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Investigations

Date

Utah Individual Sentenced for Wire Fraud, Money Laundering, and Loan Fraud Charges Related to the CARES Act

On June 3, 2021, the U.S. District Court for the District of Utah sentenced Hubert Ivan Ugarte in two cases to a total of 3 years of incarceration; 3 years of supervised release; $1,419,385 in restitution; a $300 special assessment; and a forfeiture of $2,285,430.10, which includes real property, coins, and vehicles. On October 24, 2019, Ugarte, owner of Frisbu Trucking, Inc., was indicted for wire fraud and money laundering. Beginning sometime around January 2012, on multiple occasions Ugarte bribed a linehaul manager for Federal Express Ground (FXG) in exchange for favors, preferential treatment, and assistance in defrauding FXG. On July 23, 2020, Ugarte was again indicted for conspiracy, removal of property to prevent seizure, loan application fraud, wire fraud, and money laundering. Around April and May 2020, Ugarte and another individual made false statements on a loan application to secure a loan of $210,000 under the Paycheck Protection Program. Ugarte failed to disclose an indictment and an entry into a felony drug possession pretrial diversion agreement on the loan application. On March 31, 2021, Ugarte pleaded guilty to wire fraud, money laundering, and loan application fraud.
 
DOT-OIG conducted this investigation with the Federal Bureau of Investigation (FBI) and Internal Revenue Service-Criminal Investigation.