A Nevada man has been sentenced to more than 15 years in prison for a COVID-19 relief fraud case. Prosecutors said he obtained over $11 million in Paycheck Protection Program loans meant for small businesses. He was also ordered to serve five years of supervised release and pay restitution, according to the U.S. Attorney’s Office.
The U.S. Attorney’s Office announced that Meelad Dezfooli, also known as "James Dez," committed COVID-19 relief fraud by filing false Paycheck Protection Program loan applications using fake tax records and inflated employee and payroll information. He received millions of dollars, which he used to buy about 25 properties in Nevada, luxury vehicles, and to fund gambling. Acting Assistant Attorney General Matthew R. Galeotti said, "Prosecuting schemes like this is critical to protecting the contributions of hard-working Americans" and "This sentence demonstrates the Criminal Division’s continuing commitment to protecting the public’s money from thieves and fraudsters."
Dezfooli, a Nevada man, was convicted of bank fraud, money laundering, and related crimes after obtaining over $11 million in fraudulent Paycheck Protection Program loans. Even after being indicted, he continued laundering money, including through property transactions. Authorities seized five homes, and he was ordered to forfeit two vehicles and five properties. The case was investigated by IRS Criminal Investigation’s, FRB-OIG, Federal Deposit Insurance Corporation Office of Inspector General, and SBA-OIG, and prosecuted by the District of Nevada and the Justice Department’s Criminal Division. Officials emphasized the seriousness of Paycheck Protection Program fraud and encouraged the public to report similar schemes to the National Center for Disaster Fraud, as reported by the U.S. Attorney’s Office.
