Texas Man Pleads Guilty to Embezzling Millions in PPP Loans

COPPELL, TX -- A Coppell man is facing up to 30 years in prison after pleading guilty to committing a multi-million COVID-19 relief fraud. According to authorities, the suspect used the money to buy multiple homes and luxury cars.

According to the Justice Department, 55-yea-old Dinesh Sah embezzled approximately $24.8 million in Paycheck Protection Program (PPP) loans.

Investigators discovered Sah submitted 15 fraudulent applications for various businesses he allegedly owned to eight different lenders. 

Sah claimed the businesses had numerous employees and hundreds of thousands of dollars in payroll expenses -- but it was all lie.

“The Paycheck Protection Program was designed to aid struggling business owners, not to line the pockets of crafty profiteers,” said Acting U.S. Attorney Prerak Shah of the Northern District of Texas. “Even as fellow businesspeople tried desperately to procure the funds they needed to keep their business afloat, Sah dipped into federal coffers to fund his lavish lifestyle. The Justice Department is committed to protecting the PPP from fraud and deceit.”

According to court documents, Sah admitted he received over $17 million in PPP loans using false statements and fabricated documents.

Sah then used the money to acquire multiple homes in Texas, pay off mortgages in multiple California homes, and buy a fleet of luxury cars. The fleet included a Bentley convertible, Corvette Stingray, and Porsche Macan. He also sent millions of the PPP loans via international money transfers.

Sah would ultimately plead guilty to one count of wire fraud and one count of money laundering in the Northern District of Texas. As part of his plea, Sah agreed to forfeit eight homes, numerous luxury vehicles, and more than $7.2 million in fraudulent proceeds.

Sah's sentencing will occur at a later date and a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.