Orlando resident faces mortgage, COVID relief fraud charges

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Orlando mortgage fraud case

Highlights

Yan Daniel Inclan Hernandez faces one count of making a false statement and three counts of wire fraud after a $411,350 mortgage loan approval based on overstated income.
Indictment alleges Hernandez obtained Paycheck Protection Program and Economic Injury Disaster Loan funds from May 2020 to August 2021 by inflating payroll, income, and employee numbers.
If convicted, Hernandez faces up to 30 years in prison per count and potential forfeiture of $157,500 identified as proceeds from the charged conduct.

Indictment details and alleged loan scheme

As reported by the U.S. Small Business Administration, Yan Daniel Inclan Hernandez, 32, is charged by indictment with one count of making a false statement to a financial institution and three counts of wire fraud.

Prosecutors say Hernandez stated on a mortgage loan application in September 2021 that he earned $12,350 in monthly income. The indictment alleges that the statement influenced a financial institution to approve and fund a $411,350 mortgage loan used to buy a property in Orlando.

The indictment also alleges that between May 2020 and August 2021, Hernandez took part in a wire fraud scheme to obtain Paycheck Protection Program loans for himself and an Economic Injury Disaster Loan for his company from the SBA. Prosecutors say the applications overstated monthly payroll, monthly income, annual revenue and employee counts, leading the SBA and PPP lenders to fund the loans.

Penalties and enforcement impact

If convicted on all counts, Hernandez faces a maximum penalty of 30 years in federal prison on each count. The indictment also notifies him that the United States is seeking forfeiture of $157,500, which prosecutors identify as proceeds of the charged conduct.

United States Attorney Gregory W. Kehoe announced the case. The investigation is conducted by the Federal Housing Finance Agency Office of Inspector General, the U.S. Department of Housing and Urban Development Office of Inspector General, the Federal Bureau of Investigation, and the U.S. Small Business Administration Office of Inspector General, while Special Assistant United States Attorney Chris Poor is prosecuting the case.

Prosecutors note that an indictment is a formal charge and that the defendant is presumed innocent unless and until proven guilty.

In our earlier article on SBA disaster financing for Oregon communities hit by severe storms and flooding, we outlined which counties were covered and what types of relief were available. We explained the key terms for SBA physical disaster loans and Economic Injury Disaster Loans (EIDL), including eligible uses, borrowing limits, and repayment conditions designed to support recovery.

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