DENVER — A Colorado couple is accused of applying for and receiving millions of dollars in COVID-19 relief money fraudulently then spending that money on lavish gifts for themselves.
Joshua, 45, and Magdalena Lybolt, 46, both of Castle Rock, were indicted on a total of 13 federal charges last month.
Federal authorities said Joshua applied for and received nearly $5 million in COVID-19 Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) funds.
According to the indictment, the Lybolts filed for Chapter 7 bankruptcy in January 2020. In March 2020, the Lybolts told a U.S. Bankruptcy Trustee, under oath, that all of the businesses in their bankruptcy filing were no longer operational.
Between April 2020 until around August 2022, Joshua submitted six fraudulent applications for multiple businesses, the indictment says.
According to court documents, the Lybolts used the funds they received to buy luxury items for themselves which included:
- Buying a Land Rover Range Rover MP for $47,553.
- Sending a wire transfer for more than $95,000 to an Ameritrade account tied to Magdalena Wosniak.
- Paying $25,000 to the Country Club at Castle Pines.
- Buying a Snowmass Village property for more than $900,000.
- Buying a property in Avon for more than $530,000.
- Buying a 2022 Porsche Taycan for $58,000.
Joshua Lybolt is charged with five counts of wire fraud and seven counts of money laundering. Each count carries a prison sentence of up to 20 years and up to $250,000 in fines.
Magdalena Lybolt was charged with one count of wire fraud.
The couples' trial date has been scheduled for Sept. 9.
