California Woman Charged in $18M Coronavirus Fraud Scheme
A 53-year-old woman from California faces charges for allegedly defrauding federal coronavirus relief programs with over $18 million.
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A 53-year-old woman from California has been charged in an $18 million coronavirus relief fraud scheme, according to the U.S. Department of Justice (DOJ). Marisela Nuno, the suspect, is alleged to have submitted false loan applications to the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, seeking over $15.7 million in PPP funds and more than $2.6 million in EIDL funds.
Fraudulent Applications and Misuse of Funds
According to court documents, Nuno allegedly obtained the funds by submitting applications on behalf of businesses and entities she purportedly owned, knowing that the applications contained materially false statements and misrepresentations. These included false claims about the number of employees, average monthly payroll, and gross revenues of the purported entities.
Additionally, the defendant is alleged to have submitted materially false supporting tax documentation with the applications. The loan funds were then reportedly used for unauthorized purposes, including the purchase of private property, business startup costs, and payments to family members.
Broader Concerns About Fraud During Pandemic
Sen. Joni Ernst (R-IA) recently highlighted the scale of fraud during the pandemic, noting that bureaucrats allowed fraudsters to take $79 billion in coronavirus aid without basic safeguards. She criticized the lack of oversight, which left small businesses in need without support.
Earlier this year, a government watchdog identified nearly $1 billion in COVID-era unemployment benefits at risk of falling into fraudulent hands. Centers for Medicare and Medicaid Services (CMS) Administrator Dr. Mehmet Oz also warned that Medicare and Medicaid fraud had reached alarming levels, partly due to the influx of coronavirus relief funds.
Oz suggested that the ease of accessing government funds during the pandemic led to a surge in fraudulent activity, with fraudsters learning to exploit the system for other areas like Medicare and Medicaid.
Charges and Legal Consequences
The DOJ announced that Nuno has been charged with three counts of wire fraud and one count of money laundering. These charges reflect the seriousness of the alleged fraud and the potential legal consequences she may face.
Source: Breitbart
