SAN JUAN, Puerto Rico – Six individuals are facing federal charges after allegedly masterminding a brazen, multi-million dollar scheme to siphon funds from COVID-19 relief programs. The crew systematically exploited the CARES Act, lining their pockets while legitimate businesses struggled to survive the pandemic.
The indictment, unsealed today, accuses Manfred A. Pentzke Lemus, a.k.a. “Man/Contable/El Gestor”; Rodolpho R. Pagesy Roussel, a.k.a. “El Banquero”; Augusto A. Lemus Berríos, a.k.a. “Primo”; Jonatan Ben David Prieto Ruiz De Val, a.k.a. “Johnny Millones”; Ligia María Lemus De Pentzke, a.k.a. “Ligia Lemus Lanuza”; and Carlos Manfredo Pentzke Chamorro, a.k.a. “El Doctor”, of conspiring to defraud the Small Business Administration (SBA) and Bank 1. Federal prosecutors allege the group submitted at least 272 fraudulent applications for Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans, totaling a staggering $9,020,590.33.
According to the charging documents, the scheme ran from April 2020 through April 2023. The defendants allegedly fabricated business information – including employee numbers, gross revenues, and cost of goods sold – on loan applications, then certified the falsity under penalty of perjury. The SBA used this doctored data to calculate loan amounts, effectively turning the agency into a piggy bank for the alleged fraudsters.
“This case demonstrates the brazenness with which the defendants took advantage of federal programs meant to help businesses that were severely affected by the COVID-19 pandemic,” stated W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “The U.S. Attorney’s Office will continue to work together with our law enforcement partners to find and prosecute those who have fraudulently stolen taxpayer money that was meant to help our citizens.”
The EIDL program offered loans of up to $150,000 to eligible small businesses and non-profits, with a 30-year repayment plan and a 12-month deferral. Some applicants even qualified for advance funds of up to $15,000. The indictment alleges the defendants illegally obtained these funds, diverting them for purposes other than legitimate business expenses. The investigation, a collaborative effort involving the U.S. Secret Service, SBA Office of the Inspector General, Treasury Inspector General for Tax Administration, IRS Criminal Investigations, and multiple Puerto Rican law enforcement agencies, underscores the growing problem of pandemic-related fraud.
The charges against the six defendants include multiple counts of wire fraud, money laundering, PPP fraud, and EIDL fraud. While specific sentencing guidelines remain to be determined, each count carries significant penalties, potentially adding up to decades behind bars. This investigation serves as a stark reminder that those who prey on emergency relief programs will be held accountable, no matter how sophisticated their scheme.”
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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