Amherst man charged with defrauding feds of more than $3 million

AMHERST, N.Y. (WIVB) — An Amherst businessman has been accused of bilking the federal government out of more than $3 million.

With a 40-count indictment against him, 67-year-old Hormoz Mansouri could spend up to 30 years in prison if he’s convicted. Authorities have charged him with bank fraud, wire fraud, money laundering and conspiracy to commit wire fraud and bank fraud.

According to prosecutors, Mansouri applied for federal loans through the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. In all, he got roughly $3.4 million.

This money was received in order to help eight business entities controlled by Mansouri. They are the following:

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, and3600 Harlem Road LLC.

But according to prosecutors, Mansouri inflated or completely made up their average monthly payrolls and falsely represented revenues and the cost of goods sold. Six of the eight business entities had zero employees or payroll expenses.

According to the indictment, Mansouri was accused of moving the money between a number of bank accounts and comingling the proceeds with legitimate business ventures. Prosecutors say he also funded certain accounts, including one in the name of “Mansouri for County Comptroller.”

This past May, approximately $1.9 million was seized. If Mansouri is convicted, in addition to prison time, he could also be forced to pay a $1 million fine.

After his arraignment Monday morning, Mansouri was released on conditions.