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Florida Man Pleads Guilty to Fraudulently Obtaining Disaster Loans
Florida Man Pleads Guilty to Fraudulently Obtaining Disaster Loans
Hector Garcia, a 52-year-old man from Ocala, Florida, pleaded guilty to conspiracy to commit wire fraud and three counts of wire fraud in U.S. District Court in Boston. The charges stem from a scheme in which Garcia and his co-conspirators used stolen identities to fraudulently obtain disaster loans from the Small Business Administration (SBA) and launder the funds.
The fraudulent scheme resulted in over $452,000 in SBA funds being obtained, with approximately $250,000 of that money being used to purchase iPhones in Massachusetts and New Hampshire. Garcia worked with others, including Ramon Cruz, Darwyn Joseph, and Edwin Acevedo, to use stolen identity information of U.S. citizens to apply for SBA Economic Injury Disaster Loans.
Garcia used the stolen identity information to open a fraudulent bank account, which was then linked to other fraudulent accounts set up to receive the SBA funds. The funds were laundered through the purchase of iPhones for resale, with a portion of the money being wired to the Dominican Republic.
The charges of wire fraud and conspiracy to commit wire fraud carry a maximum sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense, as well as restitution. Sentencing for Garcia is scheduled for July 24, 2024.
Garcia’s co-conspirators, Cruz, Joseph, and Acevedo, have already pleaded guilty and received sentences ranging from two years and one day to 33 months in prison, along with supervised release.
The case was announced by Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England. The investigation received assistance from various agencies, including Homeland Security Investigations, the Small Business Administration, and the U.S. Postal Inspection Service.
The Attorney General established the COVID-19 Fraud Enforcement Task Force in May 2021 to combat pandemic-related fraud, and individuals with information about attempted fraud involving COVID-19 can report it to the National Center for Disaster Fraud Hotline.
