HONOLULU (KHON2) — A California couple has been sentenced for defrauding the Paycheck Protection Program, a loan intended for Coronavirus-related relief, at Bank of Hawaii and two other banks.
According to the U.S. Attorney’s Office, 46-year-old Christopher Mazzei and 43-year-old Erin Mazzei of Arroyo Grande, Calif. submitted applications for PPP funds at three different banks.
The funds would have allowed “small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%.”
Court documents showed that the couple created false IRS tax returns and payroll records for each business. They received more than $1.3 million in funds.
The funds were then used “to purchase multiple sport utility vehicles and a home in Kapolei among other things.”
Officials added the couple also spent nearly $165,000 to film a promotional trailer for a television project they had hoped to produce in Hawaii.
“This scheme diverted emergency relief that could have paid 25 Americans an average salary. While small businesses shut down all over the country, the Mazzeis lived in excess on the taxpayer’s dime,” said Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office.
The couple pled guilty to counts of conspiracy to commit wire fraud and conspiracy to commit money laundering on Aug. 28, 2024.
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This week, Christopher Mazzei was sentenced to three years in prison, while Erin Mazzei was sentenced to 27 months.