Markenzy Lapointe U.S. Attorney | U.S. Attorney for the Southern District of Florida
Angelo Stephen, a correctional officer with the Federal Bureau of Prisons, and George Arestuche, an employee of the Miami-Dade County Aviation Department, have both entered guilty pleas in separate federal cases related to defrauding Covid-19 relief programs.
Stephen pleaded guilty to wire fraud before Chief U.S. District Judge Cecila M. Altonaga. His charges are connected to fraudulent applications for two Paycheck Protection Program (PPP) loans and one Economic Injury Disaster Loan (EIDL). He also admitted to involvement in two bank account takeover schemes.
In his hearing, Stephen acknowledged submitting a false EIDL application to the Small Business Association (SBA), claiming he was an independent contractor and sole owner of a business with ten employees. This claim allowed him to obtain $20,000 in EIDL funds fraudulently. Additionally, Stephen admitted to submitting false information for two PPP loan applications, securing $20,833 from each through fake documentation.
Stephen is scheduled for sentencing on May 22, 2025, where he could face up to 20 years in prison.
Arestuche pled guilty to conspiracy to commit wire fraud before Senior U.S. District Judge Paul C. Huck. His scheme involved submitting a fraudulent EIDL application with the assistance of a co-conspirator who received payment for their help.
According to court records, Arestuche falsely claimed ownership of an "Automotive Repair" business on his EIDL application submitted on July 9, 2020. The fraudulent submission resulted in Arestuche obtaining $149,900 in EIDL proceeds and a $10,000 advance from the SBA.
Arestuche's sentencing is set for May 12, 2025, where he faces a possible maximum sentence of five years in prison.
The announcements were made by U.S. Attorney Hayden P. O’Byrne and various special agents involved in the investigation and prosecution efforts against Stephen and Arestuche.
The DOJ-OIG and SBA-OIG investigated Stephen's case while SBA-OIG and the FBI’s Miami Area Corruption Task Force handled Arestuche's case.
Assistant U.S. Attorney Edward N. Stamm is prosecuting both cases with Assistant U.S. Attorneys Annika Miranda and Gabrielle Raemy Charest-Turken handling forfeiture matters related to each case respectively.
The CARES Act was enacted in March 2020 providing financial assistance during the pandemic through programs like EIDLs for eligible small businesses affected by Covid-19 disruptions.
For more information or reporting suspected Covid-19 fraud attempts individuals can contact the National Center for Disaster Fraud Hotline or use their online complaint form as provided by the Department of Justice.
