Two Miami public servants have pled guilty to federal charges for defrauding COVID-19 relief programs.
Angelo Stephen, a Federal Bureau of Prisons Correctional Officer, admitted to wire fraud for submitting fraudulent Paycheck Protection Program (PPP) loan and Economic Injury Disaster Loan (EIDL) applications, as well as participating in two bank account takeover schemes. George Arestuche, an employee of the Miami-Dade County Aviation Department, pled guilty to conspiracy to commit wire fraud after submitting a fraudulent EIDL application and receiving a $149,900 loan and a $10,000 advance. Both are scheduled for sentencing in May 2025.
Angelo Stephen’s fraudulent schemes
Stephen, 46, pled guilty this week before Chief U.S. District Judge Cecilia M. Altonaga to wire fraud related to his fraudulent applications for two PPP loans and one EIDL, as well as his involvement in two bank account takeover schemes. According to court documents, Stephen falsely represented himself as an independent contractor and the sole owner of a 10-employee business that provided event planning and entertainment services when applying for the EIDL. He claimed that his business generated $62,018 in gross revenue in the prior year, a figure he fabricated, and falsely certified that his business had no costs of goods sold. As a result, he was wrongfully awarded $20,000 in EIDL funds.
In addition to the EIDL fraud, Stephen submitted two PPP loan applications in April and May of 2021, both of which contained false information. He claimed his business had grossed $106,554 in 2020 and submitted a fake IRS Form 1040 Schedule C to back up the fraudulent applications. Stephen received two separate $20,833 PPP loans from different SBA-approved lenders for the non-existent business.
Stephen also admitted to his involvement in two bank account takeover schemes. In one instance, he stole $20,000 from a victim’s account in Virginia, withdrawing the funds through a series of cash withdrawals and Zelle transfers. In a second scheme, he obtained and used a stolen check to withdraw $8,500 in cash.
Stephen is scheduled to be sentenced on May 22, 2025, at 8:30 a.m. before Chief U.S. District Judge Altonaga in Miami, Florida, where he faces up to 20 years in prison.
George Arestuche’s fraudulent EIDL application
In a separate case, George Arestuche, 39, pled guilty to conspiracy to commit wire fraud in connection with his fraudulent receipt of an EIDL and EIDL advance. Senior U.S. District Judge Paul C. Huck accepted Arestuche’s guilty plea earlier this week.
Arestuche, along with a co-conspirator, submitted a false EIDL application to the Small Business Administration (SBA) in July 2020. The application falsely claimed that Arestuche was the independent contractor and 100% owner of an “Automotive Repair” business named “george.” The fraudulent application reported gross revenues of $600,000, a cost of goods sold of $184,000, and 10 employees. Arestuche also submitted a fabricated 2019 IRS Form 1040 and Schedule C, which falsely claimed he had a mechanic business with gross receipts of $725,000 and a net profit of $706,151.
As a result of this fraud, Arestuche obtained $149,900 in EIDL funds and a $10,000 EIDL advance from the SBA. He later paid his co-conspirator $17,275 for their role in the scheme.
Arestuche is scheduled for sentencing on May 12, 2025, at 11:00 a.m. before Senior U.S. District Judge Huck in Miami, where he faces a maximum sentence of up to 5 years in prison.
Both cases highlight the ongoing efforts by federal authorities to combat fraud related to COVID-19 relief programs, which were designed to assist struggling businesses during the pandemic.
