PORTLAND, Ore. — Federal prosecutors in Oregon have announced a new wave of criminal prosecutions, arrests and civil settlements targeting alleged fraud involving COVID-19 relief programs, reporting approximately $34 million in additional fraud losses and $7.2 million in civil recoveries since September.
The U.S. Attorney’s Office for the District of Oregon and the U.S. Small Business Administration Office of Inspector General announced the enforcement actions Wednesday, October 28, as part of a nationwide effort called Operation No Doze, aimed at holding individuals and businesses accountable for fraud involving pandemic relief funds.
Federal officials said the Government Fraud Task Force brought 12 enforcement actions between June and September 2026, involving more than $29 million in losses and recovering more than $8.6 million. Since September, another 10 actions have involved approximately $34 million in alleged fraud losses, with about $7.2 million recovered through civil settlements.
The latest actions include one guilty plea, two arrests involving more than $8.3 million in Small Business Administration losses, five indictments involving more than $17.6 million in losses, and two civil False Claims Act matters involving four businesses.
Several defendants face federal fraud charges
Among the cases announced was the arrest of Kenneth Burns on October 15. Burns had previously been indicted on bank fraud charges related to a Paycheck Protection Program loan that allegedly resulted in more than $373,000 in losses. Prosecutors say he failed to appear for sentencing in July after receiving the loan funds, which he allegedly used for personal expenses without making loan payments.
Afe Bey pleaded guilty to wire fraud on October 7 in connection with Economic Injury Disaster Loan applications containing false statements. According to prosecutors, the applications involved more than $308,000, and Bey misused the funds and made no repayments. His pretrial release was revoked, and he is being held pending sentencing scheduled for February 4, 2027.
Papa Diallo was indicted in September on bank and wire fraud charges involving more than $150,000 obtained through allegedly false applications for Paycheck Protection Program loans, Economic Injury Disaster Loans and the Restaurant Revitalization Fund. He was arrested and appeared in court October 19.
Four additional defendants — Elijah Motley, Countee Motley, Kiara Nelson and Paul Jones — were indicted October 21 on two counts of wire fraud each. Prosecutors allege they submitted false statements and fabricated tax documents with applications for Paycheck Protection Program loans and loan forgiveness.
Federal officials also disclosed another indictment that remains under seal. That case involves allegations of fabricated tax documents used in pandemic relief applications and false claims involving federal sick and family leave tax credits.
An indictment is an accusation, and all defendants are presumed innocent unless proven guilty in court.
Businesses pay $7.2 million in settlements
The federal government has also reached settlements with four businesses under the False Claims Act, resulting in approximately $7.2 million in recoveries for the Small Business Administration. Officials said the two civil matters remain under seal and did not identify the businesses.
The enforcement effort targets fraud involving several federal pandemic relief programs, including the Paycheck Protection Program, Economic Injury Disaster Loans and the Restaurant Revitalization Fund.
U.S. Attorney Scott Bradford said the relief programs were intended to help small businesses and families weather the pandemic, not provide opportunities for personal enrichment. He said federal authorities would continue pursuing criminal and civil cases to protect taxpayer funds.
Small Business Administration Inspector General William Kirk said the agency’s pandemic fraud data identifies approximately $1.24 billion in potentially fraudulent loans associated with Oregon, underscoring the scale of the ongoing investigation.
Operation No Doze brings together federal investigators and prosecutors to pursue alleged pandemic relief fraud through criminal prosecutions, civil enforcement and efforts to recover government funds.
