Salem, Massachusetts: Resident Roosevelt Fernandez has pleaded guilty in connection with two schemes involving COVID-19 relief funds and tax returns for others.
Fernandez applied for 10 EIDLs, either in his own name or in the names of entities he controlled. In June 2020, he applied for an EIDL under the name Soluciones Multi Service and submitted a false tax filing in support of the application. The Small Business Administration deposited $124,900 into a bank account controlled by Fernandez from which he withdrew more than $80,000 in cash over the next two weeks. In August of that year, Fernandez applied for an EIDL in the name of another business using fraudulent tax filing information; the SBA deposited $149,900 into the same bank account.
The IRS investigation uncovered some 40 fraudulent returns associated with Fernandez, totaling more than $620,000 in requested refunds.
The charges of wire fraud provide for up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of aggravated ID theft provides for a mandatory two years in prison, up to a year of supervised release and a fine of up to $250,000. Sentencing is May 11.