3 Phoenix family members plead guilty in COVID fraud case

Three Phoenix family members have pleaded guilty to federal charges after stealing nearly $2.2 million in COVID-19 relief loans to purchase real estate, federal authorities announced.

Mohammed Maio, 43, pleaded guilty earlier this month to conspiracy to commit wire and bank fraud, as well as conspiracy to commit money laundering. In a separate federal matter, Maio also pleaded guilty to being a felon in possession of a firearm and aiding another in making a materially false statement to purchase a firearm.

His parents, 66-year-old Souzan El-Sayed and 70-year-old Abukar Maio, pleaded guilty on July 24 to conspiracy to commit wire and bank fraud and conspiracy to commit money laundering.

Trio secured loans for businesses with no employees

According to prosecutors, the family conspired between May 2020 and March 2024 to fraudulently obtain Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) relief funds.

The three submitted false applications for multiple businesses that actually had no employees, pulling in nearly $2.2 million in loans.

Instead of using the money for legitimate business relief, the family pocketed the funds for personal enrichment, including buying multiple real estate properties.

Gun bought through straw purchase

Plea documents show Maio, who is a convicted felon, also arranged for his mother to purchase a firearm on his behalf in May 2021. Maio admitted he instructed El-Sayed to falsely state on the federal application that the gun was for her personal use rather than his. He later illegally possessed the weapon she bought.

Sentencings set for fall

Mohammed Maio is scheduled to be sentenced Sept. 28 before U.S. District Judge Michael T. Liburdi. His parents are set to be sentenced by Judge Liburdi on Oct. 5.

The maximum penalties for the convictions include:

Conspiracy to commit wire and bank fraud: Up to 30 years in prison and a $1 million fine.

Conspiracy to commit money laundering: Up to 20 years in prison and a $500,000 fine.

Felon in possession of a firearm: Up to 10 years in prison and a $250,000 fine.

Making a false statement during the purchase of a firearm: Up to 5 years in prison and a $250,000 fine.

Related

Wrongful death lawsuit alleges Arizona ignored 19 abuse reports before killing of 10-year-oldRep. Adelita Grijalva responds to ICE detaining Tucson woman outside county courthouseYassamin Ansari calls for closure of Texas ICE detention center after oversight visitPeoria Unified governing board members deny accusations surrounding teacher sex caseADOT brings back Safety Message ContestPhoenix’s Rhythm Room to close after 35 years as owner announces retirement