Colorado Politics

Highlands Ranch man sentenced to more than 3 years in federal prison for improper use of COVID-19 relief funds

A judge on Thursday sentenced a Highlands Ranch man to more than three years in federal prison for fraudulently obtaining more than $800,000 in COVID-19 relief funds and using the money to pay for plastic surgery, a weight loss program and jewelry. 

Daniel Stonebarger, 50, will serve 41 months behind bars, the U.S. attorney’s office announced Friday. 

According to the plea agreement, Stonebarger submitted fraudulent applications for economic injury disaster loans and grants and Paycheck Protection Program loans between April 5, 2020, and June 10, 2020.

He also applied for Colorado Pandemic Unemployment Assistance and received $28,142 from the Colorado Department of Labor and Employment, prosecutors said.

Stonebarger obtained $855,252.50 through the fraudulent applications. He used the money to pay for plastic surgery for a relative, a weight loss program, bridal expenses, jewelry, a Peloton, and travel and resort expenses, according to the plea agreement.

“This defendant was a criminal opportunist who took advantage of what he saw as easy money through programs created to keep businesses afloat during the pandemic,” said FBI Denver Special Agent in Charge Michael Schneider. “This outcome is a reminder that the FBI aggressively pursues those who try to defraud the federal government.”

In addition to jail time, U.S. District Judge Raymond Moore ordered Stonebarger to pay $794,462.08 in restitution to the Small Business Administration and $28,142 to the state. 

After his release, Stonebarger will be under supervised release for three years, prosecutors said. 

The FBI, U.S. Secret Service and Colorado Department of Labor and Employment investigated the case. 

(Photo illustration by Rattankun Thongbun, iStock)
(Photo illustration by Rattankun Thongbun, iStock)

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