A politically connected businessman from western New York has pleaded guilty to charges stemming from a multimillion-dollar pandemic loan fraud scheme. Hormoz Mansouri, 70, who once sought the Democratic nomination for Erie County comptroller, admitted in federal court on Friday to bank fraud and conspiracy to commit fraud.
Guilty Plea and Admission
Mansouri, who had been facing a federal trial next month, told the court, “I acted with willful intent to violate the law,” according to The Buffalo News. He remains free on a $250,000 bond as he awaits sentencing in February. Federal sentencing guidelines suggest he could face a prison term of 33 to 41 months.
Background and Political Involvement
A trained engineer, Mansouri has established several businesses in the Buffalo area and has been involved in local and state politics for decades. His political connections were strengthened in the early 2000s when he assisted billionaire Tom Golisano in acquiring the NHL’s Buffalo Sabres. Golisano, a founding member of the New York Independence Party and a former gubernatorial candidate, eventually sold the Sabres in 2011.
Mansouri, who resides in the Buffalo suburb of Amherst, became a significant political donor, contributing mainly to Democratic candidates but also to Republicans.
Details of the Fraud Scheme
According to his indictment, Mansouri fraudulently obtained about $3 million through federal pandemic relief programs designed to help businesses during the COVID-19 lockdowns. The loan programs in question were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) Program.
Prosecutors allege that Mansouri inflated payroll costs and employee numbers on loan applications. Court records indicate that $200,000 of the fraudulently obtained funds were funneled into his campaign coffers for his unsuccessful bid for Erie County comptroller in 2021. Other misused funds went towards personal expenses, including the purchase of a Lexus.
Although Mansouri pleaded guilty to charges unrelated to the campaign fund payment, he admitted to falsifying information to secure the pandemic loans.
Attorney’s Statement and Sentencing
Mansouri’s attorney, Herbert Greenman, expressed his client’s remorse following the court proceedings. “He did something that he never felt conceivable,” Greenman said. “Sadly, he feels that he let his family, friends, and his country down. For that, he will be forever sorry.”
Mansouri is scheduled for sentencing in February, where he will learn the full extent of his punishment for the fraudulent scheme.
