Two Miami residents were found guilty by a federal jury on charges related to a scheme to fraudulently obtain millions in Paycheck Protection Program (PPP) loans. According to a press release from the Department of Justice, Lazaro Verdecia Hernandez and Yadier Rodriguez Arteaga were convicted of wire fraud, money laundering, and conspiracy to commit both offenses.
The fraudulent activity involved submitting over 63 PPP loan applications with falsified employee numbers and forged documentation to make ineligible applicants seem qualified for pandemic relief. Through their deceit, lenders disbursed upwards of $14.5 million, which the defendants then siphoned off. Hernandez, Verdecia, and their co-conspirator Heidi Cid—who previously pleaded guilty—received their respective cuts from the illegally obtained funds. Verdecia, and Arteaga are facing significant prison time, with potential sentences of up to 20 years on the conspiracy and fraud counts, and 10 years on the money laundering counts, with Verdecia facing an additional 20 years for wire fraud, as detailed by the Department of Justice.
A wide net of conspirators was implicated in the scheme, with many already pleading guilty. Only Javier Pico and Erisbel Gonzalez Gomez remain fugitives. This string of convictions underscores the reach and gravitational pull of greed during a time of national crisis, where the CARES Act—intended to shore up ailing businesses during the pandemic—was exploited. The Southern District of Florida, under the guidance of U.S. Attorney Markenzy Lapointe, has been at the forefront of cracking down on such schemes, serving as one of three national COVID-19 Fraud Strike Force Teams.
Residents urged to come forward with any knowledge of COVID-19 fraud can report it by calling the National Center for Disaster Fraud Hotline or through the online complaint form. Sentencing for Verdecia and Arteaga is scheduled for February 3, 2025, before U.S. Senior District Judge Robert N. Scola.
