A Los Angeles businesswoman made millions in revenue by lying about her monthly paychecks, inflating employee lists and calling a marijuana store a lawn care company, federal prosecutors said.
Now, a federal grand jury has indicted Marisela Nuño, accused of trying to defraud about $18 million in COVID-19 relief programs.
Nuño, 53, was charged with three counts of wire fraud and one count of money laundering, according to the Justice Department.
former Los Angeles County Commissioners and CEO, International Developers & Engineering Group Inc.., could not be reached for comment. Her attorney, Thomas O’Brien, declined to comment by phone.
Prosecutors said Nuño attempted to obtain funds through the Paycheck Protection Program and the Economic Injury Disaster Loan Program, both programs created under the Coronavirus Aid, Relief, and Economic Security Act.
The law, known as the CARES Act, helps provide emergency financial assistance to Americans, including small businesses, who are experiencing financial hardship due to the COVID-19 pandemic.
Federal prosecutors say that in order for business owners to receive funding, they must provide financial information, including number of employees, average monthly salary, total revenue and funding eligibility.
According to a criminal complaint filed last month, Nuño received $4.8 million by submitting two dozen applications for federal relief programs for several businesses she owned. Prosecutors listed the businesses in court documents.
Prosecutors said in the indictment that the applications included false and fraudulent statements, such as employee numbers and average monthly payroll.
At least one program uses employee numbers and monthly wages to determine how much money applicants can earn.
In one instance, prosecutors said Nuño twice claimed he had about 20 employees, an average monthly salary of more than $163,386, and earned more than $400,000 through a business called “Nunho Estates.”
“In fact, as Defendant Nuño knew at the time, Nuño Estate had neither 20 or more employees nor an average monthly salary exceeding $163,386,” the complaint reads in part.
Prosecutors said the company was not yet operational when she applied for the loan.
Nuño used the money he received to buy properties, pay start-up costs and pay for his family, prosecutors said.
They also allege Nuño raised more than $300,000 for cannabis companies that were ineligible for funding by falsely mislabeling or concealing the nature of the business.
Prosecutors said in the indictment that Nuño described one of the marijuana businesses, Good grassas in “lawn care, business.”
“The EIDL applications filed on behalf of Hierba Buena and Canna Caves also incorrectly reflected the entities’ total revenue for the 12 months ended January 31, 2020, which was $3,659,400.00 and $964,000.00, respectively,” the complaint reads.
If convicted, Nuño faces up to 20 years in prison on each wire fraud count and up to 10 years in prison on the money laundering count.