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COVID-19 Relief Fraud Rocks Puerto Rico
SAN JUAN, Puerto Rico – In a shocking case of brazen theft, six individuals have been indicted for their role in a multi-million-dollar fraudulent scheme to obtain COVID-19 relief funds under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The Grand Jury charged 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”, with multiple counts of wire fraud, money laundering, Paycheck Protection Program (PPP) fraud, and Economic Injury Disaster Loan (EIDL) fraud.
The indictment alleges that from April 2020 through April 2023, the defendants and their co-conspirators caused the submission of at least 272 EIDL and PPP loan applications seeking the illegal disbursement of at least $9,020,590.33 in federal recovery funds from the U.S. Small Business Administration (SBA) and Bank 1.
“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. 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,” said U.S. Attorney W. Stephen Muldrow.
The investigation was conducted by the United States Secret Service, Small Business Administration Office of the Inspector General, Treasury Inspector General for Tax Administration, and Internal Revenue Service Criminal Investigations, with the collaboration of the Puerto Rico Treasury Department, Puerto Rico Bureau of Special Investigations, Puerto Rico Police Bureau, and Guaynabo Municipal Police.
The CARES Act authorized federal assistance through the issuance of SBA loans to small businesses and non-profit entities that experienced revenue loss due to the COVID-19 worldwide pandemic. The EIDL program was one such loan assistance program for small businesses, which allowed applicants to receive up to $150,000, with a 30-year scheduled repayment, deferred for 12 months.
The indictment highlights the severity of the fraud scheme, which involved the submission of fake loan applications and the use of false pretenses to obtain federal funds. The defendants are accused of knowingly devising a scheme to defraud the SBA and Bank 1 to obtain federal money and property by means of materially false and fraudulent pretenses, representations, and promises submitted through applications for EIDL and PPP loans.
The case is a stark reminder of the importance of investigating and prosecuting those who seek to take advantage of federal programs meant to help those in need. As the investigation continues, it remains to be seen how much more the defendants will be held accountable for their actions.
Key Facts
- State: Puerto Rico
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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