Los Angeles, California: Woman Charged in $18 Million COVID Relief Fraud Scheme

A Los Angeles woman is facing federal charges in an alleged $18 million scheme to defraud two pandemic relief programs, the U.S. Department of Justice announced on Wednesday, November 4, 2026.

A federal grand jury in the Central District of California returned an indictment on Tuesday charging Marisela Nuno, 53, of Los Angeles, with three counts of wire fraud and one count of money laundering. Prosecutors say the case centers on applications to the Paycheck Protection Program, known as PPP, and the Economic Injury Disaster Loan program, known as EIDL. Both programs were created under the Coronavirus Aid, Relief, and Economic Security Act, the CARES Act, to help businesses hit by the COVID-19 pandemic.

What prosecutors allege

According to court documents cited by the Justice Department, Nuno allegedly obtained funds under the PPP and EIDL programs by submitting false and fraudulent loan applications. The applications collectively sought over $15.7 million in PPP funds and over $2.6 million in EIDL funds, prosecutors said.

The Justice Department said she submitted the applications on behalf of businesses and entities she purportedly owned, knowing the applications contained materially false statements about the entities and their eligibility for funding. The alleged misrepresentations covered the number of employees, average monthly payroll, gross revenues, and eligibility, authorities said. She is also alleged to have submitted materially false supporting tax documentation with the applications.

Where the money allegedly went

Prosecutors allege Nuno then used loan funds for purposes the two programs do not authorize. The Justice Department listed the purchase of private property, business startup costs, and payments to family members. MyNewsLA reported the same alleged uses on Wednesday as the charges were announced.

The charges and the penalties

Each wire fraud count carries a maximum penalty of 20 years in prison if she is convicted, and the money laundering count carries a maximum of 10 years, the Justice Department said. The indictment is an allegation, and Nuno is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Who investigated the case

The FBI Los Angeles Field Office, IRS Criminal Investigation, and the U.S. Small Business Administration Office of Inspector General investigated the case. Assistant Attorney General Colin M. McDonald of the Justice Department's National Fraud Enforcement Division announced the charges with Special Agent in Charge Robert Molvar of the FBI's Criminal Division, Special Agent in Charge Darren Lian of the IRS Criminal Investigation Los Angeles Field Office, and Special Agent in Charge Timothy Larson of the SBA Office of Inspector General.

Trial Attorney Ariel Glasner of the Fraud Division's Public Trust and Financial Integrity Section and Trial Attorney Edward Emokpae of the Criminal Division's White Collar and Corporate Enforcement Section are prosecuting the case. The Justice Department said it created the Fraud Division on April 7, and that its work supports the President's Task Force to Eliminate Fraud, a whole of government effort chaired by Vice President J.D. Vance.