Allen, Texas – Two Individuals Convicted in COVID-19 Loan Fraud Scheme
In a significant development, a Collin County man and a Florida resident have been convicted of federal charges related to a COVID-19 fraud scheme in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr.
Cord Dean Newman, 47, of Homosassa, Florida, and Eric “Phoenix” Marascio, 53, of Allen, Texas, were found guilty of conspiracy to commit wire fraud and conspiracy to commit money laundering following a four-day trial before U.S. District Judge Jeremy D. Kernodle on February 6, 2025.
The court heard that Newman, a Hollywood stuntman, and Marascio, an author and baker, orchestrated a multimillion-dollar loan fraud and money laundering conspiracy. The evidence presented at trial revealed that the two men defrauded lenders and the U.S. Small Business Administration (SBA) by fraudulently obtaining Paycheck Protection Program (PPP) loans during the COVID-19 pandemic. Once in possession of the loan funds, Newman and Marascio diverted the money for personal use, including investments in foreign exchange markets, vehicle purchases, and various other non-business-related expenditures.
The PPP, part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, was designed to provide critical financial assistance to small businesses during the economic downturn caused by the pandemic. The loans were intended to help businesses retain employees and cover other essential expenses. The Economic Injury Disaster Loan (EIDL) Program also provided low-interest loans to businesses, renters, and homeowners in areas impacted by declared disasters.
Both defendants now face up to 20 years in federal prison at sentencing. While the maximum statutory penalty is provided for informational purposes, the actual sentence will be determined by the court, taking into account advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled following a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service – Criminal Investigations (IRS-CI). It is being prosecuted by Assistant U.S. Attorneys in the Eastern District of Texas.
