A 67-year-old former resident of Colorado Springs has been convicted on charges relating to the fraudulent acquisition of COVID-19 relief funds. Charles Lacona, Jr. was found guilty by a federal jury on two counts of wire fraud and a single count of money laundering after pilfering over half a million dollars designed to aid those hit by the pandemic's economic fallout. The United States Attorney's Office for the District of Colorado confirmed the verdict, which stemmed from illicit dealings with the Paycheck Protection Program (PPP).
According to the U.S. Department of Justice, the trial revealed that between April 2020 and April 2021, Lacona engaged in deceptive practices to secure $513,732.50 in loans. He reportedly boosted payroll costs and gross receipts, provided false statements, and forged tax documents. During that same period, he also attempted, though failed, to receive additional funds through the Economic Injury Disaster Loan (EIDL) program. A portion of the fraudulent funds went toward the purchase of a Cadillac CT6, priced at $67,704.13.
Acting United States Attorney Matt Kirsch said, as per the U.S. Department of Justice, “This is another case of someone using for personal gain a program meant to help people suffering during the COVID-19 pandemic.” He stressed that the government is actively prosecuting those who exploited the relief efforts. Tom Demeo, Acting Special Agent in Charge from the IRS Criminal Investigation Denver Field Office, added that their joint efforts with the U.S. Attorney's Office would persist in bringing individuals who misuse federal relief programs to justice for their selfish motives.
IRS Criminal Investigation led the inquiry into Lacona's activities, with Assistant United States Attorneys Craig Fansler and Nicole Cassidy managing the prosecution. The sentencing for Lacona will take place at a later date. Moreover, the COVID-19 Fraud Enforcement Task Force, established by the Attorney General in May 2021, and the District of Colorado’s U.S. Attorney’s Office's COVID-19 Fraud Strike Force Teams appointed in July 2023, emphasize the government's resolve in combatting pandemic-related fraud.
