Nevada Man Sentenced For $11M PPP Fraud & Money Laundering

Meelad Dezfooli, a resident of Henderson, Nevada, has been handed a 15-year prison sentence for his involvement in a massive COVID-19 relief fraud and money laundering scheme. The defendant, who was also sentenced to five years of supervised release, is accused of obtaining over $11 million in Paycheck Protection Program (PPP) loans, which were guaranteed by the Small Business Administration under the CARES Act.

Dezfooli, through fraudulent applications and falsified documents, secured the funds for entities he controlled. He then laundered the money through real estate transactions, gambling activities, and luxury purchases, according to federal prosecutors. The court also ordered him to pay restitution in the amount of $11,793,064.15, forfeiture of $11,231,186.52, and seize 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.’

Acting U.S. Attorney Sigal Chattah for the District of Nevada commented, ‘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. Thanks to the diligent work of our law enforcement partners, the defendant is being held accountable for defrauding the government.’

Special Agent in Charge Carissa Messick of IRS Criminal Investigation’s (IRS-CI) Phoenix Field Office highlighted the gravity of the offense, stating, ‘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.’

According to evidence presented at trial, Dezfooli submitted three fraudulent applications on behalf of entities he controlled, grossly inflating the number of employees and payroll expenses. He used aliases and fictitious entities to purchase approximately 25 properties in Nevada before being indicted.

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