A former Cuban army sergeant has been sentenced in Iowa, United States, for his involvement in a fraudulent scheme targeting loans distributed during the COVID-19 pandemic. The accused, identified as Yovany Ciero, 48, and a resident of Mason City, Iowa, was found guilty on May 8 following a four-day trial in a federal court in Sioux City, as reported by the U.S. Attorney's Office for the Northern District of Iowa.
Ciero, who previously worked at a meatpacking plant in Algona, Iowa, was convicted on multiple charges: three counts of wire fraud, 23 counts of money laundering, one count of engaging in a monetary transaction with property derived from unlawful activity, and one count of conspiracy to commit money laundering. The jury reached their verdict after approximately three and a half hours of deliberation.
Details of the Fraudulent Scheme
During the trial, evidence demonstrated that Ciero, along with over one hundred Cuban immigrants, fraudulently secured loans from the Paycheck Protection Program (PPP) starting in July 2020. They falsely claimed to be self-employed business owners with incomes around $100,000 in 2019, while many were actually employed at the meatpacking plant or similar jobs.
Ciero functioned as one of six "organizers" in this operation, enlisting individuals, obtaining their personal details, and facilitating the submission of fraudulent loan applications. The scheme involved over $4 million in fake applications, resulting in a loss of more than $2.4 million to the U.S. government.
Consequences and Legal Proceedings
The court found that Ciero received commissions for each processed fraudulent loan and used part of the funds to purchase a semi-trailer truck. The final sentencing will be determined by Judge Leonard T. Strand, where Ciero faces a potential maximum sentence of life imprisonment, over $10 million in fines, and three years of supervised release.
This case was investigated by multiple agencies: the Small Business Administration - Office of Inspector General, the Federal Deposit Insurance Corporation - Office of Inspector General, Homeland Security Investigations, the Federal Bureau of Investigation, and the Storm Lake Police Department. The prosecution is being handled by Assistant U.S. Attorneys Timothy L. Vavricek and Daniel A. Chatham.
Understanding the COVID-19 Relief Fraud Case
What was Yovany Ciero convicted of?
Yovany Ciero was convicted of wire fraud, money laundering, engaging in monetary transactions with property derived from unlawful activity, and conspiracy to commit money laundering.
How much money was involved in the fraudulent scheme?
The fraudulent scheme involved over $4 million in loan applications, causing a loss of more than $2.4 million to the U.S. government.
What were the false claims made by the accused?
The accused falsely claimed to be self-employed business owners with incomes of approximately $100,000 in 2019 to secure loans from the Paycheck Protection Program.