Federal authorities arrested seven men accused of using fake paperwork to collect $205,639 in COVID-19 relief funds, charging them with wire fraud and coordinating a multi-agency takedown across several states.
Federal prosecutors say seven Las Vegas men submitted false documentation to obtain Paycheck Protection Program and Economic Injury Disaster Loans, pocketing roughly $205,639 in proceeds. The individuals named in the indictment are Elias Santino Acereto, Sheyland Juakeen Barnett, James Sean Freeman II, Yves Garry Harrison-Pierre, Tyrone Tatrice Johnson, Marcus Dushun McMillian-Bonner, and Nathan Jeffry Scott.
Court paperwork alleges each defendant supplied fabricated records and misleading information to secure relief funds intended to support struggling small businesses during the pandemic. Acereto, Barnett, Johnson, McMillian-Bonner, Harrison-Pierre, and Scott each face a single count of wire fraud, while Freeman faces two counts, according to the charging documents.
Arrests were coordinated across multiple jurisdictions: Barnett, Freeman, Johnson, and Scott were taken into custody in Las Vegas on June 11, Acereto and Harrison-Pierre were arrested in Phoenix, and McMillian-Bonner was arrested in Richmond, Texas. Prosecutors assert the funds were fraudulently obtained for personal benefit rather than legitimate business purposes.
The charges focus on loans administered through the U.S. Small Business Administration PPP and EIDL programs, with alleged fraudulent proceeds totaling $205,639.
The investigation was led by the FBI Las Vegas Field Office with support from the FBI Phoenix Division, the FBI Houston Division, the Las Vegas Metropolitan Police Department, and the North Las Vegas Police Department. The arrests are tied to a wider push to root out pandemic-era fraud that preyed on federal relief programs and taxpayers.
“This case demonstrates the power of a true whole-of-government approach to deliver swift justice against fraudsters—and it should be replicated in every region across the United States,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “I commend the outstanding work of the U.S. Attorney’s Office for the District of Nevada, the FBI, the SBA-OIG, the Las Vegas Metropolitan Police Department, and the North Las Vegas Metropolitan Police Department for holding these individuals accountable.”
First Assistant United States Attorney Sigal Chattah for the District of Nevada emphasized the betrayal involved: “Seven defendants are alleged to have exploited government-funded programs designed to provide emergency financial assistance to Americans to line their pockets,” she said. “Thanks to the outstanding investigative efforts by the FBI, SBA-OIG, the Las Vegas Metropolitan Police Department, and the North Las Vegas Police Department, these defendants will now each have their day in court to face federal criminal fraud charges.”
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Special Agent in Charge Christopher S. Delzotto for the FBI Las Vegas Field Office added a blunt reminder of public trust: “Exploiting federal programs intended to support small businesses is unacceptable,” he said. “The defendants used the COVID-19 pandemic as an opportunity to steal from taxpayers for personal gain and should be held fully accountable. The FBI and our partners remain committed to identifying and investigating those who seek to defraud federal programs designed to assist businesses in need of operational support.”
If convicted, each defendant faces a maximum statutory penalty of 20 years in prison for wire fraud, with actual sentences to be determined by a federal judge after consideration of the U.S. Sentencing Guidelines and statutory factors. Prosecutors note that an indictment is only an allegation and that the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The cases were investigated by the FBI Las Vegas Field Office, SBA-OIG, and local law enforcement, with assistance from the FBI Phoenix and Houston divisions. Assistant United States Attorney Kimberly Frayn is listed as the prosecutor handling the matters in federal court.
The Justice Department recently stood up the National Fraud Enforcement Division, a unit focused on prosecuting schemes that steal or misuse taxpayer dollars. Department officials say those efforts align with broader initiatives to eliminate fraud, waste, and abuse in federal benefit programs and to protect taxpayer resources against organized exploitation.
