Oregon Federal Task Force Announces New COVID-19 Fraud Cases, $8.6 Million in Recoveries

PORTLAND, Ore. — Federal prosecutors in Oregon have announced a series of criminal and civil enforcement actions targeting fraud involving pandemic relief programs, with authorities reporting more than $8.6 million in recoveries since June 2026.

The District of Oregon’s COVID Fraud Task Force has brought 12 enforcement actions since June, involving more than $29 million in alleged losses, according to the U.S. Attorney’s Office. Since 2020, the task force says it has recovered more than $314 million through prosecutions, civil settlements, asset seizures and restitution.

The multi-agency task force includes investigators and Assistant U.S. Attorneys from a dozen agencies. Its investigations have focused on alleged fraud involving the Small Business Administration’s Paycheck Protection Program, Economic Injury Disaster Loan program, Restaurant Revitalization Fund and other federal pandemic-relief programs.

“These criminals exploited pandemic programs meant to keep honest small businesses alive,” U.S. Attorney for the District of Oregon Scott E. Bradford said. “By aggressively pursuing pandemic-related fraud, we’re protecting the local businesses that follow the law, serve our communities, and drive our economy.”

Bradford said the task force’s approach has allowed federal authorities to pursue criminal cases while also recovering taxpayer funds through civil enforcement and asset recovery.

SBA Office of Inspector General Western Region Special Agent in Charge Timothy Larson also praised the federal investigation efforts.

“Intentional misrepresentation to gain access to SBA program funds intended for the nation’s small businesses is reprehensible,” Larson said, adding that his office would continue pursuing cases involving alleged abuse of SBA programs.

Recent criminal cases

Among the cases announced or highlighted by the task force is the prosecution of Joel Caswell, who was sentenced Aug. 21 to 42 months in federal prison for fraud, tax violations and identity theft.

According to court records, Caswell submitted fabricated financial records to a bank, private lender and the SBA to obtain loans. Prosecutors said he subsequently used the fraudulently obtained funds for personal expenses.

Caswell was ordered to pay $1,198,799.83 in restitution to the government.

Federal prosecutors also charged another individual Sept. 1 with allegedly defrauding the SBA’s PPP and EIDL programs of more than $760,000. The case remains under seal.

In another case, Kenneth Burns pleaded guilty to bank fraud after prosecutors accused him of obtaining more than $230,000 in PPP funds using false information, including allegedly falsified IRS documents and business information.

Burns failed to appear for a scheduled sentencing hearing July 7, prompting the issuance of a federal bench warrant. Authorities are seeking information about his whereabouts.

Federal authorities also secured a conviction this month in the case of Beniamin Lucescu. A federal jury convicted Lucescu Sept. 11 of conspiracy, wire fraud and money laundering in connection with a scheme involving approximately $487,000 in EIDL funds.

Prosecutors said Lucescu claimed the loans were being obtained for Rose City Senior Care, a home senior-care business he operated with his wife. According to evidence presented at trial, he falsely certified that the funds would be used for business expenses and pandemic-related economic losses. Prosecutors said he instead used the money to pay personal tax debt and make speculative cryptocurrency investments.

More defendants charged

Federal prosecutors have also brought several additional cases involving alleged fraudulent applications for pandemic relief.

An indictment returned June 9 charges Benjamin Young and David Starling with conspiracy to defraud the United States, while Young faces additional wire-fraud charges. A third participant, Adam Starling, previously pleaded guilty to conspiracy.

According to the indictment and Adam Starling’s plea agreement, participants allegedly fabricated employee and wage records to obtain Employee Retention Credits and Qualified Sick and Family Leave Credits.

Prosecutors allege that relatives were listed as employees even though they performed little or no work, including two-year-old twins who were allegedly listed as employees of a co-conspirator’s business.

The alleged scheme sought more than $3 million in COVID-related tax credits and also involved fabricated IRS records that were allegedly used to support PPP applications.

The indictment further alleges that Young fraudulently obtained approximately $1.6 million in PPP loan forgiveness in the name of a nonprofit organization and used fabricated records to obtain another $2.5 million SBA-guaranteed business loan. Prosecutors allege that Young used the proceeds to acquire real estate. Federal authorities seized properties allegedly purchased with proceeds from the schemes in November 2025.

In another case, former Clackamas County Commissioner Melissa Fireside was indicted Sept. 1 on two counts of wire fraud.

According to prosecutors, Fireside allegedly sought more than $300,000 in PPP and EIDL loans for a business that did not exist, purportedly operating in the name of an adult for whom she provided care.

The indictment alleges that the loan applications contained false information about employees and revenue and included fabricated tax and banking documents. Prosecutors further allege that Fireside diverted PPP funds for personal use.

Authorities say Fireside has since left the United States and is considered a fugitive. Anyone with information about her whereabouts is being asked to contact the U.S. Marshals Service.

Federal prosecutors also previously charged K’Lum Strickland with wire fraud in connection with nearly $70,000 in alleged PPP and EIDL fraud. According to the indictment, Strickland submitted applications containing false information about businesses, revenues and IRS records and subsequently used the loan proceeds for personal expenses.

Civil enforcement produces additional recoveries

The task force’s recent work has also included civil settlements and enforcement actions.

On July 6, Emerald Green Lawn Service Inc. entered into a False Claims Act settlement agreement requiring the company to repay $71,485.19 in EIDL funds. Authorities said the company knowingly submitted false applications to obtain the loans.

On Aug. 27, Microtec Inc., formerly known as Lucidyne Technologies Inc., agreed to pay the United States $1,554,137 to resolve an investigation into whether the company improperly certified its eligibility for a PPP loan. Federal officials said the company cooperated with the investigation after being contacted.

The United States also filed a civil complaint Sept. 11 against Ramzy Hattar and Zedan Outdoors LLC, doing business as Taylor’s Bar & Grill, alleging that the defendants submitted false claims to obtain more than $350,000 in PPP and EIDL loans.

The complaint alleges that Taylor’s Bar & Grill was not operating when the loans were obtained and that Hattar subsequently misused the proceeds.

In a separate sealed whistleblower case, the United States reached a False Claims Act settlement Sept. 4 with a company accused of improperly obtaining PPP loans. The settlement is expected to recover approximately $1.6 million for the government.

Task force continues pandemic-fraud investigations

Federal authorities say the Oregon COVID Fraud Task Force will continue pursuing both criminal prosecutions and civil enforcement actions involving pandemic-relief funds.

The task force’s investigations have resulted in hundreds of millions of dollars in recoveries since the pandemic began, according to the U.S. Attorney’s Office, as federal agencies continue examining how relief funds were obtained and spent.

Federal officials emphasized that an indictment is an accusation and that defendants are presumed innocent unless and until proven guilty in court.