Former Nye County Commissioner Indicted for COVID Relief Fraud at Pahrump Restaurant

A federal grand jury indicted former Nye County Commissioner Leonardo F. Blundo on March 11 on five counts of wire fraud and two counts of money laundering, alleging he extracted more than $500,000 in pandemic relief funds through fraudulent applications tied to his Pahrump restaurant, Carmelo's Bistro.

Prosecutors allege that between March 31, 2020 and September 6, 2021, Blundo submitted false applications to three federal Small Business Administration programs: the Paycheck Protection Program, the Economic Injury Disaster Loan program, and the Restaurant Revitalization Fund. The indictment alleges he inflated Carmelo's Bistro's gross revenue, average monthly payroll, and employee count on those applications and submitted false documentation to back the claims. The applications, according to court documents, resulted in two PPP loans, two EIDL loans, and one RRF grant totaling more than $500,000.

If convicted on all counts, Blundo faces up to 120 years in prison and fines of up to $1.7 million. His initial appearance is scheduled for March 24 before U.S. Magistrate Judge Daniel J. Albregts in Las Vegas.

FBI Las Vegas Field Office Special Agent in Charge Christopher S. Delzotto addressed the case directly. "Fraud will not be tolerated in our community, regardless of the position or identity of those involved," Delzotto said. "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."

Blundo declined to comment when reached by phone. No defense counsel has been publicly identified in the available court records.

For the restaurant industry, the indictment is a reminder of the scrutiny still surrounding pandemic-era SBA programs. The PPP, EIDL, and RRF were designed to keep restaurants staffed and solvent during COVID-19 shutdowns, and federal prosecutors have continued pursuing fraud cases tied to those programs years after the funds were disbursed. The RRF alone distributed roughly $28.6 billion nationally before its funds were exhausted, making it a particular focus of post-pandemic enforcement. Blundo's case, involving a sitting county commissioner at the time of the alleged scheme, fits the pattern of federal investigators prioritizing cases where public trust compounds the alleged harm.

The indictment was returned in U.S. District Court in Las Vegas. Further details on exact statutory counts and the precise dollar amounts alleged in each application are expected to be confirmed when the full indictment and any accompanying DOJ press release are publicly filed.