Castle Rock Man Gets 20 Months and $5.35 Million Restitution for COVID Loan Fraud

October 20, 2026

Joshua Lybolt, 47, of Castle Rock was sentenced to 20 months in federal prison, $5,346,802.61 in restitution and a $50,000 fine after pleading guilty to one count of wire fraud and one count of money laundering. According to the plea agreement and facts established at sentencing, from April 2020 until around August 2022 he received $4,950,000 in SBA Economic Injury Disaster Loans and $41,667 in Paycheck Protection Program funds. He applied on behalf of Indiana businesses that had gone through bankruptcy, and he falsely certified that they had suffered pandemic losses when they “were not in operation on the dates required to receive relief funds.” U.S. District Judge Daniel D. Domenico imposed the sentence.

Sources

• U.S. Attorney’s Office, District of Colorado, “Castle Rock Man Sentenced to 20 Months in Federal Prison, More Than $5 Million in Restitution” (October 19, 2026): https://www.justice.gov/usao-co/pr/castle-rock-man-sentenced-20-months-federal-prison-more-5-million-restitution