Self-proclaimed 'serial entrepreneur' in Colorado indicted for fraudulently obtaining $5M in COVID relief funds
A Castle Rock couple who who were relieved of $4.6 million in bankruptcy debt four years ago were recently charged with illegally obtaining more than $5 million in government assistance on behalf of the businesses that had been shuttered by the bankruptcy.
Joshua Lybolt, 45, and Magdalena Lybolt, 46, were indicted by a federal grand jury in Colorado on June 27.
The couple surrendered their Indiana real estate license in 2019, according to online public records.
In early 2020, they "told a U.S. Bankruptcy Trustee, under oath, that all of the businesses included in their bankruptcy filing were closed and no longer operational," as stated in the indictment. A bankruptcy judge ultimately granted their bankruptcy petition for $4,655,000 in claims.
That same month, Joshua Lybolt began applying for Economic Injury Disaster Loans (EIDL) from the Small Business Administration (SBA), per prosecutors.
The couple received funds for the following businesses:
- Prime Real Estate: $1,999,900
- Broker Life: $450,900
- JMXE Capital: $499,900
- Lifstyl Real Estate: $2,001,900
A Paycheck Protection Program (PPP) loan for Broker Life in the amount of $41,667 was also granted.
Those four businesses were among the five declared bankrupt and closed in 2020, per prosecutors.
The federal indictment shows the Lybolts used the money to buy a 2016 Land Rover Range Rover MP, a 2022 Porsche Taycan, properties in Snowmass Village and Avon, and memberships at Country Club at Castle Pines.
Joshua Lybolt currently proclaims himself an "investor, serial entrepreneur, life hacker, biohacker & inspirational speaker" on his professional website and numerous social media accounts. He overcame family homeless to become "independent" at age 11 and, despite being a high school dropout, earned a professorship at a large university and a career as a Wall Street broker, as stated on his website.
The website for his Broker Life company is still active.
The couple made its initial appearance in court Thursday. They are scheduled for trial in September.