Mehrdad Tabrizi, owner of Southern California ambulatory medical companies, pleaded guilty to wire fraud and money laundering tied to over $1 million in COVID-19 relief funds. DOJ alleged he submitted fraudulent PPP and EIDL applications after shutting down one company in 2018.

A Southern California business owner, Mehrdad Tabrizi, pleaded guilty to wire fraud and money laundering connected to more than $1 million in COVID-19 relief funds, according to DOJ. Prosecutors said Tabrizi controlled operations of two ambulatory medical companies and submitted false applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) benefits. DOJ alleged that after shuttering one company in 2018, Tabrizi still used the company’s status and information to pursue relief funding during the pandemic. The fraudulent claims were linked to disbursements that prosecutors said were deposited into bank accounts he controlled. The case underscores how pandemic programs became a repeat target for scammers and fraudsters, even beyond the original public health emergency. Fraud patterns in relief rollouts often include false representations of eligibility, manipulated documentation, and bank-directed payments designed to move money quickly after approval. Victims and compliance teams should treat any unexpected requests for documentation, claims of eligibility that don’t match business history, or “fixers” promising approvals as major warning signs. This prosecution also demonstrates that DOJ treats pandemic relief fraud as serious financial crime, including money laundering tied to the proceeds.