Federal prosecutors are accusing a California man of fraudulently obtaining $5 million in coronavirus relief Payment Protection Program (PPP) loans and spending the money on luxury cars.
Mustafa Qadiri, 38, of Irvine, was arrested Friday and charged with four counts of bank fraud, four counts of wire fraud, six counts of money laundering, and one count of aggravated identity theft, the Justice Department announced in a release.
Qadiri is accused of using the money to buy a 2018 Lamborghini Aventador S, 2011 Ferrari 458 Italia, and a Bentley Continental GT.
Federal agents have seized three luxury sports cars allegedly purchased by Mustafa Qadiri, 38, of Irvine, with fraudulently obtained COVID-19 Payment Protection Program (PPP) loans. pic.twitter.com/MIdkjFeZx2
— US Attorney L.A. (@USAO_LosAngeles) May 7, 2021
The Justice Department alleged that Qadiri claimed to have operated four fake companies and allegedly submitted fraudulent paperwork for PPP loan applications to three banks on behalf of those shell companies.
“The false information allegedly included the number of employees to whom the companies paid wages, altered bank account records with inflated balances, and fictitious quarterly federal tax return forms. Qadiri allegedly also used someone else’s name, Social Security number, and signature to fraudulently apply for one of the loans,” the Justice Department statement read.
Federal agents seized the cars Qadiri allegedly purchased and $2 million out of his bank account.
NBC News reported Qadiri pleaded not guilty when he appeared in federal court.
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