Amherst businessman Hormoz Mansouri, 71, was handed a sentence of time served and five years’ supervised release after being convicted of conspiracy to commit wire fraud and bank fraud. The U.S. Attorney’s Office in New York State revealed that Mansouri had exploited the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs by filing fraudulent loan applications.
According to Assistant U.S. Attorney Paul E. Bonanno, who handled the case, Mansouri controlled several business entities that applied for these emergency financial assistance loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The fraudulent activities involved inflating or fabricating payroll numbers and falsely representing revenues and costs of goods sold.
Among the entities involved were HLM Holding LLC, El Team Inc., NPTS Inc., 2060 Sheridan Drive LLC, 212 Holden Avenue LLC, 350 Old Niagara Falls Boulevard LLC, 47 East Amherst LLC, and 3600 Harlem Road LLC. The total amount of money obtained from these fraudulent loans was approximately $3,000,000, with an additional $450,600 in EIDL loans.
The sentencing followed a joint investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. Mansouri was also ordered to pay restitution totaling $3,197,562 and to forfeit $1,888,603. He was also subjected to one year of home detention as part of his supervised release.
On May 28, 2021, the U.S. Attorney’s Office seized approximately $1,923,603 of the fraudulently obtained money. Mansouri had been moving the fraudulent funds between various bank accounts, commingling them with legitimate business revenues and even using some to fund a campaign account titled ‘Mansouri for County Comptroller’.
Acting Special Agent-in-Charge Mark Grimm of the FBI and Special Agent-in-Charge Harry Chavis of the IRS’s Criminal Investigation Division directed the investigation that led to Mansouri’s conviction.
Related Federal Cases
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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