(The Center Square) – A Nevada man recently received over 15 years in prison after fraudulently obtaining over $11 million from the Paycheck Protection Program during the COVID-19 pandemic.
This sentence comes after Meelad Dezfooli of Henderson, Nevada, pleaded guilty last year to bank fraud, money laundering and illicit transaction charges, according to the U.S. Attorney’s Office for the District of Nevada.
In addition to this sentence, Dezfooli will serve another five years of supervised release and must pay back nearly $12 million in restitution, the U.S. Attorney’s Office said.
The defendant will also need to forfeit $11.2 million, two vehicles and five properties.
To obtain these fraudulent loans, Dezfooli submitted three applications on behalf of entities he controlled, which resulted in the millions of dollars he received from the federal government, the U.S. Attorney’s Office said.
When Dezfooli filled out these applications, he used false documents, including fabricated tax records and a utility bill, the office said.
Furthermore, he exaggerated the number of employees and payroll expenses for each entity, the U.S. Attorney’s Office noted.
Once the defendant received the money, he used it to buy an estimated 25 properties in Nevada under the alias “James Dez” or a fake entity named “Holdings Trust,” the U.S. Attorney’s Office said. The office added Dezfooli used the money to fund his personal investment account, obtain luxury cars and gamble in Las Vegas.
After being indicted for his PPP scheme, Dezfooli continued to launder money, including selling property he had purchased with the fraudulent funds, the U.S. Attorney’s Office noted.
Matthew Galeotti, the Department of Justice’s criminal division acting assistant attorney general, said prosecuting schemes like Dezfooli’s are “critical to protecting the contributions of hard-working Americans, preserving confidence in government relief programs, and ensuring that aid reaches those who truly need it.”
Dezfooli’s actions have “caught up with him,” said Sigal Chattah, the acting U.S. attorney for the District of Nevada. Chattah also thanked law enforcement for their efforts to hold Dezfooli “accountable for defrauding the government.”
Dezfooli’s case was not the only COVID-related fraud case the state dealt with in August.
Craig Renard Gibson, a Las Vegas man, was charged with bank fraud, illegal transactions and aggravated identity theft.
The U.S. Attorney’s Office for Nevada said Gibson stole over $500,000 in benefits meant for unemployed people during the COVID-19 pandemic.
If convicted, he faces 162 years in prison and a fine exceeding $5 million, the U.S. Attorney’s Office said.
