In short
- Maio fraudulently obtained nearly $2.2 million in relief loans for businesses with no employees.
- He also illegally possessed a firearm purchased by his mother using false information.
What happened
Mohammed Maio, 44, of Phoenix, was sentenced to 10 years in prison after pleading guilty to multiple charges, including Conspiracy to Commit Wire and Bank Fraud, Conspiracy to Commit Money Laundering, Bank Fraud, Felon in Possession of a Firearm, and Materially False Statement During the Acquisition of a Firearm.
Between May 2020 and March 2024, Maio conspired to fraudulently obtain nearly $2.2 million in Paycheck Protection Program and Economic Injury Disaster Loan relief loans, using false information for businesses with no employees and misusing the funds for personal enrichment, including property purchases.
Maio’s actions resulted in significant financial loss to the U.S. government and exploited a program intended to provide relief to small businesses during a national crisis.
In numbers
- 10 years prison sentence for Mohammed Maio
- $2.2 million fraudulently obtained relief loans
Named in this item
What compliance teams should check
- Review Paycheck Protection Program and Economic Injury Disaster Loan applications for false information and businesses with no employees.
- Monitor for arrangements where firearms are purchased by relatives for convicted felons, as in Maio's case.
- Reference DOJ National Fraud Enforcement Division and President Trump’s Task Force to Eliminate Fraud for updated fraud typologies.
Why it matters
This case highlights the risks of fraudulent activity targeting government relief programs, especially during crises like the COVID pandemic. Compliance officers must be vigilant in detecting false information and misuse of funds in loan applications, as such schemes can result in significant financial losses and undermine the integrity of federal assistance programs. The involvement of multiple agencies and new enforcement divisions underscores the increasing focus on fraud prevention and prosecution, making robust compliance measures essential.
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