Texas man pleads guilty to $ 24.8 million PPP loan scheme involving luxury cars


Federal investigators were on the fence when a man from Texas admitted to using COVID-19 relief funds for lavish expenses, including a Bentley Convertible, Porsche Macan and Corvette Stingray.

Dinesh Sah, 55, from Coppell, pleaded guilty to orchestrating a $ 24.8 million PPP scam that used small business loans to buy opulent homes and expensive cars, according to the Ministry of Health. Justice.

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“As the nation was crippled by a global pandemic, Sah fraudulently secured over $ 17 million in PPP funds meant to help legitimate small businesses and spent that money on luxury cars and multiple homes,” said the Acting Assistant Attorney General Nicholas L. McQuaid of the Department of Justice. Criminal Division said in response to the case.

In order to take control of millions of PPP loans, Sah submitted 15 fraudulent claims filed under different names of companies he owned or controlled, according to the Justice Department. Through eight separate lenders, Sah succeeded in securing $ 24.8 million in PPP loans by misrepresenting the number of employees on its payroll and the amount of related expenses. Investigators eventually uncovered the incongruities over Sah’s claims, the Justice Department said.

“The Paycheck Protection Program was designed to help struggling business owners, not to line the pockets of shrewd profiteers,” said US attorney Prerak Shah of the Northern District of Texas. “Even as other businessmen desperately tried to raise the funds they needed to keep their businesses afloat, Sah drew on federal coffers to fund his lavish lifestyle. The Department of Justice is committed to protecting the PPP against fraud and deception.

When federal investigators unraveled the scheme, Sah further admitted that he received more than $ 17 million in P3 loans and then used the proceeds to buy several homes in Texas, pay off mortgages and purchase a luxury car fleet. Sah then sent millions of dollars in PPP products via international money transfers. As part of his guilty plea, Sah agreed to confiscate eight homes, several luxury cars and more than $ 7.2 million in fraudulent goods.

“Sah’s blatant fraud to fund his luxurious lifestyle is unacceptable under any circumstances, but especially when committed against a program designed to help Americans recover from the ongoing pandemic,” the agent added. special in charge of FDIC-OIG Anand M. Ramlall.

Sah ultimately pleaded guilty to one count of wire fraud and one count of money laundering. The date of his conviction has not yet been set. Sah faces a maximum of 30 years in prison.

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