"That's why there is a saying that as smart as a squirrel jumps, it eventually falls to the ground."
Denish Shadevan, better known as Danny Devan on TikTok, pleaded guilty in federal court to charges of transaction fraud, identity theft and money laundering involving cryptocurrencies such as Bitcoin (BTC).
According to the United States (US) Attorney's Office for the District of Maryland, the influencer attempted to defraud lenders and the US government of a $1.2 million COVID-19 relief loan.
Devan, who has 630,000 followers, rose to fame on TikTok after creating a video about investing in stocks and cryptocurrencies during the COVID-19 outbreak, where the government offered various attempts to provide financial assistance to affected US citizens.
However, Devan allegedly created false tax forms and bank statements and then submitted Payroll Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications through several Maryland-based entities he controlled.
Not only that, he also used information belonging to an acquaintance without his consent to verify certain documents, the prosecutor commented.
Devan applied for around 71 PPP loans totaling $941,000 and subsequently received $146,000 in PPP benefits and managed to generate $238,000 through 8 EIDLs.
In addition to borrowing $1.3 million to buy a six-bedroom mansion in Potomac, the 31-year-old Devan laundered government funds, settled personal debts and transferred some of the money to his girlfriend.
Even so, it all ended on February 24, 2023 after he was sentenced to a maximum federal prison sentence of 20 years for transaction fraud, 10 years for money laundering and a mandatory two years for identity theft.
As part of his plea deal, Devan will forfeit his cash and BTC including paying $429,000.
