The Justice Department is ramping up fraud enforcement across the country, leaning on federal-state partnerships to pursue pandemic-era schemes like fake PPP loans, and officials warned fraudsters their time is running out as the Fraud Division expands its reach and resources.
At a recent Federal–State Fraud Partnership Conference in Columbia, Assistant Attorney General Colin M. McDonald outlined how the Fraud Division is growing its network and working closely with state and federal partners. He emphasized coordinated work across multiple offices and agencies to investigate and prosecute complex fraud schemes that exploited pandemic relief programs. The message was blunt: the government is increasing investigative capacity and collaboration to return money to victims and put criminals behind bars.
McDonald described the breadth of partners now involved with the Fraud Division, highlighting the different roles contributing to enforcement efforts. He stressed that prosecutors and state officials are sharing leads, data, and strategic plans to strengthen cases. According to him, this mix of federal and state resources improves investigations, training, and victim restitution.
https://x.com/DOJFraudDiv/status/2082870195077452200
With me today are U.S. attorneys, state attorneys general, secetaries of state, state treasurers, auditors, directors, inspectors general, the FBI, HSI…from seven different states across the Southeast.
The assistant attorney general framed these partnerships as a proven formula for success, saying that cooperation leads to better intelligence and more effective prosecutions. He painted a picture of an enforcement apparatus that is becoming more nimble and better equipped to tackle fraud across jurisdictions. That approach, he argued, yields stronger cases and more money returned to defrauded citizens.
When federal prosecutors work with state agencies to share leads, data, and strategy, the American people win; better intelligence, better cases, better training, more money returned to victims, and more fraudsters behind bars where they belong.
On the same day the Fraud Division outlined broader strategy, it also announced specific enforcement actions in the Southeast and beyond, showing theory put into practice. The department released details of recent cases that target schemes involving government relief funds, using examples to signal how investigations proceed from tip to indictment. Those cases included both organized, multi-defendant conspiracies and smaller family-run operations that abused emergency programs.
One of the cases highlighted involved labor union administrators who allegedly abused COVID-era relief funds, with the Small Business Administration working alongside prosecutors. That matter underscores the variety of targets the Fraud Division is pursuing, from institutional abuse to individual wrongdoers. The goal, officials said, is deterrence through visibility and accountability.
Another prosecution centered on a family in Phoenix accused of exploiting Paycheck Protection Program and Economic Injury Disaster Loan funds during the pandemic. The U.S. Attorney’s Office in Arizona charged three relatives who allegedly set up sham businesses and falsified loan applications to secure nearly $2.2 million intended for small employers. Prosecutors say the defendants diverted the money into personal purchases instead of payroll and business expenses.
The Justice Department described the alleged scheme in stark terms, noting the defendants submitted false information to obtain funds for businesses with no employees. The indictment details that the money was used for personal enrichment, including the acquisition of multiple properties. Federal prosecutors pursued charges involving wire and bank fraud as well as money laundering conspiracies tied to those efforts.
Between May 2020 and March 2024, the three family members conspired with each other to fraudulently obtain and misuse multiple Paycheck Protection Program and Economic Injury Disaster Loan relief loans. They submitted false information to secure nearly $2.2 million in loans for multiple businesses that had no employees. The funds were instead used for personal enrichment, including the purchase of multiple properties.
The three defendants—Mohammed Maio, Souzan El-Sayed, and Abukar Maio—pled guilty to conspiracy charges related to wire and bank fraud and to money laundering. Authorities also allege an additional firearms-related scheme, where Mohammed Maio conspired with his mother to have her buy a gun on his behalf despite his status as a convicted felon. Those specific firearms charges were added to the fraud counts in the case files.
All three are scheduled for sentencing later in the year, and the proceedings will determine the penalties for their admitted roles in the alleged fraud. The case serves as a concrete example of how federal and local agencies can coordinate to investigate pandemic-relief abuses and bring offenders to justice. Officials framed the prosecutions as part of a broader deterrence strategy to protect taxpayer funds.
AAG McDonald closed the conference remarks with a direct statement to those who exploit government programs, tightening the tone to underscore commitment and resolve. The warning left little doubt about the department’s priorities and the expanding resources aimed at rooting out fraud nationwide. As the Fraud Division grows, prosecutors say enforcement will reach more corners of the country and more types of schemes.
My message to the fraudsters is this: our team is getting bigger, our resolve is getting stronger, and your time is getting shorter.
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