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A federal judge’s four-year prison sentence for an Iowa meatpacking plant worker underscores that pandemic-era relief fraud remains an active enforcement priority—and a cautionary tale for small business owners who relied on Paycheck Protection Program funds to survive COVID-19 disruptions.
According to a release from the Small Business Administration (SBA) Office of Inspector General, Yovany Ciero, 48, of Mason City, Iowa, was sentenced on December 3, 2025, to 48 months in federal prison for his role in a multi-million-dollar scheme to defraud the SBA through fraudulent Paycheck Protection Program (PPP) loans. Ciero was convicted by a jury earlier this year on multiple counts, including wire fraud, money laundering, and conspiracy, after prosecutors showed he helped orchestrate and profit from false loan applications during the pandemic.
The case, detailed in an SBA investigative summary, highlights how PPP funds—intended to help legitimate small businesses keep workers on payroll—were instead siphoned off through organized fraud.
Evidence presented at trial showed that Ciero, a former sergeant in the Cuban military, was working at an Algona, Iowa meatpacking plant when the COVID-19 pandemic began. Beginning in July 2020, he and more than 100 other immigrants from Cuba obtained fraudulent PPP loans by falsely claiming they were self-employed individuals with approximately $100,000 in gross income in 2019. In reality, they were wage employees at meatpacking plants or other businesses.
Prosecutors described Ciero as one of six “bundlers” in the scheme. His role involved recruiting participants, collecting their personal identifying information, and passing that information to others who submitted the fraudulent loan applications to participating lenders. Investigators determined that more than $4 million in fraudulent PPP applications were submitted, resulting in losses of over $2.4 million to the federal government.
Once loan funds were disbursed—typically about $20,000 per applicant—Ciero also acted as a “funnel” in a money laundering conspiracy. He collected fees charged by the organizers, usually $3,000 per fraudulent loan. The government also showed that Ciero personally obtained two fraudulent PPP loans, one for himself and one for his paramour, and used much of that money to purchase a semi-truck. After receiving the PPP funds, he also obtained a Federal Housing Administration loan to buy a home in Mason City.
The district court judge found that Ciero obstructed justice by testifying falsely at trial, a factor that contributed to the length of his sentence. United States District Court Judge Leonard T. Strand ordered Ciero to pay $212,293 in restitution to the SBA and to serve two years of supervised release following his prison term. There is no parole in the federal system.
For small business owners, the case serves as a reminder that PPP compliance did not end when the program stopped accepting applications. Federal agencies continue to audit loans, pursue criminal cases, and seek restitution years after funds were distributed. Businesses that legitimately received PPP loans should ensure their documentation—including payroll records, tax filings, and forgiveness applications—remains complete and accessible.
The case also illustrates how fraud schemes can involve individuals who were not business owners at all, but who falsely claimed self-employment status. For legitimate sole proprietors and independent contractors, this distinction matters. The government’s aggressive pursuit of false claims can increase scrutiny across the board, making accurate reporting and careful recordkeeping even more important for compliant businesses.
Ciero is the fifth former Iowa meatpacking plant worker sentenced in this particular scheme. Other defendants received prison terms ranging from five to 11 months and were ordered to pay restitution amounts between roughly $60,000 and $138,000, according to court records. Prosecutors said the investigation involved multiple agencies, including the SBA Office of Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General, Homeland Security Investigations, the FBI, and local law enforcement.
As enforcement actions continue, small business owners may want to revisit how they applied for pandemic relief, how funds were used, and whether forgiveness filings accurately reflected their operations. While the vast majority of PPP recipients followed the rules, cases like this demonstrate that the government is still sorting out pandemic-era abuses—and that the consequences for fraud can be severe and long-lasting.
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