An Alamogordo resident has admitted to orchestrating a scheme to defraud the federal government and financial institutions by securing more than $650,000 in fraudulent Covid-19 pandemic relief loans. Scott A. Spiro, 63, pleaded guilty in federal court to charges stemming from his actions between April 2020 and December 2021.
Court documents reveal that Spiro created several fake businesses, including Scott A. Spiro JD, LLC; Pacifica Law Clinic, LLC; Spiro Enterprises of NM, LLC; Pacifica Funding Corporation; and Accounting Advisors. None of these entities had employees or legitimate operations. Using these shell companies, Spiro submitted multiple false applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds under the CARES Act.
To support his loan applications, Spiro provided misleading information about the founding dates of his companies, their employee numbers, payroll expenses, and revenues. He also submitted fabricated IRS forms, payroll records, bank statements, and filings with the New Mexico Secretary of State.
As a result of these misrepresentations, Spiro received over half a million dollars in PPP and EIDL funds. Instead of using this money for authorized business purposes as required by law for such pandemic assistance programs (https://www.sba.gov/funding-programs/loans/covid-19-relief-options), he used it for personal expenses and debts. The investigation found that he laundered some of these illegally obtained funds through purchases exceeding $10,000 each—including buying residential properties in Alamogordo and Ruidoso.
Spiro pleaded guilty to three counts each of wire fraud and making false statements to a financial institution as well as two counts of money laundering. He faces up to 30 years in prison at sentencing.
Acting U.S. Attorney Ryan Ellison commented on the case alongside Acting Special Agent in Charge Jarom Gregory from IRS Criminal Investigation’s Phoenix Field Office: “IRS Criminal Investigation investigated this case with assistance from the Social Security Administration.” The U.S. Attorney’s Office for the District of New Mexico is prosecuting the matter.
