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Los Angeles Man Sentenced to Over 5 Years for COVID-19 Loan Fraud and Illegal Firearm Possession

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Published on December 15, 2023
Los Angeles Man Sentenced to Over 5 Years for COVID-19 Loan Fraud and Illegal Firearm PossessionSource: US Courts

A Los Angeles man was charged with a 63-month prison term for conning the government out of more than $150,000 in COVID-relief loans while also stashing illegal firearms and thousands of rounds of ammo. Sean Schoepflin, 44, who also went by "Sean Fitzgerald," was sentenced by United States District Judge Fernando M. Olguin. Schoepflin and was immediately taken into custody at the sentencing hearing.

According to the Justice Department, Schoepflin was found guilty after a three-day trial in late 2022 for two counts of wire fraud and two counts of money laundering, and in a separate trial for being a felon in possession of firearms and ammunition. His purported company, Capital Adventures Inc., claimed several employees and significant revenue to snag the loans, which Schoepflin primarily used for personal splurges.

Schoepflin applied for Economic Injury Disaster Loans (EIDLs), seeking not only the $150,000 he secured but also angling for another $1.85 million. He stated that his business generated over half a million dollars in revenue and would use the loans for business capital. Schoepflin even lied about a past felony conviction on the loan application, said a sentencing memorandum obtained by the Justice Department.

A startling discovery was made by federal agents in March 2022 when they discovered more than 4,000 rounds of ammunition and nine firearms in Schoepflin's residence, including three AR-style rifles. Due to his past felony convictions in Florida for crimes like witness tampering and controlled substance possession, firearms and ammunition are not allowed to be possessed by him.

Schoepflin's wife, Erika Leon, also known as "Erika Fitzgerald," 46, is also facing charges related to the scheme. Leon has pleaded not guilty to two counts of wire fraud and is expected to stand trial early next year. Meanwhile, the case is being prosecuted by Assistant United States Attorneys Solomon Kim and David C. Lachman of the Terrorism and Export Crimes Section.

As the government continues to crack down on COVID-related fraud, the public is encouraged to report suspected fraudulent activity. Anyone with information can reach out to the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or use the NCDF Web Complaint Form.