MIAMI — Former Sweetwater Commissioner Sophia Lacayo was sentenced to 18 months in federal prison after pleading guilty to wire fraud in a scheme that obtained approximately $948,325 through the federal Paycheck Protection Program.
U.S. District Judge Darrin P. Gayles sentenced Lacayo, 48, of Doral, according to the U.S. Attorney’s Office for the Southern District of Florida.
Federal prosecutors said Lacayo submitted or caused fraudulent PPP loan applications to be submitted on behalf of three companies she owned or controlled during the COVID-19 pandemic.
The applications inflated payroll expenses, employee counts, revenues and wages, according to federal prosecutors.
The companies ultimately received approximately $948,325 in PPP proceeds.
Prosecutors detail four PPP loans
According to the Justice Department, Lacayo owned Lacayo Trade Group Inc. and exercised significant control over QC Tax Pro Systems LLC and QC Trade Group LLC.
Prosecutors said the fraudulent applications resulted in four loans:
- Two loans of $251,465 each for QC Tax Pro Systems
- A $117,500 loan for QC Trade Group
- A $327,895 loan for Lacayo Trade Group
Together, the loans totaled approximately $948,325.
Congress created the Paycheck Protection Program in 2020 to provide forgivable loans to qualifying businesses for payroll and other eligible expenses during the COVID-19 pandemic.
U.S. Attorney Jason A. Reding Quiñones emphasized Lacayo’s former position in public office when announcing the sentence.
“As a former elected official, she knew the importance of public trust but chose fraud instead,” Reding Quiñones said.
Lacayo’s case is not the first South Florida prosecution involving misuse of the pandemic-relief program. In 2022, The Florida Pundit reported that Damara Holness was sentenced to 20 months in federal prison for PPP fraud involving $300,000.
The case comes amid other major fraud prosecutions in Florida, including an alleged $1.35 million fraud scheme involving a former Lee County Schools payroll official.
More than $444,000 already repaid
At sentencing, the court noted that Lacayo had repaid more than $444,000 in advance restitution, according to federal prosecutors. Those funds had previously reimbursed lenders for fraudulent loans.
The case is not yet finished with respect to restitution.
A hearing to determine the amount of additional restitution Lacayo will be required to pay is scheduled for Oct. 7.
Lacayo previously served on the Sweetwater City Commission and later ran for the Miami-Dade County Commission.
The federal case was investigated by the FBI’s Miami Field Office, the U.S. Secret Service’s Miami Field Office and the U.S. Small Business Administration Office of Inspector General.
Assistant U.S. Attorney Edward N. Stamm prosecuted the case, while Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
The federal case is United States v. Sophia Lacayo, case number 25-cr-20427, in the U.S. District Court for the Southern District of Florida.
Source: U.S. Attorney’s Office for the Southern District of Florida.
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