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Arroyo Grande couple used PPP money to buy condo, lose home

June 8, 2023

Christopher and Erin Mazzei bought a condo at this development in Kapolei, Hawaii for $820,000 in Dec. 2020.

By KAREN VELIE

A couple who allegedly scammed the federal government out of more than a million dollars they used to purchase a condo in Hawaii is losing their Arroyo Grande home to foreclosure.

The couple, Christopher and Erin Mazzei, is charged with wire fraud, money laundering, and conspiracy, according to a 2022 indictment. Their jury trial is scheduled to begin on March 19, 2024 at the U.S. District Court in Hawaii.

On March 16, the court authorized the foreclosure of the couple’s home at 1769 Oak Hill Road in Arroyo Grande. After costs, liens and fees are satisfied, remaining proceeds are subject to seizure by the United States, according to the court order.

The Oak Hill Road property is currently in the foreclosure process, though an auction date has not yet been set.

After obtaining $1,365,000 in forgivable Paycheck Protection Program loan funds intended for COVID-19 relief for their film production and catering companies, the couple then purchased a condo in Hawaii and two SUVs.

The indictment alleges the couple submitted fraudulent loan applications based on false payroll expenses and then spent the funds on personal items. They were arraigned in June and remain out of jail on bonds of $50,000 each.

On April 13, 2020, Christopher Mazzei applied for a PPP loan for Gusto on the Go catering claiming he was the only owner of the San Luis Obispo based company, which he reported had 27 employees. However, Christopher Mazzei’s mother was the registered owner of Gusto on the Go, which the state of California suspended on Oct. 1, 2020.

On April 20, 2020, the couple applied for a PPP loan for Better Half Entertainment claiming they had 12 employees, did not own any other businesses and would not be applying for any other PPP loans, none of which was accurate, according to the indictment. The couple allegedly provided the bank with false payroll records.

In 2020, the couple applied for and received eight PPP loans for three businesses: Gusto on the Go catering in San Luis Obispo, Better Half Entertainment in SLO and Better Half Entertainment in Beverly Hills.

If convicted, the government plans to seek forfeiture of nearly $600,000 from two bank accounts, $42,000 from a car dealership in San Luis Obispo for the purchase of a Ford Explorer, the condo in Hawaii and the Oak Hill Drive property in Arroyo Grande, according to the indictment.

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11 Comments
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This is just another example how the Government doesn’t keep track of where YOUR tax money goes. That’s why we are Trillions in debt


1

“ another example how the Government doesn’t keep track “


 You say that, and yet “charged with wire fraud, money laundering, and conspiracy,”


Someone was keeping track.


0

I hope they were wearing masks


15

If people who received the free money has done this… just think of what the people who provided the free money has done…..


11

Like this?


“House Speaker Kevin McCarthy made clear Wednesday that Republicans are not finished targeting the nation’s safety net programs—and signaled a coming effort by the GOP to slash Social Security and Medicare.

In a Fox News appearance ahead of the House’s passage of the debt limit legislation, McCarthy, R-Calif., said the measure is just “the first step” of the GOP’s broader agenda, which includes further cuts to federal programs and massive tax breaks for the wealthy.”


0

A happy ending!


25

Imagine what the welfare industry is misappropriating and that does not include the independent nonprofit scams.


34

I’m so glad someone was able to make this story about how poor people are awful.


-24

My definition of poor people has nothing to do with money, something that most understand. I was highlighting poor choices, poor choices that we taxpayers are funding.


7

“My definition of poor people has nothing to do with money,”


Lol


1

Jorge is a troll with the worst takes possible on almost every topic. I would classify him as “poor” if we are using intelligence as a measurement rather than money.


0