Edwin Acevedo, Wire Fraud, Massachusetts 2023

BOSTON – In a brazen scheme to rip off disaster relief funds, Edwin Acevedo, 35, of Acton, and Hector Garcia, 49, of Manchester, N.H., have been arrested and charged with conspiracy to commit wire fraud and aggravated identity theft. The two men allegedly used stolen identities to apply for Small Business Administration (SBA) Economic Injury Disaster Loans, netting a staggering $452,000.

According to court documents, Garcia used a stolen identity to open a fraudulent bank account, which was linked to other accounts set up to receive SBA funds. Acevedo allegedly coordinated with co-conspirators to receive debit cards associated with the fraudulent accounts, which were then used to purchase iPhones for resale. Additionally, the duo wired a portion of the funds to the Dominican Republic.

The scheme, which spanned multiple states, involved the use of stolen identity information of United States citizens. The defendants allegedly used this information to apply for SBA loans, which were then deposited into fraudulent bank accounts. The funds were then laundered through the purchase of iPhones and wire transfers to overseas accounts.

Acting United States Attorney Nathaniel R. Mendell and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Valuable assistance was provided by Homeland Security Investigations in Orlando, Fla.; Small Business Administration, Office of the Inspector General; Department of Housing and Urban Development, Office of the Inspector General; Social Security Administration, Office of the Inspector General; Department of Labor, Office of the Inspector General; Department of State; U.S. Postal Inspection Service; Massachusetts State Police; New Hampshire State Police; and the Acton, Nashua (N.H.), Manchester (N.H.) and Ocala (Fla.) Police Departments.

Assistant U.S. Attorneys Elianna Nuzum and Adam Deitch of Mendell’s Major Crimes Unit are prosecuting the case. The details contained in the charging documents are allegations, and the defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.

Garcia will make an initial appearance in federal court in Boston on September 3, 2021. Acevedo made his initial appearance on August 19, 2021 and is being held pending a detention hearing. If convicted, Acevedo faces a sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense. Garcia faces a mandatory two-year sentence for aggravated identity theft, in addition to the potential sentence for conspiracy to commit wire fraud.

The majority of the funds, approximately $250,000, were used to purchase iPhones in Massachusetts and New Hampshire. The investigation into this case is ongoing, and authorities are urging anyone with information to come forward.

The U.S. Attorney’s Office is committed to holding accountable those who seek to exploit disaster relief funds for personal gain. This case serves as a reminder of the importance of vigilance and cooperation in preventing and investigating financial crimes.

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