Funds

Sedona brothers scammed government out of over $100M in COVID funds


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Two brothers from Arizona pleaded guilty to conspiring to commit wire fraud for their roles in defrauding the federal government out of more than $100 million in COVID-19 relief funds.

Eric and Anthony Karnezis of Sedona entered guilty pleas in two separate but related cases on March 20 in the U.S. District Court for Oregon.

The scheme occurred in both 2021 and 2022 and involved the brothers submitting hundreds of fraudulent Paycheck Protection Program loan applications, which were based on false payroll information and tax documents, according to a statement from the U.S. Attorney’s Office for the District of Oregon.

Plea agreements signed by the brothers require them to pay back tens of millions of dollars in restitution and forfeit any criminally derived proceeds and property, according to the federal prosecutor’s office.

The brothers each face up to 20 years in prison. Their sentencing was scheduled for June.



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