L.A. Businesswoman Charged in Alleged $18 Million COVID Aid Fraud

A federal grand jury indicted Marisela Nuno, 53, on three wire-fraud counts and one money-laundering count, accusing her of seeking roughly $18 million from two COVID-19 relief programs. The Paycheck Protection Program and Economic Injury Disaster Loan program were established under the CARES Act to provide emergency assistance, including to small businesses.

Prosecutors allege Nuno submitted more than two dozen applications for businesses she owned, misrepresenting employee numbers, payroll and revenues. The applications sought more than $15.7 million in PPP aid and over $2.6 million in EIDL assistance. A criminal complaint says she obtained $4.8 million through the applications.

In one example, prosecutors say she received more than $400,000 for The Nuno Estate after claiming it had about 20 employees and average monthly payroll above $163,386. They allege the business was not operating when she applied and had neither the claimed workforce nor payroll.

Prosecutors also accuse Nuno of collecting more than $300,000 for cannabis businesses that were ineligible. One, Hierba Buena, was described in an application as a lawn-care business, they allege. The complaint says applications for two cannabis companies misstated their gross revenues.

The complaint alleges Nuno used the money to buy property, pay start-up costs and make payments to family members. If convicted, she could receive up to 20 years in prison for each wire-fraud count and 10 years for money laundering. Her attorney declined to comment.