A man from Nevada has received a lengthy prison sentence for orchestrating one of the state’s largest pandemic relief fraud cases. M.D., of Henderson, was sentenced to more than 15 years in federal prison, plus five years of supervised release, after a jury found him guilty of stealing over $11 million in Paycheck Protection Program (PPP) loans.
He Bought 25 Properties and Used the Money to Gamble
According to court documents, D. submitted three fraudulent loan applications under the names of businesses he controlled. To back his plan, he falsified tax records, used fake utility bills, and artificially boosted employee payroll numbers. This secured him the loans guaranteed by the Small Business Administration under the CARES Act. Inked into law in 2020, the Act offered more than $2 trillion in aid to both individuals and businesses impacted by the COVID-19 pandemic.
Once he received the green light for the money, prosecutors say D. went on a spending spree that included anything from gambling to real estate, luxury cars, and investment accounts.
In total, he purchased around 25 properties across Nevada, usually hiding behind an alias or via a shell entity called “Holdings Trust.” Once he was indicted, he continued to move money around and sell assets connected to the fraudulent loans.
$12M in Restitution Payments
In addition to his prison term, D. was ordered to pay restitution of nearly $11.8 million and forfeit over $11.2 million in assets, including two vehicles and five homes seized during the investigation.
“This defendant stole more than $11 million in taxpayer funds that he used to finance luxury purchases and gambling,” said Acting Assistant Attorney General Matthew R. Galeotti. “Prosecuting schemes like this is critical to protecting the contributions of hard-working Americans, preserving confidence in government relief programs, and ensuring that aid reaches those who truly need it.”
Acting U.S. Attorney Sigal Chattah added, “The consequences of the defendant’s PPP loan fraud scheme have caught up with him, and now he will be incarcerated for exploiting more than $11.2 million from a taxpayer-funded program.”
The jury convicted the man of multiple counts last September. The list included bank fraud, money laundering, and transactions tied to criminally derived property.
The IRS-Criminal Investigation, the Federal Reserve Board Office of Inspector General (OIG), the OIG for the Federal Deposit Insurance Corporation, and the Small Business Administration OIG carried out the investigation. Prosecutors from the Justice Department’s Money Laundering and Asset Recovery Section and the U.S. Attorney’s Office in Nevada led the case.