LAS VEGAS (KTNV) — The Department of Justice said a federal jury has convicted a Henderson man for defrauding banks of more than $11.2 million in COVID-19 relief funds intended to help small businesses.
In a Friday news release, the U.S. Attorney's Office for the District of Nevada said 30-year-old Meelad Dezfooli of Henderson defrauded three banks by submitting fraudulent loan applications under the Paycheck Protection Program (PPP). This program was designed to help small businesses affected by the pandemic in areas like paying employees and other basic business expenses.
Federal prosecutors said Dezfooli falsely submitted his applications and got $11.2 million under the pretense the loans were for businesses he operated.
Furthermore, federal prosecutors said information on his applications including payroll, employees, and usage of loan proceeds were false. Once Dezfooli had gotten the funds, prosecutors said he laundered it and spent it on around 25 residences and two luxury cars, a personal investment account, and extensive gambling.
Even after he was originally charged, prosecutors said Dezfooli continued to launder criminal proceeds by selling five of the purchased residences.
Dezfooli was convicted by a jury on three counts of bank fraud, three counts of money laundering, and four counts of engaging in monetary transactions of criminally derived property.
His sentencing is set for Dec. 5, 2025.
Dezfooli faces a maximum penalty of 30 years in prison for each bank fraud charge, 20 years for each money laundering charge, and 10 years for each charge of engaging in monetary transactions of criminally derived property.
In total, Dezfooli faces a maximum penalty of 160 years in prison.
