MIAMI – A former City of Sweetwater commissioner was sentenced to 18 months in federal prison for fraudulently obtaining nearly $950,000 in Paycheck Protection Program (PPP) loans by submitting falsified payroll records, fabricated tax documents, and other fraudulent submissions to lenders administering pandemic-relief funds.
Sophia Lacayo has had little time in politics. She was elected Commissioner in Sweetwater in 2019 and removed from office in August 2020 after being accused of perjury. Lacayo lived in Doral, and the district attorney’s investigation found that she had lied on her qualification documents, stating that she lived in Sweetwater. For this reason, Lacayo was barred from running for any public office and sentenced to one year of probation.
U.S. District Judge Darrin P. Gayles sentenced Sophia Lacayo, 48, of Doral, after she pleaded guilty to wire fraud.
“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. “As a former elected official, she knew the importance of public trust but chose fraud instead. This sentence holds her accountable for stealing pandemic-relief funds from American taxpayers.”
According to court records, Lacayo owned Lacayo Trade Group Inc. (Lacayo Trade) and exercised significant control over QC Tax Pro Systems LLC (QC Tax) and QC Trade Group LLC (QC Trade). Lacayo submitted, and caused to be submitted, fraudulent PPP loan applications on behalf of the three companies in order to obtain pandemic-relief funds to which the companies were not entitled.
The fraudulent applications falsely inflated the companies’ payroll expenses, employee counts, revenues, and wages paid. To support the applications, Lacayo submitted numerous falsified documents, including fraudulent IRS Forms, fabricated payroll records, and a falsified bank statement.
As a result of the scheme, Lacayo and her companies fraudulently obtained approximately $948,325 in PPP loan proceeds, including two $251,465 loans obtained on behalf of QC Tax, a $117,500 loan obtained for QC Trade, and a $327,895 loan obtained for Lacayo Trade.
At sentencing, the Court noted that Lacayo had repaid more than $444,000 in advance restitution, which had previously reimbursed the lenders for the fraudulent loans. A hearing to determine the amount of additional restitution is set for Oct. 7.
U.S. Attorney Reding Quiñones; Special Agent in Charge Brett Skiles of the FBI, Miami Field Office; Special Agent in Charge Michael Townsend of the U.S. Secret Service (USSS), Miami Field Office; and Acting Special Agent in Charge Jason Xerri of the U.S. Small Business Administration Office of Inspector General (SBA OIG), Eastern Region, made the announcement.
FBI Miami, USSS Miami, and SBA OIG, Investigations Division’s Eastern Region, investigated the case.
Assistant U.S. Attorney Edward N. Stamm prosecuted the case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 25-cr-20427.
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