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CARES Act Fraud Trio Indicted: Over $1 Million Obtained Illegally from COVID-19 Relief Programs

Fraud, Bribery & CorruptionCARES Act Fraud Trio Indicted: Over $1 Million Obtained Illegally from COVID-19 Relief Programs

Jacqueline Rascon-Chacon, Bryan Gardea, and Ricardo Landeros have been indicted by a federal grand jury on multiple charges related to bank fraud, wire fraud conspiracy, wire fraud, money laundering conspiracy, and engaging in financial transactions derived from unlawful activities. The charges stem from their alleged involvement in obtaining over $1 million in loans and grants from programs established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act through fraudulent means. These programs, including the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program, were intended to provide financial assistance to American small businesses affected by the COVID-19 pandemic.

The indictment specifically accuses Rascon-Chacon and Gardea of two counts of bank fraud for securing business loans of $20,000 each before the pandemic. The loan applications allegedly contained false information about their businesses and how the loan proceeds would be utilized.

The wire fraud conspiracy involved Rascon-Chacon, Gardea, and Landeros, who allegedly submitted loan applications with false data and fabricated supporting documents to PPP lenders and the Small Business Administration (SBA). These applications were purportedly in the names of defunct companies and included falsified revenue, payroll, and employment information, as well as fabricated tax documents. Many of these applications were approved, leading to the disbursal of loan funds, which were allegedly used for unauthorized expenses, including personal credit card payments, chartering a private jet from Albuquerque to Las Vegas, and hiring a mariachi band.

In addition to the wire fraud conspiracy, the indictment outlines a money laundering conspiracy, in which the defendants allegedly used loan proceeds to buy vacant properties in New Mexico, construct homes on these lots, and sell them for profit. Landeros is also accused of investing fraudulently obtained COVID-19 relief loan funds from a defunct company into a separate business he owned and operated.

If convicted, each defendant faces a maximum penalty of thirty years in prison, a $1 million fine, asset forfeiture, and restitution. The investigation was conducted by various agencies, including Homeland Security Investigations, IRS Criminal Investigation, Department of Labor Office of the Inspector General, and Small Business Administration Office of the Inspector General, with Assistant United States Attorney Taylor F. Hartstein prosecuting the case.

By FCCT Editorial Team

Disclaimer: The views expressed in this article are independent views solely of the author(s) expressed in their private capacity.

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