Alamogordo Man Pleads Guilty to Defrauding the Federal Government of More Than Half a Million Dollars
U.S. Attorney’s Office, District of New Mexico
ALBUQUERQUE – An Alamogordo man 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.
According to court documents, between at least April 2020 and December 2021, Scott A. Spiro, 63, devised and carried out a scheme to defraud the federal government and federally insured financial institutions by submitting fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications under the CARES Act.
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. 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.
As a result of these misrepresentations, Spiro obtained more than $650,000 in PPP and EIDL funds. Rather than using the proceeds for permissible business purposes, Spiro admitted that he used the fraudulently obtained funds for personal expenses and debts. He further admitted to engaging in money laundering by completing at least two monetary transactions exceeding $10,000 using criminally derived funds, including the purchase of residential properties in Alamogordo and Ruidoso, New Mexico.
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. At sentencing Spiro faces up to 30 years in prison.
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.
IRS Criminal Investigation investigated this case with assistance from the Social Security Administration. The U.S. Attorney’s Office for the District of New Mexico is prosecuting the case.