GRIMY TIMES EXCLUSIVE: A former Overland Park hotel magnate has been sentenced to a year and six months in federal prison for swindling nearly $800,000 from the CARES Act. Mirza Michael Reazuddin, 66, of Lawrenceville, Georgia, pleaded guilty to wire fraud and money laundering charges.
Reazuddin, once a partner in Grandview Hotel, LLC, applied for two PPP loans totaling $804,100. He falsely claimed the hotel was operational and used the funds to buy property and pay personal expenses. The court ordered him to repay the entire amount and forfeit his Georgia home.
Grandview Hotel closed its doors in 2018, yet Reazuddin continued to apply for PPP funds under false pretenses. His deception came to light when IRS-Criminal Investigation launched an investigation that led to today’s sentencing by U.S. Chief District Judge Beth Phillips.
The CARES Act was intended to provide relief to small businesses affected by the COVID-19 pandemic, not to line the pockets of fraudsters like Reazuddin. Assistant U.S. Attorney Paul S. Becker prosecuted the case with dedication, ensuring justice for all parties involved.
Reazuddin’s sentence serves as a stern reminder of the consequences faced by those who abuse government aid programs for personal gain. As the economy continues to recover from the pandemic, it is essential that such fraudulent activities are swiftly and effectively combated.
This case underscores the commitment of law enforcement agencies to protect public funds and hold individuals accountable for their crimes. It also highlights the importance of transparency in accessing federal relief programs. Reazuddin’s sentencing marks a significant victory in the fight against financial fraud.
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Key Facts
- State: Missouri
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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