DOJ Arrests 14 in $25M COVID-19 Relief Fraud Scheme

The U.S. Department of Justice (DOJ) has arrested 14 individuals accused of stealing over $25 million in COVID-19 relief funds and federal small business loans. Acting Special Agent in Charge John Pasciucco of Homeland Security Investigations Los Angeles stated that two federal complaints identified a total of 18 suspects, four of whom are believed to be in Armenia. The charges include conspiracy to defraud the government, wire fraud, bank fraud, and money laundering.
William McGrayan, 42, allegedly orchestrated a scam by encouraging leaders of sham organizations to fabricate documents, open bank accounts, and apply for loans under false pretenses. Prosecutors accused him of using bogus tax returns to deceive banks and the Small Business Administration’s Preferred Lender Program. Samuel Shaw, 37, is charged with submitting a fraudulent application for the Paycheck Protection Program, receiving over $700,000 under a fake business name. Mery Diamondz, 32, and two co-defendants allegedly defrauded a bank by faking the sale of a bogus company to obtain a $3 million loan.
During the arrests, law enforcement recovered $20,000 in cash, two money-counting devices, phones, computers, and two loaded handguns. If convicted, the defendants face decades in federal prison.

Published: 6/1/2025