Seminole County man extradited from Croatia, facing federal COVID-relief fraud charges
A Seminole County man has been extradited from Croatia to face federal charges of wire fraud, aggravated identity theft, and illegal monetary transactions related to a U.S. pandemic-relief program.
A federal grand jury in Orlando previously returned an indictment against Don Cisternino of Chuluota for these charges in February 2021.
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According to the indictment, in May 2020, Cisternino fraudulently secured more than $7.2 million in emergency funds through the Paycheck Protection Program (“PPP”) loan to offset economic hardship related to the pandemic.
The 45 year-old made his initial appearance at the Orange County Courthouse on April 29 and was ordered to be detained until trial.
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If convicted, Cisternino faces a maximum penalty of 20 years in federal prison for each wire fraud count, up to 10 years imprisonment for each illegal monetary transaction count, and a mandatory consecutive term of two years for the aggravated identity theft counts.
“Financial fraud targeting COVID-relief funds is a serious crime,” U.S. Attorney Roger Handberg said. “Our successful extradition of this defendant from Croatia back to Orlando shows that we and our law enforcement partners will pursue every lawful avenue to locate and prosecute those engaged in such fraud.”
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Enacted in March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law that provides emergency financial assistance to millions of Americans suffering the economic effects of the coronavirus pandemic.
According to a release from the U.S. Attorney’s office, Cisternino’s PPP loan application falsely claimed that his New York business, MagnifiCo, had 441 employees and monthly payroll expenses in 2019 of more than $2.8 million.
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An investigation revealed that MagnifiCo, had few, if any, employees other than Cisternino and his girlfriend, and that the company did not report any wages to the IRS for 2019.
During the application process, Cisternino allegedly submitted false W-2 forms with the names and Social Security numbers of people who were not employees and did not give Cisternino permission to use their identities.
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Cisternino used the money to purchase a Lincoln Navigator, Maserati and a Mercedes-Benz, and an approximately 12,579 sq. ft. residence in Seminole County.
“This matter demonstrates that the Department will aggressively go after anyone who stole pandemic relief funds, whether they are in the United States or hiding overseas. I applaud the tireless work of the Middle District of Florida in achieving this important step and thank our international partners for their assistance,” said Kevin Chambers, director of U.S. Department of Justice Fraud Enforcement.
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