Alamogordo man pleads guilty to federal loan fraud
ALAMOGORDO, New Mexico (KVIA) -- Alamogordo resident Scott A. Spiro, 63, pleaded guilty to defrauding the federal government of Covid-19 pandemic loans.
Federal prosecutors say that Spiro "pleaded guilty to orchestrating an extensive scheme to defraud the federal government and financial institutions by obtaining fraudulent Covid-19 pandemic loans of more than half a million dollars through the use of fabricated businesses and falsified records and using these stolen funds to purchase two houses."
Court documents state that Spiro submitted fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications under the CARES Act between April 2020 and December 2021. Officials say that Spiro got more than $650,000 in PPP and EIDL funds, which he then allegedly used for personal expenses and debts. He also admitted to money laundering, according to federal prosecutors.
"As part of the scheme, Spiro created several shell companies that were not legitimate businesses, had no employees, and paid no wages, including Scott A. Spiro JD, LLC, Pacifica Law Clinic, LLC, Spiro Enterprises of NM, LLC, Pacifica Funding Corporation, and Accounting Advisors," a spokesperson for the U.S. Attorney for the District of New Mexico's Office explained. "Using these entities, Spiro submitted multiple fraudulent loan and loan forgiveness applications to lenders and the Small Business Administration. He admitted to making material misrepresentations about the companies’ establishment dates, number of employees, payroll expenses, and revenues, and to submitting falsified IRS forms, payroll records, bank statements, and New Mexico Secretary of State filings to support the applications."
Spiro pleaded guilty to three counts of wire fraud, three counts of making false statements to a financial institution, and two counts of money laundering. He will face up to 30 years in prison at sentencing.
