Former influencer Denish Sahadevan, 32, of Potomac, known as “Danny Devan” on TikTok, was sentenced to three years in prison Tuesday for fraudulently applying for and receiving more than $1.2 million in COVID-19 relief loans, according to the U.S. Attorney’s Office for the District of Maryland.
Sahadevan gained almost 18,000 followers by making videos about cryptocurrency and stocks.
In May 2023, Sahadevan pleaded guilty to wire fraud, aggravated identity theft and money laundering, relating to his scheme to defraud lenders and the Small Business Administration of Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL).
He will also face three years of probation after his prison sentence and will be required to forfeit the cash and Bitcoin seized during a search of his home in February 2023. Also, he will be required to pay restitution and a forfeiture money judgment of at least $429,906, the U.S. Attorney’s Office said.
Sahadevan’s attorney, Peter Goldman, did not immediately respond to a request for comment.
According to Sahadevan’s plea agreement, he began applying for EIDL and PPP loans in March 2020 on behalf of four Maryland entities under his control, using fake documents such as tax forms and bank statements to substantiate the applications.
He applied for approximately 71 PPP loans totaling more than $941,000 and successfully obtained around $146,000 in PPP benefits. He also applied for and received eight EIDLs totaling nearly $284,000, according to the U.S. Attorney’s Office
Once the loans were secured, Sahadevan deposited the proceeds into bank accounts he opened for that purpose, then laundered the funds through trading securities and cryptocurrency, settling personal debts and making payments to his girlfriend, the plea agreement shows.
He also applied for and successfully secured a $1.3 million loan to purchase property in Potomac, failing to disclose on the application that he owed hundreds of thousands to the United States for the EIDL benefits he received.
On Feb. 24, 2023, law enforcement officers executed a search warrant on the Potomac home and recovered multiple electronic devices, 18 driver’s licenses belonging to other people, what appeared to be a gold-encased Bitcoin and approximately $17,000 in cash stuffed in a suitcase in a bedroom closet.
This article contains previous reporting from former MoCo360 reporter Em Espey.