A businessman from western New York, Hormoz Mansouri, confessed to committing fraud through pandemic relief loans, diverting some funds to his campaign for county office. Court documents revealed that Mansouri, who ran for the Democratic nomination for Erie County comptroller in 2021, pleaded guilty to federal bank fraud and fraud conspiracy charges. The 70-year-old acknowledged his willful violation of the law and is currently out on a $250,000 bond awaiting sentencing in February, facing a possible prison term of 33 to 41 months.
Mansouri, originally an engineer, founded various businesses in the Buffalo area and has been involved in local and state politics for years. Known for his ties to billionaire Tom Golisano, he contributed to Golisano’s acquisition of the NHL’s Buffalo Sabres in the early 2000s, which introduced him to the political arena. Despite primarily supporting Democrats, Mansouri also donated to Republicans, as reported by The Buffalo News.
The businessman admitted to inflating his businesses’ payroll costs and employee figures on applications for federal pandemic relief loans, totaling around $3 million. A portion of these funds, including $200,000, was directed to his county comptroller campaign account. The loan programs, such as the Paycheck Protection Program and Economic Injury Disaster Loan Program, aimed to aid U.S. businesses during the COVID-19 disruptions from 2020 onwards.
Mansouri’s attorney, Herbert Greenman, described his client as a benevolent individual who acted out of fear for his business during the pandemic. Greenman conveyed Mansouri’s deep regret for betraying his family, friends, and country by engaging in fraudulent activities. The businessman’s sentencing is scheduled for February, marking the conclusion of a case that underscores the consequences of misusing pandemic relief funds for personal gain.