Convicted Felon Admits to Defrauding COVID-19 Programs While on Supervised Release

Summary

Press release of the U.S. Attorney's Office, District of Nevada, dated February 14, 2025, announcing that Kelly Ann Mogavero of Las Vegas pleaded guilty to one count of wire fraud in a scheme involving Pandemic Unemployment Assistance (PUA), Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds. According to court documents, Mogavero filed for unemployment insurance in Nevada and Arizona and submitted at least two fraudulent EIDL applications and one fraudulent PPP application while under United States Probation's supervision. The release says Mogavero obtained more than $44,000 in relief benefits. Sentencing is scheduled for May 21, 2025, before United States District Judge Cristina D. Silva, with a maximum penalty of 20 years in prison.

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PRESS RELEASE


Convicted Felon Admits To Defrauding
COVID-19 Programs While On Supervised
Release
Friday, February 14, 2025

For Immediate Release
U.S. Attorney's Office, District of Nevada

LAS VEGAS – A Las Vegas woman pleaded guilty yesterday to carrying out a scheme to
fraudulently obtain more than $137,000 from the Pandemic Unemployment Assistance
Program (PUA), the Paycheck Protection Program (PPP), and the Economic Injury
Disaster Loan Program (EIDL).

Kelly Ann Mogavero, 55, pleaded guilty to one count of wire fraud. A sentencing hearing
is scheduled for May 21, 2025, before United States District Judge Cristina D. Silva.

“Kelly Mogavero, a convicted felon recently released from prison, fraudulently collected
unemployment insurance (UI) benefits intended for American workers who lost their
jobs due to the COVID-19 pandemic,” said Quentin Heiden, Special Agent-in-Charge,
Western Region, U.S. Department of Labor, Office of Inspector General. “Yesterday’s
guilty plea highlights our strong collaboration with the United States Attorney’s Office
for the District of Nevada and our law enforcement partners to ensure the integrity of
the UI system and secure justice for the American taxpayer.”

According to court documents and admissions made in court by Mogavero, from June 3,
2020, to June 23, 2001, she devised and carried out a scheme to defraud Nevada
Department of Employment, Training, and Rehabilitation (DETR), the Arizona
Department of Economic Security (DES), and the Small Business Administration (SBA) in
an attempt to fraudulently obtain $137,600 in relief benefits from the PUA, PPP, and
EIDL programs.

As part of the scheme, while she was under United States Probation’s supervision,
Mogavero fraudulently filed for unemployment insurance in both Nevada and Arizona
and submitted at least two fraudulent applications for EIDLs and one fraudulent
application for a PPP loan. Mogavero submitted materially false and fraudulent
information, including that she was the sole proprietor of several companies which did
not in fact exist, for which she stated false revenue amounts, and—for one of the EIDL
applications—a false number of employees. Mogavero also submitted falsified tax
documents in support of each application. As a result of her scheme, Mogavero
successfully obtained more than $44,000 in relief benefits to which she was not entitled.

In October 2016, Mogavero was convicted of conspiracy to distribute
methamphetamine in the District of Nevada and she was sentenced to 46-months in
custody followed by five years of supervision.

At sentencing, Mogavero faces a maximum statutory penalty of 20 years in prison. A
federal district court judge will determine the sentence of each defendant after
considering the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Sue Fahami, Special Agent in Charge Spencer L. Evans for
the FBI Las Vegas Division, and Special Agent-in-Charge Quentin Heiden, Western
Region, U.S. Department of Labor, Office of Inspector General (DOL-OIG) made the
announcement.

The FBI, DOL-OIG, U.S. Department of Homeland Security Office of Inspector General
Office of Investigations - COVID Fraud Unit, Office of Inspector General U.S. Small
Business Administration, and the Office of Inspector General Board of Governors of the
Federal Reserve System Consumer Financial Protection Bureau investigated the case.
Assistant United States Attorney Kimberly Frayn is prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement
Task Force to marshal the resources of the Department of Justice in partnership with
agencies across government to enhance efforts to combat and prevent pandemic-
related fraud. The Task Force bolsters efforts to investigate and prosecute the most
culpable domestic and international criminal actors and assists agencies tasked with
administering relief programs to prevent fraud by augmenting and incorporating
existing coordination mechanisms, identifying resources and techniques to uncover
fraudulent actors and their schemes, and sharing and harnessing information and
insights gained from prior enforcement efforts. For more information on the
department's response to the pandemic, please
visit Justice.gov/Coronavirus and Justice.gov/Coronavirus/CombatingFraud.

Anyone with information about allegations of attempted fraud involving COVID-19 can
report it by calling the Department of Justice's National Center for Disaster Fraud
(NCDF) Hotline via the NCDF Web Complaint Form.
                            ###



Updated February 14, 2025

Topics
CORONAVIRUS

FINANCIAL FRAUD


Component
USAO - Nevada


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