Reported / Citable
HOUSTON – A 38-year-old Houston man has been ordered to federal prison for conspiring to defraud his former employer through fraudulent Paycheck Protection Program (PPP) loans.
Feliciano Pineda pleaded guilty Feb. 12.
U.S. District Judge George C. Hanks Jr. ordered Pineda to serve 50 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard that Pineda, a former banker, helped customers obtain millions of dollars in fraudulent loans and later obstructed the investigation. Pineda was also ordered to pay approximately $2.2 million in total restitution to his victims.
As part of his plea, Pineda admitted to creating a fake LLC and opening a business bank account to receive kickback checks from customers he helped obtain fraudulent loans.
Pineda worked at a Houston bank at the start of the COVID-19 pandemic. From April through August 2020, he used his position to process fraudulent Paycheck Protection Program loans for businesses that did not qualify because they either did not exist or had falsely inflated their financial information.
Pineda personally benefited from the scheme, receiving more than $200,000 in load proceeds from borrowers whose PPP loans he helped facilitate.
Pineda was permitted to remain on bond and voluntarily surrender to a Federal Bureau of Prisons facility to be determined in the near future.
The Secret Service, U.S. Treasury Inspector General for Tax Administration, and Federal Deposit Insurance Corporation – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Stephanie Bauman prosecuted the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division , which is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within federal benefit programs.
Source: U.S. Attorney’s Office — Southern District of Texas — U.S. Department of Justice press release.