A federal jury convicted Rico Tomas Garcia, 51, of Castle Rock on March 12 of nine counts of wire fraud and six counts of money laundering for his role in a $2.4 million hand sanitizer scheme during the early months of the COVID-19 pandemic, according to the United States Attorney for the District of Colorado.
The case highlights how fraudulent schemes emerged during the pandemic as demand for essential products like hand sanitizer surged. Prosecutors said Garcia falsely promised to procure bulk quantities of hand sanitizer through his business, Botani Labs, LLC., claiming he would supply millions of bottles to large national retailers.
According to evidence presented at trial, Garcia received a $2.4 million deposit from victim businesses between April 2020 and June 2021 but did not deliver any product. He later falsely testified under oath in civil arbitration that he had wired the funds to a Chinese manufacturer and provided fake documents to support this claim. The FBI investigation found that Garcia used shell companies to divert the deposit for personal debts and property purchases in California, Nevada, and Colorado. More than one million dollars was also moved into offshore accounts in the Caribbean.
United States District Judge Nina Y. Wang presided over the trial. The FBI Denver Field Office led the investigation, while Assistant United States Attorneys Albert Buchman, Bryan Fields, Laura Hurd, and Aly Mance prosecuted the case.
The conviction underscores ongoing efforts by law enforcement agencies to address financial crimes related to pandemic relief.
