United States v. Carolyn Wade

Court of Appeals for the Eleventh Circuit·Decided February 18, 2026·No. 25-11132·Unpublished

Opinion

NOT FOR PUBLICATION

In the

United States Court of Appeals For the Eleventh Circuit

No. 25-11132

Non-Argument Calendar

UNITED STATES OF AMERICA, Plaintiff-Appellee,

versus

CAROLYN DENISE WADE, TRACY D. WADE, a.k.a. Sealed Defendant 2, Defendants-Appellants.

Appeals from the United States District Court for the Southern District of Florida D.C. Docket No. 0:23-cr-60173-KMW-1

Before WILLIAM PRYOR, Chief Judge, and LUCK and LAGOA, Circuit Judges. PER CURIAM:

2 Opinion of the Court 25-11132

Carolyn and Tracy Wade appeal their convictions for wire fraud, making false statements to the Small Business Administration , and conspiracy. They challenge an evidentiary ruling, the refusal to give a jury instruction, and the sufficiency of the evidence supporting Carolyn’s convictions. No reversible error occurred. We affirm.

I. BACKGROUND

A grand jury indicted the Wades for conspiracy to commit wire fraud, 18 U.S.C. § 1349, wire fraud, id. § 1343, and conspiracy to make false statements to the Administration, id. § 371. The indictment also charged Carolyn separately with making false statements to the Administration, 15 U.S.C. § 645(a), and Tracy with wire fraud, 18 U.S.C. § 1343, and making false statements to the Administration, 15 U.S.C. § 645(a). The indictment alleged that the Wades conspired with Haydee Rivero to obtain fraudulent loans from the Paycheck Protection Program and to secure their later forgiveness by the Administration through the submission of fictitious tax forms and false payroll data.

Before trial, the parties contested the admissibility of Tracy’s prior uncharged loan application and the propriety of the Wades’ request for a good-faith jury instruction. The government notified the Wades that it intended to introduce the application under Federal Rule of Evidence 404(b) to prove intent and absence of mistake . The Wades argued that the uncharged application should be excluded as inadmissible character evidence, and they separately requested a good-faith jury instruction. The district court deferred

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ruling on the admissibility of the evidence until the government offered it at trial and explained that the giving of any good-faith jury instruction would depend on whether the evidence at trial supported it.

At trial, the government presented testimony about the Paycheck Protection Program, which was intended to help small businesses pay their employees during the COVID-19 pandemic. The Administration oversaw the program but allowed private lenders to manage the loan application and disbursement process. Applicants submitted proof of eligibility and certified the veracity of their application under penalty of fine or imprisonment.

The government also presented evidence about the fraudulent nature of the Wades’ applications. Tracy and Carolyn each applied for $20,833 loans as sole proprietors, reporting gross incomes of $112,430 and $113,560, respectively, based on 2019 Schedule C forms. They each sought forgiveness for the full amount of each loan and certified under penalty of perjury that they had used the loan proceeds exclusively on payroll. But Internal Revenue Service records proved that, although the Wades filed individual tax returns between 2018 and 2020, they never filed Schedule C returns for those sole proprietorships.

Rivero—who pleaded guilty to the conspiracy—testified that she and her husband were “good friends” with the Wades through their work in the funeral home industry. Tracy owned Wade Funeral Home, and Rivero’s husband operated another funeral home where she worked as an administrative assistant.

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Rivero explained that she prepared and uploaded fraudulent Schedule C forms for both Tracy and Carolyn. She testified that the purpose of the conspiracy was to obtain money from the government based on false information and that she worked with Tracy and Carolyn.

On cross-examination, the defense attacked Rivero’s credibility by highlighting her cooperation agreement and by probing her interactions with Tracy. The defense sought to portray Tracy as an unwitting participant who provided his personal identifiers to the Riveros in good faith with no knowledge that they would submit fraudulent tax documents on his behalf. To rebut this theory, the government, on redirect of Rivero, introduced an email she received with the subject line “Wade Funeral Home.” Rivero testified that the email contained an attachment that reported a “loan overview” for a loan estimated at $701,873. Although she stated that she did not work on that specific application, she printed the document and gave it to her husband. On recross, Rivero reiterated that she had received voided checks from both Tracy and Carolyn to facilitate the loan process, and that Carolyn paid her $1,000.

Digital evidence from Womply, a platform used to process applications for the Program, established that the Wades personally reviewed and approved the fraudulent filings. Womply’s records linked the applications to the Wades’ phone numbers, email addresses, and internet protocol addresses, and confirmed that Carolyn signed applications on May 18 and May 28, 2021, and that Tracy responded to one-time verification codes. Because the

25-11132 Opinion of the Court 5

Wades signed their documents through DocuSign, the entire application —including the misrepresented gross income—was visible to them during the signing process.

Additional evidence established the Wades’ direct involvement through identity verification and device tracking. Using Persona , an identity verification service, the Wades authenticated their applications with government-issued identification and “selfie” photographs taken from their mobile devices. Digital forensics further linked the Wades to the fraud by tracing their activity to specific internet protocol addresses. Carolyn accessed the Womply portal from her home and employer networks, while Tracy used his smartphone and his business network at Wade Funeral Home to manage his accounts.

Bank records and related testimony detailed the use of the loan proceeds for personal expenses. Tracy and Carolyn each received $20,833 in personal accounts and issued checks for “reimbursement ,” “payroll,” or “salary” to themselves and each other, despite never having made such payments previously. The Wades also used a portion of these funds to pay Rivero for her role in the scheme. After the government rested, the district court denied the Wades’ motion for a judgment of acquittal.

The Wades introduced evidence that the Riveros—not the Wades—perpetrated the fraud and had a pattern of using false tax information without their clients’ knowledge. Tracy testified that he relied in good faith on the Riveros and was “puzzled” by the fraudulent information. But on cross-examination, he admitted

6 Opinion of the Court 25-11132

that he performed activities in Carolyn’s Womply account and that the evidence “undeniably” established that Carolyn had logged into her account several times. The government also questioned Tracy regarding a separate, uncharged loan application for Wade Funeral Home, which sought over $700,000 in funds for pandemic assistance. On redirect examination, Tracy reaffirmed that he never saw the fraudulent Schedule C forms during the signing process and maintained that he never agreed with the Riveros to defraud the government.

After they rested, the Wades renewed their motion for a judgment of acquittal on all counts. The district court again denied the motion.

Although a good-faith instruction was included in the proposed jury instructions, the district court stated that it did not believe that the instruction applied to the facts of the case and asked the Wades for supporting case law. When the Wades made no further argument, the district court removed the good-faith instruction from the final charge.

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