A federal grand jury returned a four-count indictment on Christopher A. Mazzei, 44, and Erin V. Mazzei, 41, of Arroyo Grande, California, in connection with a scheme to defraud the government of forgivable Paycheck Protection Program (PPP) loan funds intended for COVID-19-related relief.
The indictment charges the defendants with wire fraud, money laundering, and conspiracy in connection with a scheme to defraud the government of forgivable Paycheck Protection Program (PPP) loan funds intended for COVID-19-related relief.
According to the indictment, the defendants submitted applications for PPP funds to a Hawaii financial institution and two other financial institutions on behalf of three purported businesses, each time utilizing interstate wires. For each application, the defendants allegedly created false Internal Revenue Service (IRS) tax returns and payroll records, which they presented as authentic and submitted to the banks to support their claims for PPP loan funds.
As a result of the false and fraudulent applications, the defendants received $1,365,000 in PPP loan funds, which they then used for personal purposes, such as to purchase multiple sport utility vehicles and a home in Kapolei, Hawaii, among other things.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.
U.S. Attorney Clare E. Connors stated, “Our entire community suffers when federal funds appropriated to provide critical pandemic relief are illegally diverted for personal gain.” Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS:CI), Seattle Field Office, added, “Financial fraud against government assistance programs is not victimless, as it directly steals resources from those who truly need it.”
The defendants are currently at large and a warrant has been issued for their arrest. The indictment serves as an official notice of charges and is not evidence of guilt.
Related Federal Cases
- Kenneth Ray Cleveland, Wire Fraud, California 2024 · Hawaii
- Robert S. Goldman, Wire Fraud, California 2024 · Hawaii
- Abraham Shafi, Wire Fraud, Securities Fraud, Obstruction, California 2026 · Hawaii
- Edmund Abordo, Forgery and Wire Fraud, California 2023 · California
- James Seltzer, Securities Fraud Scheme, California 2024 · Hawaii
Key Facts
- State: Hawaii
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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