FLORIDA – A former south Florida regional bank manager has been sentenced for COVID-19 relief fraud, the U.S. Attorney’s Office for the Southern District of Florida (USAO) has announced.
Daniel Hernandez, 51, a former South Florida regional manager for a leading national bank, was sentenced last week to 120 months in prison for participating in a conspiracy to defraud the Paycheck Protection Program (PPP) out of loan proceeds. These loans are guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act.
According to the USAO, Hernandez conspired with Erich Alfonso Barata, Armando De Leon, and others to submit over 90 fraudulent PPP loan applications. The applications were primarily submitted to two banks, Hernandez’s employer at the time, and his previous employer, another leading national bank, the USAO said.
Hernandez also conspired to submit fraudulent Economic Injury Disaster Loan applications through the SBA, but most of the applications were declined.
Hernandez and his co-conspirators attempted to defraud the PPP and EIDL programs out of approximately $25 million. The conspiracy caused approximately $15 million in losses. The investigation has recovered over $800,000 so far, the USAO said.
Daniel Hernandez pled guilty on December 21, 2022, to one count of conspiracy to commit wire fraud. De Leon and Alfonso Barata previously pled guilty for their roles in the conspiracy. De Leon was sentenced to 60 months imprisonment on February 21. Alfonso Barata is scheduled to be sentenced on April 18.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Kyle A. Myles, Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region; acting Special Agent in Charge Maged Behnam of the FBI, Miami Field Office; and Special Agent in Charge Amaleka McCall-Brathwaite, Small Business Administration, Investigations Division’s Eastern Region (SBA-OIG), announced the sentence imposed by U.S. District Judge K. Michael Moore.
FDIC-OIG, FBI Miami, and SBA-OIG investigated the case with assistance from the Florida Department of Revenue. Assistant U.S. Attorney Eli S. Rubin is prosecuting the case. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.
An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 22-cr-20529 (Hernandez), 22-cr-20420 (De Leon), and 22-cr-20487 (Alfonso Barata).
