Two Cuban nationals have been indicted in Cedar Rapids as part of a nationwide enforcement action targeting fraud in the Small Business Administration’s Paycheck Protection Program (PPP). The enforcement effort is led by the Justice Department’s National Fraud Enforcement Division, the SBA, and the SBA Office of Inspector General.
From June 12 to August 31, federal prosecutors across the country facilitated fraud enforcement actions involving more than 160 defendants, roughly half of whom were newly charged, and approximately $245 million in actual and attempted theft. The U.S. Attorney’s Office for the Northern District of Iowa was a key player in this effort.
“People who defraud government programs are thieves just as much as if they’d stolen cash from an armored truck,” said United States Attorney Leif Olson. “We’re committed to identifying, prosecuting, and convicting these criminals. And our civil lawyers are committed to using civil suits and forfeitures of property to recover every dollar possible from these crooks.”
Statements of Department of Justice Officials
“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications—but they will now be prosecuted to the fullest extent of the law.”
“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder-to-shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.”
Statements of Small Business Administration Officials
“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.”
“Operation No Doze brings a focused and coordinated approach to pursuing fraud in SBA’s pandemic relief programs,” said SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.”
Cedar Rapids Indictment
The indictment charges two defendants, Adrian Rafael Pupo Perez and Helen Yaima Leyva Santiesteban, both Cuban nationals, with 47 counts of wire fraud, money laundering, and conspiracy. It alleges that, beginning in July 2020, the defendants and more than one hundred other Cuban immigrants attempted to obtain fraudulent PPP loans and other COVID-era benefits. Each falsely claimed to be self-employed and to have earned approximately $100,000 in gross income in 2019. In truth, each participant actually worked elsewhere, most of them at the same northern Iowa meatpacking plant. In total, the defendants submitted roughly 470 fraudulent PPP loan applications in the names of more than 100 individuals across the United States. Their fraudulent applications sought $4.5 million in loan funds, and they actually obtained about $2.4 million. Pupo Perez and Leyva Santiesteban are currently fugitives from justice, believed to have returned to Cuba.
The case is being investigated by the SBA Office of Inspector General and the FDIC Office of Inspector General and prosecuted by Assistant United States Attorneys Tim Vavricek, Matt Cole, and Dan Chatham. As with any criminal case, an indictment is merely an accusation, and defendants are presumed innocent until and unless proven guilty.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case number is 24-CR-3013. Follow us on X @USAO_NDIA.
","changed":"\n","component":[{"name":"USAO - Iowa, Northern","uuid":"17ec88ed-fde4-42ba-b13e-3189e751678a"}],"created":"\n","date":"1789473600","image":"","number":"","teaser":"","title":"U.S. Attorney’s Office Joins in Takedown of COVID-Era Loan Program Fraud Exceeding $245 Million","topic":[{"name":"Fraud","uuid":"32b4d47b-2142-420c-9aae-28f7bf2c86d4"},{"name":"COVID-Related Fraud","uuid":"6827a162-b783-4ffa-a6c2-596fc9f07e39"}],"url":"https://www.justice.gov/usao-ndia/pr/us-attorneys-office-joins-takedown-covid-era-loan-program-fraud-exceeding-245-million","uuid":"b6867e8d-7672-49fb-bfe9-c924a0198d11"}