Texas and Florida residents found guilty of misusing pandemic relief funds for personal gain
Texas – Two individuals have been convicted of federal crimes for their roles in a fraudulent scheme involving COVID-19 relief funds. Acting U.S. Attorney Abe McGlothin, Jr. announced the convictions following a four-day trial in the Eastern District of Texas before U.S. District Judge Jeremy D. Kernodle.
Fraudulent Loan Scheme Uncovered
The two convicted individuals are Cord Dean Newman, 47, of Homosassa, Florida, and Eric “Phoenix” Marascio, 53, of Allen, Texas. Newman, a Hollywood stuntman, and Marascio, an author and baker, were found guilty of conspiracy to commit wire fraud and conspiracy to commit money laundering.
According to evidence presented in court, both men were involved in a scheme to fraudulently obtain Paycheck Protection Program loans during the COVID-19 pandemic. These loans were intended to support struggling small businesses by providing financial assistance for job retention and other essential expenses. Instead of using the funds for business-related purposes, the defendants used them for personal financial gain.
Misuse of COVID Relief Funds
Rather than using the funds to support businesses, the defendants used the money for investments in foreign exchange currency markets, the purchase of luxury vehicles, and other non-business-related expenses. Their actions violated federal laws and undermined the intended purpose of the relief programs.
The Paycheck Protection Program and the Economic Injury Disaster Loan Program were critical components of the Coronavirus Aid, Relief, and Economic Security Act, commonly known as the CARES Act. These programs were created to help small businesses, renters, and homeowners survive the economic downturn caused by the COVID-19 pandemic.
Sentencing and Legal Consequences
Newman and Marascio now face up to 20 years in federal prison for their crimes. The court will determine their final sentencing based on federal guidelines, statutory factors, and the findings of a presentence investigation by the U.S. Probation Office. A sentencing hearing will be scheduled once the presentence investigation is complete.
Investigation Led by Federal Authorities
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations. Assistant U.S. Attorneys in the Eastern District of Texas led the prosecution, ensuring that those who misused pandemic relief funds are held accountable.
Ongoing Efforts to Combat COVID Fraud
The convictions of Newman and Marascio are part of a larger effort by federal agencies to identify and prosecute individuals who exploited pandemic relief programs. Law enforcement continues to investigate cases of fraud related to the CARES Act, ensuring that financial assistance meant for struggling businesses is not misused for personal enrichment.
This case serves as a strong reminder that financial crimes, particularly those committed during times of crisis, will not go unpunished. The government remains committed to protecting taxpayer dollars and ensuring that relief programs benefit those who truly need assistance.
