An Alamogordo resident has admitted to defrauding the federal government and financial institutions of more than $650,000 through fraudulent Covid-19 relief loans. Scott A. Spiro, 63, pleaded guilty in Albuquerque to charges stemming from a scheme that involved creating fake businesses and submitting false records to obtain Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds under the CARES Act.
Court documents show that between April 2020 and December 2021, Spiro set up several shell companies—including Scott A. Spiro JD, LLC; Pacifica Law Clinic, LLC; Spiro Enterprises of NM, LLC; Pacifica Funding Corporation; and Accounting Advisors—that had no real business operations or employees. He used these entities to file multiple fraudulent loan applications with lenders and the Small Business Administration.
Spiro admitted to making false statements about the establishment dates of these companies, their payroll expenses, revenues, and number of employees. He also submitted falsified IRS forms, payroll records, bank statements, and filings with the New Mexico Secretary of State as part of his applications.
The investigation found that instead of using the funds for legitimate business purposes as required by law, Spiro spent the money on personal expenses and debts. He also acknowledged laundering money by conducting transactions over $10,000 with illegally obtained funds—including buying two residential properties in Alamogordo and Ruidoso.
Spiro pleaded guilty to three counts each of wire fraud and making false statements to a financial institution, as well as two counts of money laundering. He faces up to 30 years in prison at sentencing.
"Acting U.S. Attorney Ryan Ellison and Acting Special Agent in Charge Jarom Gregory of IRS Criminal Investigation's Phoenix Field Office made the announcement today."
The case was investigated by IRS Criminal Investigation with help from the Social Security Administration. The U.S. Attorney’s Office for the District of New Mexico is prosecuting.
