A Potomac man was sentenced to three years in prison in connection with his scheme to defraud the federal government of more than $1.2 million.
Denish Sahadevan, also known as Danny Devan, was ordered to forfeit cash and Bitcoin seized at his residence and pay restitution and a forfeiture money judgement of at least $429,906. He handed over a $100,000 check to the court at his sentencing Tuesday.
The former social media influencer defrauded lenders and the Small Business Administration of money from the Paycheck Protection Program loans and the Economic Injury Disaster Loans, according to the U.S. Attorney’s Office, District of Maryland.
He also must serve three years of supervised release on charges of wire fraud, aggravated identity theft and money laundering.
According to details from his plea agreement, Sahadevan submitted applications on behalf of four Maryland entities that he controlled, often using fraudulent and fabricated documents, such as tax form and bank statements. He used identifying information from a tax preparer he knew without that person’s knowledge or agreement, according to the U.S. Attorney’s Office.
Sahadevan admitted that he used his home in Rockville to create the fabricated documents and electronically apply for EIDL and PPP loans. According to the U.S. Attorney’s Office, he applied for about 71 PPP loans totaling approximately $941,794.75, and successfully obtained approximately $146,000 in PPP benefits. Sahadevan applied for and received eight EIDLs totaling $283,900.
According to the plea agreement, Sahadevan caused the fraud proceeds to be deposited into bank accounts he opened specifically for that purpose, then laundered the funds by engaging in several monetary transactions, including purchasing and trading securities and cryptocurrency, settling personal debts and making payments to his girlfriend.
Also, between December 16, 2021 and January 10, 2022, Sahadevan applied to a financial institution for a $1,336,000 loan to purchase a property in Potomac. In this loan application, Sahadevan failed to disclose the $283,900 he owed to the United States for the EIDL benefits he fraudulently received, according to the U.S. Attorney’s Office.
Law enforcement officers searched his Potomac residence and recovered multiple electronic devices, a can containing approximate 18 driver’s licenses belonging to other individuals, what appeared to be a gold physical Bitcoin in a black case and approximately $17,043 in cash in a suitcase in a bedroom closet, according to the U.S. Attorney’s Office.
— US Attorney Maryland (@USAO_MD) January 10, 2024
