$1 Million EIDL Loan, $442K in Casino Gambling, and a $100K Kickback: California Man Convicted of Wire Fraud

A $1 million government-backed EIDL business loan was supposed to help a California business recover from the economic disruption of COVID-19. Instead, federal prosecutors say more than $442,000 went toward casino gambling, while another $100,000 was paid to someone who helped arrange the financing.

Following a three-day federal trial, a jury convicted Oleg Gregorvich Fursov, 52, of Elk Grove, California, of one count of wire fraud on October 7, according to the U.S. Department of Justice.

What makes this case particularly interesting isn't simply the misuse of pandemic relief funds. It's that Fursov had already received and gambled away money from earlier federal relief loans before applying for the $1 million Economic Injury Disaster Loan (EIDL) in January 2022.

That history, combined with a substantial payment to a loan application assistant, introduces questions beyond the typical COVID-era fraud prosecution.

The Money Trail

The evidence presented at trial revealed three particularly notable financial details:

• $1 million: The amount of the EIDL financing Fursov applied for in January 2022.

• More than $442,000: The amount prosecutors said he gambled at casinos instead of using for authorized business expenses.

• $100,000: An unauthorized kickback paid to an individual who assisted with the loan application.

Prosecutors established that Fursov falsely certified that the EIDL proceeds would be used exclusively for business purposes.

By that time, he had already obtained pandemic-era assistance through the Paycheck Protection Program (PPP) and an earlier $150,000 EIDL. Evidence at trial showed he had gambled tens of thousands of dollars from those previous loans as well.

The pattern presented in court was therefore not limited to a single questionable expense or an isolated transaction.

The $100,000 Payment Raises Another Question

Perhaps the most noteworthy detail for professionals in commercial finance is the $100,000 payment to the individual who assisted Fursov with his application.

The DOJ specifically characterized the payment as an unauthorized kickback, although its October 7 announcement did not identify the recipient or explain the person's precise role in the transaction.

That distinction matters. Paying a legitimate professional to assist with financing is not inherently fraudulent. Loan consultants, brokers, accountants, and other intermediaries routinely help businesses navigate financing applications.

In this case, however, prosecutors identified a substantial unauthorized payment connected to an application that included a false certification about the use of loan proceeds.

The publicly released information leaves several questions unanswered: What services did the individual provide? Was that person aware of the applicant's intended use of funds? Was the payment disclosed to the appropriate parties?

The DOJ announcement does not establish that the recipient knowingly participated in the fraud, and it does not report additional charges against that individual.

The Previous PPP Loan Is Significant

Another noteworthy element is the sequence of events. According to prosecutors, Fursov had already misused federal business relief financing before submitting his larger EIDL application in 2022.

The government's evidence showed that earlier proceeds from PPP and EIDL programs had been used for gambling. Nevertheless, he subsequently applied for another $1 million in EIDL assistance.

The DOJ did not explain what underwriting or verification processes were applied to the subsequent loan, whether the SBA had identified any earlier misuse at the time, or when federal investigators first uncovered the activity.

Convicted, but Not Yet Sentenced

Fursov is scheduled to appear before U.S. District Judge Daniel J. Calabretta for sentencing on January 14, 2027.

He faces a statutory maximum of 20 years in federal prison and a $250,000 fine. The judge will consider applicable federal sentencing guidelines and other statutory factors.

The FBI investigated the case, which forms part of the California COVID-19 Fraud Enforcement Strike Force's ongoing efforts to investigate pandemic-related financial crimes.