He used the cash for lavish holidays and to purchase a Ferrari, Bentley and Lamborghini.
A Southern California man has pleaded not responsible to expenses he obtained $5 million (Dh18.3 million) in federal coronavirus-relief loans for phony companies after which used the cash for lavish holidays and to purchase a Ferrari, Bentley and Lamborghini, prosecutors mentioned on Monday.
Mustafa Qadiri, 38, was arrested final week on suspicion of scheming to defraud the Paycheck Safety Program, which was carried out final 12 months to assist small companies struggling throughout the Covid-19 pandemic.
Qadiri, of Irvine, pleaded not responsible Friday to a number of expenses together with financial institution fraud, wire fraud, aggravated identification theft, and cash laundering, in line with the US Legal professional’s Workplace. Qadiri’s lawyer, Bilal A. Essayli, declined additional remark Monday.
Federal brokers have seized three luxurious sports activities automobiles allegedly bought by Mustafa Qadiri, 38, of Irvine, with fraudulently obtained COVID-19 Fee Safety Program (PPP) loans. pic.twitter.com/MIdkjFeZx2
— US Legal professional L.A. (@USAO_LosAngeles) May 7, 2021
Prosecutors mentioned Qadiri submitted fraudulent PPP mortgage functions to a few banks on behalf of 4 corporations that didn’t really exist. The functions included altered financial institution data, pretend tax returns and false details about workers, in line with the indictment.
Qadiri additionally used another person’s identify, Social Safety quantity and signature to fraudulently apply for one of many loans, prosecutors mentioned.
He acquired $5 million in loans that investigators mentioned he used to pay for journeys, sports activities automobiles and private bills.
Federal brokers have seized the Ferrari, Bentley and Lamborghini automobiles that Qadiri bought, together with about $2 million from his financial institution accounts, prosecutors mentioned.
US District Choose Josephine L. Staton scheduled a jury trial for June 29. Qadiri was launched on $100,000 bond.