Colorado Kickback Crew Gets Prison Time

DENVER – A trio of schemers are trading work boots for prison stripes after being sentenced this week for their roles in a brazen $1.495,781.51 money laundering operation fueled by fraudulent invoices targeting a Colorado electrical utility. Edward Joseph Chmiel, 50, Henry Lozano, 43, and Sabino Loera, 51, all learned their price for lining their pockets at the expense of honest business – and the Colorado public.

Chmiel received the harshest sentence, 30 months behind bars. Loera will spend 25 months incarcerated, while Lozano is slated for 23 months. But the prison time is just part of the punishment. Each defendant faces a hefty forfeiture money judgment of $1,495,781.51, and is also ordered to pay the full amount in restitution – a clear message that ill-gotten gains will be clawed back.

The scheme, revealed in court documents, unfolded starting in August 2018. Chmiel and Loera, employees of an electrical contracting firm serving a Colorado utility, teamed up with Lozano, owner of a trucking and hauling company. The arrangement was simple: Lozano’s company would bill for services rendered, but a significant portion would be siphoned off as kickbacks to Chmiel and Loera. The trio knowingly submitted false invoices, creating a paper trail for the illegal payouts.

The operation wasn’t subtle. Once Lozano received payment for the bogus invoices, Loera directed him to issue checks to a network of 15 additional individuals. These individuals cashed the checks and then handed the cash directly to Chmiel and Loera – a clumsy attempt to obscure the flow of dirty money. Over nearly two years, the fraudulent scheme generated nearly $1.5 million in kickback proceeds.

“We are proud to pursue people who enrich themselves by stealing money which was supposed to provide important services for Coloradans,” stated U.S. Attorney Peter McNeilly. The sentiment was echoed by Amanda Prestegard, Special Agent in Charge of IRS-CI Denver Field Office, who warned, “Corruption such as this always has costs beyond any one company’s bottom line. This sentence should serve as a reminder that commercial bribery and corruption will not be tolerated.” FBI Denver Special Agent in Charge Mark Michalek added, “Fraud and kickback schemes erode public trust…The FBI remains committed to protecting the integrity of our institutions.”

The investigation was a joint effort by the Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation. Assistant United States Attorneys Sonia Dave and Bryan Fields are prosecuting the case. The case number is 25-cr-00024-RMR. This conviction serves as a grim reminder: in Colorado, and across the nation, attempts to defraud utilities and the public will be met with federal scrutiny and, ultimately, a prison sentence.