A Morrison, Colorado man has been handed a 46-month federal prison sentence for defrauding the Paycheck Protection Program (PPP), a lifeline intended to support businesses during the pandemic. The U.S. Attorney's Office for the District of Colorado announced that 39-year-old Richard Nieto was also ordered to pay nearly one million dollars in restitution after his scheme to exploit the government's economic relief efforts was exposed.
Not content with a single dishonest act, Nieto crafted three separate PPP loan applications, pulling off two successful cons that netted him a total of $913,551.88. He inflated employee counts and payroll expenses for his pre-pandemic operation, Denver Pro Painting & Contracting, and went as far as creating a fictitious business, DenPro, with claimed annual payrolls topping $1.7 million. According to the U.S. Department of Justice, the fraudulent tax forms he presented did not match those filed with the IRS.
Instead of channeling the funds into his business expenses as promised to the lender, Nieto diverted the money through multiple accounts for his personal use. His shopping list included real estate payments, cryptocurrency investments, and an assortment of gold and silver coins. A home mortgage and a buddy’s startup also saw infusions of the ill-gotten gains. As Nieto’s web of deceit unfolded, he further attempted to have the loans forgiven by fabricating payroll documentation.
Acting United States Attorney J. Bishop Grewell minced no words when he declared, "This is another case of someone using for personal gain a program meant to help people suffering during the COVID-19 pandemic," as per the U.S. Department of Justice. As Grewell emphasized the commitment to prosecuting those who siphoned from the relief program, he was not alone in his condemnation. IRS-CI Denver Field Office’s Special Agent in Charge, Amanda Prestegard, joined in, stating to the press, "Mr. Nieto went to great lengths to abuse a program meant for hardworking small business owners, seeking only to enrich himself."
