Texas man’s loan fraud funded lavish lifestyle
Dinesh Sah, 55, of Coppell, Texas, pleaded guilty to a $ 24.8 million COVID relief fraud program on Wednesday.
According to the Justice Department, Sah submitted 15 different requests, under various companies’ names, to eight different lenders requesting about $ 24.8 million in Paycheck Protection Program loans.
Sah claimed to have many employees and hundreds of thousands of dollars in salary expenses; no company had employees or salaries corresponding to its claims. To support the effort, Sah fabricated federal tax returns and bank statements, among other documents.
Sah got his hands on around $ 17.7 million, but instead of helping legitimate small businesses, the funds were directed towards a lavish lifestyle. He bought several houses in Texas and paid off mortgages on houses in California. He bought a convertible Bentley, a Corvette Stingray and a Porsche Macan.
He also sent millions of dollars abroad in international money transfers.
So far, the government has only been able to seize just over $ 7.2 million. As part of his guilty plea, Sah will give up eight houses and many luxury vehicles.
According to local reports, Sah received the loans despite several red flags, including an ongoing criminal assault charge. He started most of his businesses a few days before submitting applications, and most businesses’ business address was his home address.
The Texan fraudster pleaded guilty to one count of electronic fraud and one count of money laundering. He faces up to 30 years in prison; sentencing was not yet scheduled.