Evergreen Reporter

DENVER - The United States Attorney’s Office for the District of Colorado announced that Joshua Lybolt, 45, and Magdalena Lybolt, 46, of Castle Rock, Colorado, were indicted by a federal grand jury in Colorado. Joshua Lybolt has been charged with wire fraud and money laundering, while Magdalena Lybolt faces charges of wire fraud.

According to the indictment, from April 2020 until around August 2022, Joshua Lybolt applied for and received $4,950,000 in COVID-19 Economic Injury Disaster Loans (EIDL) from the Small Business Administration (SBA) and $41,667 in Paycheck Protection Program (PPP) funds from an SBA-approved lender. The indictment alleges that Joshua Lybolt falsely certified in fraudulent loan applications that the business entities suffered losses due to the COVID-19 pandemic despite knowing that these entities were not operational on the required dates to receive relief funds.

Further allegations state that both Joshua and Magdalena Lybolt falsely certified that all loan proceeds would be used for business expenses. Instead, they reportedly used most of the funds for personal expenses including a 2022 Porsche Taycan, a 2016 Land Rover Range Rover, memberships in a country club and luxury vacation club, as well as real estate properties.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in March 2020 to provide emergency financial assistance to Americans impacted by the economic effects of the COVID-19 pandemic. The CARES Act created programs such as PPP administered by the SBA to provide loans to small businesses for retaining workers and maintaining payroll among other expenses. Additionally, it authorized EIDLs for eligible small businesses experiencing substantial financial disruptions due to the pandemic.

The defendants made their initial appearance on July 11, 2024 before Magistrate Judge Scott T. Varholak in Denver.

The charges contained in the indictment are allegations; defendants are presumed innocent unless proven guilty.

This case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Theodore O’Brien and Craig Fansler.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to enhance efforts to combat pandemic-related fraud. This task force works with various government agencies to investigate and prosecute domestic and international criminal actors involved in pandemic relief fraud. More information about this initiative can be found at https://www.justice.gov/coronavirus.

On July 11, 2023, the Attorney General selected Colorado’s U.S. Attorney’s Office to lead one of five national COVID-19 Fraud Strike Force Teams aimed at combating large-scale pandemic relief fraud perpetrated by criminal organizations and transnational actors. Additional details regarding this effort are available at https://www.justice.gov/opa/pr/justice-department-announces-results-nationwide-covid-19-fraud-enforcement-action.

Information about attempted COVID-19 related fraud can be reported via the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or through their Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form