Stuntman and Baker Convicted in Texas COVID Fraud Case

Even five years after the COVID-19 pandemic began to sweep through the United States, we’re still dealing with the lingering effects of the coronavirus and the measures used in response to it. While there has been much discussion of the economic and psychological effects of the lockdown, the federal government’s efforts to assist employers also opened up a new field of white-collar criminal prosecutions.

Federal authorities continue to crack down on individuals who allegedly committed fraud to obtain Paycheck Protection Program (PPP) loans. This relief program designed to help businesses stay afloat and make their payroll when economic activity was stifled. Some estimates place the total amount of PPP fraud at $200 billion, and hundreds of people have already been convicted on related charges. 

On February 6, defendants from Texas and Florida were convicted of conspiracy to commit wire fraud and conspiracy to commit money laundering in the U.S. District Court for the Eastern District of Texas. Eric “Phoenix” Marascio, an author and baker, and stuntman Cord Dean Newman misrepresented their businesses to obtain millions of dollars in federal relief funds. Rather than using the funds to cover payroll and other legitimate business expenses, they diverted the money for personal use.

Evidence at trial showed that the two men invested in foreign exchange currency markets, purchased vehicles, and made various non-business-related expenditures. These actions directly violated the terms of the PPP program, which required funds to be used for employee wages, rent and other operational costs.

The federal government has made prosecuting PPP fraud a priority. Since the program’s inception, authorities have pursued cases against individuals and groups who took advantage of emergency funds meant for struggling businesses. Many of these investigations involve wire fraud and money laundering charges, as fraudulent loan recipients often move funds through multiple accounts in an attempt to obscure their misuse.

Penalties for PPP fraud are severe. Those convicted of wire fraud conspiracy and money laundering conspiracy face substantial prison sentences, heavy fines and asset forfeiture. In many cases, the government also seeks restitution, requiring defendants to repay the stolen funds. However, the wave of PPP-related prosecutions raises the possibility of overreach, and allegations of fraud and other types of white-collar crimes are often based on ambiguous evidence. 

Don’t hesitate to retain a qualified Texas defense attorney if you’re being investigated for the misuse of PPP funds or some other type of white-collar offense. Tylden Shaeffer, Attorney at Law, P.C. in San Antonio protects the fundamental rights of clients in both state and federal courts. For a consultation, please call (210) 227-1500 or contact me online.  

By Tylden Shaeffer | Published April 4, 2025 | Posted in White Collar | Tagged expenditures, Money laundering, substantial prison