NEW YORK – Rafael Martinez, CEO of MBE Capital Partners, pled guilty today to conspiring to commit wire fraud in connection with loan and lender applications submitted through the Paycheck Protection Program (PPP) administered by the U.S. Small Business Administration (SBA). Martinez used false documents to secure hundreds of millions of dollars in capital for PPP loans and ultimately collected over $71 million in lender fees.
Martinez also fraudulently obtained a PPP loan of approximately $283,764 for his company through false statements regarding employee numbers and wages. As a result, MBE issued approximately $823 million in PPP loans to around 36,600 businesses, earning Martinez about $71.3 million in fees.
Martinez spent the proceeds on luxury purchases, including a $10 million villa, a $3.5 million mansion, and several luxury vehicles. He faces a maximum sentence of five years in prison and has agreed to pay restitution and forfeit assets totaling over $116 million.