Miami, FL — Lazaro Verdecia Hernandez, 37, and Yadier Rodriguez Arteaga, 41, both from Miami, Florida, were convicted by a federal jury on November 8 for their roles in a scheme to fraudulently obtain millions in Paycheck Protection Program (PPP) loans, the U.S. Attorney’s Office for the Southern District of Texas announced.
The convictions stem from a conspiracy involving fraudulent loan applications submitted under the guise of pandemic relief. Hernandez, along with co-conspirator Heidi Cid, submitted more than 63 fraudulent PPP loan applications, which included falsified information about the number of employees at the companies and forged documents to make the applications appear legitimate.
As a result of these actions, lenders disbursed more than $14.5 million in PPP funds to bank accounts controlled by the conspirators. Hernandez and his co-conspirators allegedly withdrew the funds, with portions distributed to Hernandez and Cid.
Fraudulent Loans and Conspiracy
In addition to conspiracy to commit wire fraud, money laundering, and conspiracy to commit money laundering, Hernandez was convicted on charges of wire fraud. Cid, who previously pleaded guilty to her involvement in the scheme, is awaiting sentencing.
Hernandez and Arteaga are scheduled for sentencing on February 3, 2025, before U.S. Senior District Judge Robert N. Scola. Both defendants face up to 20 years in prison for conspiracy and fraud charges, along with an additional up to 10 years for money laundering. Hernandez also faces an additional 20 years for his wire fraud conviction.
Ongoing Efforts to Combat Pandemic Relief Fraud
This case highlights the ongoing efforts by the U.S. Attorney’s Office to combat fraud related to pandemic relief programs, including the Paycheck Protection Program (PPP) which was designed to provide financial relief to businesses during the COVID-19 pandemic.
