Charles Lacona, Jr., a former resident of Colorado Springs, has been sentenced to 24 months in federal prison and ordered to pay $549,274.14 in restitution. The United States Attorney’s Office for the District of Colorado announced that Lacona was found guilty by a federal jury on two counts of wire fraud and one count of money laundering. These charges were related to fraudulent COVID-19 relief funds he received through the Paycheck Protection Program (PPP).
During the trial, it was revealed that between April 2020 and April 2021, Lacona devised a scheme to defraud a lender out of $513,732.50 in PPP loans. He inflated payroll costs and gross receipts, made false statements and certifications, and submitted fabricated tax documents and payroll reports. Additionally, Lacona unsuccessfully applied for further emergency government assistance through the Economic Injury Disaster Loan (EIDL) program. Some of the fraudulently obtained funds were used to purchase a Cadillac CT6 for $67,704.13.
Acting United States Attorney J. Bishop Grewell stated: “Theft of taxpayer dollars will not be tolerated.” He added that this sentence sends a message that those who defrauded the United States Government will be held accountable.
Amanda Prestegard, Special Agent In Charge at the IRS Criminal Investigation Denver Field Office, commented: “IRS Criminal Investigation is committed to holding accountable those who exploited the COVID-19 pandemic relief programs.”
United States District Court Judge Daniel D. Domenico presided over the trial while IRS Criminal Investigation conducted the investigation. Assistant United States Attorneys Craig Fansler and Nicole Cassidy prosecuted the case.
The Attorney General established the COVID-19 Fraud Enforcement Task Force on May 17, 2021, to enhance efforts against pandemic-related fraud in partnership with various agencies across government sectors.
On July 11, 2023, it was announced that the District of Colorado’s U.S. Attorney’s Office would lead one of five national COVID-19 Fraud Strike Force Teams aimed at combating large-scale pandemic relief fraud.
For more information on reporting allegations of attempted fraud involving COVID-19 relief funds or any related issues can contact the Department of Justice’s National Center for Disaster Fraud Hotline or visit their website.