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HOUSTON - A Houston man who helped customers obtain fraudulent Paycheck Protection Program loans during the COVID-19 pandemic has been sentenced to more than four years in federal prison.
What we know:
Feliciano Pineda, 38, pleaded guilty Feb. 12 to conspiring to defraud his former employer through fraudulent PPP loans.
U.S. District Judge George C. Hanks Jr. ordered Pineda to serve 50 months in federal prison, followed by three years of supervised release. He was also ordered to pay approximately $2.2 million in restitution to his victims.
Pineda worked at a Houston bank at the beginning of the pandemic. From April through August 2020, prosecutors said he used his position to process fraudulent PPP loans for businesses that did not qualify because they either did not exist or had falsely inflated their financial information.
As part of his plea agreement, Pineda admitted to creating a fake limited liability company and opening a business bank account to receive kickback checks from customers whose loans he helped secure.
Pineda personally received more than $200,000 in loan proceeds from borrowers whose PPP applications he facilitated, according to prosecutors.
The court also heard that Pineda helped customers obtain millions of dollars in fraudulent loans and later obstructed the investigation.
Pineda was allowed to remain free on bond and will voluntarily surrender to a Federal Bureau of Prisons facility that will be determined later.
The Source: Information in this story was provided by the U.S. Attorney's Office, Southern District of Texas