Medical Company Owner Admits $1m Pandemic Relief Fraud & Money Laundering

Mehrdad Tabrizi, the owner of two Southern California medical companies, has pleaded guilty to wire fraud and money laundering after admitting he fraudulently obtained more than $1 million in COVID-19 relief funds. The case highlights the continuing enforcement focus on abuse of pandemic-era support schemes, particularly where dormant or ineligible businesses were used to secure government-backed loans.

According to the DoJ, Tabrizi used Life Fleet Inc. and Resonante Group to submit false applications under the Paycheck Protection Program and Economic Injury Disaster Loan programme. Prosecutors said Life Fleet had been shut down in 2018 and had no qualifying operations or employees, despite applications claiming otherwise. The fraudulent PPP applications resulted in approximately $696,565 being disbursed, while further false EIDL applications led to an additional $319,800 being paid.

The money laundering charge reflects the alleged use of fraud proceeds for personal benefit. In May 2020, Tabrizi withdrew $60,000 of the funds to help buy a 2019 Porsche Turbo Cabriolet, a detail likely to feature heavily at sentencing.

Tabrizi pleaded guilty to four counts of wire fraud and one count of money laundering. He is due to be sentenced on 28 September 2026 and faces a maximum sentence of 20 years in prison for each wire fraud count and 10 years for money laundering, although the final sentence will be determined by the court after considering the US Sentencing Guidelines and statutory factors.

For firms and individuals, the case underlines that pandemic relief fraud remains an active enforcement priority for the DoJ, IRS Criminal Investigation and the newly created National Fraud Enforcement Division. Even several years after the original loan programmes, investigators continue to scrutinise application statements, payroll claims, business activity and the ultimate use of relief funds.

Read the press release here.