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Date: Sept. 14, 2026
Contact: newsroom@ci.irs.gov
Albuquerque – The U.S. Attorney’s Office for the District of New Mexico today announced the sentencing of Scott A. Spiro as part of a nationwide enforcement action led by the Justice Department’s National Fraud Enforcement Division, the Small Business Administration (SBA) and the SBA Office of Inspector General targeting fraud in the SBA’s Paycheck Protection Program (PPP).
Spiro was sentenced to 36 months in prison and ordered to pay $679,690 in restitution for obtaining more than half a million dollars in fraudulent COVID-19 pandemic loans. The District of New Mexico was a key participant in the nationwide surge effort.
There is no parole in the federal system.
According to court documents, between April 2020 and December 2021, Spiro devised and carried out a scheme to defraud the federal government and federally insured financial institutions by submitting fraudulent PPP and Economic Injury Disaster Loan (EIDL) applications under the CARES Act.
As part of the scheme, Spiro created several shell companies that were not legitimate businesses, had no employees, and paid no wages, including Scott A. Spiro JD, LLC, Pacifica Law Clinic, LLC, Spiro Enterprises of NM, LLC, Pacifica Funding Corporation, and Accounting Advisors. Using these entities, Spiro submitted multiple fraudulent loan and loan forgiveness applications to lenders and the SBA. He admitted to making material misrepresentations about the companies’ establishment dates, number of employees, payroll expenses, revenues and monthly wages, and to submitting falsified IRS forms, payroll records, bank statements and New Mexico Secretary of State filings to support the applications.
As a result of these misrepresentations, Spiro obtained $679,690 in PPP and EIDL funds and used the fraudulently obtained funds for personal expenses and debts and the purchase of residential properties in Alamogordo and Ruidoso, New Mexico.
“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications— but they will now be prosecuted to the fullest extent of the law.”
“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder-to-shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.”
“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.”
“Operation No Doze brings a focused and coordinated approach to pursuing fraud in SBA’s pandemic relief programs,” said SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.”
Spiro pleaded guilty to three counts of wire fraud, three counts of making false statements to a financial institution and two counts of money laundering. Upon his release from prison, Spiro will be subject to five years of supervised release and must serve 100 hours of community service.
IRS Criminal Investigation investigated this case with assistance from the SBA. The U.S. Attorney’s Office for the District of New Mexico is prosecuting the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
IRS-CI is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. It is the only federal law enforcement agency with investigative jurisdiction over violations of the Internal Revenue Code. IRS-CI has 16 field offices located across the U.S. and maintains an international presence through attaché posts abroad.