A former Sweetwater commissioner was sentenced to federal prison after pleading guilty to wire fraud for obtaining nearly $950,000 in Paycheck Protection Program loans using falsified payroll records, fabricated tax documents, and other deceptive submissions.

Sophia Lacayo, 48, of Doral, was sentenced to 18 months by U.S. District Judge Darrin P. Gayles after admitting she schemed to secure pandemic-relief funds her businesses were not entitled to. Prosecutors say the scheme used bogus tax forms, invented payroll ledgers, and altered bank records to convince lenders the loans were legitimate. The case centers on pandemic-era relief intended to help small businesses and keep workers on the payroll.

According to court filings, Lacayo controlled Lacayo Trade Group Inc. and exercised significant influence over QC Tax Pro Systems LLC and QC Trade Group LLC. She submitted or caused to be submitted fraudulent PPP applications for those entities, inflating payroll expenses, employee counts, revenues, and wages paid. The documents submitted to support the applications were, prosecutors say, fabricated or materially altered to mislead lenders and federal programs.

“Sophia Lacayo exploited an emergency program intended to keep workers employed and small businesses alive, using fabricated tax forms and false payroll records to obtain nearly $950,000,” said U.S. Attorney Jason A. Reding Quiñones. That statement was repeated in the filing that outlined the scope of the scheme and the government’s view of the harm done to taxpayers and lenders. The quote highlights how authorities framed the offense as an abuse of public trust and emergency aid.

Investigators allege the scheme produced roughly $948,325 in PPP proceeds, including two loans of $251,465 each obtained for QC Tax, a $117,500 loan for QC Trade, and a $327,895 loan for Lacayo Trade. Court records list each loan and tie them to the applications containing falsified IRS forms, payroll reports, and at least one counterfeit bank statement. Those false documents were the core of the fraud and supported the inflated figures presented to lenders.

At sentencing the court noted Lacayo had already repaid more than $444,000 in advance restitution, which covered part of the lenders’ losses from the fraudulent loans. A hearing to determine any additional restitution is scheduled for Oct. 7, according to the filings. The repayment factor and the upcoming hearing will inform the final financial obligations set by the court.

The investigation involved multiple federal agencies, reflecting the cross-jurisdictional nature of pandemic-relief fraud probes. Authorities named in the announcement included the U.S. Attorney’s Office, the FBI Miami Field Office, the U.S. Secret Service Miami Field Office, and the Small Business Administration Office of Inspector General’s Eastern Region. Those agencies worked together to trace loan proceeds, authenticate documents, and build the evidence that led to the guilty plea.

Assistant U.S. Attorney Edward N. Stamm handled the prosecution, while Assistant U.S. Attorney Nicole Grosnoff took charge of asset forfeiture matters. The filings describe a coordinated federal response and outline the legal steps taken from the initial investigation through plea and sentencing. Asset forfeiture proceedings remain part of the courthouse schedule as authorities seek to recover the funds tied to the scheme.

The case is one of many brought against individuals and entities accused of misusing emergency pandemic programs, and it underscores the level of scrutiny applied to loan applications from that period. Prosecutors emphasized that emergency relief was intended to stabilize employers and preserve jobs, and they framed fraudulent claims as direct theft from taxpayers and legitimate small businesses. The court’s sentence and restitution process aim to hold responsible parties to account and to return funds where possible.

Legal and investigative actions continue in related matters tied to pandemic-era loan fraud, and the Oct. 7 hearing will address any remaining restitution issues in this case. The criminal judgment, restitution determinations, and any forfeiture orders will be entered according to federal procedures following that hearing. Meanwhile, the agencies involved reported the outcome as part of their ongoing pandemic-relief fraud enforcement efforts.

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