An LA businesswoman has been indicted for allegedly orchestrating an COVID-19 relief fraud scheme that secured millions of dollars by falsifying payroll records and disguising a cannabis business as a landscaping company.
According to the Los Angeles Times, a federal grand jury indicted Maricela Nuno, 53, on charges of filing fraudulent applications for $18 million in pandemic relief funds. The U.S. Department of Justice stated that Nuno faces three counts of wire fraud and one count of money laundering.
Prosecutors revealed that Nuno secured the funds through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) established under the CARES Act. The federal relief program was designed to provide emergency assistance to small businesses and individuals experiencing economic hardship during the pandemic.
According to a criminal complaint filed last month, Nuno submitted over 20 applications through her businesses to federal relief programs and received $4.8 million. Investigators found that the applications contained false information regarding the number of employees and average monthly payroll.
Nuno claimed that ‘Nuno Estate’ had about 20 employees and a monthly payroll exceeding $163,386, receiving over $400,000 in relief funds across two disbursements. Prosecutors stated that the business was not even operational at the time.
Nuno is also accused of receiving over $300,000 in relief funds by disguising a cannabis-related business, which was ineligible for aid, as a different industry type.
Prosecutors stated that Nuno falsely listed the cannabis business ‘Hierba Buena’ as a ‘commercial landscaping service.’ She also allegedly inflated the revenue for another cannabis business, ‘Canna Caves.’
Investigators discovered that Nuno used the fraudulently obtained funds to purchase real estate and start new businesses. If convicted, Nuno faces a maximum sentence of 20 years in prison per count for wire fraud and up to 10 years in prison for money laundering.
