Daniel Stonebarger, 50, agreed to a plea deal with the U.S. Attorney’s Office for the District of Colorado after admitted to using several LLCs, including some that had previously been dissolved, to fraudulently obtain Economic Injury Disaster Loans and Grants, Paycheck Protection Program loans, and unemployment assistance, according to his plea agreement.
He also applied for Pandemic Unemployment Assistance, one of the federal unemployment programs launched about three months into the COVID-19 pandemic, and though he asked for payments backdated to March 2020, his business records were not created until April 1. Among the things he bought with the fraudulent money were a 2016 Range Rover he said was for his wife, $9,000 in plastic surgery for a relative, $7,000 for weight loss, $5,000 in bridal expenses, $10,000 in jewelry, and $2,800 for Peloton, travel and resort expenses, according to his plea agreement.
“This defendant took money that was supposed to be used to provide emergency financial assistance to small businesses and individuals suffering adverse economic effects caused by the COVID-19 pandemic,” said U.S. Attorney Cole Finegan. “Prosecuting pandemic fraud is a priority of the Department of Justice and an ongoing focus for investigators here in Colorado.”