A Houston man has been sentenced to 50 months in federal prison for his involvement in a fraudulent Paycheck Protection Program (PPP) loan scheme that took place during the COVID-19 pandemic. Feliciano Pineda, 38, was also ordered to pay approximately $2.2 million in restitution and will face three years of supervised release following his prison term.
Pineda pleaded guilty to conspiracy charges on February 12, acknowledging that he defrauded his former employer by processing illegitimate PPP loans. U.S. District Judge George C. Hanks Jr. handed down the sentence, emphasizing the severity of Pineda’s actions.
During the early stages of the pandemic, Pineda was employed at a Houston bank. Between April and August 2020, he exploited his position to submit fraudulent loan applications for businesses that either did not exist or had falsified their financial information. As part of his plea agreement, Pineda admitted to creating a fictitious limited liability company and opening a business bank account to collect kickbacks from clients whose loans he facilitated.
Prosecutors revealed that Pineda personally received over $200,000 in loan proceeds from borrowers associated with the fraudulent applications. Additionally, he aided customers in obtaining millions of dollars in unauthorized loans and attempted to obstruct the subsequent investigation into his activities.
Although Pineda was sentenced, he has been allowed to remain free on bond until he voluntarily reports to a Federal Bureau of Prisons facility, the specific location of which will be determined at a later date.
