In this photo illustration, a loan statement account status is displayed next to an iPhone screen reading "coronavirus" on April 16, 2020, in Arlington, Virginia. The $349 billion cap for small business loans for the coronavirus stimulus was reached … ((OLIVIER DOULIERY/AFP via Getty Images))
PHOENIX - A Phoenix family is facing decades in prison after admitting to a massive fraud scheme that pocketed nearly $2.2 million in taxpayer-funded COVID-19 relief loans to buy real estate, alongside federal gun charges.
What we know:
Mohammed Maio, 43, along with his parents, 66-year-old Souzan El-Sayed and 70-year-old Abukar Maio, all pleaded guilty in federal court for their roles in a conspiracy that turned emergency pandemic funding into personal enrichment.
The backstory:
According to federal prosecutors, between 2020 and 2024, the family conspired to pull off the lucrative scheme by submitting bogus applications for Paycheck Protection Program and Economic Injury Disaster Loan relief. The trio lied on federal applications to secure millions for multiple businesses that actually had zero employees, using the stolen taxpayer money to purchase real estate properties across the area.
Arizona woman pleads guilty to stealing $7.7M in COVID relief
An Arizona woman faces up to a decade in prison after admitting she used fake businesses to try and steal over $7.7 million in COVID-19 relief funds.
Dig deeper:
The family’s criminal enterprise extended beyond financial fraud. Federal court records reveal that Mohammed Maio, a convicted felon prohibited by law from owning weapons, used his mother to carry out an illegal straw purchase. In 2021, El-Sayed falsely declared on federal background check paperwork that she was buying a firearm for her own use, when she was actually buying it for her felon son, who later took illegal possession of the gun.
Three guilty pleas:
Mohammed Maio pleaded guilty earlier this month to conspiracy to commit wire and bank fraud, conspiracy to commit money laundering, being a felon in possession of a firearm, and aiding another in making a false statement to purchase a firearm. His parents both pleaded guilty on July 24 to the wire fraud, bank fraud and money laundering conspiracy charges.
The entire family now faces heavy federal prison time. A conviction for conspiracy to commit wire and bank fraud carries up to 30 years in prison, while money laundering carries up to 20 years. Mohammed Maio faces an additional 15 years for illegally buying and possessing the gun, plus $2 million in fines, according to federal prosecutors.
What's next:
The family is scheduled to be sentenced in Phoenix, with Mohammed Maio appearing on Sept. 28 and his parents appearing on Oct. 5. The case was investigated by the Internal Revenue Service (IRS) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The Source: Information in this report was gathered from the Offices of the United States Attorneys.