Federal prosecutors allege Former Nye County Commissioner Leonardo Blundo submitted false loan and grant applications tied to pandemic relief programs between Mar. 31, 2020, and Sept. 6, 2021, fraudulently obtaining more than $500,000 in COVID-19 relief funds for his Pahrump restaurant.
The U.S. Department of Justice says Blundo owned and operated Carmelo’s Bistro in Pahrump and allegedly inflated the restaurant’s gross revenue and number of employees in applications for federal relief funding. Investigators say he also provided false supporting documentation to back up some of those claims.
Prosecutors allege the fraudulent applications helped Blundo obtain funds from multiple federal programs created to support businesses during the COVID-19 pandemic. Those included two Paycheck Protection Program (PPP) loans, two Economic Injury Disaster Loans (EIDL), and a Restaurant Revitalization Fund (RRF) grant.
Blundo faces five counts of wire fraud and two counts of money laundering.
If convicted on all counts, Blundo could face up to 120 years in federal prison, along with three years of supervised release and fines totaling up to $1.7 million, according to federal authorities.
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