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Denish Sahadevan, aka “Danny Devan,” 32, of Potomac, Maryland, was sentenced on Tuesday, Jan. 9 to three years in federal prison, followed by three years of supervised release, for wire fraud, aggravated identity theft and money laundering, authorities said.
‘Danny Devan’ gained a TikTok following for his financial advice regarding stocks and cryptocurrency:
The charges relate to Sahadevan’s scheme to “defraud lenders and the Small Business Administration (“SBA”) of more than $1.2 million in Paycheck Protection Program (“PPP”) loans and Economic Injury Disaster Loans (“EIDL”).”
In addition to jail time, Sahadevan is required to forfeit the cash and Bitcoin seized during a search of his residence on Feb. 24, 2023 and pay restitution and a forfeiture money judgement of at least $429,906, $100,000 of which was provided in the form of a check during his sentencing.
Sahadevan’s plea agreement states that he often created “fraudulent and fabricated documents” during the submission of EIDL and PPP applications on behalf of four Maryland entities that he controlled.
He also used the identifying information of a tax preparer that he knew, without that person’s knowledge, to legitimize the fabricated tax forms he submitted.
Sahadevan ultimately applied for around 71 PPP loans totaling approximately $941,794.75, and successfully obtained approximately $146,000 in PPP benefits, while applying for and receiving eight EIDLs totaling $283,900.
Sahadevan also induced his father into becoming a co-signer for the EIDL loans and forged his father’s signature on the application. His father would not have agreed to co-sign the loan had he known of its fraudulent nature, authorities said.
Sahadevan then laundered the funds that were deposited into his accounts by “engaging in several monetary transactions, including purchasing and trading securities and cryptocurrency, settling personal debts and making payments to his girlfriend.”
Meanwhile, between Dec. 16, 2021 and Jan. 10, 2022, Sahadevan failed to disclose the $283,900 he owed to the United States for the EIDL benefits he fraudulently received while applying to a financial institution for a $1,336,000 loan to purchase a property in Potomac, Maryland. He was subsequently approved for the loan and purchased the property.
A search warrant carried out at Sahadevan’s Potomac residence on Feb. 24, 2023 turned up several 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 found in a suitcase in a bedroom closet.
The cash and Bitcoin are proceeds of the fraud scheme.
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