The Sedona man and his accomplices are facing serious allegations of attempting to defraud the government’s Paycheck Protection Program. This scheme aimed to unlawfully obtain a staggering $178 million from federal funds.
Eric Karnezis, a 43-year-old resident of Sedona, has been indicted on charges of fraud for his involvement in a complex scheme to secure loans through the Paycheck Protection Program, established amid the COVID-19 crisis. According to the U.S. Attorney’s Office of Oregon, Karnezis and his associates submitted a total of 1,300 fraudulent PPP applications to the U.S. Small Business Administration, resulting in $105 million being disbursed to these deceitful claims.
The defendants allegedly provided fictitious payroll and tax information in their applications, deceiving the authorities in order to obtain financial benefits intended for businesses struggling during the pandemic-induced shutdowns. This criminal act undermines the purpose of the PPP program, which was designed to offer vital support to affected businesses.
On September 5, Karnezis was arrested in Sedona and pled not guilty in federal court during his initial appearance. The other individuals implicated in this case are identified as Lynisha Wells, Nikkia Bennett, and Fredrico Williams, all from California.
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