Three Albuquerque Residents Indicted for COVID-19 Fraud (Press Release, September 20, 2023)

Summary

A press release of the U.S. Attorney's Office for the District of New Mexico, dated Wednesday, September 20, 2023, announcing that Jacqueline Rascon-Chacon, Bryan Gardea and Ricardo Landeros were indicted on charges of bank fraud, conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering and engaging in monetary transactions in property derived from specified unlawful activity. According to the indictment, the three obtained more than $1 million in PPP and EIDL loans and grants using applications for defunct companies with falsified revenue, payroll and tax documents. The indictment alleges that loan proceeds paid personal credit card debt, a private jet charter and the purchase of vacant lots for house construction and resale. It also charges Rascon-Chacon and Gardea over two pre-pandemic business loans of $20,000 each.

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PRESS RELEASE



Three Albuquerque Residents
Indicted for COVID-19 Fraud
Wednesday, September 20, 2023


For Immediate Release
U.S. Attorney's Office, District of New Mexico

ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District
of New Mexico, Albert Childress, Special Agent in Charge, IRS Criminal Investigation, and
Francisco B. Burrola, Special Agent in Charge of Homeland Security Investigations El
Paso, announced today that Jacqueline Rascon-Chacon, Bryan Gardea, and Ricardo
Landeros were indicted by a federal grand jury on charges of bank fraud, conspiracy to
commit wire fraud, wire fraud, conspiracy to commit money laundering, and engaging in
monetary transactions in property derived from specified unlawful activity. All three
defendants appeared in federal court today and will remain on conditions of release
pending trial, which has not been scheduled.

According to the indictment, Rascon-Chacon, Gardea, and Landeros allegedly obtained
more than $1 million in loans and grants from programs authorized by Congress in the
Coronavirus Aid, Relief, and Economic Security (CARES) Act by fraudulent means. The
CARES Act was intended to provide emergency financial assistance for millions of
American small businesses suffering from economic harm caused by the COVID-19
pandemic. These programs included the Paycheck Protection Program (PPP) and the
Economic Injury Disaster Loan (EIDL) program. The United States Small Business
Administration (SBA) directly paid EIDLs and grants (EIDGs) to eligible small businesses
experiencing substantial financial disruptions from the COVID-19 pandemic. PPP loan
applications were processed by participating lenders. Lenders funded PPP loans using
their own funds, with the loans subject to a federal guaranty by the SBA. PPP loans were
subject to loan forgiveness under certain circumstances.

The indictment charges Rascon-Chacon and Gardea with two counts of bank fraud in
relation to two business loans, each for $20,000, that were obtained by Rascon-Chacon
and Gardea prior to the COVID-19 pandemic. The indictment alleges that the loan
applications submitted by Rascon-Chacon and Gardea contained false information
about the operations of the businesses in whose names the loans were taken out as well
as false representations regarding how the proceeds of the loans would be used.

The wire fraud conspiracy alleged in the indictment involved Rascon-Chacon, Gardea,
and Landeros submitting loan applications containing false representations and
fabricated supporting documentation to PPP lenders and the SBA. The indictment
alleges that Rascon-Chacon, Gardea, and Landeros submitted loan applications in the
names of defunct companies and that the applications included falsified revenue,
payroll, and employment data as well as fabricated tax documents. According to the
indictment, many of the applications were approved, resulting in loan proceeds being
disbursed. Rascon-Chacon, Gardea, and Landeros then used these funds for
unauthorized expenditures including paying off personal credit card debt, chartering a
private jet from Albuquerque to Las Vegas, Nevada, and hiring a mariachi band.

In addition to the wire fraud conspiracy, the indictment alleges a money laundering
conspiracy in which Rascon-Chacon, Gardea, and Landeros arranged to use loan
proceeds to purchase vacant lots of real property in New Mexico, fund the construction
of houses on those lots, then sell the properties to home buyers for a profit. The
indictment also alleges that Landeros used proceeds of a fraudulently obtained COVID-
19 relief loan he obtained in the name of a defunct company to invest in a separate
company he owned and operated.

“During the global COVID-19 pandemic, trillions of dollars in relief flowed to those in
need,” said US Attorney Alexander Uballez. “But a selfish few exploited the good will of
the American people and took advantage of a once-in-a-generation public health
emergency to enrich themselves. We will investigate and prosecute these fraudsters and
recoup money stolen from the American people.”

“Homeland Security Investigations continues to bring every asset to bear against
opportunistic individuals who sought to exploit the COVID-19 pandemic for their own
financial gain,” said HSI El Paso Special Agent in Charge Francisco B. Burrola. “This case
exemplifies HSI’s commitment to collaborating with our law enforcement partners to
investigate those who would perpetrate such financial schemes during a global health
crisis.”

“The IRS Criminal Investigation Phoenix Field Office is proud to fight against COVID-
related fraud,” said IRS Criminal Investigation Special Agent in Charge Albert
Childress. “Anyone who plans to exploit the CARES Act should know that there are
serious consequences to such criminality, and our agency works diligently to ensure
those individuals are held to account.”
An indictment is only an allegation. A defendant is presumed innocent unless and until
proven guilty. If convicted, each of the three defendants faces a maximum penalty of
thirty years in prison and a $1 million fine, in addition to asset forfeiture and restitution.

The Albuquerque Field Office of Homeland Security Investigations and the Phoenix Field
Office of IRS Criminal Investigation investigated this case with assistance from the
Department of Labor Office of the Inspector General and the Small Business
Administration Office of the Inspector General. Assistant United States Attorney Taylor
F. Hartstein is prosecuting the case.

                                            ###

23-231

Updated September 20, 2023

Topic
FINANCIAL FRAUD


Component
USAO - New Mexico
Press Release Number: 23-231


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