Former Nye County Commissioner Charged in COVID-19 Relief Fraud Scheme

Authorities allege Leonardo F. Blundo obtained over $500,000 in fraudulent pandemic aid for his Pahrump restaurant.

Published on Mar. 11, 2026

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A former Nye County commissioner has been indicted by a federal grand jury in Las Vegas on allegations that he fraudulently obtained more than $500,000 in COVID-19 relief funds for his Pahrump restaurant, Carmelo's Bistro. Prosecutors claim Blundo inflated the restaurant's revenue, payroll, and employee count and submitted false documentation to secure funds from SBA programs like the Paycheck Protection Program, Economic Injury Disaster Loan, and Restaurant Revitalization Fund.

Why it matters

The case highlights ongoing efforts by authorities to crack down on pandemic-related fraud, which has been a major problem nationwide. Small business owners who illegally obtained relief funds intended for legitimate needs could face severe criminal penalties.

The details

According to court documents, Leonardo F. Blundo is accused of submitting false applications for COVID-19 relief funds between March 2020 and September 2021. Prosecutors allege he inflated Carmelo's Bistro's revenue, payroll, and employee count and provided fraudulent documentation to secure over $500,000 from SBA programs like the PPP, EIDL, and RRF.

  • Blundo allegedly submitted false applications between March 2020 and September 2021.
  • Blundo's initial court appearance is scheduled for March 24, 2026.

The players

Leonardo F. Blundo

The former Nye County commissioner and owner/operator of Carmelo's Bistro restaurant in Pahrump, Nevada.

U.S. Magistrate Judge Daniel J. Albregts

The judge presiding over Blundo's initial court appearance on March 24, 2026.

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What’s next

Blundo faces up to 120 years in prison if convicted on the five counts of wire fraud and two counts of money laundering. The judge will decide on March 24, 2026 whether to allow Blundo to be released on bail during the legal proceedings.

The takeaway

This case underscores the government's continued efforts to identify and prosecute those who sought to illegally profit from COVID-19 relief programs intended to support struggling small businesses. It serves as a warning that fraud will be aggressively pursued, with severe penalties for those found guilty.