A federal grand jury in the Central District of California has indicted 53-year-old Los Angeles
A federal grand jury in the Central District of California has indicted 53-year-old Los Angeles resident Marisela Nuno on charges of orchestrating an $18 million fraud scheme targeting pandemic-era relief programs. Nuno allegedly exploited the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program to secure millions in federal stimulus funds authorized by the CARES Act, which was signed into law in March 2020.
- Federal prosecutors allege Nuno submitted fraudulent loan applications totaling over $18 million by falsifying employee counts, payroll data, and gross revenue figures.
- The indictment includes three counts of wire fraud and one count of money laundering, with potential maximum penalties reaching 20 years in prison per fraud count.
- This case is part of a broader, years-long federal enforcement effort that has resulted in charges against more than 3,500 defendants and the recovery of over $1.4 billion in government funds.
Allegations of Material Misrepresentation
The indictment, returned this week, details a systematic effort to bypass federal eligibility requirements. Court documents cited by the Department of Justice indicate that Nuno allegedly submitted applications on behalf of businesses she purportedly owned, knowing that the supporting tax documentation and financial statements were materially false. The government claims these filings misrepresented the entities’ number of employees, average monthly payroll, and overall eligibility for financial assistance under the CARES Act framework.
Once the funds were disbursed, Nuno allegedly diverted the capital toward unauthorized personal expenditures. According to the Department of Justice, the misappropriated money was used to purchase private property, cover business startup costs, and provide payments to family members. It remains unclear whether Nuno has entered a plea or retained legal counsel, and the specific evidence the prosecution intends to present remains pending as the case moves forward in the Central District of California.
Scale of Federal Pandemic Enforcement
The charges against Nuno arrive amid an intensified federal crackdown on pandemic relief fraud. Data from the U.S. Senate Committee on Small Business and Entrepreneurship indicates that between March 2020 and September 2023, authorities recorded 1,180 indictments and 613 convictions related to PPP and EIDL schemes. The Small Business Administration’s Office of Inspector General estimated in 2023 that more than $200 billion in relief funds may have been diverted to potentially fraudulent actors.
This enforcement strategy has accelerated significantly throughout 2026. A recent Justice Department initiative, the “Heartland” fraud surge, resulted in actions against more than 160 defendants involving approximately $245 million in intended losses. Vice President JD Vance recently announced plans to block about 870,000 people suspected of pandemic-era loan fraud from accessing future federal loans, citing an estimated $39 billion in suspected illegal activity.
Historical Precedents in California Fraud Cases
Nuno’s indictment reflects a recurring pattern of high-value fraud cases within the state. In 2021, a California couple was convicted for obtaining $20 million in relief funds by using stolen or synthetic identities, including those of deceased individuals and former foreign exchange students. More recently, a California businessman was charged in 2025 for swindling over $14 million in loans, which were reportedly used to finance luxury assets, including private jet travel and high-end vehicles.
As federal authorities continue to address the backlog of pandemic-era allegations, the Department of Justice’s newly created Fraud Division remains focused on identifying and prosecuting those who abused federal benefit programs. The current case serves as a continuation of these wide-ranging efforts to reclaim government assets.
Disclaimer: The information provided in this article is for educational and scientific communication purposes only and does not constitute medical advice.