HIGHLANDS RANCH, Colo. (KDVR) — The United States Attorney’s Office for the District of Colorado announced Friday that a Highlands Ranch man has been sentenced 41 months in federal prison for fraudulently obtaining funds intended to help small businesses during the COVID-19 pandemic.
Daniel Stonebarger, 50, was sentenced on May 26. In addition to his prison sentence, he was ordered to serve three years of supervised release. He was also ordered to pay $794,462.08 in restitution to the Small Business Administration and $28,142 to the Colorado Department of Labor and Employment.
The U.S. Attorney’s Office said Stonebarger submitted numerous fraudulent applications between April 5, 2020, and June 10, 2020 for Economic Injury Disaster Loans and Grants, and Paycheck Protection Program loans through the SBA.
By using new and existing business names to apply for the loans, and falsifying creation dates of businesses, number of employees, revenues, and costs, the district attorney’s office said Stoneburger obtained $855,252.50. He was also paid $28,142 by the Colorado Department of Labor and Employment.
“This defendant took money that was supposed to be used to provide emergency financial assistance to small businesses and individuals suffering adverse economic effects caused by the COVID-19 pandemic. Prosecuting pandemic fraud is a priority of the Department of Justice and an ongoing focus for investigators here in Colorado,” said U.S. Attorney Cole Finegan.
The U.S. Attorney’s Office said Stoneburger used the funds to pay for, among other things, plastic surgery for a relative, a weight loss program, bridal expenses, jewelry, a Peloton, travel, and resort expenses.