El Paso Woman Arrested for Allegedly Defrauding Paycheck Protection Program of More Than $2 Million

EL PASO, Texas – An El Paso woman was arrested on criminal charges related to her alleged Paycheck Protection Program (PPP) fraud.

According to court documents, Araceli Benitez, 46, was the owner of both an insurance and tax services company and a home health services company. Between April 9, 2020 and Dec. 31, 2022, she allegedly submitted fraudulent loan applications and requests for fund disbursement to the PPP, a federal government COVID-19 pandemic relief program administered by the Small Business Administration.

The indictment, filed Jan. 22, alleges Benitez attracted and induced clients to hire her to apply for PPP loans through paid radio commercials and social media—usually in Spanish. She allegedly sent and caused to be sent to a credit union PPP loan applications which contained material misrepresentations and omissions. Unbeknownst to her clients, Benitez allegedly included false federal income tax documentation, false information about her clients’ businesses, and false information about her clients’ need and qualifications. Benitez allegedly submitted approximately 156 loan applications totaling $2,305,294.06.

Benitez was arrested March 7 and is charged with seven counts of wire fraud; eight counts of bank fraud; two counts of money laundering; one count of structuring transactions to evade reporting requirement; two counts of aggravated identity theft; and one count of false or fictitious claims. If convicted, she faces up to 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting U.S. Attorney Margaret Leachman for the Western District of Texas made the announcement.

The FBI and IRS-Criminal Investigations are investigating the case.

Assistant U.S. Attorney Debra Kanof is prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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