Two Florida public servants have admitted to defrauding Covid-19 relief programs and pleaded guilty to federal wire fraud charges. Angelo Stephen, a correctional officer with the Federal Bureau of Prisons, and George Arestuche, an employee with the Miami-Dade County Aviation Department, both entered guilty pleas in separate cases, according to the U.S. Department of Justice release.
Stephen pleaded guilty to wire fraud for submitting fraudulent applications for two Paycheck Protection Program (PPP) loans and one Economic Injury Disaster Loan (EIDL). He also admitted involvement in two bank account takeover schemes. Stephen falsely claimed to be an independent contractor, overstating his business’s revenue and understating costs to secure up to $40,833 in PPP funds and $20,000 from the EIDL program, which he was not entitled to. His sentencing is set for May 22.
Arestuche pleaded guilty to conspiracy to commit wire fraud by submitting a false EIDL application. As per the same release, he claimed to own an “Automotive Repair” business named "george" and fraudulently received $149,900 in EIDL funds and a $10,000 advance. He paid a co-conspirator $17,275 for assistance in the fraud. Arestuche falsely inflated his business's revenues and profits, even though he did not own any business. His sentencing is scheduled for May 12.
The guilty pleas are part of a larger effort by the Department of Justice to combat pandemic-related fraud. The CARES Act, passed in March 2020, provided financial assistance during the pandemic, leading to widespread fraud. The U.S. Attorney’s Office for the Southern District of Florida is leading one of the national COVID-19 Fraud Strike Force Teams, which was created on September 15, 2022. The public is encouraged to report any suspected Covid-19 fraud to the Department of Justice’s National Center for Disaster Fraud Hotline.
The guilty pleas were announced by U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, along with officials from various agencies. The cases are being prosecuted by Assistant U.S. Attorneys Edward N. Stamm and Annika Miranda, respectively.
