Three men have been sentenced to federal prison for their involvement in a commercial bribery and money laundering scheme that targeted a Colorado electrical utility. The U.S. Attorney’s Office for the District of Colorado announced this week that Edward Joseph Chmiel, 50, received a 30-month sentence; Sabino Loera, 51, was sentenced to 25 months; and Henry Lozano, 43, received a 23-month sentence.
All three defendants were also ordered to pay $1,495,781.51 each in restitution and faced forfeiture money judgments for the same amount.
Court documents reveal that Chmiel and Loera worked for an electrical contracting company servicing a Colorado utility, while Lozano owned a trucking and hauling business. In August 2018, the three agreed that Lozano’s company would provide services in exchange for kickback payments to Chmiel and Loera. They submitted false invoices from Lozano’s company to the contractor employing Chmiel and Loera. Once those invoices were paid, Loera directed Lozano to issue checks to fifteen others who cashed them and returned the funds as cash kickbacks. This operation ran from August 2018 through June 2020 and generated nearly $1.5 million in illicit proceeds.
“We are proud to pursue people who enrich themselves by stealing money which was supposed to provide important services for Coloradans,” said U.S. Attorney Peter McNeilly. “Our office appreciates the hard work of our investigative colleagues at the IRS and FBI which held these three accountable for their corrupt scheme.”
“Corruption such as this always has costs beyond any one company’s bottom line. This sentence should serve as a reminder that commercial bribery and corruption will not be tolerated,” said Amanda Prestegard, Special Agent in Charge, IRS-CI Denver Field Office. “Our special agents will continue to work with our federal partners and the U.S. Attorney’s Office to investigate and prosecute those who perpetrate these kickback schemes.”
“Fraud and kickback schemes erode public trust and undermine the systems our communities rely on. This outcome proves that when agencies work together, we can root out corruption and hold offenders accountable,” said FBI Denver Special Agent in Charge Mark Michalek. “The FBI remains committed to protecting the integrity of our institutions and ensuring that no one is above the law.”
The Internal Revenue Service – Criminal Investigations (IRS-CI) collaborated with the Federal Bureau of Investigation (FBI) during this investigation. Assistant United States Attorneys Sonia Dave and Bryan Fields prosecuted the case.
