Charles Lacona, Jr., a former resident of Colorado Springs, has been sentenced to 24 months in federal prison for defrauding taxpayer-funded COVID-19 relief programs. The United States Attorney’s Office for the District of Colorado announced that Lacona was also ordered to pay $549,274.14 in restitution after being found guilty by a federal jury on two counts of wire fraud and one count of money laundering. These charges were related to fraudulent funds he received through the Paycheck Protection Program (PPP).
During the trial, it was revealed that between April 2020 and April 2021, Lacona engaged in a scheme to defraud a lender of $513,732.50 in PPP loans. He inflated payroll costs and gross receipts, made false statements and certifications, and submitted fabricated tax documents and payroll reports. Additionally, Lacona unsuccessfully applied for more emergency government assistance through the Economic Injury Disaster Loan (EIDL) program. Part of the fraudulently obtained funds was used to purchase a Cadillac CT6.
Acting United States Attorney J. Bishop Grewell stated, “Theft of taxpayer dollars will not be tolerated. This sentence sends a message that people who defrauded the United States Government will be held accountable for their actions.” Amanda Prestegard, Special Agent In Charge at the IRS Criminal Investigation Denver Field Office added, “IRS Criminal Investigation is committed to holding accountable those who exploited the COVID-19 pandemic relief programs.”
United States District Court Judge Daniel D. Domenico presided over the trial while IRS Criminal Investigation conducted the investigation. Assistant United States Attorneys Craig Fansler and Nicole Cassidy prosecuted the case.
In response to pandemic-related frauds, on May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to enhance efforts against such crimes by coordinating resources across government agencies. On July 11, 2023, Colorado's U.S. Attorney’s Office was chosen to lead one of five national COVID-19 Fraud Strike Force Teams aimed at tackling large-scale pandemic relief fraud.
For information on reporting attempted COVID-19 frauds, individuals can contact the Department of Justice’s National Center for Disaster Fraud Hotline or use their online complaint form.
