A former candidate for mayor of Miramar has pleaded guilty to COVID-19 loan fraud through a consulting business he owned, federal prosecutors announced Thursday.
Rudy Theophin, 41, of Miramar, entered into the agreement in federal court Wednesday, pleading guilty to one count of wire fraud stemming from a Paycheck Protection Loan he received in June 2020 on behalf of his company Theophin Consulting LLC, prosecutors said.
In his loan application, Theophin indicated his business employed eight people and had an average monthly payroll of $49,470, according to a factual proffer, the facts agreed on by the defense and prosecution. Documents submitted with the application showed an annual payroll from 2019 as more than $580,000, but prosecutors said in the factual proffer that the business did not exist in 2019.
Theophin received a loan for more than $120,000 based on the information in his application. He had opened the bank account he received the loan in just over two weeks before applying for it. the factual proffer said.
Florida Department of Revenue records showed that Theophin had not reported any wages or employees in 2019 or in the first quarter of 2020, according to the factual proffer.
Of the $120,000 he received, Theophin paid about $23,000 to third parties and the rest was paid to an investment accounts in his name and of another’s or on personal purchases, the factual proffer said, including $35,000 toward a condo in Miramar. He applied for loan forgiveness for the entire amount of the loan, claiming that it was used for payroll.
Theophin ran for mayor in 2023 against incumbent Wayne Messam, who won and is now serving his third term. Theophin campaigned with his top three priorities as public safety, community engagement and community development and revitalization.
A sentencing hearing is scheduled for July 15 in Fort Lauderdale. Prosecutors said Theophin faces up to 20 years in federal prison.