Eric states on his Facebook page that he and his twin brother Anthony, grew up homeless in the 1990s as middle schoolers. They faced addiction and lived a life of crime to survive. Eric wrote a book on their life experiences, the link to his book on Amazon is below.
Four Charged in $178 Million COVID Relief Fund Fraud Scheme
SEDONA, Ariz. — Four individuals, including one Sedona man, have been charged in a scheme to defraud the U.S. Small Business Administration (SBA) of at least $178 million in loans intended to assist small businesses during the COVID-19 pandemic, according to the U.S. Attorney for the District of Oregon.
Eric Karnezis, 43, of Sedona, Arizona, faces multiple charges, including conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering, as outlined in a 23-count indictment. His co-defendants include Lynisha Wells, 47, and Nikkia Bennett, 43, both of Chula Vista, California, and Fredrico Williams, 48, of San Diego.
From January 2021 to March 2022, Karnezis allegedly collaborated with various recruiters, including Williams, to obtain fraudulent business information from clients such as Wells and Bennett. They reportedly used this information to submit fake Paycheck Protection Program (PPP) loan applications to the SBA.
“To facilitate the scheme, Karnezis and his co-conspirators created fictitious documents, including false payroll and tax information, to support their fraudulent loan applications,” a statement from authorities said.
Karnezis is accused of submitting or causing the submission of at least 1,300 PPP applications, attempting to secure over $178 million. The federal government approved approximately $105 million from these fraudulent applications.
After his arrest in Sedona, Karnezis made his first federal court appearance in the District of Arizona on September 6, 2024, where he pleaded not guilty. He was released following a detention hearing and awaits arraignment in Oregon on September 24, 2024.
Bennett and Wells had their initial court appearances and are scheduled for arraignment in the District of Oregon on August 23 and August 29, 2024, respectively. Both were released and are preparing for a jury trial set to begin on February 11, 2025. Williams is set to be arraigned in Oregon on September 20, 2024.
Charges of conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering each carry potential sentences of up to 20 years in federal prison, along with three years of supervised release and fines up to $250,000 or twice the gross gains or losses from the offense.
Since January 2021, over 50 individuals have been charged in Oregon for fraud schemes targeting federal COVID-19 relief programs. Collectively, these fraudsters attempted to steal more than $903 million in federal funds, leading to convictions for 38 individuals, who received a combined total of 631 months in federal prison, in addition to 1,194 months of probation and/or supervised release.
