become a matter of public record immediately upon delivery of the resignation statement to Disciplinary Counsel.
14. Upon entry of the order disbarring him on consent, he will promptly comply with the notice, withdrawal, resignation, trust account, and cease-and-desist provisions of Enforcement Rule 217 (a), (b), (c) and (d).
15. After entry of the order disbarring him on consent, he will file a verified statement of compliance as required by Enforcement Rule 217(e)(1).
16. He is aware mat the waiting period for eligibility to apply for reinstatement to the practice of law under Enforcement Rule 218(b) shall not begin until he files the verified statement of compliance required by Enforcement Rule 217(e)(1).
It is understood mat the statements made herein are subject to the penalties of 18 Pa.C.S. § 4904 (relating to unsworn falsification to authorities).
Jonathan Edward Olivetti, Respondent
Exhibit 1
INFORMATION
THE UNITED STATES ATTORNEY CHARGES:
COUNT ONE
MAIL FRAUD [18 U.S.C. §1341]
I. Introduction
At times material to the Information:
1. The defendant, JOHNATHAN OLIVETTI, was an attorney licensed to practice law in the Commonwealth of Pennsylvania, whose practice was based in Lackawanna County and Philadelphia County.
2. T.S. died on May 15, 2018, and was survived by his parents as heirs.
3. T.S. posthumously received approximately $138,306.67 from a civil lawsuit initiated prior to his death. The award check was made payable to "The Estate of [T.S.]" and provided to T.S.'s mother.
4. In approximately May 2019, T.S.'s mother met with JONATHAN OLIVETTI to discuss retaining JONATHAN OLIVETTI'S legal services to assist with the distribution of the Estate of T.S.'s lawsuit award.
5. In May 2019, following that meeting, JONATHAN OLIVETTI used the United States Postal Service to mail T.S.'s mother a contract for legal services pertaining to the Estate of T.S.
6. In May 2019, T.S.'s mother signed the contract to retain JONATHAN OLIVETTI'S legal services on behalf of the Estate of T.S. and used the United States Postal Service to mail the contract back to JONATHAN OLIVETTI, at his direction.
7. During JONATHAN OLIVETTI'S legal representation of the Estate of T.S., T'S.'s mother used the United States Postal Service to send JONATHAN OLIVETTI various documents pertaining to the legal representation, at his direction.
II. The Scheme
8. It was part of the scheme and artifice to defraud that JONATHAN OLIVETTI advised T.S.'s mother that JONATHAN OLIVETTI would open an estate bank account for T.S.'s lawsuit award.
9. On or about May 16, 2019, as part of the scheme and artifice to defraud, JONATHAN OLIVETTI deposited and caused to be deposited approximately $138,306.67 into an account held at PNC Bank in the name of the Estate of T.S. The account did not hold any additional funds other than the approximate $138,306.67.
10. After May 16, 2019, T.S.'b mother regularly contacted and attempted to contact JONATHAN OLIVETTI to inquire when she would receive the $138,306.67 from the Estate of T.S.
11. It was further a part of the scheme and artifice to defraud that JONATHAN OLIVETTI falsely informed T.S.'s mother that the Internal Revenue Service had seized and or frozen the approximately $138,306.67 from the Estate of T.S.
12. It was further part of the scheme and artifice to defraud that on various dates between approximately May 16, 2019 and May 8, 2020, JOHNATHAN OLIVETTI withdrew and caused to be withdrawn a total of $91,991.28 from the account held at PNC Bank in the name of the Estate of T.S., and used those funds for personal expenses.
III. Statutory Allegations
13. From in or about May 2019, the exact date being unknown to in or about May 8, 2020, in the Eastern District of Pennsylvania and elsewhere, the defendant, JONATHAN OLIVETTI, with the intent to defraud, knowingly devised the above-described scheme and artifice to defraud to obtain money and property by materially false and fraudulent pretenses, representations, and promises.
14. For the purpose of executing, advancing, furthering, and carrying out the above described scheme and artifice to defraud, the defendant knowingly caused to be delivered by United States mail, and by private and commercial interstate carrier, documents relating to his representation of the Estate of T.S.
All in violation of Title 18, United States Code, Section 1341.
THE UNITED STATES ATTORNEY FURTHER CHARGES:
COUNT TWO
TAX EVASION [26 U.S.C. § 7201]
From on or about November 9, 2015 through July 15, 2020, in Lackawanna County, Pennsylvania, within the Middle District of Pennsylvania, the defendant, JONATHAN OLIVETTI, willfully attempted to evade and defeat the payment of income tax due and owing by him to the United States of America, for the calendar years 2011, 2012 and 2014, in the amount of $133,269.81, excluding interest accrued since assessment, by committing the following affirmative acts, among others:
1. using an Interest On Lawyer Trust Account (IOLTA) to hide personal funds from the Internal Revenue Service; and
2. providing false information about his interest in businesses and assets to an Internal Revenue Service Reporting Officer.
All in violation of Title 26, United States Code, Section 7201.
BRUCE D. BRANDLER ACTING UNITED STATES ATTORNEY
JENNY D. ROBERTS Assistant United States Attorney
Exhibit 2
INFORMATION
THE UNITED STATES ATTORNEY CHARGES:
COUNT 1
Wire Fraud 18 U.S.C. § 1343
I. Introduction
At times material to the Information:
Relevant Individuals and Entities
1. Defendant JONATHAN OLIVETTI resided in or about Philadelphia, Philadelphia County, within the Eastern District of Pennsylvania.
2. Olivetti Law, LLC was a limited liability company incorporated in the Commonwealth of Pennsylvania, with a business address located in Philadelphia, Philadelphia County, within the Eastern District of Pennsylvania. Olivetti Law, LLC was incorporated on or about October 3, 2013, and JONATHAN OLIVETTI was listed as the sole organizer for Olivetti Law, LLC.
3. OLIVETTI was the sole employee of Olivetti Law, LLC.
4. The United States Small Business Administration ("SBA") was an executive branch agency of the United States government that provided support to entrepreneurs and small businesses. The mission of the SBA included maintaining and strengthening the nation's economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters. As part of those efforts, the SBA enabled and provided for loans with government-backed guarantees to small business owners through financial institutions and other lenders.
5. Lender #1, was located in Fort Lee, New Jersey. It was one of over 1,500 privately funded non-bank lenders approved by the SBA to process Paycheck Protection Program ("PPP") loans.
The Paycheck Protection Program
6. The Coronavirus Aid, Relief, and Economic Security ("CARES") Act was a federal law enacted in March 2020 that provided emergency financial assistance to millions of Americans suffering financial difficulties from the economic impact of the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of approximately $349 billion in forgivable loans to small businesses, through the PPP. In April 2020, Congress authorized an approximate $310 billion of additional PPP funding.
7. PPP loan proceeds were authorized to be used for businesses' employee payroll, mortgage interest, lease, and utilities expenses. The principal amount of and interest on a PPP loan was entirely forgivable if the business spent the loan proceeds on those authorized expenses within a designated period of time, and also spent a certain percentage of the PPP loan proceeds on payroll expenses.
8. To obtain a PPP loan, a qualifying business was required to submit a loan application signed by an authorized representative of the business. The PPP loan application required the business (through its authorized representative) to acknowledge the program rules and to make affirmative certifications, in order to be eligible to obtain the PPP loan.
9. In the PPP loan application, the applicant (through its authorized representative) was required to state, among other things, its: (a) average monthly payroll expenses! and (2) number of employees. Those figures were used to calculate the amount of money that the small business was eligible to receive through the PPP. An applicant also was required to provide documentation showing its payroll expenses.
10. Although the SBA oversaw the PPP, PPP loan applications were processed by participating lenders, including Lender #1, who received and processed PPP loan applications and supporting documentation. If a PPP application was approved, the participating lender funded the PPP loan through its own monies, which were 100% guaranteed by the SBA. Data from the PPP loan application, including information about the borrower, the total amount of the loan, and the listed number of employees, was transmitted by the lender to the SBA in the course of processing the PPP loan.
The Economic Injury Disaster Loan Program
11. Another source of relief provided by the CARES Act was the expansion of an existing disaster-related program - the Economic Injury Disaster Loan ("EIDL") - to provide low-interest financing (including forgivable $10,000 advances) to small businesses and other eligible entities. The CARES Act authorized the SBA to provide EIDL loans to eligible small businesses experiencing substantial financial disruption resulting from the COVID-19 pandemic.
12. To obtain an EIDL loan, a qualifying business was required to submit an application directly to the SBA and provide information about the business's operations, such as the number of employees, gross revenues 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 EIDL loans for COVID-19 relief, the 12-month period was the 12-month period from January 31, 2019, to January 31, 2020. The applicant was also required to certify that all of the information in the application was true and correct to the best of the applicant's knowledge.
13. EIDL loan applications were submitted directly to the SBA and processed by the agency with support from a government contractor. The amount of the loan, if the application was approved, was determined based, in part, on the information provided by the applicant about employment, revenue, and cost of goods sold. Any funds issued under an EIDL loan were issued directly by the United States Treasury.
14. As a general matter, EIDLs carried interest rates of 3.75% for for-profit corporations and 2.75% for non-profit corporations. The first payment on an EIDL loan was deferred for 12 months.
15. EIDL proceeds could only be 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 expansion of a business. Moreover, EIDL proceeds could not be used to "[r]efinance indebtedness which you incurred prior to the disaster event." 13 C.F.R. § 123.303(b)(1).
II. Object of the Scheme to Defraud
16. The object of the scheme was for JONATHAN OLIVETTI to enrich himself by fraudulently obtaining funds, including two PPP loans of approximately $20,800 each and two EIDL loans of approximately $62,500, through misrepresentations and false documentation.
III. Statutory Allegations
17. Between on or about June 18, 2020 and on or about January 19, 2021, within the Eastern District of Pennsylvania and elsewhere, the defendant, JONATHAN OLIVETTI, having devised and intended to devise a scheme and artifice to defraud and to obtain money and property by means of materially false and fraudulent pretenses, representations, and promises, and for the purpose of executing the scheme and artifice to defraud, transmitted and caused to be transmitted by means of wire communications in interstate commerce certain writings, signs, signals, pictures, and sounds; namely, PPP Loan applications submitted by the internet and interstate wires to Lender #1 and EIDL loan applications submitted by the internet and interstate wires.
IV. Manner and Means of the Scheme
It was part of the scheme and artifice to defraud that the defendant employed the following manner and means:
18. On or about June 19, 2020, the defendant used the internet and interstate wires to submit and cause to be submitted to Lender #1, a PPP loan application on behalf of Olivetti Law, LLC. The application contained material misrepresentations, including that Olivetti Law, LLC had a payroll of $8,333 per month, when in fact the payroll was significantly less. The application certified that the information provided was true, under penalty of law.
19. In reliance on the fraudulent misrepresentations in the PPP loan application, Lender #1 distributed approximately $20,800 in PPP loan funds to OLIVETTI.
20. On or about January 19, 2021, the defendant used the internet and interstate wires to submit and cause to be submitted to Lender #1, a PPP loan application on behalf of Olivetti Law, LLC. The application contained material misrepresentations, including that Olivetti Law, LLC had a payroll of $8,320 per month, when in fact the payroll was significantly less. The application certified that the information provided was true, under penalty of law.
21. In reliance on the fraudulent misrepresentations in the second PPP loan application, Lender #1 distributed approximately $20,800 in PPP loan funds to OLIVETTI.
22. Between approximately June 2020 and February 2021, the defendant used the internet and interstate wires to submit and cause to be submitted to the SBA two EIDL loan applications each seeking approximately $62,500 on behalf of Olivetti Law, LLC. The applications contained material misrepresentations and ultimately were not approved by the SBA.
All in violation of Title 18, United States Code, Section 1343.
JOHN C. GURGANUS United States Attorney
Exhibit 3
JUDGMENT IN A CRIMINAL CASE
(Exhibit 3 Omitted)