U.S. Attorney’s Office and SBA Office of Inspector General Announce Major Criminal and Civil Actions as Operation No Doze Launches in Oregon

PORTLAND, Ore.— The U.S. Attorney’s Office for the District of Oregon, in coordination with the U.S. Small Business Administration Office of Inspector General (SBA‑OIG), today announced a series of significant criminal prosecutions, arrests, indictments and civil recoveries as part of the administration’s expanded efforts to combat COVID‑19 relief fraud.

From June through September 2026, the District of Oregon’s Government Fraud Task Force brought 12 enforcement actions involving more than $29 million in losses, resulting in more than $8.6 million in recovered funds.

From September through today, the Task Force has brought 10 additional enforcement actions involving approximately $34 million in fraud losses and resulting in approximately $7.2 million in civil recovery. “COVID‑19 relief funds were created to help small businesses and families survive an unprecedented crisis — not enrich fraudsters,” said U.S. Attorney Scott Bradford. “These enforcement actions demonstrate our unwavering commitment to protecting taxpayer dollars and holding accountable those who abuse federal programs. Working alongside our partners at SBA-OIG and across the federal law enforcement community, we will continue to pursue every avenue — criminal and civil— to uncover fraud and ensure the integrity of these critical relief programs.”

“SBA OIG’s pandemic fraud data identifies approximately $1.24 billion in potentially fraudulent loans associated with Oregon—a stark reminder of the work still ahead,” said SBA Inspector General William Kirk. “Operation No Doze sends a clear message: we are not letting up. Working with our law enforcement partners, we will follow the evidence, pursue accountability and seek to recover taxpayer dollars.”"Thanks to President Trump and SBA Inspector General Bill Kirk, the SBA, in coordination with the department of justice, is bringing Operation No Doze to Oregon by sending demand letters to 2,300 borrowers suspected of PPP and COVID EIDL fraud,” said Bill Briggs, Deputy Administrator, U.S. Small Business Administration. "If you stole from taxpayers, we know who you are, and we will get that money back."

“Under the leadership of President Donald J. Trump, this Administration is bringing accountability to bad actors who defrauded federal relief programs meant to save small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “In close collaboration with the White House Task Force to Eliminate Fraud, as well as law enforcement partners across the country, we are exposing criminals, recouping stolen funds, and prosecuting offenders to the fullest extent of the law. We are also working to ensure we stop fraud at the front door. I want to thank SBA Inspector General Bill Kirk and the U.

S Attorney’s Office for the District of Oregon for their coordination to bring today’s enforcement actions, and for their continued commitment to delivering justice on behalf of American taxpayers and small businesses.”

The Criminal Division continues to identify new fraud targets and take swift action to hold offenders accountable. The Civil Division is likewise pursuing qui tam and other civil matters to secure settlements and recover taxpayer dollars efficiently while protecting the interests of the government and the public.

Summary of Enforcement Actions Announced This MonthOne guilty plea related to $1 million in SBA lossesTwo arrests involving more than $8.3 million in SBA losses, including the arrest of a previously wanted fugitive (both defendants awaiting sentencing)Five indictments charging individuals with over $17.6 million in SBA losses across multiple fraud networksTwo False Claims Act matters involving four businesses, resulting in approximately $7.2 million in recovery to the SBA (both matters remain under seal)Criminal Enforcement ActionsKenneth Burns – Fugitive ArrestBurns was arrested Oct. 15, 2026, after failing to appear for sentencing on July 7, 2026. He was previously indicted for bank fraud related to a Paycheck Protection Program (PPP) loan causing more than $373,000 in losses. After receiving the funds, he spent thousands of dollars on personal expenses and made no payments on his loan. A prior public release helped law enforcement locate him.

Afe Bey – Convicted; Arrested and Detained Pending SentencingBey pleaded guilty Oct. 7, 2026, to one count of wire fraud stemming from false statements in COVID‑19 Economic Injury Disaster Loan (EIDL) applications totaling more than $308,000. After receiving the funds, he misused the proceeds and made no repayments. His pretrial release was revoked Oct. 7, and he is being held pending sentencing on Feb. 4, 2027.

Papa Diallo – Indicted and ArrestedDiallo was indicted Sept. 3, 2026, for bank fraud and wire fraud related to false statements in PPP, EIDL and Restaurant Revitalization Fund (RRF) applications through which he obtained more than $150,000. He was arrested and appeared in court Oct. 19, 2026. The case is being investigated jointly with the Federal Reserve Board Office of Inspector General (FRB‑OIG).

Elijah Motley – IndictedMotley was indicted Oct. 21, 2026, on two counts of wire fraud involving false statements and fabricated tax documents submitted with PPP and forgiveness applications.

Countee Motley – IndictedMotley was indicted Oct. 21, 2026, on two counts of wire fraud involving false statements and fabricated tax documents submitted with PPP and forgiveness applications.

Kiara Nelson – IndictedNelson was indicted Oct. 21, 2026, on two counts of wire fraud involving false statements and fabricated tax documents submitted with PPP and forgiveness applications.

Paul Jones – IndictedJones was indicted Oct. 21, 2026, on two counts of wire fraud involving false statements and fabricated tax documents submitted with PPP and forgiveness applications.

An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.

An additional individual was indicted under seal on Oct. 15, 2026, for wire fraud and for making false, fictitious or fraudulent claims involving fabricated tax documents used in PPP applications, as well as false statements used to obtain funds under the Qualified Sick Family Leave Credit and the Families First Coronavirus Response Act. This case is being investigated jointly with IRS Criminal Investigation (IRS-CI).

Civil Enforcement ActionsThe United States has reached False Claims Act settlements with four businesses, totaling $7.2 million in recovered funds.

The District of Oregon’s Government Fraud Task Force brings together investigators and Assistant U.S. Attorneys from multiple agencies to combat fraud involving federal pandemic‑relief programs in Oregon and nationwide. Through coordinated criminal prosecution, civil enforcement and asset recovery, the task force has focused on schemes targeting SBA programs including the PPP, EIDL and RRF. Its work has established the District of Oregon as a national leader in addressing pandemic‑relief fraud.