Two former South Florida government employees have been sentenced in separate federal cases after pleading guilty to defrauding COVID-19 relief programs intended to support struggling small businesses during the pandemic.
Angelo Stephen, 33, a former correctional officer with the Federal Bureau of Prisons, was sentenced on May 22 to four months in prison followed by three years of supervised release. He was also ordered to pay $75,513 in restitution and forfeited an additional $71,166, according to Chief U.S. District Judge Cecilia M. Altonaga. Stephen had previously pleaded guilty to wire fraud related to fraudulent applications for two Paycheck Protection Program (PPP) loans, one Economic Injury Disaster Loan (EIDL), and his involvement in two separate bank account takeover schemes.
Stephen admitted to falsely claiming ownership of an event planning business with 10 employees to secure a $20,000 EIDL loan. He also submitted fraudulent PPP loan applications in 2021, receiving over $41,000 in total by misrepresenting income and submitting fake tax documents. Additionally, Stephen took part in identity theft schemes involving unauthorized wire transfers and forged checks.
In a separate case, George Arestuche, 47, a former Miami-Dade County Aviation Department employee, was sentenced on May 28 to five years of probation, including 210 days of home detention, and ordered to repay $114,679. He also must complete community service. Arestuche admitted to conspiring with another individual to submit a fraudulent EIDL application, falsely claiming to operate an automotive repair business that did not exist. He received $149,900 in EIDL funds and a $10,000 advance. He later paid the co-conspirator over $17,000 for their role in the scheme. Arestuche has since repaid $50,000 in restitution.
The cases were investigated by the U.S. Department of Justice Office of Inspector General, the Small Business Administration Office of Inspector General, the FBI, and the Miami-Dade County Office of Inspector General.
“These prosecutions reflect our continued commitment to holding accountable those who abused pandemic relief programs for personal gain,” said U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida.
