NY man pleads guilty in pandemic loan fraud

BUFFALO, N.Y. (AP) — A politically active western New York businessman has admitted to a multimillion-dollar pandemic loan fraud, and prosecutors have said some of the money went to the Democrat’s campaign coffer for an unsuccessful bid for a county office. Court records show Hormoz Mansouri pleaded guilty Friday to federal bank fraud and fraud conspiracy charges. The Buffalo News says he admitted in court that he inflated his businesses’ payroll costs and employee numbers on federal pandemic relief loans applications. The engineering-business owner sought the Democratic nomination for Erie County comptroller in 2021. According to his indictment, Mansouri reaped about $3 million in all from the pandemic loan fraud scheme, and $200,000 of it went to his campaign account.