MIAMI – Two public servants have admitted guilt in separate cases of defrauding Covid-19 relief programs. Angelo Stephen, a Federal Bureau of Prisons Correctional Officer, and George Arestuche, an employee at the Miami-Dade County Aviation Department, entered guilty pleas to federal charges.
Stephen confessed before Chief U.S. District Judge Cecila M. Altonaga to wire fraud related to fraudulent applications for two Paycheck Protection Program loans and one Economic Injury Disaster Loan (EIDL). He also acknowledged his involvement in two bank account takeover schemes.
In his hearing, Stephen admitted that he falsely claimed to be an independent contractor with a 10-employee business in an EIDL application submitted to the Small Business Association (SBA). This false claim led him to receive $20,000 from the SBA. Additionally, Stephen submitted fake information for two PPP loan applications in 2021 and participated in bank account takeover schemes involving unauthorized transfers and withdrawals.
Stephen's sentencing is scheduled for May 22, 2025, where he faces up to 20 years in prison.
George Arestuche pled guilty to conspiracy to commit wire fraud before Senior U.S. District Judge Paul C. Huck. He admitted devising a scheme with a co-conspirator to submit a fraudulent EIDL application on July 9, 2020. The application falsely claimed ownership of an "Automotive Repair" business named "george," leading him to obtain $149,900 in EIDL proceeds and a $10,000 advance from the SBA.
Arestuche will be sentenced on May 12, 2025, facing up to five years in prison.
The guilty pleas were announced by U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida along with officials from various investigative agencies including DOJ-OIG and SBA-OIG who investigated these cases.
Assistant U.S. Attorney Edward N. Stamm is prosecuting both cases while Assistant U.S. Attorneys Annika Miranda and Gabrielle Raemy Charest-Turken handle forfeiture matters for Stephen and Arestuche respectively.
The CARES Act was enacted in March 2020 providing financial assistance through programs like EIDLs during the pandemic's economic impact on small businesses and independent contractors.
In response to pandemic-related frauds, the COVID-19 Fraud Enforcement Task Force was established by the Attorney General on May 17, 2021. The Southern District of Florida’s U.S. Attorney’s Office leads one of three national COVID-19 Fraud Strike Force Teams since September 15, 2022.
Information about attempted Covid-19 fraud can be reported via the Department of Justice’s National Center for Disaster Fraud Hotline or its web complaint form.
Court documents are accessible through the website of the District Court for the Southern District of Florida under case numbers provided.
###