Nevada Man Sentenced to Over 15 Years for $11M Paycheck Protection Program Fraud
Nevada Man Receives Lengthy Sentence for Major PPP Loan Fraud
A resident of Henderson, Nevada, identified as M.D., has been sentenced to more than 15 years in federal prison followed by five years of supervised release. This punishment comes after a jury found him guilty of defrauding the Paycheck Protection Program (PPP), stealing upwards of $11 million through fraudulent loan applications.
Fraud Scheme Involved Real Estate and Gambling Expenses
Court records reveal that M.D. submitted three falsified loan requests under the names of businesses he controlled. To secure these funds guaranteed by the Small Business Administration under the CARES Act, he manipulated tax documents, presented counterfeit utility bills, and inflated employee payroll figures. The CARES Act was enacted in 2020 to provide over $2 trillion in financial assistance to individuals and businesses affected by the COVID-19 pandemic.
After obtaining the loans, M.D. allegedly spent the money on a variety of luxury items, including gambling activities, real estate investments, high-end vehicles, and financial accounts. He acquired approximately 25 properties throughout Nevada, frequently using aliases or a shell company named “Holdings Trust” to conceal his ownership. Even after being indicted, he continued to transfer funds and liquidate assets linked to the fraudulent loans.
Restitution and Asset Forfeiture Ordered
Alongside his prison sentence, M.D. was ordered to pay nearly $11.8 million in restitution and to forfeit assets valued at over $11.2 million. Confiscated properties include five homes and two vehicles, all seized during the course of the investigation.
Acting Assistant Attorney General Matthew R. Galeotti emphasized the importance of prosecuting such cases, stating that the defendant misused taxpayer dollars meant to support those hardest hit by the pandemic. Similarly, Acting U.S. Attorney Sigal Chattah noted that the defendant’s exploitation of the PPP funds has led to his incarceration, underscoring the seriousness of abusing government relief programs.
Convictions and Investigation Details
The jury found M.D. guilty on multiple counts in September, including bank fraud, money laundering, and handling property derived from criminal activity. The investigation was conducted collaboratively by the IRS-Criminal Investigation unit, the Federal Reserve Board Office of Inspector General, the Federal Deposit Insurance Corporation OIG, and the Small Business Administration OIG.
The prosecution was led by the Department of Justice’s Money Laundering and Asset Recovery Section along with the U.S. Attorney’s Office in Nevada, working to ensure justice in this significant fraud case.
