BUFFALO, N.Y. (WKBW) — Buffalo Mayor Byron Brown faced questions on Wednesday about how a man, facing 40 federal counts of defrauding loan programs out of millions of dollars, was able to secure a contract with the City of Buffalo.
Those questions surround Hormoz Mansouri, who on Monday led a meeting discussing the future of Shoshone Park in North Buffalo.
Mansouri, who was federally indicted in March of 2022 with conspiracy to commit wire fraud, bank fraud, and money laundering, was awarded a contract by the City of Buffalo in 2023 to help redesign Shoshone Park and Trinidad Park on the city's east side.
City officials tell 7 News the contract was for $175,000.
"These contracts don't come to me," said Mayor Brown answering questions on the issue Wednesday. "This was handled by the Department of Public Works. The Department of Public Works set up a selection committee which reviewed the companies that responded to an RFP."
Mayor Brown says Mansouri's company EI Team did not raise concern during "a number of checks" that were done by the selection committee.
"These checks involve looking at companies that have been debarred by the state and the federal government,' said Mayor Brown. "This company was not on the state list. It was not on the federal list. Sadly it was missed by the selection committee."
"There is no question this is embarrassing," Mayor Brown added.
Mayor Brown says Mansouri has resigned from his position but will still be paid for the work that he and his company have completed.
"We should be a little bit embarrassed," said Council Member Rasheed N.C. Wyatt who represents the University District.
Wyatt was at the meeting with Mansouri at Dash's on Monday to discuss the future of Shoshone Park.
"A resident actually approached me and said 'Hey, do you know this guy?', talking about Mansouri, 'Do you know he has some federal indictments?' I'm a little embarrassed that a resident has better intel than the city," said Wyatt.
Wyatt says he will now focus on ensuring the park projects push ahead.
"I hope this little speed hump with this guy, who has now resigned, doesn't hinder us from moving forward with this project," said Wyatt.
City officials tell 7 News that the Department of Public Works is in the process of hiring a new consultant.
The 40-count indictment against Mansouri, announced in March of 2022, charges him with filing fraudulent loan applications under both the Paycheck Protection Program and the Economic Injury Disaster Loan program.
Mansouri faces a maximum penalty of 30 years in prison and a $1,000,000 fine.
