Sioux Falls man pleads not guilty to defrauding the state out of more than $360,000

A federal grand jury has indicted a Sioux Falls man for Wire Fraud and Money Laundering.

Fifty-seven-year-old Richard Kamolvathin has pleaded not guilty to the charges.

It’s alleged Kamolvathin fraudulently submitted two applications to the South Dakota Bureau of Finance and Management for Small Business Start-Up Grants for his business, Zolvent Pro, LLC.

According to investigators, the grant applications and supporting documentation contained false statements. Kamolvathin received two grants totaling nearly $364,000. Kamolvathin then reportedly used the funds for his own purposes, including the purchase of a $27,000 watch.

The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine. Restitution may also be ordered.

Kamolvathin is free on bond with a trail date set for February 20th.


September 29, 2023