Las Vegas businessman sentenced in multimillion-dollar fraud scheme

LAS VEGAS (KLAS) — A judge sentenced a Las Vegas businessman convicted in part of a multimillion-dollar money laundering and fraud scheme to five years in federal prison.

As the 8 News Now Investigators first reported , the FBI arrested Martin “Marty” Mizrahi, 53, in December 2022. Mizrahi founded LV.net, a Las Vegas-based internet company.

After a 12-day trial earlier this year, a jury found Mizrahi guilty on charges of wire fraud, bank fraud, money laundering and aggravated identity theft, among others connected to the defrauding of banks and credit card companies of nearly $8 million and the laundering of $4 million in drug money through Bitcoin.

As part of evidence in the case, prosecutors showed photos of pyramids of cash in Mizrahi’s Las Vegas home.

Prosecutors said Mizrahi laundered money from a Mexican-based drug cartel. Other money was obtained through a business email compromise scheme, prosecutors said. In addition, Mizrahi ran up nearly $8 million in fraudulent transactions through LV.net.

Mizrahi proclaimed his innocence after trial, even though prosecutors said he was “well aware that he was laundering drug money,” documents said.

Prosecutors initially argued for a harsher sentence of more than 12 years, documents said.

The judge also sentenced Mizrahi to two years of supervised release. He must also pay a $50,000 fine and forfeit $4.5 million.

Mizrahi must surrender to the Bureau of Prisons on Dec. 2.

For the latest news, weather, sports, and streaming video, head to KLAS.