DOJ’s Fraud Division, SBA, and SBA OIG Target $245M in COVID Loan Fraud Enforcement Activity as State Partnerships Continue Expanding

Today, the Justice Department's National Fraud Enforcement Division along with the Small Business Administration (SBA) and the SBA Office of Inspector General, as part of a Heartland Fraud Surge announced the results of Operation No Doze, a surge of criminal enforcement actions targeting fraud in SBA's small business COVID-era loan programs.

During the summer surge between June 12 and Sept. 1, SBA-OIG and federal prosecutors in the Fraud Division and across over 40 U.S. Attorney's Offices, with assistance from various partners, obtained felony charges against nearly 80 fraud defendants responsible for approximately $100 million dollars in intended loss to the United States. These charges target a range of individuals who allegedly exploited COVID-era SBA loan programs at the height of the pandemic.

Beyond newly charged defendants, as part of Operation No Doze, approximately 43 defendants pleaded guilty to SBA-related COVID fraud, reaching approximately $44 million in intended loss. And approximately 40 defendants were sentenced for SBA-related COVID fraud, reaching nearly $100 million in intended loss.

Together, this targeted surge resulted in fraud enforcement actions spanning over 160 criminal defendants and involved approximately $245 million dollars in intended loss to American taxpayers.

Operation No Doze is a direct result of President Donald J. Trump's creation of the National Fraud Enforcement Division at the DOJ, the first new division in the DOJ in twenty years.

"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."

"We are proud to stand with our federal and state partners in rooting out criminal activity of all kinds, especially defrauding the public," said Missouri Governor Mike Kehoe. "Fraud is not a victimless crime. Every dollar stolen is a dollar taken from hardworking taxpayers or from someone who depends on the programs those dollars are meant to support. In Missouri, we will continue working at every level to hold fraudsters accountable and protect those they seek to exploit."

Federal and State Partners Participating in Operation No Doze

U.S. Attorney Partners:

Central District of California, District of Kansas, District of Idaho, District of Maryland, District of Massachusetts, District of Montana, District of New Mexico, District of Oregon, District of Rhode Island, Eastern District of California, Eastern District of Kentucky, Eastern District of Louisiana, Eastern District of Michigan, Eastern District of Missouri, Eastern District of New York, Eastern District of Texas, Eastern District of Virginia, Eastern District of Wisconsin, Middle District of Florida, Middle District of Louisiana, Northern District of California, Northern District of Florida, Northern District of Illinois, Northern District of Indiana, Northern District of Iowa, Northern District of Ohio, Northern District of Texas, Northern District of West Virginia, Southern District of Alabama, Southern District of California, Southern District of Florida, Southern District of Indiana, Southern District of Ohio, Southern District of West Virginia, Western District of Kentucky, Western District of Michigan, Western District of Missouri, Western District of New York, Western District of North Carolina, Western District of Oklahoma, Western District of Pennsylvania, Western District of Tennessee, Western District of Texas, Western District of Washington.

Federal and State Investigative Partners:

Amtrak, Office of Inspector General; City of Jacksonville, Office of Inspector General; Department of Homeland Security, Office of Inspector General; Department of Labor, Office of Inspector General; Department of Justice, Office of Inspector General; Export-Import Bank of the United States; FBI; Federal Deposit Insurance Corporation, Office of Inspector General; Federal Housing Finance Agency, Office of Inspector General; Federal Housing Administration; Board of Governors of the Federal Reserve System, Office of Inspector General; HSI; Department of Housing and Urban Development, Office of Inspector General; Internal Revenue Service, Criminal Investigation; National Science Foundation, Office of Inspector General; Small Business Administration, Office of Inspector General; Social Security Administration; Treasury Inspector General for Tax Administration; U.S. Agency for International Development, Office of Inspector General; U.S. Postal Service, Office of Inspector General; U.S. Secret Service; Department of Veterans Affairs, Office of Inspector General; West Virginia State Police; Tampa Police Department.

Heartland Fraud Partnership Summit: In tandem with the results of Operation No Doze, the Fraud Division announced three new federal-state cooperation agreements with the Missouri Secretary of State, Nebraska Treasurer, and Kansas Treasurer to strengthen ongoing fraud enforcement efforts. On September 14, 2026, over twenty-five federal and state officials gathered for the Heartland Partnership Fraud Summit in Kansas City, Missouri, including representatives from 6 U.S. Attorney's Offices, 3 State Attorneys General Offices, 3 State Financial Offices, 3 Secretaries of State, 3 federal law enforcement partners, and 2 Members of Congress.

Federal and State Partners at the 2026 Heartland Fraud Partnership Summit

U.S. Attorney Partners:

U.S. Attorneys Office Partners (In-Person Attendance):

U.S. Attorney for the Western District of Missouri Matthew Price

U.S. Attorney for the Eastern District of Missouri Thomas Albus

U.S. Attorney for District of Nebraska Lesley Woods

U.S. Attorney for the Northern District of Iowa Leif Olson

U.S. Attorney for the Southern District of Iowa David Waterman

U.S. Attorney for the District of Kansas Ryan Kriegshauser

State Partners:

Iowa: Iowa Secretary of State Paul Pate

Kansas: Kansas Attorney General Kris Kobach, Kansas Secretary of State Scott Schwab

Nebraska: Nebraska Attorney General Mike Hilgers, Nebraska Auditor Mike Foley, Nebraska Treasurer Joey Spellerberg

Missouri: Missouri Governor Mike Kehoe, Missouri Attorney General Catherine Hanaway, Missouri Secretary of State Denny Hoskins, Missouri State Auditor Scott Fitzpatrick, and Missouri Department of Social Services Jessica Bax

United States Congressional Representation:

Senator Eric Schmitt (R-MO) and Congressman Mark Alford (R-MO)

These partnerships and actions demonstrate how state and federal partners can work together to strengthen fraud detection, share information, and accelerate enforcement efforts nationwide. The Department encourages every state across the country to partner with the Fraud Division on similar efforts.

Fraud Division & SBA's Operation "No Doze" Summer Surge

View a dynamic map of the Fraud Division & SBA's Operation "No Doze" Summer Surge here.

Notable Cases (Intended Loss Figures)

1.) United States v. Jamie Gray (Indictment) - $55,931,875 - Western District of Missouri

Jamie Gray is charged with wire fraud and money laundering. According to the indictment, Gray submitted Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications claiming to own dozens of businesses that were operating before the COVID-19 pandemic. In every instance but one, the businesses Gray allegedly claimed to own were not in operation on or before February 15, 2020 (eligibility deadline). The only claimed business that actually existed was "Fur Lives Matter," a Texas company that allegedly had no knowledge of Gray. The indictment alleges that Gray's representations regarding ownership, employees, gross revenue, and business operations were entirely fabricated.

Prosecuted by Assistant U.S. Attorney Patrick Carney for the Western District of Missouri. District Fraud Counsel AOR: Assistant U.S. Attorney Randy Eggert for the Western District of Missouri.

2.) United States v. Adrian Pupo Perez et al. (Indictment) - $2,400,000 - Northern District of Iowa

On July 9, 2026, a grand jury in Cedar Rapids, Iowa, charged Adrian Rafael Pupo Perez and Helen Yaima Leyva Santiesteban with 47 counts of wire fraud, money laundering, and conspiracy. Beginning in July 2020, Pupo Perez, Leyva Santiesteban, and more than 100 other individuals originally from Cuba allegedly sought fraudulent PPP loans and EIDLs by falsely claiming they were self-employed, among other allegedly false representations. The co-conspirators allegedly submitted approximately 470 fraudulent PPP loan applications in the names of more than 100 individuals across the United States. They allegedly fraudulently sought more than $4.5 million in PPP funds, with approximately $2.4 million disbursed. Pupo Perez and Leyva Santiesteban are fugitives at this time.

Prosecuted by District Fraud Counsel Assistant U.S. Attorney Timothy L. Vavricek for the Northern District of Iowa.

3. United States v. Pu Wang and Rui Li (Indictment) - $102,397 - Northern District of Indiana

Pu Wang and Rui Li are charged with fraudulently obtaining federal grant funds for their company, Vibronix, by falsely representing that the company had no Chinese affiliates and by certifying that the funded work was performed in the United States when most of the work was allegedly performed in China. In addition to allegedly defrauding the Small Business Innovation Research federal grant program, Wang also allegedly certified in PPP loan applications that all covered employees had their primary residence in the United States. Wang was himself a covered employee and, according to the allegations, lived in China during the relevant period. Wang further allegedly certified that none of Vibronix's board members were residents of the People's Republic of China. Public SEC filings identified Wang as a Vibronix board member who was known to live in China at the time of the application for federal funds.

According to the indictment, Wang had received an award in 2014 sponsored by the PRC to encourage Chinese citizens who study in the United States to return to China.

Prosecuted by Assistant U.S. Attorney Francis Sohn for the Northern District of Indiana. District Fraud Counsel AOR: Assistant U.S. Attorney Steven Lupa Northern District of Indiana.

4. United States v. Eve Zou (Information) - $319,800 - Western District of Texas

Eve Zou is charged with making false and fraudulent representations to the U.S. Small Business Administration to obtain EIDL funds and grants purportedly for legitimate business purposes. At the time of the charged offense, Zou was an employee of the Texas Department of Family and Protective Services, a state agency designed to protect children, the elderly, and adults in Texas with disabilities from abuse, neglect, and exploitation.

The information alleges that Zou instead used EIDL proceeds for personal benefit, including the purchase of real estate in Austin, Texas and investments in brokerage accounts. Zou also allegedly made multiple false statements in the applications, including using her daughter's identity without her daughter's knowledge or permission, falsely claiming to have 50 employees, and falsely claiming lost rental income. Zou allegedly obtained three SBA loans totaling $319,800.

Zou has agreed to plead guilty to the charges against her. Zou also agreed to forfeiture of all assets purchased with the fraud proceeds, which have grown in value. As a result, the government intends to recoup more than Zou stole.

Prosecuted by Assistant U.S. Attorney Brandy Gann for the Western District of Texas. District Fraud Counsel AOR: Assistant U.S. Attorney Justin Chung for the Western District of Texas.

5. United States v. Melissa Fireside (Indictment) - $1,573,350 - District of Oregon

Melissa Fireside, a former Clackamas County Commissioner, allegedly attempted to fraudulently obtain approximately $1.6 million in PPP and EIDL funds associated with her claimed businesses. The State of Oregon has charged Fireside with eight felony counts - including first-degree forgery, first-degree aggravated theft, computer crimes, and identity theft.

Fireside was charged in the District of Oregon with two counts of wire fraud. According to prosecutors, Fireside submitted an EIDL application using the identity of another person, G.F., without G.F.'s authorization. Fireside was alleged to be G.F.'s caregiver and manager of G.F.'s finances. Fireside allegedly also submitted a fraudulent PPP application supported by fabricated tax documents and bank records, falsely represented that the business was operating and had employees and substantial revenues, and then diverted the loan proceeds for her personal use. Fireside is believed to have fled the country and remains an international fugitive subject to an INTERPOL Red Notice in connection with the federal charges.

Prosecuted by Assistant U.S. Attorney Geoffrey A. Barrow for the District of Oregon. District Fraud Counsel AOR: Assistant U.S. Attorney Nick Meyers for the District of Oregon.

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.

An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.