Las Palmitas owners arrested for alleged PPP fraud

EL CENTRO, Calif. (KYMA, KECY) - A local restaurant chain in the Imperial Valley is under investigation for allegedly defrauding the government during the pandemic.

Samuel Vega, Annmarie Mendibles, Carlos Contreras, and Juan Diego Tom, owners of Las Palmitas Taco Shops in Imperial County are charged in a state indictment for fraudulent use of the Paycheck Protection Program (PPP).

According to the Imperial District Attorney’s Office, they received a tip from the FBI that the Las Palmitas restaurant was misappropriating funds received from the PPP.

“When this case was brought to us it was during a time when businesses were having to shut down and people were losing jobs," said Margaret Tafoya, Imperial County Interim Assistant District Attorney. "This community was hit incredibly hard as a result of that pandemic and so to see the misuse of funds and I think the point is that those will not go unnoticed in Imperial County.”

Las Palmitas received loans in excess of $500.000, of which 100 percent forgiveness was received.

The four were given a conditional release and will be back in court on Tuesday in Brawley.