NY Businessman Admits to Massive Pandemic Loan Fraud with Ties to Political Campaign

Edited by: TJVNews.com

Hormoz Mansouri, a well-known businessman and political figure from western New York, has confessed to orchestrating a multimillion-dollar pandemic loan fraud scheme that, according to federal prosecutors, partially funded his unsuccessful political campaign. The Associated Press reported that Mansouri, who sought the Democratic nomination for Erie County comptroller in 2021, entered a guilty plea to federal charges of bank fraud and conspiracy to commit fraud on Friday.

Court records reveal that Mansouri, aged 70, admitted his wrongdoing with striking candor. “I acted with willful intent to violate the law,” he told the court, as reported by The Buffalo News. This admission comes after months of legal proceedings, during which Mansouri maintained his innocence before ultimately deciding to plead guilty. He was scheduled to stand trial next month, a process now rendered moot by his confession.

The fraudulent activities Mansouri engaged in were linked to pandemic relief funds, which were intended to support struggling businesses during the COVID-19 crisis. Instead, Mansouri diverted a portion of these funds into his political campaign coffers, according to the prosecution, as per the information in the AP report. The details of the fraud have not only shocked the local community but have also drawn attention to the potential misuse of pandemic relief funds across the country.

Mansouri remains free on a $250,000 bond as he awaits sentencing, which is scheduled for February. According to federal sentencing guidelines, he faces a potential prison term ranging between 33 and 41 months. The severity of the charges reflects the substantial impact of his actions, both financially and politically.

Despite his legal troubles, Mansouri’s career is a testament to his long-standing influence in the Buffalo, New York, area, the AP report said. Trained as an engineer, he established several businesses in the region and became a significant figure in both the local business community and political circles.

Mansouri’s entry into the political arena was not a recent development. He has been involved in politics for decades, with connections that span local and state levels. His political influence was notably bolstered by his association with billionaire Tom Golisano, a key figure in New York politics. Indicated in the AP report was that Mansouri played a role in Golisano’s successful bid to acquire the NHL’s Buffalo Sabres in the early 2000s, a move that introduced him to the intricacies of political strategy and campaign finance.

Golisano, a founding member of the New York Independence Party, was a three-time candidate for governor of New York, running in 1994, 1998, and 2002. His political ambitions and eventual sale of the Sabres in 2011 were part of a broader strategy that intertwined business and politics—a strategy Mansouri observed and, in many ways, emulated.

Over the years, Mansouri became a prominent political donor, contributing to both Democratic and Republican campaigns. The AP reported that his financial support was significant, earning him recognition and influence within political circles in Erie County and beyond. However, his recent legal troubles have cast a long shadow over his legacy, raising questions about the ethical boundaries between business, politics, and personal ambition.

According to the indictment, Mansouri fraudulently obtained around $3 million through pandemic relief programs, specifically the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, the AP report said. These initiatives were designed to help businesses stay afloat during the economic downturn caused by the COVID-19 lockdowns and disruptions.