WHAT YOU NEED TO KNOW
- Federal prosecutors charged 22 defendants in an Oregon pandemic relief fraud crackdown involving $63 million in reported losses.
- The fraud task force has recovered $15.8 million, while the Justice Department aims to recover $1.2 billion.
- Officials are sending more than 2,300 demand letters totaling nearly $97 million to borrowers whose loans showed potential fraud indicators.
- Highlighted cases involved alleged fraud connected to PPP, EIDL, Restaurant Revitalization Fund, and loan forgiveness applications.
Federal prosecutors in Oregon have announced a sweeping $63 million crackdown on alleged fraud involving pandemic relief funds.
The US Attorney’s Office for the District of Oregon said Wednesday that 22 defendants have been charged since June 2026, as reported by The Post Millennial.
The effort has been named Operation No Doze, a fitting label for federal investigators tracking money allegedly taken from programs created to support struggling businesses and families.
The cases cover tens of millions of dollars in reported losses across multiple federal relief initiatives.
US Attorney Scott Bradford said federal indictments were returned against 12 alleged fraudsters between June and September 2026. Those cases involved more than $29 million in losses, according to the office.
Another 10 defendants were charged with fraud offenses between September and October. Those cases accounted for $34 million in additional losses, bringing the crackdown’s announced total to $63 million.
The office’s fraud task force has recovered $15.8 million of the stolen funds. The US Department of Justice is aiming to recover $1.2 billion as federal authorities continue pursuing money connected to pandemic relief fraud.
“COVID-19 relief funds were created to help small businesses and families survive an unprecedented crisis — not enrich fraudsters,” Bradford said in a press release.
"COVID‑19 relief programs were meant as a critical lifeline for small businesses and our communities during an unprecedented crisis. These funds were meant to keep paychecks flowing, businesses’ doors open, and communities afloat—not line the pockets of fraudsters."
Today, the U.S. Attorney's Office, in coordination with the U.S. Small Business Administration Office of Inspector General (SBA‑OIG), announced new criminal prosecutions, arrests, indictments and civil recoveries related to COVID-19 relief fraud. From June through today, the District of Oregon’s Government Fraud Task Force has brought 22 enforcement actions, involving more than $63 million in losses, and resulting in more than $15.8 million in recovered funds. Full press conference: https://t.co/LHGSEKoYcg — U.S. Attorney Oregon (@USAO_OR) October 29, 2026
His office is using both criminal cases and recovery efforts as part of the wider operation.
US Small Business Administration Office of Inspector General William Kirk told reporters that federal officials are sending demand letters to thousands of people.
Those letters are directed toward recipients whose pandemic relief loans showed potential indicators of fraud.
“Over the next few days, over 2,300 demand letters totaling nearly $97 million are being sent to applicants whose loans included indicators of fraud,” Kirk said during an October 28 press conference in Portland.
The demand letters represent another part of the government’s push to recover relief money.
The US Attorney’s Office highlighted the case of Afe Divine Bey, who pleaded guilty on October 7 to one count of wire fraud.
The charge stemmed from false statements in COVID-19 Economic Injury Disaster Loan applications totaling more than $308,000.
After receiving the money, Bey misused the proceeds and made no repayments, according to the office. His pretrial release was revoked, and he is scheduled to be sentenced in February 2027.
The office also identified Burns, who was arrested on October 15 after failing to appear for his July 7 sentencing. He was indicted for bank fraud involving a Paycheck Protection Program loan that caused more than $373,000 in losses.
Burns spent thousands of dollars from the loan on personal expenses and made no payments on it. The allegations place his case among those involving federal programs established to deliver pandemic assistance.
On September 3, 2026, Diallo was indicted for bank fraud and wire fraud connected to false statements in several applications.
Those applications involved the Paycheck Protection Program, the Economic Injury Disaster Loan program, and the Restaurant Revitalization Fund.
Prosecutors said Diallo obtained more than $150,000 through those applications. He was arrested on October 19.
Three more defendants were charged in cases involving Paycheck Protection Program applications and requests for loan forgiveness.
Motley and Nelson were each indicted on October 21 on two counts of wire fraud involving false statements and fabricated tax documents.
Jones was also indicted on October 21 on two counts of wire fraud. His case involved false statements and fabricated documents submitted with Paycheck Protection Program and forgiveness applications.
“These enforcement actions demonstrate our unwavering commitment to protecting taxpayer dollars and holding accountable those who abuse federal programs,” Bradford said.
“We will continue to pursue every avenue — criminal and civil — to uncover fraud and ensure the integrity of these critical relief programs.”
The Oregon US Attorney’s Office has announced several broad fraud crackdowns over recent months involving money taken from taxpayer-funded services.
Those announcements include sweeping SNAP fraud indictments in which nearly all of the 40 defendants were illegal immigrants.
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Operation No Doze now brings another large group of defendants into the federal government’s pandemic fraud enforcement campaign.
With $15.8 million already recovered and demand letters covering nearly $97 million being sent, officials are pursuing both criminal charges and the return of taxpayer money.
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