A federal jury found two Miami residents guilty of conspiring to get millions of dollars in Paycheck Protection Program (PPP) loans. Yadier Rodriguez Arteaga and Lazaro Verdecia Hernandez were found guilty of conspiracy to commit wire fraud and money laundering, according to a news release from the Department of Justice.
In order to make ineligible applicants appear eligible for pandemic assistance, more than 63 PPP loan applications were submitted using fabricated documentation and fictitious employee numbers. Lenders disbursed upwards of $14.5 million through their deception, which the accused then embezzled. The unlawfully obtained monies were distributed to Hernandez, Verdecia, and their co-conspirator Heidi Cid, who had previously entered guilty pleas. According to the Department of Justice, Verdecia and Arteaga may receive lengthy prison terms of up to 20 years on the conspiracy and fraud counts, 10 years on the money laundering counts, and an extra 20 years for wire fraud.
The plot involved a large network of conspirators, many of whom had previously entered guilty pleas. Erisbel Gonzalez Gomez and Javier Pico are the only people still at large. This series of convictions highlights the scope and allure of greed during a period of national calamity, when the CARES Act—which was designed to support struggling companies during the pandemic—was abused. As one of three nationwide COVID-19 Fraud Strike Force Teams, the Southern District of Florida has been leading the charge to combat these schemes under the leadership of U.S. Attorney Markenzy Lapointe.
Residents are encouraged to report any knowledge of COVID-19 fraud by using the online complaint form or by calling the National Center for Disaster Fraud Hotline. U.S. Senior District Judge Robert N. Scola will sentence Verdecia and Arteaga on February 3, 2025.
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