Two Miami residents were found guilty for their roles in a scheme to exploit federal pandemic relief funds under the Paycheck Protection Program (PPP).
On November 8, a federal jury convicted Lazaro Verdecia Hernandez, 37, and Yadier Rodriguez Arteaga, 41, on charges of conspiracy to commit wire fraud, conspiracy to commit money laundering, and money laundering. Verdecia faced an additional conviction for wire fraud. Both are accused of submitting over 63 fraudulent loan applications to obtain over $14.5 million in PPP funds, intended to aid businesses impacted by the COVID-19 pandemic.
According to prosecutors, Verdecia and co-conspirator Heidi Cid fabricated information, including fake employee counts and forged documents, to make ineligible businesses appear qualified for relief. Funds were deposited into accounts controlled by the group and later split among the conspirators. Cid previously pleaded guilty and awaits sentencing.
Verdecia and Arteaga are scheduled for sentencing on February 3, 2025, where they face up to 20 years for conspiracy and fraud charges and up to 10 years for money laundering. Verdecia also faces an additional 20 years for wire fraud. Sentencing will be determined based on federal guidelines and other factors.