Seminole County Man Extradited From Croatia Pleads Guilty To $7.2 Million COVID Relief Fraud
Orlando, Florida – United States Attorney Roger B. Handberg announces that Don V. Cisternino (46, Chuluota) has pleaded guilty to wire fraud, aggravated identity theft, and illegal monetary transaction. Cisternino faces a maximum penalty of 20 years in federal prison for the wire fraud, up to 10 years’ imprisonment for the illegal monetary transaction, and a mandatory consecutive sentence of 2 years in federal prison for the aggravated identity theft. A sentencing date has not yet been set.
According to the plea agreement, in May 2020, Cisternino fraudulently secured more than $7.2 million in emergency funds through a Paycheck Protection Program (“PPP”) loan.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted March 2020. It was designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in potentially forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. The PPP allowed qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses were required to use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities.
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Seminole County man extradited from Croatia pleads guilty to $7.2 million COVID relief fraud. @IRS_CI @USDOJ_Intl https://t.co/lQcquuZ28P pic.twitter.com/f23hPsedRa
— USAO Middle Florida (@USAO_MDFL) September 22, 2022
A Florida man who fled the U.S. and was eventually arrested in Croatia has pleaded guilty to stealing more than $7.2 million in COVID-19 relief funds. https://t.co/jH5KKWoIb4
— ABC7 Eyewitness News (@ABC7) September 22, 2022
A man from Croatia has been extradited to the United States to face wire fraud and identity theft charges after, authorities allege, the man spent $7.2 million in COVID-19 relief funds to purchase luxury cars and a 12,500-square-foot mansion in Florida. https://t.co/U2ca71naC5
— FOX 35 Orlando (@fox35orlando) May 4, 2022
Once he obtained the emergency loan of $7.2 million, Cisternino did not use these funds for qualifying expenses. Instead, he spent the funds for unauthorized purposes and for his own personal enrichment, including the purchase of a Lincoln Navigator, a Maserati, Mercedes-Benz vehicles, and a 12,579 sq. ft. residence in Seminole County, Florida (pictured below).
On January 22, 2021, after learning that he was under investigation for PPP loan fraud, Cisternino fled to Switzerland. He was arrested on April 11, 2021, pursuant to an Interpol Red Notice, as he attempted to enter Croatia from Slovenia by way of Italy.
As part of his plea agreement, Cisternino agreed to forfeit the $7.2 million in proceeds that he had obtained through the wire fraud, as well as assets traceable to the fraud, including the 12,579 sq. ft. residence and approximately $1.1 million in funds held in bank accounts controlled by him or his associates.
This case was investigated by the Internal Revenue Service – Criminal Investigation, Tampa Field Office. The Justice Department’s Office of International Affairs provided valuable assistance in securing Cisternino’s arrest and extradition. It is being prosecuted by Assistant United States Attorney Chauncey A. Bratt, with assistance from Assistant United States Attorneys Nicole Andrejko and Jeremy Bloor.
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