United States v. Mehrrafiee, et, al, 2:25-cr-00126

Background

Federal affidavit charging Shirzad Mehrrafiee with conspiracy to commit wire fraud and supporting search/arrest warrants for two business/residence addresses, a Maybach, and his person.
Alleged scheme (2020–2021): at least 17 fraudulent SBA EIDL applications using stolen or fake identities yielded ≈ $2.6 million; roughly half routed into bank accounts for which Mehrrafiee was sole authorized signer.
Additional alleged frauds: (1) an EIDL in his own business name containing a false denial of prior felony conviction and later a loan modification increasing proceeds to $500,000; (2) mortgage application (≈ $3M) with inflated income and fabricated bank statements; (3) October 2024 kiting at East West Bank causing ≈ $1.5M loss.
Money movement and laundering allegations: ≈ $48 million in deposits (mostly cash) into a small set of business accounts (2020–2024); surveillance and cellphone/WhatsApp ties to a courier, Mahdi Rajabi, who was arrested and charged in related laundering/conspiracy matters.
Forensic evidence seized/authorized: iCloud, email accounts, phones, bank records, cryptocurrency records, cash, documents, and digital devices; magistrate findings in the affidavit conclude probable cause for the requested warrants and arrest.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Probable cause to arrest Mehrrafiee for conspiracy to commit wire fraud (18 U.S.C. § 1349)	Affidavit sets out direct evidence: 17 fraudulent EIDL applications, bank flows to accounts Mehrrafiee controlled, incriminating text messages instructing co-conspirators, prior similar conviction, surveillance, and co-conspirator arrest.	(Anticipated/possible) Mehrrafiee may claim legitimate business activity, that aliases/accounts were used without his knowledge, or that reporting/errors explain transfers.	Magistrate found probable cause; complaint and arrest warrant supported.
Probable cause to search SUBJECT PREMISES-1, SUBJECT PREMISES-2, SUBJECT VEHICLE, and person/device searches (including biometric unlocking)	Affidavit links premises/vehicle to business accounts, surveillance of cash pickups and deposits, incriminating photos/videos in iCloud (cash stacks), and location data placing his phone at the premises. Digital devices likely contain records of schemes.	(Anticipated) Defense may argue privacy/overbreadth, legitimate business records, or that some evidence is unrelated; may challenge biometric search scope.	Magistrate authorized search warrants and digital-device search procedures (including biometric unlock procedures) based on probable cause.
Fraudulent misrepresentations on SBA EIDL and mortgage applications	Multiple EIDL applications used stolen/fake IDs and bank accounts created just before applications; text messages coordinate aliases and amounts; mortgage application supported by falsified bank statements and inflated income contrary to tax returns.	(Anticipated) Defendant might claim accounting/income interpretation differences, third-party fabrication of documents, or errors in preparation.	Affidavit presents probable-cause-level evidence that applications and supporting documents contained material false statements supporting fraud allegations; warrants issued to seize corroborating records.
Money laundering / unlicensed money transmitting / kiting allegations	Large volume of cash deposits (~$48M), pattern of cash pickups and courier meetings, transfers to brokerage/crypto and luxury vendors, and kiting/wire patterns causing bank loss; co-conspirator Rajabi’s communications and arrest corroborate scheme.	(Anticipated) Defendant may claim cash flows reflect legitimate cash businesses, check-cashing operations, or that third parties handled funds without his criminal intent.	Affidavit establishes probable cause for money laundering and unlicensed money transmitting investigations; related charges and co-conspirator arrest support law enforcement theory; warrants authorized.

Key Cases Cited

None — the affidavit and complaint rely on investigative facts and federal statutes; no reported judicial opinions are cited in the text.