Diaz Drained Covid Funds for Family Mortgage

PORTLAND, Ore. – Bryan Ochoa Diaz, 32, of Tigard, Oregon, is facing up to a decade behind bars after admitting today to pilfering $350,000 in Covid-19 relief funds and funneling it directly into his parents’ pockets. Diaz, the owner of Casa Colima Vancouver, Inc., pleaded guilty to one count of money laundering in federal court.

The scheme unfolded after Casa Colima secured a $350,000 loan through the U.S. Small Business Administration (SBA) – a lifeline intended to keep businesses afloat during the pandemic. But the terms were clear: the money was to be used as working capital, strictly prohibiting personal use. Diaz ignored those terms almost immediately.

Court documents reveal that just one day after the SBA deposited the $350,000 into Casa Colima’s account on August 16, 2021, Diaz began diverting the funds. A cool $100,000 was transferred to his parents’ personal bank account, then promptly wired to their mortgage company to chip away at their home loan. It was a brazen act of self-enrichment disguised as economic hardship.

What makes this case particularly galling? Diaz isn’t just a restaurant owner; he’s a reserve officer with the U.S. Coast Guard – a sworn protector of the public, now revealed as a thief. He initially appeared in court on September 5, 2025, waiving his right to a grand jury indictment. Today’s guilty plea came with full restitution of the $350,000, but that doesn’t erase the betrayal.

Diaz now awaits sentencing on December 15, 2025, before a U.S. District Court Judge. He faces a maximum sentence of 10 years in prison and a $250,000 fine. The investigation was a joint effort by the SBA Office of Inspector General and the Coast Guard Investigative Service, with Assistant U.S. Attorneys Chris Cardani and Meredith Bateman leading the prosecution.

The Justice Department continues to aggressively pursue those who exploited Covid-19 relief programs. If you have information regarding potential fraud, report it to the National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or submit a complaint online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Don’t let these vultures profit from a national crisis.