A Morrison man was sentenced to almost 4 years in jail after he illegally obtained two Paycheck Safety Program loans through the COVID-19 pandemic, federal officers introduced Tuesday.
Richard Nieto, 39, took a deal and pleaded responsible final month to wire fraud and cash laundering in federal courtroom, in line with courtroom data.
The plea deal dropped two further counts of wire fraud and three cash laundering expenses from Nieto’s case, courtroom data present.
William Martinez, a senior choose for the USA District Court docket within the District of Colorado, sentenced Nieto on Might 29 to 46 months in federal jail and ordered him to pay $962,438.85 in restitution, in line with courtroom data.
Nieto submitted three fraudulent PPP mortgage functions searching for greater than $1.1 million, in line with a information launch from the U.S. Legal professional’s Workplace for the District of Colorado. Nieto was given two PPP loans totaling simply over $913,500.
Federal officers mentioned Nieto inflated the variety of staff and common month-to-month payroll for his enterprise, Denver Professional Portray & Contracting, and fabricated tax returns for a second, faux enterprise.
Earlier than making a single cost on both mortgage, Nieto submitted fraudulent functions for mortgage forgiveness, federal officers mentioned.
One in every of his PPP loans was absolutely forgiven, in line with the information launch.
Nieto used the mortgage cash to pay a house mortgage, buy bitcoin, purchase gold and silver cash, contribute to an funding account and spend money on a buddy’s startup enterprise, federal officers mentioned.
“That is one other case of somebody utilizing for private achieve a program meant to assist folks struggling through the COVID-19 pandemic,” Appearing United States Legal professional J. Bishop Grewell acknowledged within the launch. “I would like the general public to know that we’re aggressively prosecuting individuals who stole from this aid program.”
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