Fredrick Mendez, a 45-year-old resident of Boca Raton, Florida, has been sentenced to 41 months in prison for wire fraud related to COVID-19 relief funds. The United States Attorney’s Office for the District of Colorado announced that Mendez will also face three years of supervised release and must pay restitution amounting to $1,589,565.75.
Mendez's fraudulent activities involved submitting false applications for Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans from March 2020 through November 2021. He used business entities such as SkyWorth Technical Solutions Inc., Northern Technology Inc., Acumen Energy Group Inc., and Acumen Holding Group, LLC to carry out his scheme. The applications contained misleading information about employee numbers, gross revenues, and costs of goods sold. Despite certifying the accuracy of these details, Mendez diverted most of the funds for personal use.
United States Attorney Matt Kirsch stated, “This defendant lied and stole government funds meant to help people struggling in the COVID-19 pandemic.” Marc DellaSala from the U.S. Secret Service emphasized that this sentence should deter others from committing similar frauds: “Our pursuit of criminals stealing from government aid programs intended for struggling small businesses and families will not tire.”
The case was presided over by United States District Court Judge S. Kato Crews. The investigation was conducted by the United States Secret Service with prosecution led by Assistant United States Attorney Nicole Cassidy.
In July 2023, the District of Colorado’s U.S. Attorney’s Office was chosen to lead one of five national COVID-19 Fraud Strike Force Teams by the Attorney General. These teams aim to combat large-scale pandemic-related financial fraud using combined law enforcement resources.
For those with information on attempted COVID-19 fraud, reports can be made via the Department of Justice’s National Center for Disaster Fraud Hotline or their online complaint form.