District of New Mexico Joins DOJ Fraud Division, SBA, and SBA OIG in Surge Takedown Exceeding $245 Million in COVID-era Loan Fraud

Press release — District of New Mexico Joins DOJ Fraud Division, SBA, and SBA OIG in Surge Takedown Exceeding $245 Million in COVID-era Loan Fraud, dated 2026-09-14, issued by U.S. Attorney’s Office, District of New Mexico.

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{"metadata":{"responseInfo":{"status":200},"resultset":{"count":"1","pagesize":20,"page":0},"executionTime":0.0063879489898681641},"results":[{"attachment":"","body":"ALBUQUERQUE \u2013\u0026nbsp;The U.S. Attorney\u2019s Office for the District of New Mexico today announced the sentencing of Scott A. Spiro as part of a nationwide enforcement action led by the Justice Department\u2019s National Fraud Enforcement Division, the Small Business Administration (SBA) and the SBA Office of Inspector General targeting fraud in the SBA\u2019s Paycheck Protection Program (PPP).Spiro was sentenced to 36 months in prison and ordered to pay $679,690 in restitution for obtaining more than half a million dollars in fraudulent COVID-19 pandemic loans. The District of New Mexico was a key participant in the nationwide surge effort.There is no parole in the federal system.According to court documents, between April 2020 and December 2021, Spiro, 64, devised and carried out a scheme to defraud the federal government and federally insured financial institutions by submitting fraudulent PPP and Economic Injury Disaster Loan (EIDL) applications under the CARES Act.As part of the scheme, Spiro created several shell companies that were not legitimate businesses, had no employees, and paid no wages, including Scott A. Spiro JD, LLC, Pacifica Law Clinic, LLC, Spiro Enterprises of NM, LLC, Pacifica Funding Corporation, and Accounting Advisors. Using these entities, Spiro submitted multiple fraudulent loan and loan forgiveness applications to lenders and the SBA. He admitted to making material misrepresentations about the companies\u2019 establishment dates, number of employees, payroll expenses, revenues and monthly wages, and to submitting falsified IRS forms, payroll records, bank statements and New Mexico Secretary of State filings to support the applications.As a result of these misrepresentations, Spiro obtained $679,690 in PPP and EIDL funds and used the fraudulently obtained funds for personal expenses and debts and the purchase of residential properties in Alamogordo and Ruidoso, New Mexico.\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.\u201dSpiro pleaded guilty to three counts of wire fraud, three counts of making false statements to a financial institution and two counts of money laundering. Upon his release from prison,\u0026nbsp;Spiro\u0026nbsp;will be subject to five years of supervised release and must serve 100 hours of community service.\u0026nbsp;IRS Criminal Investigation investigated this case with assistance from the SBA. The U.S. Attorney\u2019s Office for the District of New Mexico is prosecuting the case.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\u202feliminate\u202ffraud, waste, and abuse within Federal benefit programs.\u202f\u202fThere is no parole in the federal system.","changed":"\u003Ctime datetime=\u00222026-09-14T17:04:46-04:00\u0022\u003E1789419886\u003C\/time\u003E\n","component":[{"uuid":"c20534dd-eed9-4241-aab0-6c85656d760f","name":"USAO - New Mexico"}],"created":"\u003Ctime datetime=\u00222026-09-14T17:03:21-04:00\u0022\u003E1789419801\u003C\/time\u003E\n","date":"1789387200","image":"","number":"26-270","teaser":"\u003Cp\u003EThe U.S. Attorney\u2019s Office for the District of New Mexico today announced the sentencing of \u003Cstrong\u003EScott A. Spiro\u003C\/strong\u003E as part of a nationwide enforcement action led by the Justice Department\u2019s National Fraud Enforcement Division, the Small Business Administration (SBA) and the SBA Office of Inspector General targeting fraud in the SBA\u2019s Paycheck Protection Program (PPP).\u003C\/p\u003E","title":"District of New Mexico 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-nm\/pr\/district-new-mexico-joins-doj-fraud-division-sba-and-sba-oig-surge-takedown-exceeding","uuid":"e9201403-653c-4e91-90ef-5bfdc3dbe668"}]}

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