Hayden O’Byrne United States Attorney for the Southern District of Florida | The Florida Bar
Lazaro Verdecia Hernandez, a 37-year-old resident of Miami, has been sentenced to 15 years in federal prison. Hernandez led a scheme to secure fraudulent loans through the Paycheck Protection Program (PPP) and subsequently launder the money obtained. This program was part of the federal government's relief efforts during the COVID-19 pandemic.
Hernandez, along with Heidi Cid, fraudulently submitted over 63 PPP loan applications by presenting false information about company employees and forging documents. This led to lenders disbursing more than $14.5 million to accounts controlled by various individuals. These individuals later withdrew the funds and shared them with Hernandez, Cid, and Yadier Rodriguez Arteaga, another accomplice.
Both Arteaga and Cid were previously found guilty and received sentences of nearly six years and 26 months, respectively, in federal prison.
The case involved several federal agencies, including the U.S. Secret Service, the Federal Housing Finance Agency's Office of Inspector General, and the Small Business Administration's Office of Inspector General. U.S. Attorney Hayden P. O’Byrne and the respective agents from these organizations announced the sentencing.
Assistant U.S. Attorneys Thomas Haggerty and Eli Rubin prosecuted the case, and Assistant U.S. Attorney Sarah Klco is managing asset forfeiture.
Numerous related cases were also part of the broader investigation into the fraud scheme, all resulting in guilty pleas except for two fugitives, Javier Pico and Erisbel Gonzalez Gomez. Around 22 individuals have been charged and convicted in connection with the conspiracy.
This fraud was discovered amidst the enactment of the CARES Act in March 2020, intended to provide economic relief to those affected by the pandemic. The COVID-19 Fraud Enforcement Task Force was established in May 2021 to lead the Department of Justice's initiatives against pandemic-related fraud.
For more information regarding the efforts to combat COVID-19 fraud and to report allegations, the public is encouraged to contact the Department of Justice's National Center for Disaster Fraud.
Further details regarding this case are accessible on the website of the Southern District of Florida's U.S. Attorney’s Office and the District Court's website.
