A Miami federal grand jury has charged three Miami residents for their alleged role in a COVID-19 relief fraud scheme.
Heidi Cid, 54, Lazaro Verdecia Hernandez, 36, and Yadier Rodriguez Arteaga, 38 all of Miami, Florida, have been charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering, in connection with a scheme to obtain fraudulent loans under the Paycheck Protection Program (PPP).
According to the statements made in court, the trio allegedly submitted fraudulent PPP loan applications to SBA-approved PPP lenders and allegedly submitted several false and fraudulent documents misrepresenting the number of the companies’ employees to make the businesses appear eligible for pandemic relief.
According to the allegations, SBA-approved lenders disbursed over $14.5 million to bank accounts controlled by co-conspirators, who allegedly would then withdraw the money and give Cid, Verdecia Hernandez, and Rodriguez Arteaga a portion of the proceeds.
The three made their initial appearance in federal magistrate court in Miami. If convicted, they face up to 20 years in prison on the conspiracy and fraud counts, and two years on the money laundering counts.
PPP Fraud Charges in South Florida
This is the second time in recent weeks that several South Florida residents have been simultaneously charged for PPP fraud.
In October, a group of 17 employees, all of whom are “sworn deputies” of the Broward Sheriff’s Office were charged with participating in various schemes to defraud the United States SBA by providing false information regarding their eligibility for financial assistance. The employees collectively received around $500,000, which they diverted for their own personal use.
According to a statement from the U.S. Attorney’s Office, Southern District of Florida, the investigation into the BSO had been ongoing for two years.
The investigation began in November 2021, after the BSO Office of Inspector General became aware of PPP fraud as an emerging trend within public service agencies.
Read more: BSO employees accused of PPP fraud appear in court
