A Nevada man has been convicted for a multimillion-dollar scam exploiting COVID-19 relief funds. Meelad Dezfooli, 30, of Henderson, was found guilty of defrauding three banks of over $11.2 million meant to aid small businesses during the pandemic, according to a statement from the U.S. Attorney's Office for the District of Nevada.
The court found that Dezfooli engaged in fraudulent activities to siphon Paycheck Protection Program (PPP) loans, using them for personal expenses including buying homes and luxury vehicles, as well as for gambling. The misuse of the funds, intended to support payroll and basic business expenses, came at a time when many small businesses faced existential threats due to the economic fallout of the pandemic. Despite the conviction, Dezfooli's legal consequences are not yet finalized, as he is scheduled for sentencing on December 5.
During the trial, evidence presented showed that Dezfooli had misrepresented key information in his loan applications, such as employee count and payroll expenses, the U.S. Attorney's Office for the District of Nevada reported. Following his initial charges, he continued to launder money through the sale of assets acquired with the fraudulent loans.
Dezfooli was ultimately convicted on several counts including bank fraud, money laundering, and engaging in transactions with criminally derived property. He faces up to 30 years in prison for each bank fraud count, 20 years for each money laundering count, and 10 years for each transaction with criminally derived property. These sentencings will take into account various statutory factors, and as well the U.S. Sentencing Guidelines.
The conviction is part of a wider crackdown by the Justice Department's COVID-19 Fraud Enforcement Task Force, established to target and mitigate pandemic-related frauds. Information about potential COVID-19 fraud can be reported to the National Center for Disaster Fraud Hotline.
