LA Woman Indicted in Alleged $18 Million COVID-19 Relief Fraud Scheme

Federal Grand Jury Indicts Marisela Nuno in Los Angeles

A federal grand jury in Los Angeles indicted 53-year-old Marisela Nuno on three counts of wire fraud and one count of money laundering in connection with an alleged $18 million COVID-19 relief fraud scheme, stl.news reported.

The U.S. Department of Justice announced the charges on November 4, 2026, following an investigation into applications submitted through two federal pandemic assistance programs. A federal grand jury in the Central District of California returned the indictment on November 3, 2026.

Pandemic Relief Loan Applications

Federal prosecutors stated that Nuno allegedly submitted applications seeking more than $15.7 million through the Paycheck Protection Program and more than $2.6 million through the Economic Injury Disaster Loan program. Both programs were authorized under the Coronavirus Aid, Relief, and Economic Security Act, which Congress enacted in March 2020.

The indictment centers on loan applications submitted for businesses allegedly associated with Nuno. Federal authorities contend that the applications contained false business information and were knowingly submitted to obtain funds the businesses were not eligible for.

Nuno Allegedly Submitted Inaccurate Payroll and Business Records

Investigators allege that Nuno knowingly submitted inaccurate information regarding employee counts, average monthly payroll expenses, and gross business revenues. The Los Angeles Times reported that prosecutors described applications involving a business identified as The Nuño Estate, which allegedly received more than $400,000 on two occasions after applications claimed about 20 employees and a monthly payroll exceeding $163,000.

Authorities claim the company lacked the stated workforce and payroll costs, and was inactive at the time the paperwork was filed.

Alleged Diversion of Relief Funds

Beyond the loan applications, prosecutors contend that government-backed relief funds were diverted for purposes outside the programs’ authorized uses.

Reporting by the Los Angeles Times noted that applications involving cannabis businesses allegedly concealed or misrepresented the nature of their operations. One business identified as Hierba Buena was reportedly described in an application as a lawn-care operation, while another business, Canna Caves, was connected to inaccurate revenue information submitted to the EIDL program.

Federal Agencies Investigate the Charges and Prosecution Begins

The investigation involved the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation division, and the Office of Inspector General for the U.S. Small Business Administration. Trial Attorney Ariel Glasner and Trial Attorney Edward Emokpae are assigned to prosecute the case.

The charges remain allegations, and Nuno is presumed innocent unless prosecutors establish her guilt beyond a reasonable doubt in federal court. Each wire fraud count carries a maximum potential prison sentence, while the money laundering charge adds a separate financial component that the government must prove through admissible evidence.

Questions About the Alleged Scheme and Targeted Programs

How much money was actually disbursed in the alleged scheme?

While the Justice Department identified more than $18.3 million in combined funding sought through the applications, the Los Angeles Times reported that prosecutors alleged Nuno secured approximately $4.8 million through more than two dozen applications.

Which federal programs were targeted in the indictment?

The case centers on the Paycheck Protection Program—which provided forgivable loans to qualifying businesses that met specific criteria—alongside the Economic Injury Disaster Loan initiative, designed to assist eligible enterprises facing severe financial hardship due to disasters, such as the COVID-19 pandemic.

When was the indictment officially returned?

A federal grand jury in the Central District of California returned the indictment against Marisela Nuno on November 3, 2026, and the U.S. Department of Justice publicly announced the case on November 4, 2026.

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