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Mario Guzman, Housing Allowance Fraud, California 2020

⏱ 2 min read

A brazen Coast Guard Petty Officer swindled $32,260 in housing allowance funds from the US government by making false claims about his living arrangements in Puerto Rico.

Mario Guzman, a Petty Officer Second Class Maritime Enforcement Specialist, applied for Temporary Lodging Allowance funds on four separate occasions, claiming his family incurred reimbursable expenses while residing at a non-existent location called ‘Tony’s Place.’

But in reality, Guzman and his family didn’t reside at Tony’s Place, and he was not entitled to the funds. The Coast Guard Investigative Service, Southeast Region, led the investigation that uncovered Guzman’s scheme.

Guzman was arrested on April 1, 2026, and faces a maximum penalty of 20 years in prison if convicted of the charges.

The US Attorney for the District of Puerto Rico, W. Stephen Muldrow, said the charges reflect a serious abuse of responsibility and trust. ‘Members of our armed forces are held to the highest standards, and when those standards are violated, we will act decisively. No one is above the law.’

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