Mehdi Pazouki, COVID-19 Fraud, Virginia 2024

A McLean man has pleaded guilty to a COVID-19 fraud scheme that netted him $455,000 in Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loan (EIDL) funds.

Mehdi Pazouki, 65, owner and sole employee of Systems Integration Services Inc., pleaded guilty to defrauding the Small Business Administration by fraudulently obtaining the funds between August 2020 and August 2021.

Pazouki applied for and received the funds, which he falsely certified would be used for business-related purposes. He instead used the money to fund his gambling at area casinos, pay down personal debt, and purchase real estate.

Within days of receiving his first EIDL disbursement, Pazouki spent over $27,000 in EIDL money at Hollywood Casino in Charles Town, West Virginia.

Pazouki also used the PPP and EIDL money for down payments on two different real estate properties, to pay off his personal credit card debt, and to fund his personal investment account.

He falsely represented to the SBA in loan forgiveness applications that the PPP money had been used for legitimate business expenses, resulting in the complete discharge of the loans.

Pazouki is scheduled to be sentenced on May 24, 2024. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties.

Mehdi Pazouki, Defendant, exact criminal charges: Defrauding the Small Business Administration by fraudulently obtaining $455,000 in PPP loans and EIDL funds, City and state: McLean, Virginia, EXACT DATE: Between August 2020 and August 2021, Sentence or outcome: Scheduled to be sentenced on May 24, 2024, with a maximum penalty of 20 years in prison, Dollar amounts: $455,000.

Source: https://www.justice.gov/usao-edva/pr/mclean-man-pleads-guilty-covid-19-fraud-scheme