BUFFALO, N.Y. (WBEN) A federal grand jury has returned a 40-count indictment charging Amherst businessman Hormoz Mansouri, with conspiracy to commit wire fraud, bank fraud, and money laundering in connection with pandemic funding.
The indictment charges 67 year old Mansouri with filing fraudulent loan applications under both the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. The loans available for these programs were designed to provide emergency financial assistance under the federal CARES Act.
The U.S. Attorney's Office says the PPP loans that Mansouri obtained, either inflated or completely fabricated the average monthly payroll and six of the eight entities had no actual employees or payroll expenses at all. The total amount of money received from the fraudulent PPP loans totaled approximately $3,000,000.
The Mansouri controlled entities also received approximately $450,600 in Economic Injury Disaster Loans (EIDL). Prosecutors say these loan applications falsely represented revenues and cost of goods sold.
On May 28, 2021, the United States Attorney's Office seized approximately $1,923,603 of the fraudulently obtained money.
Mansouri applied for loans for the following business entities:
• 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
Monsouri is a longtime democratic political donor. He ran unsuccessfully for Erie County Comptroller in 2021.
Mansouri was arraigned Monday morning before U.S. Magistrate Judge Michael J. Roemer and was released on conditions.
The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
