# L.A. Businesswoman Indicted for Alleged $18 Million COVID Relief Fraud Marisela Nuño faces federal charges for fabricating employees and misrepresenting businesses to secure funds. - **Source:** [Los Angeles Times – California](https://www.latimes.com/california) - **Published:** 2026-11-05 - **Topic:** [politics](https://brifing.si/c/politics) - **Original article:** - **On Brifing:** https://brifing.si/s/d4a02217-03c6-44b8-8d70-19d579536494 ## Federal Indictment Filed Marisela Nuño, a former L.A. County commissioner, was indicted by a federal grand jury on charges of wire fraud and money laundering. Prosecutors allege she attempted to defraud COVID-19 relief programs of approximately $18 million. The Department of Justice charges include three counts of wire fraud and one count of money laundering. ## Fictional Payroll Schemes Nuño allegedly secured $4.8 million by filing over two dozen applications using fabricated employee rosters and payroll figures. For her business, The Nuño Estate, she claimed to have 20 employees and a monthly payroll exceeding $163,386. Prosecutors state the business was not even operational at the time of the loan application. ## Mislabeling Cannabis Businesses The indictment claims Nuño collected over $300,000 for cannabis companies, which were ineligible for federal relief funds. To bypass restrictions, she reportedly mislabeled a cannabis shop named Hierba Buena as a lawn-care company. Applications for Hierba Buena and Canna Caves also allegedly contained falsified gross revenue figures for the year 2020. ## Misuse of Relief Funds Federal prosecutors allege that the obtained funds were not used for legitimate business operations or employee retention. Instead, Nuño reportedly utilized the money to purchase personal property, cover various start-up costs, and provide payments to family members. These actions violated the specific requirements set forth by the CARES Act emergency programs. ## CARES Act Requirements The Paycheck Protection Program and Economic Injury Disaster Loan program required applicants to submit accurate financial data. Business owners had to disclose their number of employees, average monthly payroll, and gross revenues to qualify. These metrics were essential for determining the specific amount of emergency financial assistance provided to struggling small businesses. ## Potential Legal Penalties If convicted on all charges, Nuño faces significant prison time under federal sentencing guidelines. Each count of wire fraud carries a maximum penalty of 20 years in prison, while the money laundering charge carries a maximum of 10 years. Her attorney, Thomas O’Brien, has declined to provide any comment regarding the pending case. ## Context of Pandemic Fraud This case follows a series of federal investigations into the abuse of pandemic-era relief funds across the United States. Authorities have previously charged various individuals, including public officials and business owners, for exploiting these programs. Such investigations highlight the ongoing scrutiny of emergency financial assistance distributed during the COVID-19 pandemic crisis. ## Broader Enforcement Implications The indictment serves as a reminder of the federal government's commitment to auditing and prosecuting pandemic-related financial crimes. As investigations continue, the focus remains on holding individuals accountable for misrepresenting business data to secure taxpayer-funded aid. This case underscores the long-term legal consequences for those who exploited emergency relief programs. ## Sources covering this story - https://www.latimes.com/california/story/2026-11-05/la-businesswoman-indicted-in-alleged-18m-covid-relief-fraud-scheme — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._