U.S. Attorney’s Office Joins DOJ Fraud Division, SBA, And SBA OIG In Surge Takedown Exceeding $245 Million In COVID-Era Loan Fraud

Press release — U.S. Attorney’s Office Joins DOJ Fraud Division, SBA, And SBA OIG In Surge Takedown Exceeding $245 Million In COVID-Era Loan Fraud, dated 2026-09-15, issued by U.S. Attorney’s Office, Northern District of California.

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{"metadata":{"responseInfo":{"status":200},"resultset":{"count":"1","pagesize":20,"page":0},"executionTime":0.0036380290985107422},"results":[{"attachment":"","body":"SAN FRANCISCO--The U.S. Attorney\u2019s Office and law enforcement partners announced today a guilty plea and a sentencing as part of a nationwide enforcement action led by the Justice Department\u2019s National Fraud Enforcement Division, the Small Business Administration, and the SBA Office of Inspector General targeting fraud in the SBA\u2019s Paycheck Protection Program (PPP). The U.S. Attorney\u2019s Office for the Northern District of California and its law enforcement partners were key participants in this surge effort.From June 12 to September 1, federal prosecutors across the country facilitated fraud enforcement actions spanning over 160 criminal defendants, including approximately 80 newly charged defendants, reaching approximately $245 million dollars in intended loss to American taxpayers.\u201cEvery dollar stolen from the PPP program was a dollar that could have, and should have, gone to a hard-working family when they needed it the most,\u201d said U.S. Attorney Craig H. Missakian. \u0026nbsp;\u201cYet, as alleged, these defendants exploited a national tragedy and stole from the American taxpayer. \u0026nbsp;Our office will continue to do all we can to protect the integrity of the PPP program and programs like it by identifying and prosecuting anyone who tries to cheat the system.\u201d\u201cPandemic loan relief was meant to keep American small businesses alive during government lockdowns\u2014not line the pockets of fraudsters,\u201d said Attorney General Todd Blanche. \u201cThe defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications\u2014 but they will now be prosecuted to the fullest extent of the law.\u201d\u201cThis summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,\u201d said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. \u201cOur mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day\u2014standing shoulder-to-shoulder with our partners\u2014to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.\u201d\u201cToday\u2019s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we\u2019re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,\u201d said SBA Administrator Kelly Loeffler. \u201cWith demand letters going out to suspected fraudsters, we\u2019re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.\u201d\u201cOperation No Doze brings a focused and coordinated approach to pursuing fraud in SBA\u2019s pandemic relief programs,\u201d said SBA Inspector General William Kirk. \u201cBy concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.\u201dThe U.S. Attorney\u2019s Office is prosecuting the following cases in connection with the surge:United States v. Dory Lindsay FordOn August 31, 2026, Dory Lindsay Ford pleaded guilty to Count Two of an indictment charging him with wire fraud in violation of 18 U.S.C. \u00a7 1343. \u0026nbsp;Ford, 59, of Monterey, was indicted by a federal grand jury on January 25, 2024. \u0026nbsp;According to the plea agreement, Ford admitted to devising a scheme to obtain funds from COVID-19 relief programs.Ford submitted a Restaurant Revitalization Funding (RRF) application to the U.S. Small Business Administration (SBA). In his RRF application, Ford admitted to knowingly making material misrepresentations. \u0026nbsp;Ford certified that his catering business, Aqua Terra Culinary, Inc., was operational and that he would use the funds for eligible uses, such as business expenses. \u0026nbsp;Ford admitted that these certifications were false. \u0026nbsp;As a result of his fraud, Ford received $3,313,398 from the SBA.Ford\u2019s sentencing hearing is scheduled for December 7, 2026, at 1:30 p.m. before U.S. District Judge Edward J. Davila. \u0026nbsp;Ford faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. \u0026nbsp;The court could also order restitution. Any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. \u00a7 3553.Assistant United State Attorney Neal C. Hong is prosecuting the case with the assistance of Sahib Kaur. The prosecution is a result of an investigation by the Internal Revenue Service\u2014Criminal Investigation (IRS-CI) and SBA Office of Inspector General.United States v. Raouf Bouzidi et al.On August 6, 2026, Raouf Bouzidi was sentenced to eight months in federal prison and a three-year term of supervised release for using SBA funds for unauthorized purposes and laundering proceeds from his impermissible use of the funds. \u0026nbsp;Bouzidi was also ordered to pay $1,275,539.99 in restitution. \u0026nbsp;U.S. District Judge William Orrick handed down the sentence.Bouzidi, 53, of San Francisco, was indicted by a federal grand jury on December 17, 2024. \u0026nbsp;On April 9, 2026, he pleaded guilty to two counts of conversion of government property and one count of money laundering in violation of 18 U.S.C. \u00a7\u00a7 641 and 1957. \u0026nbsp;According to the plea agreement, Bouzidi admitted to obtaining approximately $500,000 from the SBA through an Economic Injury Disaster Loan and approximately $775,000 from the SBA through its Restaurant Revitalization Fund grant program. \u0026nbsp;The funds were obtained on behalf of a business that operated a San Francisco restaurant named Chez BeeSen.Bouzidi admitted that although he knew the SBA funds could only be used for authorized business purposes related to the operation of Chez BeeSen, he nevertheless caused the funds to be used for impermissible purposes. \u0026nbsp;In particular, Bouzidi purchased a Mercedes vehicle using SBA funds that he then shipped overseas. \u0026nbsp;Bouzidi also directed a co-defendant to purchase a residential property in Sausalito, California, for approximately $960,000 using SBA funds. \u0026nbsp;Bouzidi then managed renovations of the property and caused it to be sold for a profit as part of a real-estate flipping scheme, with the proceeds being deposited in the co-defendant\u2019s personal account at Bouzidi\u2019s direction. \u0026nbsp;After the Sausalito residence was sold, Bouzidi directed his co-defendant to use the proceeds to purchase a second residential property in Novato, California. \u0026nbsp;Bouzidi again managed the renovations of this property and caused it to be sold for a profit. \u0026nbsp;After the Novato residence was sold, the FBI executed a warrant and seized more than $1 million in misappropriated funds.Assistant U.S. Attorney Jared Buszin is prosecuting the case with the assistance of Kevin Costello. \u0026nbsp;The prosecution is the result of an investigation by the FBI and IRS-CI.* \u0026nbsp; \u0026nbsp; \u0026nbsp; \u0026nbsp; \u0026nbsp; \u0026nbsp; * \u0026nbsp; \u0026nbsp; \u0026nbsp; \u0026nbsp; \u0026nbsp; \u0026nbsp; *On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (\u201cFraud Division\u201d). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department\u2019s work to combat fraud supports President Trump\u2019s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.","changed":"\u003Ctime datetime=\u00222026-09-15T18:03:05-04:00\u0022\u003E1789509785\u003C\/time\u003E\n","component":[{"uuid":"9562bf08-d474-4f10-a607-87ba645cee03","name":"USAO - California, Northern"}],"created":"\u003Ctime datetime=\u00222026-09-15T17:58:26-04:00\u0022\u003E1789509506\u003C\/time\u003E\n","date":"1789473600","image":"","number":"","teaser":"\u003Cp\u003ESAN FRANCISCO--The U.S. Attorney\u2019s Office and law enforcement partners announced today a guilty plea and a sentencing as part of a nationwide enforcement action led by the Justice Department\u2019s National Fraud Enforcement Division, the Small Business Administration, and the SBA Office of Inspector General targeting fraud in the SBA\u2019s Paycheck Protection Program (PPP)\u003C\/p\u003E","title":"U.S. Attorney\u2019s Office Joins DOJ Fraud Division, SBA, And SBA OIG In Surge Takedown Exceeding $245 Million In COVID-Era Loan Fraud","topic":[{"uuid":"6827a162-b783-4ffa-a6c2-596fc9f07e39","name":"COVID-Related Fraud"}],"url":"https:\/\/www.justice.gov\/usao-ndca\/pr\/us-attorneys-office-joins-doj-fraud-division-sba-and-sba-oig-surge-takedown-exceeding","uuid":"ab56b449-971f-4610-890a-c0ce35654b8d"}]}

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