A Henderson, Nevada man laundered $11 million in fake PPP loans into 25 properties and a gambling habit
Meelad Dezfooli of Henderson, Nevada submitted three fraudulent Paycheck Protection Program loan applications under an alias, "James Dez," and a fictional entity, "Holdings Trust," grossly inflating employee counts and payroll expenses and backing the claims with false tax records and a fake utility bill. He obtained more than $11 million, which he laundered into about 25 Nevada properties, luxury vehicles, a personal investment account and extensive Las Vegas gambling, continuing to sell properties even after he was indicted. A jury convicted him in September 2024, and he was sentenced in August 2025 to more than 15 years in prison and ordered to pay $11,793,064.15 in restitution.
- Year
- 2025
- Where
- United States
- Outcome
- Sentenced
- Reported loss
- $11.0 million
- Victims
- Not stated in the sources
- Schemes
- Paycheck Protection Program (PPP) loan fraud
- Last reviewed
- 2026-10-02
The facts, as recorded
- Dezfooli, then around 30 and living in Henderson, Nevada, submitted three fraudulent PPP applications on behalf of entities he controlled, using the alias 'James Dez' and a fictional entity called 'Holdings Trust.'
- Prosecutors said he grossly inflated the number of employees and payroll expenses on the applications, and supported the false figures with fabricated tax records and a fake utility bill.
- He fraudulently obtained more than $11 million, which he laundered into approximately 25 properties in the Las Vegas and Henderson area, two luxury vehicles, a personal investment account, and extensive gambling activity.
- He continued selling properties bought with the fraudulent funds even after being indicted, conduct prosecutors treated as further money laundering.
- A federal jury convicted him on September 4, 2024 of three counts of bank fraud, three counts of money laundering, and four counts of engaging in monetary transactions in criminally derived property.
- On August 21, 2025, Judge Cristina Silva sentenced him to more than 15 years in prison plus five years of supervised release, and ordered restitution of $11,793,064.15 and forfeiture of $11,231,186.52, including two vehicles and five properties.
- Acting Assistant Attorney General Matthew R. Galeotti said: "This defendant stole more than $11 million in taxpayer funds that he used to finance luxury purchases and gambling." IRS-CI Special Agent Carissa Messick said the sentence "shows how seriously the American government takes PPP loan fraud."
Why this case matters
This is the only case on this page with no outside preparer or lender service provider at all. Dezfooli did not pay anyone to fabricate his applications, he built the fictional entity, “Holdings Trust,” and the alias, “James Dez,” himself, which makes it the clearest illustration of how little infrastructure PPP fraud actually required: a name, a fake utility bill, and fabricated tax records were enough to move $11 million.
The laundering, not just the fraud
Most of the government’s own description of this case focuses less on how the loans were obtained and more on what happened afterward: roughly 25 properties, two luxury vehicles, a personal investment account and extensive Las Vegas gambling, a pattern prosecutors said continued even after Dezfooli was indicted, when he kept selling properties bought with the fraudulent funds.
Why that continued activity mattered to the sentence
Selling an asset after an indictment is not a neutral business decision once the asset was bought with proceeds a defendant knows are under investigation; prosecutors treated the post-indictment sales as additional money laundering conduct, not simply as Dezfooli managing his finances.
The caveat
Dezfooli was convicted by a federal jury and has been sentenced. The $11 million figure, the property count, and the laundering pattern described above reflect the government’s own charging documents, trial evidence and sentencing announcement; this page does not independently verify the underlying property records.
Sources
- Nevada Man Sentenced for Over $11M COVID-19 Relief Fraud and Money Laundering Scheme. US Department of Justice, Office of Public Affairs. Accessed 2026-10-02. Supports: The three fraudulent PPP applications, the fabricated tax records and utility bill, the inflated employee counts and payroll, the $11 million obtained, the laundering into roughly 25 properties, gambling and luxury vehicles, his sentence, restitution and forfeiture, and the Galeotti quote.
- Henderson man found guilty of $11.2 million COVID-19 relief fraud. News 3 Las Vegas (KSNV). Accessed 2026-10-02. Supports: Dezfooli's age at conviction, the September 4, 2024 jury verdict, the specific charges (three counts bank fraud, three counts money laundering, four counts engaging in monetary transactions in criminally derived property), and the post-indictment sale of properties.
- Nevada man sentenced to 15 years for COVID relief fraud. KOLO 8 News Now. Accessed 2026-10-02. Supports: The 'James Dez' alias and 'Holdings Trust' fictional entity, the August 21, 2025 sentencing date, the sentence length, the $11.7 million restitution figure, and the forfeiture of two vehicles and five properties.
- Nevada man sentenced to over 15 years for $11 million PPP loan fraud. News 3 Las Vegas (KSNV). Accessed 2026-10-02. Supports: The exact restitution figure of $11,793,064.15, the exact forfeiture figure of $11,231,186.52, and the Galeotti, Chattah and Messick quotes.