Colorado Couple Defrauded Government Of $5M In PPP Scam To Buy Luxury Cars, Real Estate And Country Club Membership
A Colorado couple was indicted for fraudulently receiving millions of dollars in COVID-19 relief funds and then spending that money to fund their lavish lifestyle.
Joshua and Magdalena Lybolt were indicted on a total of 13 federal charges last month.
According to authorities, Joshua, 45, applied six separate times, receiving nearly $5 million in COVID-19 Economic Injury Disaster Loans (EIDL) and nearly $42,000 in Paycheck Protection Program (PPP) funds, '9 News' reported.
The applications were sent after the Lybolts filed for Chapter 7 bankruptcy in January 2020. Two months later, the pair told a U.S. Bankruptcy Trustee — under oath — that their bankrupt businesses were no longer operational.
The indictment further alleged the Lybolts "falsely certified that all the loan proceeds would be used for business expenses" when "they used the bulk of the proceeds for personal expenses."
The couple reportedly used the relief funds to purchase luxury vehicles, including a Range Rover and a Porsche Taycan, real estate properties, and a country club membership, amongst other big purchases, according to court documents.
Joshua is charged with five counts of wire fraud and seven counts of money laundering. If convicted, he faces up to $250,000 in fines. Each count carries a prison sentence of up to 20 years.
His wife, Magdalena, 46, was charged with one count of wire fraud.
The Castle Rock, Colorado, couple's trial date is scheduled for September. 9.
Joshua is a self-proclaimed himself an "investor, serial entrepreneur, life hacker, biohacker & inspirational speaker," 'CBS News' reported.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was launched in March 2020. It was designed to provide emergency financial assistance to citizens dealing with the economic impact of the COVID-19 pandemic.
The Attorney General established the COVID-19 Fraud Enforcement Task Force in May 2021 to gather resources for the Department of Justice to enhance efforts to combat and prevent pandemic-related fraud.
