August 14, 2021 – BUFFALO, NY – On August 10, 2021, U.S. Attorney James P. Kennedy, Jr. announced that 67-year-old Hormoz Mansoori of Amherst, N.Y. had been charged with electronic fraud. funds, banking fraud and conspiracy. to commit electronic fraud and bank fraud, and money laundering. The charges carry a maximum sentence of 30 years in prison and $ 1,000,000.
“This defendant is currently on a growing list of individuals indicted by this Office who tried to steal money for themselves to help businesses and employees affected by the pandemic,” said US Attorney Kennedy. “The greed shown by such people in the face of a national crisis is criminal. This Office will continue to be vigilant to ensure that taxpayer dollars are spent appropriately, and we will vigorously investigate and indict anyone, such as a defendant, who is fraudulently seeking or spending federal emergency assistance. ”
US Assistant Attorney Michael DiGiacomo, who is in charge of the case, said the complaint was that Mansuri filed fraudulent applications for a PPP loan and an Economic Injury Loan (EIDL) with the Small Business Administration (SBA) and local financial institutions. in accordance with the Coronavirus Relief, Relief and Economic Security Act (CARES Act). Specifically, Mansuri, who controlled eight different businesses, including 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, and 3600 Harlem. Road LLC has applied for 16 different (two for each entity) PPP loans and eight different EIDL loans.
According to the complaint, the amount of PPP loans to which a given entity is entitled is partly determined by the entity’s average monthly salary costs. For each of the 16 PPP loans received by Mansuri-controlled enterprises, the average monthly wage bill was either overstated or completely fabricated. In fact, contrary to the applications submitted, six of the eight organizations had neither staff nor payroll costs at all. Likewise, companies controlled by Mansuri have also made false statements and provided bogus documentation in support of EIDL applications. Between March 2020 and May 2021, Mansuri received 16 PPP loans totaling USD 3,074,000 and seven EIDL loans totaling USD 450,600. If Mansuri had provided accurate information in support of the applications, his organizations would have been eligible for significantly lower loan amounts or no loans at all.
After fraudulently obtaining more than US $ 3,500,000 in PPP and EIDL funds, the defendant allegedly engaged in a series of confusing transactions in which it moved loan funds between various accounts in the business; mixed proceeds with legitimate business income; and transferred the proceeds to various business accounts, personal accounts, a campaign account (in the name of “Mansouri for County Comptroller”), as well as to casinos – in order to hide, disguise and hide the source, nature, ownership, control and location of funds received under a fraudulent scheme.
On May 28, 2021, arrest warrants were executed in accounts controlled by the defendant and resulted in the arrest of approximately $ 1,923,603.
The complaint is the result of an investigation by the Federal Bureau of Investigation under the direction of Special Agent Stephen Belongia and the Criminal Investigation Directorate Revenue Service under the direction of Acting Commissioner Thomas. Fattorusso.
The fact that the accused has been charged with a crime is simply an accusation, and the accused is presumed innocent until proven guilty.
Source: Ministry of Justice press release.