Colorado Springs man convicted of defrauding $500k of taxpayer-funded COVID relief funds
COLORADO SPRINGS, Colo. (KRDO) – On Monday, a former Colorado Springs resident was found guilty of wire fraud and money laundering of more than half a million dollars of COVID-19 related relief funds he received through the Paycheck Protection Program (PPP).
According to the U.S. Attorney's Office for the District of Colorado, between April 2020 and April 2021, 67-year-old Charles Lacona, Jr. devised and participated in a scheme to defraud a lender of $513,732.50 in PPP loans.
The trial established that Lacona inflated payroll costs and gross receipts, made false statements and certifications and submitted fabricated tax documents and payroll reports.
According to the Attorney's Office, Lacona unsuccessfully applied for additional emergency government assistance during that same time period through the Economic Injury Disaster Loan (EIDL) program, and used some of the fraudulently obtained funds to purchase a Cadillac.
“This is another case of someone using for personal gain a program meant to help people suffering during the COVID-19 pandemic,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “I want the public to know that we are aggressively prosecuting people who stole from this relief program.”
Sentencing will be held at a later date, according to the Attorney's Office.
The U.S. Attorney General established a COVID-19 Fraud Enforcement Task Force in May 2021, aimed at combatting and preventing pandemic-related fraud.
"These federal programs were designed to help families and small businesses facing financial challenges during the COVID-19 pandemic," said Tom Demeo, Acting Special Agent in Charge for the IRS Criminal Investigation Denver Field Office. "Through our partnership with the U.S. Attorney's Office, IRS Criminal Investigation will continue to aggressively pursue individuals who attempt to exploit federal relief programs for their personal benefit."
More information on the Department’s response to the pandemic can be found here.
