Trucking Executives Sentenced to Prison in Lucrative Loan Scam

Salt Lake City, UT – Two trucking executives were recently sentenced to federal prison for their roles in a lucrative scheme to defraud the Paycheck Protection Program (PPP).

According to the U.S. Department of Justice (DOJ), Hubert Ivan Ugarte, 52, of Draper, UT, and Lisa Bradshaw Rowberry, 49, of Provo, UT, have both been sentenced for their roles in unlawfully obtaining a PPP loan for Frisbu Trucking, Inc., where they were both employed.


Rowberry was sentenced to prison for a term of 12 months and a day last week in federal court.

Her co-defendant, Ugarte, was sentenced to a term of 36 months in federal prison back in June for his role in the PPP loan fraud scheme.

Ugarte’s sentence will run concurrently with a sentence that Ugarte received in a related crime involving the bribery of officials at the Utah FedEx Ground Hub.

According to plea agreements in this case, Ugarte was the owner and operator of Frisbu Trucking.


He hired Rowberry to work for Frisbu after she had been terminated from her role as an Assistant Vice President of U.S. Bank for engaging in financial transactions with Ugarte that violated U.S. Bank’s ethical policies.

After Ugarte was indicted by a federal grand jury for his role in the $280 million FedEx bribery scheme, Ugarte’s more than one dozen trucking businesses began to struggle because they were dependent on Ugarte’s ability to engage in business with the FedEx Ground Hub.

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DOJ prosecutors said that in order for Ugarte to remain in business, he and Rowberry fraudulently applied for a PPP loan authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.


The two obtained $210,000 in funding, according to court documents.

However, Rowberry and Ugarte both unlawfully failed to disclose that Ugarte was already under federal indictment for his role in the FedEx bribery case.

Further, in a plea agreement back in April of this year, Ugarte admitted that instead of using at least 75% of the loan to pay payroll costs (required by federal law at the time), he used 60% of the loan to pay the past due truck payments – leaving only 40% for payroll costs.

Photos courtesy Lisa Rowberry/Facebook and Salt Lake County

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