Arroyo Grande couple sentenced to prison for fraud

January 11, 2025

Erin and Christopher Mazzei

By KAREN VELIE

An Arroyo Grande couple who scammed the federal government out of more than a million dollars were sentenced to multi-year prison terms on Thursday, according to the U.S Attorney’s Office in Hawaii. The couple, Christopher and Erin Mazzei, pleaded guilty to wire fraud and money laundering in August.

The court sentenced Erin Mazzei to 27-months in prison while Christopher Mazzei was hit with a three-year sentence.

“When the world was grappling with the unprecedented crisis, my husband, Christopher Mazzei, and I found ourselves facing severe financial distress,” Erin Mazzei wrote in a declaration to the court. “In a moment of extreme panic and desperation, we made the poor decision of submitting COVID Payroll Protection Program loan applications.”

The couple then used the funds to purchase a condo in Hawaii and two SUVs.

The couple agreed to the forfeiture of their home at 1769 Oak Hill Road in Arroyo Grande, their condo in Kapolei Hawaii and $625,993 previously seized from the couple’s financial accounts.

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 couple submitted fraudulent loan applications based on false payroll expenses and then spent the funds on personal items.

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. The couple 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.

“The Mazzeis perpetrated a gross fraud to obtain critical resources intended for members of our community experiencing devastating hardships as a result of the pandemic,” said United States Attorney Clare E. Connors. “The sentences appropriately condemn their conduct, and our office remains committed to bringing these prosecutions to ensure accountability for such bad acts and to protect the public fisc.”

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So they stole almost $1.4 million, we got back less than $700,000 in cash leaving $700,000. Say they put down $150,000 on the condo another $100,000 on 2 SUV’s, we got back the condo, but have to deal with any bank involved, and where are the SUV’s? With the house here will also have to likely involve a bank, so still short $400,000-$50,0000 in stolen money. She got 27 months, be out in likely less than a year, he got 3 years out in a year and a half, then they can spend the outstanding almost $500,000. So there was no financial penalty they owe after release? Plus $1.4 million is a drop in the bucket, others stole much more in our state but those people likely have friends in the right places.


You missed the part of the article where they also forfeit their AG home valued $1.7M. It looks like they owed $900k on it, so that’s another $800,000