23-05-2025
Former Miami corrections officer sentenced for COVID loan program fraud
A former federal corrections officer from Miami-Dade County has been sentenced to four months in prison and ordered to pay over $75,000 in restitution after pleading guilty to wire fraud schemes involving pandemic relief programs.
Angelo Stephen, 33, was sentenced Thursday in federal court after pleading guilty in March before Chief U.S. District Judge Cecila M. Altonaga. In addition to the prison term, Stephen was sentenced to three years of supervised release and a $100 special assessment.
Stephen worked as a correctional officer at the Federal Correctional Institute in Miami. He is jailed at the Federal Detention Center in Miami.
MORE: Ex-Miami cop pleads guilty to ripping off COVID loan program. He faces decades in prison
Prosecutors say that while serving in that role, he orchestrated a series of fraudulent schemes to siphon federal COVID-19 relief funds and exploit individual bank accounts.
He faced a possible maximum sentence of up to 20 years in prison.
PPP fraud and bank takeovers
Stephen admitted to submitting a false application for an Economic Injury Disaster Loan in August 2020, falsely claiming to own an event planning and entertainment business with 10 employees and over $62,000 in revenue, according to federal court records.
Based on the claims, the Small Business Administration issued him $20,000 in disaster relief funds, which were deposited into his account at Navy Federal Credit Union, according to court documents.
MORE: First Broward deputy sent to prison for COVID loan fraud that put $31,000 in her pocket
In 2021, the federal government says Stephen submitted two fraudulent Paycheck Protection Program loan applications using the Womply online portal.
He claimed to be a sole proprietor operating under the name 'Angelo Stephen,' falsifying tax documents and reporting an inflated gross income of $106,554 for 2020. The applications led to the disbursement of an additional $41,666 in federal funds.
Beyond pandemic-related fraud, the Department of Justice say Stephen also engaged in unauthorized access to personal financial accounts.
In March 2023, federal prosecutors say he and his accomplices orchestrated a wire transfer of $20,000 from the Wells Fargo account of an unsuspecting victim in Virginia into a newly opened Chase Bank account under Stephen's control. He quickly drained the account through Zelle payments and large cash withdrawals.
In July 2023, Stephen exploited another victim — this time in Panama — by redirecting blank checks from the victim's Guardians Credit Union account to an address under his control. He then cashed one of the checks for $8,500 at a Guardian's branch in Palm Beach County, falsely labeling the transaction as payment for remodeling services.
The Department of Justice and Small Business Administration's Office of Inspector General investigated Stephen.
Miami Herald staff writer Jay Weaver contributed to this report.
