Los Angeles woman faces federal charges in alleged $18 million COVID-19 relief fraud.
A Los Angeles woman is facing federal charges over allegations that she obtained approximately $18 million through false applications for government relief funds created during the COVID-19 pandemic. Marisela Nuno, 53, was indicted by a federal grand jury in California on November 3, 2026. Prosecutors allege that she submitted false applications to two federal programs designed to provide financial support to businesses struggling during the pandemic. The programs, known as the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, were established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The PPP and EIDL programs provided financial assistance to businesses during the pandemic, when many companies faced reduced income, closures, and other financial pressures. The programs were intended to help eligible businesses cover expenses and remain operating during a period of widespread disruption. Applications relied on information supplied by business owners, making accurate financial records and eligibility details important to the process.
According to court documents, Nuno allegedly submitted applications seeking more than $15.7 million through the PPP and an additional $2.6 million through the EIDL program. The combined requests totaled more than $18 million. Prosecutors claim the applications were filed on behalf of businesses and other entities that Nuno said she owned or controlled.
The federal indictment alleges that information provided in the applications was false. Among the details prosecutors say were misrepresented were the number of employees at the businesses, average monthly payroll expenses, gross revenue, and whether the companies qualified for the funding. These details were important because the relief programs used information about a business’s finances and operations to determine whether it could receive assistance and how much money it could obtain.
Prosecutors also claim that Nuno submitted false tax records to support the applications. The documents allegedly gave the appearance that the businesses met the requirements for government assistance when they did not. The charges further claim that money received through the programs was spent on things that were not allowed under the rules governing the loans. Among the alleged uses of the funds were purchases of private property, expenses connected to starting businesses, and payments made to family members.
Nuno faces three counts of wire fraud and one count of money laundering. If convicted, each wire fraud charge carries a possible prison sentence of up to 20 years. The money laundering charge carries a possible sentence of up to 10 years. These are the maximum penalties listed by federal prosecutors; any sentence would depend on the outcome of the case and the court’s decision.
Several federal agencies worked together on the investigation, including the FBI’s Los Angeles Field Office, the Internal Revenue Service’s Criminal Investigation division, and the Small Business Administration’s Office of Inspector General. Officials from the Justice Department’s National Fraud Enforcement Division and other federal offices announced the charges. Two Department of Justice (DOJ) trial attorneys have been assigned to prosecute the case.
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Los Angeles Woman Charged in Connection With $18M COVID-19 Relief Fraud Scheme
Los Angeles Woman Charged for $18M COVID-19 Relief Fraud Scheme
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