Former Nye County Commissioner Indicted For COVID-19 Relief Fraud Totaling More Than $500,000

LAS VEGAS - A former County Commissioner from Nye County, Nevada, was indicted today by a federal grand jury in Las Vegas for his alleged role in applying for fraudulent COVID-19 relief funds on behalf of his restaurant in Pahrump. In total, he received more than $500,000 through programs administered by the U.S. Small Business Administration, including the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, and Restaurant Revitalization Fund (RRF).

"Fraud will not be tolerated in our community-regardless of the position or identity of those involved," said Special Agent in Charge Christopher S. Delzotto for the FBI's Las Vegas Field Office. "Fraud erodes public trust and undermines the institutions our communities rely on every day. The FBI remains committed to protecting the integrity of our public institutions and ensuring that no one is above the law."

According to allegations contained in court documents, Leonardo F. Blundo owned and operated a restaurant named Carmelo's Bistro in Pahrump, Nevada. As alleged, from about March 31, 2020 to about September 6, 2021, Blundo submitted false PPP, EIDL, and RRF applications. As part of the scheme, he falsely inflated the restaurant's gross revenue, its average monthly payroll, and its number of employees when completing applications for those loans and grant. Additionally, he provided false documentation to support some of the false and fraudulent claims in those applications. Blundo obtained two PPP loans, two EIDLs, and an RRF grant totaling more than $500,000.

A federal grand jury charged Blundo with five counts of wire fraud and two counts of money laundering. His initial appearance has been scheduled before United States Magistrate Judge Daniel J. Albregts for March 24, 2026.

If convicted, the maximum statutory penalty is 120 years of prison, a three-year term of supervised release, a $1,750,000 fine, and a $700 special assessment.

Executive Assistant United States Attorney Summer Johnson for the District of Nevada and Special Agent in Charge Delzotto made the announcement.

The FBI investigated the case. Assistant United States Attorney Richard Anthony Lopez is prosecuting the case.

This case is part of the District of Nevada's Public Corruption Strike Force. The Strike Force is within the Office's Criminal Division. Assistant United States Attorneys with extensive public corruption experience will handle cases of allegations of criminal misconduct. This specialized unit will focus on the investigation and prosecution of all federal crimes affecting government integrity, including bribery of public officials at all levels of government, election crimes, and other related offenses. This endeavor will be a collaborative effort with federal, state, and local agencies across the Silver State.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department's National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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