Burlington Standard

Burlington, Vermont – The United States Attorney for the District of Vermont announced that a federal grand jury has indicted Bounthavong Sonthikoummane, 42, and Ashlyn Arcouette, 32, both of White River Junction, Vermont, on fraud charges stemming from four loans they obtained on behalf of businesses during the coronavirus pandemic. Sonthikoummane appeared yesterday in United States District Court in Burlington and pleaded not guilty to the indictment. United States Magistrate Judge Kevin J. Doyle ordered that Sonthikoummane remain in custody pending another hearing on June 20. Arcouette is to appear in court today for her arraignment.

On June 12, 2024, a federal grand jury returned an eleven-count indictment against the two defendants. The indictment charges Sonthikoummane with bank fraud, wire fraud, conspiracy, money laundering, and making false statements. It charges Arcouette with wire fraud, conspiracy, and money laundering.

During the coronavirus pandemic, small business owners had the opportunity to apply for federal loans under two different programs. The Economic Injury Disaster Loan program was a pre-existing program established by Congress to provide low-interest loans for businesses that suffered financial hardship because of a natural disaster. The Paycheck Protection Plan loan program was established by Congress in the spring of 2020 as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act contained many provisions intended to address the medical, economic, and social impacts of the COVID-19 pandemic.

The Paycheck Protection Program was an economic stimulus program intended to help small businesses keep employees on their payroll during the pandemic. It provided billions of dollars in low-interest unsecured loans administered through and guaranteed by the U.S. Small Business Administration (SBA). Applicants had to certify that loan proceeds would be used to maintain payroll and pay other business-related expenses. If applicants could demonstrate that proceeds were used to keep workers employed, part or all of the loan could be forgiven.

Both the EIDL and PPP loan programs were administered by the SBA. Applicants had to provide certain documentation demonstrating their entitlement to and qualifications for EIDL and PPP loans.

According to the indictment, between July 2020 and February 2021, Sonthikoummane applied for and obtained two PPP loans and one EIDL loan on behalf of independent contracting businesses he claimed to operate. Arcouette allegedly applied for an EIDL loan in late July 2020 with Sonthikoummane’s assistance; it was approved in August.

Each loan application submitted by the defendants contained materially false statements about their businesses. In two instances, Sonthikoummane allegedly submitted falsified IRS Schedule Cs containing false financial information about his businesses. The three loans obtained by Sonthikoummane totaled more than $117,000; Arcouette's loan amounted to $56,900.

In late 2020, according to the indictment, Sonthikoummane obtained forgiveness of one PPP loan by falsely certifying that he had used the proceeds for business purposes per program rules. However both defendants allegedly used most of this money to invest in Coinbase—a cryptocurrency exchange platform.

The indictment also seeks forfeiture of a residence in White River Junction that Sonthikoummane allegedly bought with fraudulently-obtained loan proceeds.

The United States Attorney emphasizes that these charges are merely accusations and that defendants are presumed innocent unless proven guilty.

If convicted they face up to 20 years imprisonment plus fines up $250000 actual sentences would reference federal guidelines statutory factors

This case was investigated by Federal Bureau Investigation

Sonthikoummanes represented Christoper Dall Esq Arcouttes Mark Kaplan Esq prosecutor Assistant US Attorney Gregory Waples

Addressing pandemic-related fraud is priority US Attorney Nikolas P Kerest Department Justice For info Departments response visit https://www.justice.gov/coronavirus Anyone info allegations attempted fraud COVID-19 report calling Department Justice National Center Disaster Fraud Hotline at: 866-720-5721 or via NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form