Los Angeles Woman Charged for $18M COVID-19 Relief Fraud Scheme

A federal grand jury in the Central District of California returned an indictment yesterday charging Marisela Nuno, 53, of Los Angeles, California, with an $18 million scheme to defraud the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, federal stimulus programs authorized as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to court documents, the defendant allegedly obtained funds under the PPP and EIDL program by submitting false and fraudulent loan applications that collectively sought over $15.7 million in PPP funds and over $2.6 million in EIDL funds. The defendant is alleged to have submitted applications on behalf of businesses and entities she purportedly owned, knowing that the applications contained materially false statements and misrepresentations concerning, among other things, the purported entities' number of employees, average monthly payroll, gross revenues, and eligibility for funding.

The defendant also is alleged to have submitted materially false supporting tax documentation with the applications. The defendant then allegedly used the loan funds for purposes not authorized by the PPP or the EIDL program, including for the purchase of private property, business startup costs, and payments to family members.

Nuno is charged with three counts of wire fraud and one count of money laundering. If convicted, she faces a maximum penalty of 20 years in prison on each count of wire fraud, and 10 years in prison on the count of money laundering.

Assistant Attorney General Colin M. McDonald of the Justice Department's National Fraud Enforcement Division (Fraud Division); Special Agent in Charge Robert Molvar of the FBI's Criminal Division; Special Agent in Charge Darren Lian of the Internal Revenue Service, Criminal Investigation Division (IRS CI) Los Angeles Field Office, Special Agent in Charge Timothy Larson of the U.S. Small Business Administration Office of Inspector General (SBA OIG) made the announcement.

The FBI Los Angeles Field Office, IRS CI, and SBA OIG investigated the case.

Trial Attorney Ariel Glasner of the Fraud Division's Public Trust and Financial Integrity Section and Trial Attorney Edward Emokpae of the Criminal Division's White Collar and Corporate Enforcement Section are prosecuting the case.

On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.