South Florida CEO and a Miami woman stole millions in federal pandemic loans, officials say
A former South Florida CEO and a Miami woman were sentenced to over two years of prison time for gaming a government loan program meant to aid those struggling with the COVID-19 pandemic.
The two separate cases are the newest resolved as prosecutors continue to crack down on the fraudulent use of the Paycheck Protection Program, a small business federal relief program introduced early in the pandemic.
Maritza Morales Hermoso, 58, of Miami, was sentenced to 70 months in federal prison on Feb. 5 for money laundering nearly $2 million from the program, records show. She was charged with two counts of money laundering and two counts of engaging in transactions in criminally derived property.
Former CEO Gregory Scott Keough, 57, of Wellington, was sentenced to 30 months on Feb. 8 for money laundering and two counts of wire fraud. He also obtained about $2 million in fraudulent funds, records show.
Over 200 South Floridians have been charged with defrauding the program, submitting hundreds of millions of dollars in applications deemed bogus by federal prosecutors.
On Feb. 2, the U.S. Attorney’s Office for the Southern District of Florida announced a Broward Sheriff’s Office lieutenant was charged with defrauding it, joining 17 other BSO employees who were also charged last year.
READ MORE: A former Broward Sheriff’s deputy is facing charges in COVID relief loan scheme
Cosmetic surgery, Pomeranian puppy and an Escalade
From April 2020 to April 2021, Hermoso scammed the federal program out of millions of dollars, the Southern District’s U.S. Attorney’s Office said.
The scheme was similar to how dozens of South Floridians have stolen funds.
Using fabricated payroll documents and inflated employee numbers, Hermoso filed false loan applications under multiple companies for PPP loans and Economic Injury Disaster loans. Several of the companies had no payroll to speak of and were not actively doing business, authorities said.
She was approved for a close to $2 million disbursement. She used those ill-gotten gains on gambling at South Florida casinos, cosmetic surgery, a Cadillac Escalade and a Pomeranian puppy.
“Hermoso also disguised her misuse of funds by laundering the loan proceeds through multiple unrelated business accounts and withdrawing the money in cash,” the U.S. Attorney’s Office said.
She acquired the fraudulent funds with the help of Javier Lazo Cabrera, authorities said. He pleaded guilty to conspiracy to commit wire fraud in December. His sentencing is scheduled for March 11, and he faces up to 20 years in prison.
Private jet airfare and storm-proof windows
From March 2020 to August 2020, Keough submitted fraudulent applications for the Economic Injury Disaster Loan program and the Paycheck Protection Program, authorities said.
With the help of Derek Acree, an attorney, they submitted the applications on behalf of businesses they both controlled.
Keough received about $1.6 million in funds from the programs, authorities said. He then continued to submit four more false loan applications for a company he was the CEO of, receiving a little over $300,000.
He transferred some of the funds to his bank account, which he then used to pay multiple credit cards, install storm windows, private jet travel and private school tuition.
Keough was ordered to pay $1,922,355 in restitution, along with his sentenced prison time.
Acree pled guilty to conspiracy to commit wire fraud in October 2022. He was sentenced to 41 months in prison and ordered to pay $1.9 million in restitution, which he paid in full, authorities said.
