Los Angeles Woman Indicted in Alleged $18 Million COVID-19 Relief Fraud Scheme

Los Angeles, CA. — A federal grand jury indicted a Los Angeles woman Tuesday on charges that she used false loan applications and tax documents to seek more than $18 million from two federal pandemic relief programs, the U.S. Department of Justice announced Wednesday.

Marisela Nuno, 53, faces three counts of wire fraud and one count of money laundering in the Central District of California. Prosecutors allege her applications sought more than $15.7 million through the Paycheck Protection Program and more than $2.6 million through the Economic Injury Disaster Loan program. The Justice Department’s announcement did not specify how much she received.

According to prosecutors, Nuno filed applications on behalf of businesses and other entities she claimed to own. The applications allegedly misstated employee counts, average monthly payroll, gross revenue and eligibility for funding. Prosecutors say she also submitted false tax records to support the applications.

Prosecutors allege Nuno used loan proceeds for expenses the programs did not authorize, including buying private property, covering business startup costs and making payments to family members. Both loan programs provided pandemic relief under the federal CARES Act.

The FBI’s Los Angeles Field Office, IRS Criminal Investigation and the U.S. Small Business Administration’s Office of Inspector General investigated the case. Attorneys from the Justice Department’s National Fraud Enforcement Division and Criminal Division are prosecuting it.

If convicted, Nuno faces up to 20 years in prison on each wire fraud count and up to 10 years on the money laundering count. She is presumed innocent unless proven guilty beyond a reasonable doubt.