A Massachusetts roofing business duo is facing the music as federal prosecutors charged them with a laundry list of fraud offenses, officials said.
Ronaldo and Adriana Solano, the Hopkinton pair that runs H&R Roofing & Construction Inc. and H&R Roofing & Siding Corp., were cuffed and charged separately for schemes designed to cheat workers' compensation insurers, the Small Business Administration, and their mortgage lender. The Justice Department announced they were hit with conspiracy to commit mail and wire fraud, and bank fraud, plus additional fraud charges for Ronaldo Solano. The couple was slated to quickly appear in a federal court in Boston.
The duo allegedly manipulated their business's payroll to finagle their way out of over $627,000 in insurance premiums and used a shell company to secretly funnel money to workers. This scam lasted from 2012 to 2020, according to the indictment read. Separately, they're accused of going on to misuse funds meant for pandemic-hit businesses by swooping up $2 million in Economic Injury Disaster Loan Program cash, banking half for a personal account that bankrolled an upscale home.
Acting United States Attorney Joshua S. Levy detailed that the two allegedly omitted to tell their mortgage lender about utilizing the EIDL funds for their home's down payment—a property purchase that involved lying about $825,000 of the provided relief. Facing up to 30 years behind bars if convicted, the charges could lead to concerted time in the clink and significant fines. "The charge of conspiracy to commit wire fraud and bank fraud provides for a sentence of no more than 30 years in prison," officials explained.
The CARES Act EIDL program, part of the federal government's pandemic relief effort, dangled loans specifically for struggling businesses to cover certain permitted expenses. The SBA and DOJ have been on high alert for fraudsters, with a task force set up in May 2021 for this very purpose. This Solano case serves as a stark reminder and warning to those attempting to take advantage of emergency aid programs intended to help the American people in crisis times.
Those with any information about possible fraud tied to COVID-19 relief can step forward and contact the NCDF Hotline or fill out their Web Complaint Form. While the Solanos are currently only facing allegations, they must contend with the justice system where the presumption of innocence stands until proven guilty.
