A former Howell resident has been sentenced to 16 years in federal prison for orchestrating a multi-million-dollar fraud scheme that siphoned off COVID-19 relief funds intended to help struggling small businesses during the pandemic.
Kevin Aguilar, 54, now residing in Sherman, Texas, was sentenced by U.S. District Judge Michael A. Shipp after pleading guilty to a staggering array of charges — including conspiracy to commit bank fraud and wire fraud, multiple counts of bank and wire fraud, money laundering, and aggravated identity theft.
According to the U.S. Attorney’s Office and court documents, Aguilar led a brazen scheme between April 2020 and April 2021, submitting seven fraudulent Paycheck Protection Program (PPP) loan applications and three bogus Economic Injury Disaster Loan (EIDL) applications on behalf of four shell businesses. In total, he pocketed over $3.3 million in PPP funds and approximately $450,000 in EIDL funds.
Rather than using the funds to support legitimate business expenses as intended, Aguilar funneled the money into entities he created to make the transactions appear aboveboard. Authorities say he used the cash to finance a lavish lifestyle — purchasing several residential properties in Texas, acquiring a $100,000 truck, and covering various personal expenses.
Aguilar was arrested in March 2022 following an investigation that tracked the fraudulent funds through dozens of bank accounts.
In addition to his prison sentence, Aguilar will serve five years of supervised release. Judge Shipp also ordered him to pay $3.77 million in restitution and imposed a forfeiture judgment in the same amount. Authorities have already seized over $1.5 million from 12 bank accounts and confiscated three real estate properties in Sherman, Texas.
The case is part of a broader federal crackdown on COVID-19 fraud, which has led to dozens of prosecutions nationwide.
Where’s the $15M?