ALBUQUERQUE, N.M. – A 24-year-old Albuquerque man is facing serious federal charges after allegedly exploiting the COVID-19 pandemic to line his own pockets. Pholopater Faltas was arraigned this week on an indictment accusing him of systematically defrauding the CARES Act unemployment insurance program, stealing funds meant for New Mexicans struggling through the early days of the crisis.
According to court documents, Faltas allegedly recruited individuals, promising to handle their unemployment applications. But instead of ensuring they received the assistance they were entitled to, Faltas allegedly diverted the funds – disbursed via debit cards and bank accounts under his control – for his own personal gain. Many participants received only a pittance of the approved benefits, or were falsely told their applications were rejected while Faltas pocketed the rest.
The scheme ran rampant between April and October of 2020, a period of immense economic hardship for many New Mexicans. Federal prosecutors allege that Faltas didn’t stop at simply stealing from those in need; he also knowingly submitted fraudulent applications on behalf of ineligible individuals. These included people who weren’t even residents of New Mexico, falsely claiming they lived within the state to qualify for benefits.
The investigation, led by the U.S. Secret Service’s Albuquerque Resident Office and the Bernalillo County Sheriff’s Office, with support from the Department of Labor – Office of the Inspector General, uncovered a pattern of deception. Faltas allegedly aided and abetted the inclusion of false information to make ineligible applicants *appear* eligible, further compounding the severity of the charges.
An indictment is, of course, not a conviction. Faltas is presumed innocent until proven guilty beyond a reasonable doubt. However, if convicted on the eight counts of mail fraud and two counts of wire fraud, he faces a potential sentence of up to 30 years in federal prison. The U.S. Attorney’s Office for the District of New Mexico, led by Assistant United States Attorney Taylor F. Hartstein, is prosecuting the case.
This case highlights the vulnerability of emergency assistance programs to exploitation, and the Secret Service’s continued commitment to pursuing those who prey on vulnerable populations during times of crisis. The Department of Justice is sending a clear message: stealing from programs designed to help those in need will not be tolerated. Faltas remains on conditions of release pending a trial date yet to be scheduled.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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