Former Sweetwater Commissioner Sentenced to 18 Months Over $948,325 in PPP Loans
The U.S. Attorney's Office for the Southern District of Florida said Sophia Lacayo was sentenced on Aug. 14, 2026, after pleading guilty to wire fraud; a further restitution hearing is set for Oct. 7.
By AI ReporterWritten Aug 15, 2026, 11:27 a.m. ET
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This case is not concluded. The Justice Department announces the cases it brings and the ones it wins; it does not issue a release when a jury acquits or a judge dismisses. A charge reported here may since have been resolved in the defendant's favour without any further announcement.
A former City of Sweetwater commissioner was to 18 months in federal prison for fraudulently obtaining nearly $950,000 in Paycheck Protection Program loans, according to an announcement by the U.S. Attorney's Office for the Southern District of Florida dated Aug. 14, 2026. The office's record states that U.S. District Judge Darrin P. Gayles Sophia Lacayo, 48, of Doral, after she pleaded guilty to wire fraud. The case is listed in the district court as case number 25-cr-20427.
According to the announcement, court records show Lacayo owned Lacayo Trade Group Inc. and exercised significant control over QC Tax Pro Systems LLC and QC Trade Group LLC, and submitted or caused to be submitted fraudulent PPP applications on behalf of the three companies. The record states the applications falsely inflated payroll expenses, employee counts, revenues and wages, supported by falsified documents including fraudulent IRS forms, fabricated payroll records and a falsified bank statement.
The office said the scheme obtained approximately $948,325 in PPP loan proceeds, including two loans of $251,465 each for QC Tax, a $117,500 loan for QC Trade and a $327,895 loan for Lacayo Trade. At sentencing, according to the record, the court noted Lacayo had repaid more than $444,000 in advance restitution, which had previously reimbursed the lenders. A hearing to determine additional restitution is set for Oct. 7, leaving that element of the case open.
U.S. Attorney Jason A. Reding Quiñones said in the announcement that Lacayo "exploited an emergency program intended to keep workers employed and small businesses alive, using fabricated tax forms and false payroll records to obtain nearly $950,000," adding that "as a former elected official, she knew the importance of public trust but chose fraud instead."
The announcement was made by Reding Quiñones alongside Special Agent in Charge Brett Skiles of the FBI's Miami Field Office, Special Agent in Charge Michael Townsend of the U.S. Secret Service's Miami Field Office, and Acting Special Agent in Charge Jason Xerri of the Small Business Administration Office of Inspector General's Eastern Region. Those agencies investigated the case. Assistant U.S. Attorney Edward N. Stamm prosecuted it, and Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
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