McALLEN, Texas – In a shocking turn of events, five Rio Grande Valley residents have been charged with wire fraud in a scheme that exploited the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL). The defendants are accused of bilking the Small Business Administration (SBA) out of $685,800.
According to U.S. Attorney Nicholas J. Ganjei, the suspects include Sandra Pope Solis, 60, from Rancho Viejo; Lesley Chavez, 42, of Edinburg; Rolando Santiago Benitez, 51, in Harlingen; Bernardo Gomez Jr., 46, from Edinburg; and Edgar De La Garza, 45, in Brownsville. The final two were arrested and are set to appear before U.S. Magistrate Judge J. Scott Hacker.
The indictment, returned on August 5, asserts that the group submitted fraudulent applications for EIDL and/or PPP loans, misrepresenting their business needs to obtain funding intended for payroll and other business expenses. Instead, they are accused of using the money for personal gain.
From June 2020 to November 2021, the suspects are alleged to have falsified tax documents and business records to inflate loan amounts, then pocketed the proceeds. Each faces up to 20 years in prison and a $250,000 fine if convicted.
The FBI and SBA – Office of Inspector General led the investigation, with support from the Texas Department of Insurance. Assistant U.S. Attorney Lee Fry is handling the prosecution.
Established to combat pandemic-related fraud, the COVID-19 Fraud Enforcement Task Force works across government agencies. The task force aims to uncover schemes like this and prevent further financial abuse of relief programs. For information on reporting such fraud, the public is encouraged to contact the Department of Justice’s National Center for Disaster Fraud Hotline.
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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