Damien Diggs U.S. Attorney | U.S. Attorney for the Eastern District of Texas
A Collin County man and a Florida resident have been found guilty of federal offenses linked to a COVID-19 fraud scheme in the Eastern District of Texas. The announcement was made by Acting U.S. Attorney Abe McGlothin, Jr.
Cord Dean Newman, 47, from Homosassa, Florida, and Eric “Phoenix” Marascio, 53, from Allen, were convicted of conspiracy to commit wire fraud and conspiracy to commit money laundering. Their conviction followed a four-day trial before U.S. District Judge Jeremy D. Kernodle on February 6, 2025.
Court information revealed that Newman, who works as a Hollywood stuntman, and Marascio, an author and baker, participated in a multimillion-dollar loan fraud and money laundering operation. Evidence presented at the trial indicated they defrauded lenders and the Small Business Administration’s Paycheck Protection Program (PPP) by applying for fraudulent loans during the COVID-19 pandemic. The funds obtained were misused for investments in foreign exchange currency markets, vehicle purchases, and other non-business-related expenses.
The CARES Act was enacted in March 2020 to provide financial aid to Americans affected by the COVID-19 pandemic's economic impact. It included forgivable loans for small businesses through the PPP for job retention and specific expenses. Additionally, the Economic Injury Disaster Loan (EIDL) Program offered low-interest financing to small businesses in disaster-stricken areas.
Newman and Marascio each face up to 20 years in federal prison upon sentencing. However, their sentences will be determined based on advisory guidelines after a presentence investigation by the U.S. Probation Office is completed.
The case is under investigation by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations with prosecution led by Assistant U.S. Attorneys in the Eastern District of Texas.
