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In June 2020, Richard Fadraga submitted a fraudulent application for an Economic Injury Disaster Loan (EIDL), which resulted in him getting $110,000 from the Small Business Administration in COVID-19 relate proceeds, US Attorney Phillip Sellinger said.
The next month, Fadraga submitted another fraudulent application and received a $131,000 loan, Sellinger said. That application was submitted under another person's name to conceal the involvement of Fadraga and his conspirator, Sellinger said.
Fadraga and his conspirator also used a fake Employer Identification Number and an Electronic Filler Identification Number to submit tax returns on behalf of other people that contained false information, Sellinger said.
The fraudulent EIN was associated with tax returns that received more than $195,000 in federal refunds for tax year 2023, and the fraudulent EFIN was associated with tax returns that received more than $595,000 in federal refunds for tax year 2023, including tax refunds totaling more than $100,000 in the names of the conspirator and the conspirator’s associates, Sellingers said.
Fadraga also fraudulently applied for a bank loan in connection with the purchase of property in Florida. When the lender requested additional information, Fadraga sent bank statements to his conspirator, who then altered those bank statements to make it appear as if Fadraga’s bank account contained more money than it really did, Sellinger said.
He pleaded guilty to one count of wire fraud conspiracy and two counts of wire fraud and faces a maximum of 20 years in prison when he is sentenced next February, Sellinger said.
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