United States Attorney Clare E Connors | U.S. Department of Justice
On January 9, 2025, a California couple was sentenced for defrauding the Paycheck Protection Program (PPP). Christopher A. Mazzei, aged 46, and Erin V. Mazzei, aged 43, both from Arroyo Grande, California, received prison sentences of 36 months and 27 months respectively. The sentencing by Senior United States District Judge J. Michael Seabright came after they pleaded guilty to conspiracy charges related to wire fraud and money laundering.
The couple submitted fraudulent applications for PPP funds through Bank of Hawaii and two other banks. They created false IRS tax returns and payroll records to support their claims for loans intended as COVID-19 relief. As a result of these actions, they secured $1,365,000 in PPP loan funds which were used for personal expenses including purchasing vehicles and a home in Kapolei, Hawaii. Additionally, they spent approximately $164,796 on a promotional trailer for a television project titled “Ohana.”
Judge Seabright described the fraud as "particularly blatant and egregious," attributing it to greed. United States Attorney Clare E. Connors emphasized that the sentences reflect the seriousness of their conduct: “The Mazzeis perpetrated a gross fraud to obtain critical resources intended for members of our community experiencing devastating hardships as a result of the pandemic.”
Adam Jobes from IRS Criminal Investigation noted that this scheme diverted emergency relief that could have supported American workers: “While small businesses shut down all over the country, the Mazzeis lived in excess on the taxpayer’s dime.” Ryan L. Korner from FDIC OIG added that their actions disadvantaged legitimate business owners.
Jon Ellwanger from the Office of Inspector General for the Board of Governors of the Federal Reserve System highlighted cooperation with federal law enforcement partners in holding the Mazzeis accountable: “Christopher and Erin Mazzei defrauded the federal government of pandemic relief funds for their own personal gain.”
The investigation involved multiple agencies including IRS Criminal Investigation and various Offices of Inspector General. Assistant U.S. Attorney Gregg Paris Yates prosecuted the case.
In response to pandemic-related frauds like this one, the COVID-19 Fraud Enforcement Task Force was established on May 17, 2021. This task force aims to enhance efforts against such crimes by coordinating resources across government agencies.
Reports about attempted COVID-19 fraud can be made via the Department of Justice’s National Center for Disaster Fraud Hotline or its online complaint form.
