A Nevada man has been sentenced to more than 15 years in prison and five years of supervised release for fraudulently obtaining over $11 million in Paycheck Protection Program (PPP) loans. The funds, guaranteed by the Small Business Administration under the CARES Act, were laundered through real estate transactions, gambling, and luxury purchases. The court also ordered restitution of nearly $11.8 million, forfeiture of over $11.2 million, and the surrender of two vehicles and five properties.
“This defendant stole more than $11 million in taxpayer funds that he used to finance luxury purchases and gambling,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Prosecuting schemes like this is 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. This sentence demonstrates the Criminal Division’s continuing commitment to protecting the public’s money from thieves and fraudsters.”
“The consequences of the defendant’s PPP loan fraud scheme have caught up with him and now he will be incarcerated for exploiting more than $11.2 million from a taxpayer-funded program,” said Acting U.S. Attorney Sigal Chattah for the District of Nevada. “Thanks to the diligent work of our law enforcement partners, the defendant is being held accountable for defrauding the government.”
“This lengthy sentence shows how seriously the American government takes PPP loan fraud,” said Special Agent in Charge Carissa Messick of IRS Criminal Investigation’s (IRS-CI) Phoenix Field Office. “This loan program was created to support small businesses and their employees during a once in a lifetime pandemic. When Mr. Dezfooli fraudulently obtained these loans, he not only stole from the Small Business Administration, but also from American taxpayers to the tune of $11.2 million. This sentencing is a testament to IRS-CI’s dedication to protecting American taxpayers and ensuring the integrity of our tax system.”
“Today’s sentencing holds accountable and brings to justice a fraudster who stole millions of taxpayer dollars intended to help small business owners,” said Special Agent in Charge Jon Ellwanger of the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau Western Region. “We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office to achieve this result.”
“Mr. Dezfooli falsified loan applications to fraudulently obtain PPP loan proceeds that he used to enrich himself to the detriment of legitimate business struggling during the pandemic,” said Special Agent in Charge Ryan Korner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). “The defendant’s actions not only defrauded the PPP loan program but also disadvantaged business owners who were actually entitled to the benefits. FDIC OIG is committed to working alongside our law enforcement partners to protect the Nation’s Financial System and hold accountable those individuals, like Mr. Dezfooli, who steal benefits designated to help those in need.”
Evidence presented at trial showed that Meelad Dezfooli submitted three fraudulent applications on behalf of entities he controlled, using false documents such as fabricated tax records and utility bills while inflating employee numbers and payroll expenses.
After receiving PPP funds, Dezfooli purchased about 25 properties in Nevada using aliases or fictitious entities such as “James Dez” or “Holdings Trust.” He continued laundering money even after indictment by selling property acquired with illegal funds, funding his investment account, buying luxury cars, and gambling throughout Las Vegas; five homes were seized during investigation.
On September 4, 2024, a jury convicted Dezfooli on multiple counts including bank fraud, money laundering, and conducting transactions with criminally derived property—one violation occurred after charges had already been filed.
The case was investigated by IRS-CI, FRB-OIG, FDIC-OIG, and SBA-OIG agencies.
Trial Attorneys D. Zachary Adams and Taylor G. Stout from MLARS along with Assistant U.S. Attorney Daniel R. Schiess prosecuted; legal staff provided additional support.
Information about COVID-19 related fraud can be reported via phone or online through resources provided by https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
