On January 9, 2025, Christopher A. Mazzei and Erin V. Mazzei from Arroyo Grande, California, were sentenced by Senior United States District Judge J. Michael Seabright in Honolulu for their involvement in a scheme to defraud the Paycheck Protection Program (PPP). Christopher received a 36-month sentence while Erin was sentenced to 27 months for conspiracy to commit wire fraud and money laundering.
The couple admitted guilt on August 28, 2024, after submitting fraudulent PPP loan applications using falsified IRS tax returns and payroll records. These applications were made to Bank of Hawaii and two other banks for three non-existent businesses. The Mazzeis secured $1,365,000 in funds intended for COVID-19 relief but used the money for personal purchases including vehicles and a home in Kapolei, Hawaii. They also spent $164,796 on a promotional trailer for a television project titled “Ohana.”
Judge Seabright described the fraud as "particularly blatant and egregious," noting that "greed drove both of you." United States Attorney Clare E. Connors stated that the sentences reflect the seriousness of their actions: “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 highlighted how this scheme misappropriated funds meant to support small businesses during economic hardship caused by the pandemic: “This scheme diverted emergency relief that could have paid 25 Americans an average salary.” Ryan L. Korner from FDIC OIG emphasized that such actions disadvantaged legitimate business owners.
Jon Ellwanger from the Office of Inspector General expressed satisfaction with bringing justice: “Christopher and Erin Mazzei defrauded the federal government of pandemic relief funds for their own personal gain and have now been brought to justice for their actions.”
The investigation involved multiple agencies including IRS Criminal Investigation, FDIC Office of Inspector General, Board of Governors' Office of Inspector General with assistance from Small Business Administration's Office of Inspector General among others.
In response to increasing cases like this one during the pandemic era, Attorney General established COVID-19 Fraud Enforcement Task Force on May 17, 2021. This task force aims at enhancing efforts against pandemic-related fraud through coordination across various governmental bodies.
For further information about allegations related to COVID-19 fraud or attempts thereof can be reported via Department’s National Center for Disaster Fraud Hotline or its web complaint form.