BOSTON – In a stunning turn of events, Hector Garcia, 52, from Ocala, Fla., has pleaded guilty in U.S. District Court in Boston to conspiracy to commit wire fraud and three counts of wire fraud, involving the Small Business Administration (SBA) Economic Injury Disaster Loans.
According to authorities, Garcia and his co-conspirators Ramon Cruz, Darwyn Joseph, Edwin Acevedo, and others, hatched a scheme using stolen identity information to apply for SBA loans. Garcia personally opened a fraudulent bank account with stolen U.S. citizen information, which he linked to other accounts to receive the funds.
With debit cards from these accounts, Garcia and his crew laundered over $452,000 in SBA funds by purchasing iPhones for resale. A significant portion of this money was funneled into Massachusetts and New Hampshire markets.
Garcia’s sentencing is set for July 24, 2024. His co-conspirators have already faced justice: Cruz and Joseph were sentenced to two years and one day in prison each, with three years of supervised release, while Acevedo was sentenced to 33 months in prison followed by three years of supervised release.
The severity of the charges against Garcia could see him facing up to 20 years in prison, three years of supervised release, and a fine reaching $250,000 or twice the gross gain from the offense. Sentencing is determined by federal district court judges based on U.S. Sentencing Guidelines and statutes.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England, announced the charges. The investigation was a collaborative effort involving numerous agencies including Homeland Security Investigations, the SBA Office of Inspector General, and local police departments.
The Department of Justice’s COVID-19 Fraud Enforcement Task Force has been instrumental in tackling such schemes, with Garcia’s case being a prime example of the task force’s efforts to combat pandemic-related fraud. To report any allegations of attempted fraud involving COVID-19, the public is encouraged to contact the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or complete the NCDF Web Complaint Form.
Related Federal Cases
- Florida Man Pleads Guilty to $452K SBA Fraud Scheme · Massachusetts
- Phan and Tran Sentenced in $330,000 Cell Phone Fraud Scheme · New Hampshire
- NY Man Gets 24 Months for Multi-State Bank Fraud Scheme · New Hampshire
- Nigerian National Sentenced to 63 Months for Credit Card Fraud Scheme · New Hampshire
- Aaron E. Olson Ordered to Pay $22.8M in Ponzi Scheme Restitution · Massachusetts
Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Organized Crime
- Source: Official Source ↗
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