Las Vegas PPP Loan Fraud Lawyers

Las Vegas PPP Loan Fraud Lawyers

In Las Vegas, they gambled PPP money at the casinos. Meelad Dezfooli stole $11 million in pandemic relief and then walked onto the casino floor to bet it. He bought 25 properties under a fake name. He drove luxury cars. He funded personal investment accounts. And when the jury came back in September 2024, he was found guilty on every count. Fifteen years in federal prison.

In a city built on gambling, these defendants made the worst wager of their lives. Not at the blackjack table. Not at the poker room. In the loan application. They bet that the federal government wouldn’t catch them. They lost.

Welcome to Spodek Law Group. Our goal is education first – helping you understand what the District of Nevada actually looks like from the inside before you discover it yourself. Todd Spodek has defended clients facing pandemic fraud charges who assumed Vegas was too busy with other crimes to chase PPP applications. The government wasn’t too busy. It was building cases that end with the longest sentences in the nation.

The $11 Million Gambler

Heres the case that defines PPP fraud in Las Vegas. Meelad Dezfooli, of Henderson, Nevada, submitted three fraudulent PPP loan applications on behalf of entities he controlled. He obtained more than $11 million in pandemic relief funds – money that was supposed to help businesses keep employees on payroll during the worst public health crisis in a century.

What did Dezfooli do with the money? He gambled it. Extensively. Throughout Las Vegas.

That’s not a metaphor. Federal prosecutors presented evidence at trial that Dezfooli used stolen pandemic relief funds to gamble at casinos across Las Vegas. While small businesses were closing and families were losing thier incomes, Dezfooli was on the casino floor playing with money that belonged to American taxpayers.

But gambling wasnt his only use for the funds. He also purchased approximately 25 properties in Nevada using an alias – “James Dez” – and a fictitious entity called “Holdings Trust.” He funded personal investment accounts. He bought luxury cars. He created an empire built entirely on stolen pandemic relief.

On September 4, 2024, a jury found him guilty on all counts: three counts of bank fraud, three counts of money laundering, and four counts of conducting transactions using criminally derived property. The sentence was over 15 years in federal prison – one of the longest PPP fraud sentences in the nation.

The restitution order is $11,793,064.15. The forfeiture order is $11,231,186.52. Plus two vehicles and five properties seized by federal agents. Everything he built with stolen money is gone. What remains is the prison sentence.

If you gambled with PPP money – literally or figuratively – the casino cameras remember. The chip tracking systems remember. The CTR reports remember. And federal investigators have learned exactly what to subpoena.

25 Properties, One Alias, Zero Chance

Heres what Dezfooli thought would protect him. He didnt use his real name for the real estate purchases. He created an alias – “James Dez” – and a fictitious entity called “Holdings Trust.” He probly assumed the layers of abstraction would create confusion. Different name. Different entity. Different paper trail.

He was wrong.

Federal investigators traced every property. Every transaction. Every wire transfer. The alias didnt hide his identity – it became evidence of consciousness of guilt. Using a fake name to purchase real estate with stolen funds isnt just fraud. Its money laundering. And money laundering charges add years to the sentence.

Twenty-five properties. Thats not one questionable purchase. Thats a systematic operation to convert stolen pandemic funds into real estate holdings. Every property is a seperate transaction. Every transaction is potential additional evidence. Every deed with “James Dez” on it proves intent to conceal.

Heres something even more damaging from the Dezfooli case. He conducted a financial transaction AFTER he had already been charged. That transaction became an additional count at trial. The federal system dosent just punish what you did before the indictment. It watches what you do after. And if you keep committing crimes while the case is pending, those become new charges.

The arrogance is almost incomprehensible. Dezfooli had already been charged with federal crimes. He knew prosecutors were watching. And he continued conducting transactions with criminally derived property anyway. That kind of behavior turns a long sentence into an enormous one.

Fraud While Being Watched

Heres an uncomfortable pattern in the District of Nevada. Multiple defendants committed PPP fraud while they were already under federal supervision. They werent invisible. They were literally being watched by the federal government. And they still couldnt resist stealing pandemic relief.

Arian Anthony Bailey was serving a term of federal supervised release for felony drug and gun convictions when he decided to submit fraudulent PPP and EIDL applications. While federal probation officers were theoretically monitoring his behavior, he was devising a scheme to steal more than $550,000 in pandemic relief.

He was sentenced to two and a half years in prison – on top of whatever consequences his supervised release violation triggered. The new conviction doesnt just mean new time. It means he violated the terms of his previous sentence. It means his criminal history category gets worse. It means everything compounds.

Kelly Ann Mogavero was under U.S. Probation supervision when she fraudulently filed for unemployment insurance in both Nevada and Arizona while simultaneously submitting PPP and EIDL applications. She stole approximately $137,000 across multiple pandemic relief programs. She pleaded guilty to wire fraud and faces sentencing in May 2025.

Heres what the Bailey and Mogavero cases reveal about federal prosecution in Nevada. The government isnt just looking at people with clean records. Their looking at people who are already in the system. If you committed PPP fraud while on probation, parole, or supervised release, the exposure is exponentialy worse. The fraud itself carries penalties. The violation of supervision carries additional penalties. And the fact that you couldnt follow rules even while being actively monitored becomes evidence of your character at sentencing.

Some people thought being under supervision meant the government was distracted watching for other violations. The opposite is true. Being under supervision means your already on their radar.

56 Applications in Six Months

Jaquari Davonte Woodward didnt just submit one fraudulent PPP application. He submitted 56.

Fifty-six fraudulent applications over the course of more than six months. Not all for himself – he was submitting applications on behalf of others as well. The total fraud amount exceeded $1.1 million. Every application contained false statements. Every application was a seperate potential charge.

He was sentenced to 19 months in federal prison in January 2024 and ordered to pay $1,264,252.02 in restitution. Nineteen months might sound manageable compared to Dezfooli’s 15 years. But consider what Woodward faces after prison: over $1.2 million in restitution that will follow him for life. Garnished wages. Seized tax refunds. Ruined credit. The consequences dont end when the sentence does.

The Woodward case shows what industrial-scale PPP fraud looks like. This wasnt one person exaggerating their business income on one application. This was an operation. Fifty-six applications means fifty-six opportunities to get caught. Fifty-six sets of false documents. Fifty-six wire transfers. The more applications you submitted, the more evidence prosecutors have to work with.

If you helped submit multiple applications – for yourself, for friends, for family, for clients – every one of those applications is now potential exposure. The question isnt whether you submitted one lie. Its how many lies you submitted, and how many people recieved funds based on those lies.

And heres the kicker about the Woodward case. Nineteen months might sound manageable. But the restitution order follows him forever. Over $1.2 million that the federal government will collect from his wages, his tax refunds, any assets he ever acquires. The prison sentence ends. The financial consequences never do.

The Mercedes and the Mansion

Karen Chapon – also known as Karen Hannafious – submitted six fraudulent PPP loan applications between April and July 2020. She made false statements about her companies’ business operations and payroll expenses. She submitted false documents. She recieved approximately $596,931 in PPP funds.

What did she do with the money? Among other things, she bought a Mercedes Benz SUV.

Brandon Casutt fraudulently obtained over $500,000 in PPP and EIDL loans and then laundered the money through family members, friends, and others. He used the proceeds to buy a house in Henderson. He was sentenced to two years and four months in federal prison.

Heres the pattern prosecutors use to build cases. They start with the application. They identify the false statements. Then they follow the money to its destination. When that destination is a luxury vehicle or a real estate purchase, the case becomes extraordinarily easy to prove.

The Mercedes is evidence. The title transfer is evidence. The registration is evidence. The photos of you driving it are evidence. Every dollar spent on a traceable asset creates documentation that prosecutors can present to a jury.

Casutt thought he was clever by laundering money through family and friends before buying the house. But every one of those transfers is now documented. Every family member and friend who recieved funds is a potential witness. The money laundering didnt hide the fraud – it just created more charges and more people who might cooperate against him.

If you bought a car, a house, jewelry, or any other traceable asset with PPP funds, that purchase is already in a database. The only question is whether investigators have opened your file yet.

Casino Cameras and Federal Subpoenas

Heres something most people dont understand about committing financial crimes in Las Vegas. The same surveillance infrastructure that catches card counters also records federal evidence.

Las Vegas casinos track everything. Every chip you buy. Every bet you place. Every win and loss. High-rollers get detailed profiles. Currency transaction reports get filed with the federal government for cash transactions over $10,000. Suspicious activity reports get filed for patterns that look like money laundering.

When Dezfooli gambled stolen PPP funds at Las Vegas casinos, he wasnt hiding money. He was creating a paper trail that investigators could follow. The casinos recorded his activity. The financial reports went to federal databases. The FBI didnt have to work hard to prove where the money went – they just subpoenaed records the casinos were already required to keep.

You might think cash culture protects you in Vegas. The opposite is true. Casinos are heavily regulated financial institutions. Their required to report large transactions and suspicious patterns. The same cameras that watch for cheaters watch for money launderers. The same databases that track high-rollers track where the money came from.

If you used PPP funds to gamble in Las Vegas, the casinos know. The records exist. The question is whether federal investigators have asked for them yet.

Heres what most defendants dont realize until its too late. The investigation that caught Dezfooli involved multiple federal agencies working together: IRS Criminal Investigation, the Federal Reserve Board Office of Inspector General, the FDIC Office of Inspector General, and the SBA Office of Inspector General. Each agency brings different expertise and different databases. The IRS traces income discrepancies. The Fed and FDIC track banking transactions. The SBA knows exactly what you claimed on your application. When four agencies coordinate, theres nowhere to hide.

The agents working these cases in the District of Nevada arent generalists handling a little bit of everything. Their financial crimes specialists who trace money professionally. When they open your file, they already know what questions to ask. They already know where the inconsistencies are. The only question is whether youve prepared answers – or whether youll be improvising in the worst moment of your life.

Your Options in Las Vegas

If your reading this because you took a PPP loan in Las Vegas or anywhere in Nevada and your worried about what you put on the application, you have three basic options. None of them are perfect.

Option 1: Wait and hope. This is what most people do. You tell yourself that Dezfooli got 15 years because he stole $11 million, and your case is smaller. You hope your file never gets opened. Maybe it works out. But if it dosent – if that subpoena arrives or that agent calls – youll have wasted years you could have spent preparing.

Option 2: Voluntary disclosure. In some cases, coming forward before your contacted can result in more favorable treatment. The DOJ has shown willingness to credit cooperation. But disclosure is risky. Your essentialy admitting wrongdoing the government might never have discovered.

Option 3: Get counsel now and prepare. Even if you dont do anything proactive, having a lawyer review your situation means youll be ready if something happens. Youll understand your exposure. Youll have thought through responses. A good federal defense attorney can look at your PPP application and tell you honestly what your facing.

At Spodek Law Group, we handle federal criminal defense matters across the country, including the District of Nevada. The consultation is protected by attorney-client privilege – nothing you tell us can be used against you. That means you can be completely honest about what happened.

James Kyle Bell created multiple shell companies and applied for over $1.1 million in PPP loans. He also ran fake political action committees. He got 46 months. The combination of PPP fraud with other schemes – election fraud, money laundering, additional false statements – compounds the exposure. If your PPP application wasnt your only questionable activity, the stakes are even higher.

The difference between prepared defendants and unprepared defendants often determines the outcome. When agents show up at your door, the first hour shapes everything that follows. People who panic say things they cant take back. People who are prepared invoke their rights and call their lawyer.

The Statute Runs Through 2031

Congress extended the statute of limitations for PPP fraud to ten years. That means a loan application from April 2020 can be prosecuted until April 2030. EIDL applications from 2021 can be prosecuted until 2031. The government has years left to build cases.

The District of Nevada isnt slowing down. Sentences have gotten 40% longer for defendants prosecuted in 2024-2025 compared to earlier years. The $37 million the U.S. Attorneys Office forfeited and returned to victims between October 2024 and July 2025 shows active enforcement. Cases are still being investigated. Indictments are still being drafted.

Federal sentences are not like state sentences. There is no parole in the federal system. When Dezfooli got over 15 years, he’ll serve at least 85% of that – nearly 13 years minimum. When defendants get years instead of months, they serve years. The time is real.

And after the sentence, the consequences continue. Professional licenses get revoked. Casino employment becomes impossible. Gaming credentials get denied. In a city where so many jobs require trust and regulatory approval, a federal fraud conviction becomes a permanent barrier.

Heres what makes collateral consequences especially severe in Las Vegas. The Nevada Gaming Control Board requires licensing for thousands of positions in the casino industry – dealers, supervisors, managers, security, even some food service workers. A federal fraud conviction makes you ineligible. In a city where casinos are the largest employers, thats not just inconvenient – its economically devastating. The same regulatory apparatus that makes Vegas a destination for gamblers makes it a dead end for convicted fraudsters.

Real estate licensing requires clean records. Insurance licensing requires clean records. Financial services licensing requires clean records. In a tourism and service economy like Las Vegas, a federal fraud conviction closes more doors than it leaves open. The judge gives you a sentence measured in months or years. The economy gives you a sentence measured in decades.

The silence you’ve been hearing isn’t protection. It’s just the part of the process where the investigation hasn’t reached you yet.

If your facing potential PPP fraud exposure in Las Vegas or anywhere in Nevada, the time to talk to a lawyer is now. Not after the FBI shows up. Not after you receive a target letter. While you still have options.

Call 212-300-5196 for a confidential consultation. The District of Nevada is still working. The question is whether they’re working on your file.

Meelad Dezfooli gambled $11 million in stolen pandemic relief at Las Vegas casinos and bought 25 properties under a fake name. He got 15 years. Jaquari Woodward submitted 56 fraudulent applications in six months. Arian Bailey committed PPP fraud while on supervised release for drug and gun convictions. Karen Chapon bought a Mercedes with stolen funds. All of them learned the same lesson. In Vegas, the house always wins. And in federal court, the government always wins. The silence ends when it ends – and you dont get to choose the timing.