Indictment: Fake Business Netted Lexington Woman $205,900 in Fraudulent COVID-19 Relief

LEXINGTON, Ky. — A Lexington woman, Sandybell Fierro, 22, has been indicted by the United States District Court, Eastern District of Kentucky, on charges of wire fraud and engaging in a monetary transaction in criminally derived property. The indictment was filed on Thursday.

According to the indictment, Fierro allegedly fabricated a fictitious personal services business and used this to apply for an Economic Injury Disaster Loan (EIDL) through the Small Business Administration’s (SBA) online portal. The EIDL program, expanded under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, was designed to provide economic relief to small businesses experiencing a temporary loss of revenue due to the COVID-19 pandemic.

The indictment alleges that Fierro submitted false information in her EIDL application, including claims that her business was established in 2018, had seventeen employees, and had gross revenue of $197,000 for the twelve months prior to the disaster. She also claimed that the business had lost rents due to the pandemic of $26,000 and had incurred costs of $71,000 for the twelve months prior to the date of the disaster.

As a result of the fraudulent application, Fierro received an EIDL of $205,900 from the United States Treasury, which was deposited into her personal bank account at Chase Bank on April 20, 2021. The indictment alleges that Fierro used the EIDL funds for unauthorized purposes, including personal purchases at various retail stores and cash withdrawals at ATMs.

The indictment also alleges that Fierro engaged in a monetary transaction in criminally derived property by obtaining a cashier’s check for $24,348.00 from her Chase Bank account and giving that cashier’s check to Paradise Motor Sports in Lexington, Kentucky, in exchange for a vehicle.

If convicted, Fierro faces penalties including up to 20 years imprisonment for each count of wire fraud, a $250,000 fine, or twice the value of the monetary instruments or funds involved, and 3 years supervised release. For the count of engaging in a monetary transaction in criminally derived property, she faces up to 10 years imprisonment, a $250,000 fine, or not more than twice the value of the criminally derived property involved in the transaction, and 3 years supervised release.

In addition, Fierro may be required to forfeit any and all property, real or personal, which constitutes or is derived from proceeds traceable to the violations, and may be required to pay restitution.

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Please note that this is a summary of the indictment and all individuals are presumed innocent until proven guilty in a court of law.

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