A former City of Sweetwater, Florida commissioner was sentenced to 18 months in federal prison for fraudulently obtaining nearly $950,000 in Paycheck Protection Program loans by submitting falsified payroll records, fabricated tax documents, and other fraudulent submissions to lenders administering pandemic-relief funds.
U.S. District Judge Darrin P. Gayles sentenced Sophia Lacayo, 48, of Doral, after she pleaded guilty to wire fraud. Lacayo was accused of scamming a federal emergency program meant to help businesses stay afloat during COVID-19.
“Sophia Lacayo exploited an emergency program intended to keep workers employed and small businesses alive, using fabricated tax forms and false payroll records to obtain nearly $950,000,” said U.S. Attorney Jason A. Reding Quiñones. “As a former elected official, she knew the importance of public trust but chose fraud instead. This sentence holds her accountable for stealing pandemic-relief funds from American taxpayers.”
Court records say that Lacayo owned Lacayo Trade Group Inc. and exercised significant control over QC Tax Pro Systems LLC and QC Trade Group LLC. Lacayo submitted, and caused to be submitted, fraudulent PPP loan applications on behalf of the three companies in order to obtain pandemic-relief funds to which the companies were not entitled.
21dcba04-8383-4054-b489-5cd2d2ba04d8 by scott.mcclallen
The fraudulent applications falsely inflated the companies’ payroll expenses, employee counts, revenues, and wages paid. To support the applications, Lacayo submitted numerous falsified documents, including fraudulent IRS Forms, fabricated payroll records, and a falsified bank statement.
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Former Sweetwater Commissioner Sophia Lacayo has been sentenced to 18 months in federal prison after pleading guilty to wire fraud in a PPP scheme involving approximately $948,000.
Federal prosecutors said the applications included inflated payroll figures and…
Lacayo and her companies fraudulently obtained approximately $948,325 in PPP loan proceeds, including two $251,465 loans obtained on behalf of QC Tax, a $117,500 loan obtained for QC Trade, and a $327,895 loan obtained for Lacayo Trade.
At sentencing, the Court noted that Lacayo had repaid more than $444,000 in advance restitution, which had previously reimbursed the lenders for the fraudulent loans. A hearing to determine the amount of additional restitution is set for Oct. 7.
U.S. Attorney Reding Quiñones; Special Agent in Charge Brett Skiles of the FBI, Miami Field Office; Special Agent in Charge Michael Townsend of the U.S. Secret Service (USSS), Miami Field Office; and Acting Special Agent in Charge Jason Xerri of the U.S. Small Business Administration Office of Inspector General (SBA OIG), Eastern Region, made the announcement.
FBI Miami, USSS Miami, and SBA OIG, Investigations Division’s Eastern Region, investigated the case.
Assistant U.S. Attorney Edward N. Stamm prosecuted the case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
