Nevada man gets 15 years for stealing $11 million in COVID relief and laundering through Vegas gambling and luxury real estate
LAS VEGAS, NV — A Henderson man who stole over $11 million in pandemic relief funds and laundered the money through real estate deals, high-stakes gambling, and luxury spending was sentenced to more than 15 years in federal prison on Wednesday.
Meelad Dezfooli, who also went by “James Dez,” was convicted last year for submitting fraudulent Paycheck Protection Program (PPP) loan applications using fake tax documents, fabricated utility bills, and inflated payroll claims. The court ordered him to pay $11.79 million in restitution and forfeit more than $11.2 million, including five properties and two luxury vehicles tied to the scheme.
Prosecutors said Dezfooli used the stolen taxpayer funds to buy about 25 properties across Nevada, fund a personal investment account, gamble extensively at Las Vegas casinos, and purchase high-end cars. Even after being indicted, Dezfooli continued laundering money, including selling real estate acquired with the fraudulent proceeds.
The jury found Dezfooli guilty of three counts of bank fraud, three counts of money laundering, and four counts of conducting financial transactions using criminally derived property, including one transaction that occurred after charges were filed against him.
The case was investigated by multiple federal agencies, including the IRS Criminal Investigation division, the Office of Inspector General for the Board of Governors of the Federal Reserve System, the FDIC-OIG, and the SBA-OIG. Prosecutors from the Department of Justice’s Money Laundering and Asset Recovery Section and the U.S. Attorney’s Office for the District of Nevada led the case.
Dezfooli’s sentencing underscores federal efforts to hold accountable those who exploited the CARES Act’s emergency loan programs during the COVID-19 crisis.
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Key Points
- Meelad Dezfooli of Henderson, Nevada, was sentenced to over 15 years for fraudulently obtaining $11 million in PPP loans
- He laundered the funds through luxury purchases, gambling, and 25 Nevada real estate transactions
- Dezfooli was ordered to pay restitution and forfeit millions, including properties and vehicles purchased with stolen funds
Federal court slams Vegas fraudster who blew COVID relief money on homes, gambling, and luxury living