Nevada fraud case targets seven men over COVID-19 relief loan applications

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Nevada COVID relief fraud case

Highlights

The Department of Justice charges seven men with wire fraud related to fraudulent PPP and EIDL loan applications for COVID-19 relief, using fake documentation for personal gain.
Multi-state arrests on June 11 involve FBI field offices in Las Vegas, Phoenix, and Houston, with each defendant facing up to 20 years in prison if convicted.
Justice Department officials emphasize the case as part of a nationwide crackdown on pandemic aid fraud, involving broad interagency cooperation.

Charges and multi-state arrests

As reported by the U.S. Department of Justice, the coordinated action involves defendants accused of submitting false information and fake documentation to obtain PPP and EIDL funds intended for emergency business support during the pandemic. The takedown is conducted by FBI field offices in Las Vegas, Phoenix and Houston, together with the Las Vegas Metropolitan Police Department.

According to court allegations, Elias Santino Acereto, Sheyland Barnett, James Freeman, Tyrone Tatrice Johnson, Marcus Dushun McMillian-Bonner, Yves Harrison Pierre and Nathan Jeffry Scott each seek loan funds through fraudulent applications and use the money for personal enrichment. Acereto, Barnett, Johnson, Bonner, Pierre and Scott each face one count of wire fraud, while Freeman faces two counts of wire fraud.

On June 11, Barnett, Freeman, Johnson and Scott are arrested in Las Vegas, Acereto and Pierre are arrested in Phoenix, and Bonner is arrested in Richmond, Texas. If convicted, each defendant faces a maximum statutory sentence of 20 years in prison, with penalties to be determined by a federal district court judge after considering U.S. Sentencing Guidelines and other statutory factors.

Enforcement focus on pandemic aid fraud

Justice Department officials say the case reflects a broader enforcement push against misuse of government-backed COVID-19 relief programs. Assistant Attorney General Colin M. McDonald says the operation shows how a whole-of-government approach can deliver swift action against fraud tied to public assistance funds.

First Assistant U.S. Attorney Sigal Chattah for the District of Nevada says the defendants are accused of exploiting programs designed to provide emergency financial assistance to Americans. The announcement is made by Chattah and Christopher S. Delzotto, special agent in charge of the FBI's Las Vegas Field Office, with investigative support also cited from the SBA Office of Inspector General and local police agencies.

In our earlier article on FinCEN’s updated 314(b) guidance, we explained how U.S. financial institutions can share information on suspected fraud and other illicit activity to spot patterns faster. The update clarified that data such as IP addresses, video footage, and common fraud indicators can be exchanged among eligible participants, strengthening prevention efforts that complement broader enforcement against misuse of public funds.

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