Phoenix family pleads guilty to $2.2 million Covid-19 fraud and firearms charges

Three members of a Phoenix family have pleaded guilty in connection with a multi-million dollar Covid-19 relief loan scheme involving
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Mohammed Maio, 43, of Phoenix, Arizona, pleaded guilty earlier this month to conspiracy to commit wire and bank fraud and conspiracy to commit money laundering, according to a July 29 statement from the U.S. Attorney’s Office for the District of Arizona. Maio also pleaded guilty in a separate matter to felon in possession of a firearm and aiding another in making a materially false statement to purchase a firearm. Sentencing for both matters is scheduled for September 28 before United States District Judge Michael T. Liburdi.

Maio’s parents, Souzan El-Sayed, 66, and Abukar Maio, 70, also of Phoenix, pleaded guilty on July 24 to conspiracy charges related to wire and bank fraud as well as money laundering. Their sentencing is set for October 5 before Judge Liburdi.

Between May 2020 and March 2024, the three family members conspired together to obtain nearly $2.2 million through fraudulent Paycheck Protection Program and Economic Injury Disaster Loan relief loans by submitting false information about businesses that had no employees. The funds were used for personal enrichment, including purchasing multiple properties.

According to his plea agreement, Mohammed Maio admitted that he arranged for his mother to purchase a firearm on his behalf in May 2021 because he was prohibited from possessing one as a convicted felon. He caused his mother to falsely state on the application that the gun was for her use when it was intended for him.

Convictions carry significant penalties: up to thirty years in prison and a $1 million fine for conspiracy charges related to wire or bank fraud; up to twenty years in prison with a $500,000 fine for money laundering; ten years imprisonment with a $250,000 fine for felon in possession; five years imprisonment with a $250,000 fine for making false statements during gun purchases.

The Internal Revenue Service – Criminal Investigation division and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Kevin M. Rapp is prosecuting the case.

On April 7 this year, the Department of Justice announced creation of its National Fraud Enforcement Division focused on investigating those who commit fraud against federal benefit programs under President Trump’s Task Force chaired by Vice President J.D. Vance.

The U.S. Attorney’s Office serves Arizona—including its border with Mexico—and works with federal agencies as well as tribal authorities across more than twenty federally recognized tribes while advancing community wellness through outreach programs, according to its official website.

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