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EL PASO, Texas — An El Paso business owner has been arrested on charges of Paycheck Protection Program (PPP) fraud, according to court documents.
Araceli Benitez, 46, is accused of submitting fraudulent loan applications totaling more than $2.3 million.
Benitez owned both an insurance and tax services company and a home health services company.
She allegedly filed false loan applications and fund disbursement requests under the PPP between April 9, 2020, and December 31, 2022. The PPP is a federal COVID-19 relief program managed by the Small Business Administration.
According to the indictment filed on January 22, Benitez promoted PPP loans through paid radio advertisements and social media, primarily in Spanish, to attract clients.
She is accused of submitting applications to a credit union that included false information and omissions, such as fabricated federal income tax documents and inaccurate details about her clients’ businesses and qualifications.
Benitez faces multiple charges, including:
Seven counts of wire fraud
Eight counts of bank fraud
Two counts of money laundering
One count of structuring transactions to evade reporting requirements
Two counts of aggravated identity theft
One count of submitting false or fictitious claims
In case of conviction, she could face up to 30 years in prison. A federal district court judge will determine her sentence based on the U.S. Sentencing Guidelines and other legal factors.
The charges were announced by Acting U.S. Attorney Margaret Leachman for the Western District of Texas. The investigation is being conducted by the FBI and IRS-Criminal Investigations, with Assistant U.S. Attorney Debra Kanof prosecuting the case.
It is important to remember that an indictment is merely an allegation, and all defendants are presumed innocent until proven guilty in a court of law.
