Paycheck Protection Program Fraud
A California man is accused of fraudulently obtaining $5 million through the Paycheck Protection Program then using the COVID-19 relief funds on luxury sports cars and vacations, the U.S. Attorney’s Office for the Central District of California announced Friday.
Mustafa Qadiri, 38, was charged Wednesday with four counts of bank fraud, four counts of wire fraud, one count of aggravated identity theft, and six counts of money laundering.
Starting in May of last year, Qadiri allegedly submitted false statements, provided altered records, and inflated the number of employees who supposedly worked for his purported advertising and mortgage businesses.
He allegedly received more than $5 million from at least four fraudulent PPP loan applications, which he transferred into a bank account he controlled.
The U.S. Attorney’s Office said he used the money to buy a 2018 Lamborghini Aventador S, a 2011 Ferrari 458 Italia, and a Bentley.
Qadiri also allegedly used the money to take “lavish vacations” and pay personal expenses. Federal agents also seized $2 million from his bank account.
He surrendered to law enforcement Friday morning.