District of Connecticut joins DOJ Fraud Division, SBA, and SBA OIG in surge takedown exceeding $245 million in COVID-era loan fraud offenses

Date: Sept. 16, 2026

Contact: newsroom@ci.irs.gov

U.S. Attorney David X. Sullivan today announced that two Connecticut residents have pleaded guilty to fraud offenses as part of a nationwide enforcement action led by the Justice Department’s National Fraud Enforcement Division, the Small Business Administration, and the SBA Office of Inspector General targeting fraud in the SBA’s Paycheck Protection Program (PPP).

The U.S. Attorney’s Office for the District of Connecticut was a key participant in this surge effort. 

From June 12 to Sept. 1, federal prosecutors across the country facilitated fraud enforcement actions spanning over 160 criminal defendants, including approximately 80 newly charged defendants, reaching approximately $245 million dollars in intended loss to American taxpayers.

“Our office is methodically working with our investigative partners to uncover and prosecute those who took advantage of important COVID relief programs for their financial gain,” said U.S. Attorney Sullivan. “The charges we are announcing today demonstrate our unwavering commitment to holding individuals accountable for exploiting funds meant to support legitimate small businesses and workers during a national crisis.”

“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.”

In the District of Connecticut, two defendants each waived their right to be indicted and pleaded guilty in Hartford federal court to one count of wire fraud and one count of making a monetary transaction in property derived from unlawful activity related to PPP fraud involving more than $2.6 million in losses:

U.S. v. Robert Cocca

According to court documents, Robert Cocca of Shelton claimed an ownership interest or representative relationship with The Candleman LLC, Complete Property Management LLC, and Durakote Finishing Systems LLC, and other business entities. Between March 2020 and April 2021, Cocca defrauded the PPP loan program and victim lenders by submitting loan applications that overstated the yearly gross income of his businesses, overstated the number of individuals employed by his businesses, provided purportedly false IRS tax filings supporting the business’ gross income and number of employees; and provided other fabricated documentation to support the loan applications. Similarly, on the loan forgiveness applications he submitted, Cocca made additional misrepresentations that he had complied with all the requirements of the PPP rules. Through this scheme, Cocca fraudulently received $1,813,374.77 in PPP funds. Cocca pleaded guilty on July 1, 2026. Released on a $50,000 bond, he is currently scheduled to be sentenced on Nov. 12.

U.S. v. Kurt R. Zimmerman

According to court documents, Kurt R. Zimmerman of Stratford claimed an ownership interest or representative relationship with KRZ Remodeling LLC and Valiant Candle Company LLC. Between June 2020 and March 2023, Zimmerman defrauded the PPP loan program and victim lenders by submitting loan applications that overstated the yearly gross income of his businesses, overstated the number of individuals employed by his businesses, provided purportedly false IRS tax filings supporting the business’ gross income and number of employees; and provided other fabricated documentation to support the loan applications. Similarly, on the loan forgiveness applications he submitted, Zimmerman made additional misrepresentations that he had complied with all the requirements of the PPP rules. Through this scheme, Zimmerman fraudulently received $867,907 in PPP funds. Zimmerman pleaded guilty on Aug. 6, 2026. Released on a $50,000 bond, he is currently scheduled to be sentenced on Jan. 5, 2027.

These cases are being investigated by the Internal Revenue Service, Criminal Investigation Division, the Federal Bureau of Investigation, and the U.S. Small Business Administration Office of Inspector General. The cases are being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.

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.