Scott A. Spiro Pleads Guilty to $650,000+ COVID Relief Fraud Scheme, Faces Federal Prison

ALAMOGORDO, New Mexico — A 63-year-old Alamogordo resident has pleaded guilty in federal court to orchestrating a multi-year scheme that defrauded the U.S. government and financial institutions out of more than $650,000 in COVID-19 pandemic relief loans, using the funds for personal gain, including the purchase of two homes in New Mexico.

Scott A. Spiro entered his guilty plea to three counts of wire fraud, three counts of making false statements to a financial institution, and two counts of money laundering. The charges stem from fraudulent applications for Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) under the CARES Act, according to court documents and an announcement from the U.S. Attorney’s Office for the District of New Mexico.

Between at least April 2020 and December 2021, Spiro created several shell companies that lacked legitimate operations, employees, or payroll activity. The entities included Scott A. Spiro JD, LLC; Pacifica Law Clinic, LLC; Spiro Enterprises of NM, LLC; Pacifica Funding Corporation; and Accounting Advisors.

Using these fabricated businesses, Spiro submitted multiple fraudulent loan and forgiveness applications to lenders and the Small Business Administration (SBA). He admitted to falsifying key details, such as the companies’ establishment dates, employee counts, payroll expenses, and revenues. To bolster the applications, he submitted counterfeit supporting documents, including IRS forms, payroll records, bank statements, and New Mexico Secretary of State filings.

The scheme resulted in Spiro obtaining over $650,000 in PPP and EIDL funds. Instead of using the money for allowable business purposes like payroll or operational expenses, Spiro diverted the proceeds to cover personal expenses and debts. He further admitted to money laundering by conducting at least two monetary transactions over $10,000 each with the illicit funds, including using them to buy residential properties in Alamogordo and Ruidoso, New Mexico.

At sentencing, Spiro faces a maximum penalty of up to 30 years in federal prison. Sentencing has not yet been scheduled.

The case was investigated by IRS Criminal Investigation, with assistance from the Social Security Administration. It is being prosecuted by the U.S. Attorney’s Office for the District of New Mexico.

Acting U.S. Attorney Ryan Ellison and Acting Special Agent in Charge Jarom Gregory of IRS Criminal Investigation’s Phoenix Field Office announced the plea on January 12, 2026.

This case highlights ongoing federal efforts to combat fraud related to pandemic relief programs, which provided critical support to legitimate businesses but were exploited in various schemes nationwide.

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