AMHERST, N.Y. (WKBW) — An Amherst businessman has been sentenced for COVID fraud after stealing millions of dollars.
71-year-old Hormoz Mansouri was sentenced to time served after being convicted of conspiracy to commit wire fraud and bank fraud. He was also ordered to pay restitution totaling #3,197,562 and to forfeit $1,888,603.
Mansouri filed fraudulent loan applications under the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. He did so using the following business entities he controlled:
- HLM Holding LLC
- El Team Inc.
- NPTS Inc.
- 2060 Sheridan Drive LLC
- 212 Holden Avenue LLC
- 350 Old Niagara Falls Boulevard LLC
- 47 East Amherst LLC
- 3600 Harlem Road LLC
Mansouri either inflated or fabricated the average monthly payroll for these entities, and it was later discovered that six of the eight businesses had no actual employees or payroll expenses at all.
The total money Mansouri received from the fraudulent PPP loans was about $3,000,000. He also received about $450,000 in fraudulent Economic Injury Disaster Loans.
Prosecutors say Mansouri moved the fraudulently obtained funds between different bank accounts, mixing the money with legitimate business revenues.
In May 2021, the United States Attorney's Office seized nearly $2,000,000 of the fraudulently obtained money.
While Mansouri was facing federal charges, he received a contract with the City of Buffalo to help redesign Shoshone Park and Trinidad Park on the city's east side. The mayor called it "embarrassing." You can watch our report below.
