A former City of Sweetwater commissioner has been sentenced to 18 months in federal prison for unlawfully receiving approximately $950,000 through the Paycheck Protection Program.
Sophia Lacayo, 48, of Doral, was sentenced by U.S. District Judge Darrin P. Gayles after pleading guilty to wire fraud, according to the US Attorney’s Office for the Southern District of Florida.
Sweetwater is a city in Miami-Dade County, Florida, also known as “Little Managua”.
According to court records, Lacayo submitted or facilitated the submission of bogus PPP loan applications on behalf of three enterprises in order to acquire pandemic relief funding for which they were ineligible.
Lacayo owned Lacayo Trade Group Inc. and wielded tremendous power over QC Tax Pro Systems LLC and QC Trade Group LLC, authorities claimed.
The loan applications allegedly overstated the companies’ payroll expenses, employee counts, revenue, and wages paid. According to prosecutors, Lacayo supported the applications with fake papers such as fraudulent IRS forms, fabricated payroll records, and a falsified bank statement.
According to federal prosecutors, the scam resulted in the firms and Lacayo receiving around $948,325 in PPP loans.
The total included two $251,465 loans acquired on behalf of QC Tax, a $117,500 loan for QC Trade, and a $327,895 loan for Lacayo Trade.
“Sophia Lacayo exploited an emergency program intended to keep workers employed and small businesses alive, using fabricated tax forms and false payroll records to obtain nearly $950,000,” U.S. Attorney Jason A. Reding Quiñones stated.
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