Twin Brothers Plead Guilty to Fraud of Nearly $109 Million in Oregon District Court

Twin brothers from Sedona, Arizona, pleaded guilty to conspiring to commit wire fraud amounting to nearly $109 million when they appeared separately in the Oregon District Court in Portland earlier this week.

The Brother Defrauded the U.S. Small Business Administration

The brothers conspired with one another and others to defraud the U.S. Small Business Administration (SBA) of close to $109 million in loans meant to help small businesses during the COVID pandemic.

On Thursday, author of Golden Scissors and self-confessed animal lover Eric Karnezis (43), entered a plea of guilty, followed the following day by his twin brother, Anthony Karnezis (43), who too pleaded guilty to conspiring to commit wire fraud.

Court records reveal that between January 2021 and March 2022, Eric Karnezis conspired to collect fraudulent and false business information from customers. He then submitted about 350 fraudulent Paycheck Protection Program (PPP) loan applications through a lending service provider, Blueacorn, to Capital Plus Financial.

He Created False Documents, Payroll, and Tax Information

Eric Karnezis and his co-conspirators created fictitious documents supporting the fraudulent loan applications, including false payroll information and tax documents.

Eric Karnezis submitted, or was the cause of at least 1,300 PPP applications, to collect about $105 million in fraudulent transactions.

He received about $3 million in fees for his role in the conspiracy and for submitting fraudulent applications. Eric Karnezis received about $3 million as fees for his role in the conspiracy and for submitting the fraudulent applications.

At a previous hearing, the court heard that Eric Karnezis spent the money to purchase properties in California, Michigan, and Nevada.

Court records show that twin brother Anthony Karnezis carried out a related scheme until at least March 2022.

He conspired with his brother, and others, to gather fraudulent business information from customers and use the information to submit at least 140 fraudulent PPP loan applications, through Blueacorn, to Capital Plus Financial.

Anthony Karnezis also required applicants to pay a fee for his role in the conspiracy for which he received more than $957,000.

On 21 August 2024, a federal grand jury in Portland returned a 23-count indictment in which Eric Karnezis and other defendants were accused of conspiring to commit wire fraud and money laundering. Anthony Karnezis was charged with criminal information that conspired to commit wire fraud on 19 February 2025.

The brothers each face a maximum prison sentence of 20 years, fines of $250,000, and three years of supervised release. They will both be sentenced on 20 June before U.S. District Court Judge Karin J. Immergut in Portland.

As part of their plea agreements, Eric Karnezis agreed to pay between $25 million and $65 million in restitution to his victims, and Anthony Karnezis agreed to pay between $3.5 million and $9.5 million in restitution to his victims.

They have also agreed to forfeit any proceeds and property obtained by their criminal activities.

The Karnezis twins were prosecuted in Oregon because most applications submitted online were received by the federal small business agency’s computer servers in Oregon.

The case was prosecuted by Meredith Bateman and Robert Trisotto, Assistant U.S. Attorneys for the District of Oregon. Assistant U.S. Attorney Julia Jarett, also of the District of Oregon, heads forfeiture proceedings.