A former TikTok cryptocurrency influencer has been forced to give up a physical gold Bitcoin and over $17,000 in cash after pleading guilty to wire fraud, aggravated identity theft and money laundering charges.
Denish Sahadevan, also known as Danny Devan on social media, allegedly ran an elaborate scheme through which he defrauded lenders and the US Small Business Administration (SBA) out of more than $1.2 million in funds from the Loan Program. Paycheck Protection (PPP) and Economic Injury Disaster Loans (EIDL).
The US Attorney’s Office for the District of Maryland made the disclosures in a statement, stating that Sahadevan laundered the proceeds of his fraudulent activities by conducting various monetary transactions, including the purchase and sale of securities and cryptocurrency.
More than 26,000 people followed this 31-year-old influencer on TikTok. In his biography, he states that he “invests in cryptocurrency,” and some of his videos in which he gives crypto investment advice have received over 300,000 views.
During the investigation, law enforcement executed a search warrant at Sahadevan’s Potomac home, where they discovered a physical gold bitcoin of unknown value, various electronic devices, a container containing approximately 18 driver’s licenses belonging to other individuals, and approximately $17,043 in cash.
Sahadevan will lose the money and bitcoin seized during the search as part of his plea deal, as both are considered proceeds of his fraudulent scheme. He will also be required to restitute and pay a forfeiture judgment of nearly $430,000.
Apparently, Sahadevan started his fraudulent activities around March 2020.. He submitted false EIDL and PPP loan applications for four Maryland entities under his control, fabricating documents such as tax forms and bank statements to support these applications.
The Rockville resident also admitted to using his home as a hub to produce forged documents and electronically apply for EIDL and PPP loans.
His applications for approximately 71 PPP loans, totaling nearly $941,794.75, netted him approximately $146,000 in PPP benefits. In addition, Sahadevan obtained eight EIDLs worth $283,900.
The confessed fraudster now faces a maximum sentence of 20 years in federal prison for wire fraud, up to 10 years for money laundering, and a mandatory two-year sentence for aggravated identity theft, to be served consecutively to any other sentence imposed. .
District Judge Deborah L. Boardman has set Sahadevan’s sentencing for September 21.
2023-06-03 12:59:43
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