Henderson man convicted in $11.2M pandemic relief fraud
A Henderson resident faces the possibility of decades in prison after he was convicted Wednesday of fraudulently obtaining $11.2 million in COVID-19 relief funds and buying about 25 homes and two luxury cars, federal officials said.
Meelad Dezfooli, 30, defrauded three banks of money intended for pandemic relief, according to a Department of Justice news release.
The jury convicted Dezfooli of three counts of bank fraud, three counts of money laundering, and four counts of engaging in monetary transactions in criminally derived property.
The evidence at trial showed that Dezfooli falsely represented certain material information in his loan applications, including information about payroll, employees, and use of the loan proceeds, the news release said.
After fraudulently obtaining more than $11.2 million in Paycheck Protection Program funds, Dezfooli laundered and/or spent the proceeds by, among other things, buying approximately 25 residences and two luxury cars, funding a personal investment account, and gambling extensively, the release said.
After he was originally charged, Dezfooli continued laundering criminal proceeds by selling five of the residences that he acquired with the fraudulently obtained funds, according to the Justice Department.
Dezfooli is scheduled to be sentenced on Dec. 5. He faces a maximum penalty of 30 years in prison on each of the bank fraud counts, 20 years in prison on each of the money laundering counts, and 10 years in prison on each of the counts of engaging in monetary transactions in criminally derived property.
Contact Marvin Clemons at mclemons@reviewjournal.com.