A Collin County man and a Florida resident have been convicted in connection with a COVID-19 fraud scheme in the Eastern District of Texas. Acting U.S. Attorney Abe McGlothin, Jr. announced that Cord Dean Newman, 47, from Homosassa, Florida, and Eric “Phoenix” Marascio, 53, from Allen, were found guilty of conspiracy to commit wire fraud and conspiracy to commit money laundering. The verdict came after a four-day trial presided over by U.S. District Judge Jeremy D. Kernodle on February 6, 2025.
Court documents revealed that Newman, who works as a Hollywood stuntman, and Marascio, an author and baker, engaged in a multimillion-dollar loan fraud and money laundering operation. 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 purposes such as foreign exchange currency investments and purchasing vehicles instead of being used for business-related expenses.
The CARES Act was established in March 2020 to provide financial aid to Americans affected by the pandemic's economic impact. It included forgivable loans through the PPP aimed at helping small businesses retain jobs and cover specific expenses. Additionally, the Economic Injury Disaster Loan (EIDL) Program offered low-interest financing to those affected by declared disasters.
Both defendants could face up to 20 years in federal prison upon sentencing. However, actual sentences will be determined based on advisory guidelines and other statutory factors following a presentence investigation by the U.S. Probation Office.
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 from the Eastern District of Texas.