August 23, 2025

Rio Grande Valley Business Owners Indicted for Loan Fraud

News Summary

Five business owners from the Rio Grande Valley have been indicted for wire fraud related to COVID-19 loans. The U.S. Attorney’s Office announced charges against them for misusing federal assistance programs designed to help struggling businesses. Allegations include submitting fraudulent applications to secure a total of $685,800, with funds diverted for personal use rather than business expenses. This scandal highlights significant abuse within federal programs aimed at supporting local enterprises during the pandemic.

Texas – Five business owners from the Rio Grande Valley were indicted on August 5 for their involvement in a fraudulent scheme related to COVID-19 loans, collectively generating a loss of $685,800. The indictments were announced by the U.S. Attorney’s Office for the Southern District of Texas, marking a significant step in prosecuting fraud against federal assistance programs designed to support businesses during the pandemic.

The final two defendants, Sandra Pope Solis, 60, from Rancho Viejo, and Lesley Chavez, 42, from Edinburg, were arrested as part of this investigation. The other three individuals indicted include Rolando Santiago Benitez, 51, from Harlingen; Bernardo Gomez Jr., 46, from Edinburg; and Edgar De La Garza, 45, from Brownsville.

These five defendants are accused of submitting fraudulent applications to acquire funds from the Small Business Administration (SBA) during the COVID-19 pandemic, between June 2020 and November 2021. The SBA provided both Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans in an effort to assist small businesses that suffered economic setbacks due to the pandemic.

Investigations revealed that Rolando Santiago Benitez fraudulently obtained a total of $231,600 through his loan applications. Specifically, he acquired $150,000 through an EIDL application on September 11, 2020, and $81,600 from a PPP application on May 20, 2021. Benitez allegedly misappropriated a fraction of these funds for personal investments while falsely claiming compliance with SBA regulations in a PPP loan forgiveness form submitted in December 2021.

Sandra Pope Solis also engaged in fraudulent activities by inflating the number of employees and altering tax documents on her EIDL application, leading to her receiving $140,300 on December 22, 2020, followed by $65,700 from a PPP loan on May 25, 2021. It is reported that she misused the loan funds for personal expenses and submitted a fraudulent PPP loan forgiveness application in July 2021.

Lesley Chavez and Bernardo Gomez were implicated in making numerous fraudulent applications, managing to acquire $150,000 for their business, Dream Weddings RGV, which they allegedly used for personal expenses as well as for a printing company. They also obtained $40,800 and $20,800 from subsequent fraudulent PPP applications.

Lastly, Edgar De La Garza fraudulently received $36,600 through his PPP loan for River Valley Investment Group LLC, which was also misused for personal enrichment.

This case underscores a troubling trend of abuse connected to federal assistance programs aimed at supporting small businesses during the ongoing challenges posed by the pandemic. These alleged actions not only exploited the funds intended for struggling businesses but also reflect the increasing scrutiny on fraudulent claims against relief programs, as authorities continue to seek justice for the detrimental impacts of such fraudulent activities on the economy.

The ongoing investigations signal a firm commitment by federal authorities to combat fraud in disaster relief efforts, aiming to ensure that assistance reaches legitimate enterprises and individuals in need.

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