Amherst businessman sentenced for COVID fraud
Summary
A U.S. Attorney's Office for the Western District of New York press release dated 2025-07-18 announcing that Hormoz Mansouri of Amherst, NY, convicted of conspiracy to commit wire fraud and bank fraud and of bank fraud, was sentenced to time served and five years' supervised release, including one year of home detention. He was ordered to pay restitution totaling $3,197,562 and to forfeit $1,888,603. According to the release, entities Mansouri controlled, including HLM Holding LLC, El Team Inc. and NPTS Inc., obtained approximately $3,000,000 in PPP loans with inflated or fabricated payroll, and six of the eight entities had no employees. It states that they also received approximately $450,600 in EIDL loans and that he moved funds into accounts including a campaign account, "Mansouri for County Comptroller."
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“Amherst businessman sentenced for COVID fraud.”
Original at www.justice.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-07-18-amherst-businessman-sentenced-for-covid-fraud-81ecdce0-bbc789bb95/
, SHA-256 0b9da188d63b2b6c6aabfe147b97a4a1c42854bd5cb4bc378190192223cedfce.Full text
BUFFALO, N.Y. - U.S. Attorney Michael DiGiacomo announced today Hormoz Mansouri, 71, of Amherst, NY, who was convicted of conspiracy to commit wire fraud and bank fraud, and bank fraud, was sentenced to time served and five years’ supervised release, to include one year of home detention. He was also ordered to pay restitution totaling $3,197,562 and to forfeit $1,888,603. Assistant U.S. Attorney Paul E. Bonanno, who handled the case, stated that Mansouri filed 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 pursuant to the Coronavirus Aid, Relief, and Economic Security (CARES Act). Mansouri controlled the following business entities which applied for loans: 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. The PPP loans that the Mansouri-controlled entities 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). 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 also moved the fraudulent PPP and EIDL funds between various bank accounts; commingling the proceeds with legitimate business revenues; and funding certain accounts, including a campaign account (in the name of “Mansouri for County Comptroller”). The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Mark Grimm, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Harry Chavis. # # # #
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