A 46-year-old El Paso woman, Araceli Benitez, has been arrested and charged with multiple federal fraud offenses related to an alleged scheme to defraud the Paycheck Protection Program (PPP), a COVID-19 relief initiative, the U.S. Attorney’s Office for the Western District of Texas announced Monday.
Fraudulent Loan Applications & False Claims
According to the U.S. Attorney’s Office, Benitez—who owned an insurance and tax services company as well as a home health services business—allegedly submitted fraudulent PPP loan applications between April 9, 2020, and December 31, 2022.
A January 22 indictment alleges that she:
Promoted her loan services via radio commercials and social media, primarily targeting Spanish-speaking clients
Falsified federal tax documents and fabricated business details on loan applications
Submitted applications to a credit union without her clients’ knowledge
Requested fraudulent PPP disbursements totaling $2,305,294.06 across 156 loan applications
Charges & Potential Sentencing
Benitez faces multiple federal charges, including:
7 counts of wire fraud
8 counts of bank fraud
2 counts of money laundering
1 count of structuring transactions to evade reporting requirements
2 counts of aggravated identity theft
1 count of false or fictitious claims
If convicted, Benitez could face up to 30 years in federal prison.
Legal Proceedings & Presumption of Innocence
The U.S. Attorney’s Office emphasized that an indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
