Utah Businessman Sentenced to Prison for Defrauding the COVID-19 Paycheck Protection Program Out of Over $628,000 (June 25, 2025)
Summary
An OIG news release published June 25, 2025 by the Office of Inspector General. It reports that Marcelo Federico Torre, of Draper, Utah, was sentenced by Senior U.S. District Court Judge Clark Waddoups to 18 months' imprisonment, three years' supervised release and $628,307 in restitution, after pleading guilty to wire fraud and possession of stolen mail on April 10, 2025. According to the release, from April 27, 2021 to May 5, 2021 Torre submitted a Paycheck Protection Program (PPP) loan application through U.S. Bank for approximately $628,307 on behalf of Offerworks Inc. It states that the application said the company had 37 employees and an average monthly payroll of $251,323 in 2020, and that these statements were false.
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“Utah Businessman Sentenced to Prison for Defrauding the COVID-19 Paycheck Protection Program Out of Over $628,000 (June 25, 2025).”
Original at legacy.sba.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-06-25-utah-businessman-sentenced-to-prison-for-defrauding-the-cov-23657d87dc/
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OIG news release Utah Businessman Sentenced to Prison for Defrauding the COVID-19 Paycheck Protection Program Out of Over $628,000 Published on June 25, 2025 by Office of Inspector General Click Here to Sign Up for SBA OIG Email Updates on Recent Investigative Cases, Audit Oversight Reports, and General News Click Here to View the Original U.S. Department of Justice (DOJ) Press Release A Utah entrepreneur was sentenced today to 18 months’ imprisonment after he fraudulently obtained $628,307 from a COVID-19 Paycheck Protection Program (PPP) Loan in 2021 by submitting a fraudulent loan application in the name of his business. The COVID-19 PPP Loans were provided to small businesses for funding to meet specific obligations, including payroll and rent during the pandemic. Marcelo Federico Torre, 42, of Draper, Utah, pleaded guilty to wire fraud, and possession of stolen mail on April 10, 2025. In addition to his sentence, and credit for time served, Senior U.S. District Court Judge Clark Waddoups sentenced Torre to three years’ supervised release and ordered him to pay $628,307 in restitution. Torre also forfeited a money judgement in the amount of $628,307. According to court documents and statements made at Torre’s change of plea and sentencing hearings, from April 27, 2021 to May 5, 2021, Torre fraudulently submitted a PPP Loan application through U.S. Bank for approximately $628,307 on behalf of his company, Offerworks Inc., a company he owned and controlled. By fraudulently submitting the Loan application, he lied to U.S. Bank and the United States government in order to be approved for the PPP Loan. Some of the false statements Torre made on the PPP Loan application included that his company, Offerworks Inc., had been in operation as of February 15, 2020, when it had not; his company had 37 employees, when it did not; and that Offerworks Inc., had an average monthly payroll of $251,323 in 2020, when it did not. “The amount of money Mr. Torre stole from the U.S. government and taxpayers, which was intended to keep businesses open and provide salaries for employees and their families during the COVID-19 pandemic, is significant and his fraud and will not go unpunished,” said Acting U.S. Attorney Felice John Viti of the District of Utah. “It is our hope Mr. Torre’s sentence will deter him and others who seek to take criminal advantage of government programs meant to help honest and hardworking business owners and their employees during a crisis.” The case was investigated jointly by the U.S. Postal Investigation Service, Draper City Police Department, U.S. Probation and Pretrial Services Office, Salt Lake City Police Department, Internal Revenue Service – Criminal Investigation Division, U.S. Small Business Administration – Office of Inspector General (SBA-OIG), and the U.S. Treasury Inspector General for Tax Administration (TIGTA). Assistant United States Attorney Todd C. Bouton of the U.S. Attorney’s Office for the District of Utah prosecuted the case. Paycheck Protection Program (PPP) The Fraud Section leads the Criminal Division's prosecution of fraud schemes that exploit the Paycheck Protection Program (PPP). Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at Justice.gov/OPA/pr/justice-department-takes-action-against-covid-19-fraud . Related programs: Pandemic Oversight, PPP
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