A Virgin Islands man residing in Georgia appeared in District Court Friday and admitted to his role in a scheme to defraud the government. Through his lawyer, defendant Raynaldo Oquendo pleaded guilty to a single count of wire fraud conspiracy.
Oquendo, 39, was the subject of an Aug. 7, 2024, grand jury indictment accusing him of taking part in a scheme to obtain funds through the Payroll Protection Plan. The payroll plan was set up during the COVID-19 pandemic as part of the federal Coronavirus Aid, Relief, and Economic Security Act. The measure was designed to provide emergency financial assistance to Americans suffering economic losses caused by the pandemic.
After reviewing requests submitted by defense attorney Raul Bandas, the court accepted Oquendo’s guilty plea. U.S. Magistrate Judge G. Alan Teague also accepted a request by prosecutors to drop a second charge of wire fraud listed in the charging document.
Assistant U.S. Attorney Denise George read off the alleged violations the government was prepared to prove in court had the case gone to trial. At the end of its deliberations, the grand jury returned an indictment saying that the defendant used a computer belonging to a relative to help obtain COVID-19 relief funds on behalf of a St. John business owner.
At Friday’s hearing the prosecutor told Teague the government could prove the business owner filed the loan application overstating the number of workers. Records obtained through the V.I. Internal Revenue Bureau later disputed the claim and the salary amounts listed in the application.
Nonetheless, the application was approved for $383,397, George said; the funds were disbursed through a company called Bluevine, Inc. and deposited in FirstBank accounts based in the Virgin Islands.
Investigators identified Oquendo as the owner of one of the three accounts receiving $29,997 in PPP funds. Teague asked the defendant if the government’s account of his actions was accurate.
“Yes, Your Honor,” he said.
The magistrate said he would notify the judge assigned to the case that the change of plea was accepted. He also told Oquendo and his lawyer it would be up to the judge to pronounce sentencing.
The maximum sentence for wire fraud conspiracy is 20 years in prison and/or a $250,000 fine plus court fees, restitution, and supervised release at the end of the prison term.
Bandas told the court his client intended to reimburse the government.
