Orchestrator of multi-million-dollar COVID-19 fraud scheme sentenced to 97 months in federal prison

Date: Jan. 29, 2026

Contact: [email protected]

San Juan, PR - Manfred A. Pentzke Lemus, was sentenced on January 28, 2026, by United States District Court Judge Aida Delgado-Colón to over eight years in prison for orchestrating a multi-million-dollar fraudulent scheme to obtain COVID-19 relief funds issued under the authority of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. The Honorable Aida M. Delgado-Colón also imposed forfeiture of $488,674.28 and restitution totaling $2,185,519.85.

Pentzke Lemus pleaded guilty on September 24, 2025, to Count one of the indictment, Conspiracy to Commit Wire Fraud, 18 U.S.C. § 1349) and to count 21, Conspiracy to Commit Money Laundering, 18 U.S.C. § 1956(h)).

According to court documents, Manfred A. Pentzke Lemus, aka "Man", "Contable", "El Gestor," age 40, from Guaynabo, Puerto Rico, organized and led a scheme to defraud the United States Small Business Administration and Oriental Bank by exploiting the Paycheck Protection Program ("PPP") and the Economic Injury Disaster Loan ("EIDL") program. Pentzke and his co-conspirators, and the people they recruited submitted hundreds of fraudulent PPP and EIDL applications using false financial data and fabricated documents, including falsified tax forms. Pentzke coordinated the preparation of these applications, often inserting fictitious payroll and income figures, and monitored their approval and disbursement. As a result of the scheme, 223 fraudulent PPP loans were processed, resulting in the disbursement of $5,915,290.33. The SBA also disbursed $3,105,300 in EIDL funds as a result of the scheme.

Recruits paid kickbacks to Pentzke and the scheme's organizers. Pentzke, or companies that he controlled, received 100 of those kickbacks, totaling $486,277.70, which were disguised as legitimate business transactions to conceal their true purpose and facilitate loan forgiveness. The conspiracy operated through layers of recruitment, falsified documentation, and structured kickback payments, resulting in the fraudulent disbursement of millions in federal relief funds.

"Today's sentence reflects the seriousness of exploiting emergency relief programs for personal gain." said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. "These funds were intended to support businesses and workers during a national crisis, an unprecedented emergency, not to enrich individuals through fraud; and those who engage in fraud will be held accountable. I commend and thank the agents and prosecutors for their outstanding work on the investigation and prosecution of this case."

Two of Pentzke's co-defendants have been sentenced, three are pending sentencing.

Internal Revenue Service Criminal Investigations, the United States Secret Service, Small Business Administration Office of the Inspector General, and Treasury Inspector General for Tax Administration conducted the investigation with the collaboration of the Puerto Rico Treasury Department, Puerto Rico Bureau of Special Investigations, Puerto Rico Police Bureau, and Guaynabo Municipal Police. Assistant U.S. Attorney Daniel J. Olinghouse prosecuted the case.

The CARES Act authorized federal assistance through the issuance of SBA loans to small businesses and non-profit entities that experienced revenue loss due to the COVID-19 worldwide pandemic. The EIDL program was one such loan assistance program for small businesses. To procure the loan, applicants had to fill out an online application detailing operational information for the 12month period prior to the COVID-19 pandemic, such as the number of employees in the business, the gross business revenues realized, and the cost of goods sold. Another form of assistance provided by the CARES Act was the authorization of United States taxpayer funds in forgivable loans to small businesses for job retention and certain other expenses, such as interest on mortgages, rent and utilities, through the Paycheck Protection Program (PPP).

IRS Criminal Investigation (IRS-CI) is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a 90% federal conviction rate. The agency has 19 field offices located across the U.S. and 14 attaché posts abroad.