Businessman Pleads Guilty to Pandemic Loan Fraud

Hormoz Mansouri, a 70-year-old businessman from western New York, pleaded guilty to federal bank fraud and conspiracy charges related to a multimillion-dollar pandemic loan fraud scheme. Prosecutors allege that Mansouri fraudulently secured approximately $3 million through Paycheck Protection Program (PPP) and Economic Injury Disaster (EIDL) loans by inflating payroll costs and employee numbers for his companies. A significant portion of the funds was reportedly funneled into his campaign for Erie County comptroller and to settle a substantial gambling debt. He remains free on a $250,000 bond pending sentencing in February, where he faces a recommended prison term of 33 to 41 months. Mansouri's defense described him as a concerned businessman who, under pandemic pressures, made regrettable decisions. The case highlights ongoing issues surrounding the integrity of pandemic relief programs and their exploitation.