Nevada Man Convicted of $11.2 Million COVID-19 Relief Fraud

Meelad Dezfooli, 30, of Henderson, Nevada, was convicted for defrauding three banks of more than $11.2 million in COVID-19 relief funds.Photo byGiorgio TrovatoonUnsplash

A Nevada man was convicted on Friday for defrauding three banks of more than $11.2 million in Paycheck Protection Program (PPP) relief funds, according to the U.S. Department of Justice (DOJ).

Meelad Dezfooli, 30, of Henderson, was convicted of three counts of bank fraud, three counts of money laundering, and four counts of engaging in transactions with criminally derived property.

According to court documents, in April 2020, Dezfooli identified himself as the manager and owner of a company called Best Floors.

He inflated the company's employee count and payroll in his PPP loan application, claiming that Best Floors had an average monthly payroll of $440,000 to cover 76 employees.

Investigators later revealed that the company had just one employee and a quarterly payroll of less than $1,400.

Dezfooli also listed his business address in Paradise, Nevada, though investigators found that Best Floors did not have a lease at the location when the loan application was submitted.

After obtaining the funds, Dezfooli laundered the money by purchasing 25 properties, luxury cars, and funding personal investment accounts, according to DOJ.

He also engaged in extensive gambling. Even after being charged, Dezfooli continued laundering proceeds by selling five properties, according to court documents.

Dezfooli’s sentencing is scheduled for December 5, 2024.

He faces a maximum penalty of 30 years in prison on each of the bank fraud counts, 20 years on each of the money laundering counts, and 10 years on each of the counts of engaging in monetary transactions in criminally derived property, according to DOJ.