Morrison man indicted for COVID fraud related to PPP loans
A man out of Morrison has been indicted for his role in COVID fraud, according to the U.S. Attorney's Office District of Colorado.
Richard Rejan Nieto, 37, has been indicted on three counts of wire fraud and five counts of money laundering for taking money received as a result of fraudulent Paycheck Protection Program or PPP loan applications he submitted.
In late March 2020, the Coronavirus Aid, Relief, and Economic Security Act was enacted and extended emergency financial assistance to millions of Americans suffering economic harm from the pandemic.
From April 2020 through April 2021, the defendant allegedly devised and participated in a scheme to defraud the United States and a lender. The defendant unjustly enriched himself by obtaining $913,551.88 in PPP loans, according to the indictment.
Nieto received the loans by inflating payroll costs, making false statements and submitting fake tax returns.
Having unjustly obtained PPP loans, he then applied for loan forgiveness for the full amount of the loans as he obtained forgiveness of $176,956.09 through false representations and by submitting fake payroll checks.
He also allegedly laundered money through large money transfers between bank and investment accounts, including a $40,000 transfer to a cryptocurrency account in January 2021, to purchase Bitcoin.
The U.S. has also previously executed seizures of fraud proceeds from his E*Trade investment account and from two other cryptocurrency trading accounts.
On May 17, 2021, the attorney general established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across the government to enhance efforts to combat and prevent pandemic-related fraud.
The Internal Revenue Service-Criminal Investigation investigated the case, while Assistant U.S. Attorneys Craig Fansler and Martha Paluch handle the prosecution.
