Republican official ensnared in massive COVID fraud scandal
A federal grand jury has indicted the chairman of the Nye County, Nevada, Republican Party for allegedly defrauding the government of roughly $500,000 in COVID-19 relief funds, according to a new report.
Nye County Republican Party chairman Leo Blundo is facing charges of wire fraud and money laundering connected to the several loans and grants he received from the federal government, local news station 8NewsNow reported. The money was supposed to go to Blundo's restaurant, Carmelo’s Bistro, but instead was funnelled into several investment and cryptocurrency accounts, according to the report.
“To increase the size of the loans and grant for which Carmelo’s Bistro was eligible, Blundo falsely and fraudulently inflated its gross revenue, its average monthly payroll, and its number of employees when completing applications for those loans and grant,” the report quotes prosecutors as arguing in a court filing.
Blundo faced similar charges in 2020, but was later cleared by the Nevada Attorney General's Office. Blundo was fined $4,500 by the Nevada Commission on Ethics for his role in the scheme. Blundo was serving as a Nye County Commissioner at the time the first incident occurred, according to the report.