On Wednesday, 55-year-old Dinesh Sah of Coppell, Texas, pleaded guilty to a $24.8 million COVID relief fraud scheme.
According to the Department of Justice, Sah submitted 15 different applications, under the names of various businesses, to eight different lenders seeking approximately $24.8 million in Paycheck Protection Program loans.
Sah claimed to have numerous employees and hundreds of thousands of dollars in payroll expenses; no business had employees or paid wages consistent with his claims. To support the effort, Sah fabricated federal tax filings and bank statements, among other documents.
Sah got his hands on about $17.7 million, but instead of helping out legitimate small businesses, the funds went towards a lavish lifestyle. He purchased multiple homes in Texas and paid off mortgages on homes in California. He bought a Bentley convertible, Corvette Stingray and Porsche Macan.
He also sent millions of dollars overseas in international money transfers.
So far, the government has only been able to seize a little more than $7.2 million. As part of his guilty plea, Sah will forfeit eight homes and numerous luxury vehicles.
According to local reports, Sah received the loans despite multiple red flags, including a pending felony assault charge. He launched most of his companies days before submitting the applications and the business address for most of the companies was his home address.
The Texas fraudster pleaded guilty to one count of wire fraud and one count of money laundering. He faces up to 30 years in prison; sentencing was not yet scheduled.
