A federal jury convicted Rico Tomas Garcia, 51, of Castle Rock on March 12 of nine counts of wire fraud and six counts of money laundering for his role in a $2.4 million hand sanitizer scheme during the early months of the COVID-19 pandemic, according to the United States Attorney for the District of Colorado.
The case highlights efforts by authorities to address fraudulent activity that emerged during the pandemic, particularly schemes targeting businesses seeking essential supplies.
Prosecutors said Garcia, operating as Botani Labs, LLC., claimed he could supply millions of bottles of hand sanitizer to large national retailers between April 2020 and June 2021. After receiving a $2.4 million deposit from victim businesses to finance the deal, Garcia did not procure any product. Instead, he falsely testified under oath in civil arbitration that he had wired the funds to a Chinese manufacturer and provided false documents to support this claim.
An FBI investigation found that Garcia used shell companies to divert the deposit funds for personal debts and property purchases in California, Nevada, and Colorado. Over a million dollars was also moved into offshore accounts in the Caribbean.
United States District Judge Nina Y. Wang presided over the trial. The FBI Denver Field Office led the investigation, while Assistant United States Attorneys Albert Buchman, Bryan Fields, Laura Hurd, and Aly Mance prosecuted the case.
The conviction underscores ongoing law enforcement efforts to prosecute financial crimes related to pandemic relief.
