Nevada Man Sentenced to Over 15 Years in Prison for PPP Loan Fraud

A Nevada man, Meelad Dezfooli, was sentenced to 15 years in prison and five years of supervised release for fraudulently obtaining over $11 million in Paycheck Protection Program (PPP) loans. Dezfooli, of Henderson, Nevada, submitted three fraudulent applications on behalf of entities he controlled, using false documents and grossly inflated information. He laundered the money through real estate transactions, gambling, and luxury purchases, and was also ordered to pay restitution in the amount of $11,793,064.15 and forfeiture in the amount of $11,231,186.52.

Key Takeaways:

• Meelad Dezfooli was sentenced to 15 years in prison for PPP loan fraud, with five years of supervised release.
• Dezfooli submitted three fraudulent applications for over $11 million in PPP loans, using false documents and grossly inflated information.
• He laundered the money through real estate transactions, including the purchase of approximately 25 properties in Nevada.
• Dezfooli also used the money for personal investment accounts, luxury cars, and gambling in Las Vegas.
• A total of five homes were seized by law enforcement as part of the investigation.
• A jury found Dezfooli guilty of three counts of bank fraud, three counts of money laundering, and four counts of conducting transactions using criminally derived property.
• The case was investigated by the IRS-CI, FRB-OIG, FDIC-OIG, and SBA-OIG.
• Trial Attorneys D. Zachary Adams and Taylor G. Stout of the Criminal Division's Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorney Daniel R. Schiess for the District of Nevada prosecuted the case.

Statistics:

• Total amount of PPP loans obtained by Dezfooli: $11.2 million
• Total amount of restitution ordered by the court: $11,793,064.15
• Total amount of forfeiture ordered by the court: $11,231,186.52
• Number of properties purchased by Dezfooli with PPP loan funds: approximately 25
• Number of homes seized by law enforcement: 5
• Number of employees Dezfooli claimed to have when submitting PPP loan applications: unknown
• Amount of money used by Dezfooli for personal investment accounts and luxury purchases: unknown

Sources:

• United States Attorneys General 1: A Nevada man was sentenced today to over 15 years in prison and five years of supervised release for fraudulently obtaining more than $11 million in Paycheck Protection Program (PPP) loans
• Trial Attorneys D. Zachary Adams and Taylor G. Stout of the Criminal Division's Money Laundering and Asset Recovery Section (MLARS)
• Assistant U.S. Attorney Daniel R. Schiess for the District of Nevada
• IRS-CI, FRB-OIG, FDIC-OIG, and SBA-OIG: investigated the case