LOS ANGELES – Justin Konikow, 38, of Ontario, is facing federal charges after allegedly scamming over $800,000 in COVID-19 relief funds – all while hiding a recent federal conviction for another fraud scheme. The San Bernardino County man was arrested today and charged with wire fraud, adding another layer of deceit to a pattern of criminal behavior.
According to court documents, Konikow applied for an Economic Injury Disaster Loan (EIDL) in April 2020, claiming no criminal history for himself or his business, “Trendsetters.” This was a blatant lie. Just months prior, in January 2020, Konikow had been convicted of mail fraud in Los Angeles federal court. He’d been caught running a scheme to rip off the United States, the State of California, and its Employment Development Department for over $250,000 using fake identities and companies. He ultimately received a 35-month sentence, beginning in February 2022, but not before attempting to profit from the pandemic.
The brazenness is staggering. Even after being sentenced, Konikow allegedly submitted three modifications to his initial EIDL application between 2021 and 2022, again falsely certifying that all information was accurate. The Small Business Administration (SBA) approved these fraudulent requests, wiring a total of approximately $805,000 into Konikow’s bank account. The money wasn’t used to keep a business afloat; it was a personal slush fund.
Federal investigators quickly traced the funds, discovering Konikow wired substantial portions to pay off credit card debt, car payments, and even transferred around $47,000 into his Robinhood stock trading account – seemingly betting on his continued ability to evade justice. This wasn’t about saving a struggling business; it was pure, calculated greed.
Konikow is expected to appear in U.S. District Court in downtown Los Angeles this afternoon. If convicted of wire fraud, he faces a statutory maximum sentence of 20 years in federal prison. This case is being investigated by the SBA Office of Inspector General, and prosecuted by Assistant United States Attorney Gregg Marmaro of the Major Frauds Section. It serves as a stark reminder that those who attempt to exploit disaster relief programs will be held accountable.
Report Fraud: Anyone with information regarding COVID-19 fraud can report it to the Department of Justice’s National Center for Disaster Fraud 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 criminals get away with stealing from those who need it most.
Related Federal Cases
- Florida Man Busted for COVID-19 Unemployment Insurance Fraud · Mississippi
- Wheatland Man Admits $13.4M COVID Fraud Scheme · California
- SoCal Business Owner Mitch Tabrizi Indicted for COVID-19 Relief Fraud and Tax Evasion · California
- California Restaurant Owner Sentenced to 30 Months for Covid-19 Relief Fund Fraud · California
- Tracy Man Admits to $200K Mail Fraud Scheme · California
Key Facts
- State: California
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime