The Ferrari seized from the California home of Mustafa Qadiri.
PHOTO BY US ATTORNEY LA
CALIFORNIA – A man in Southern California landed in court on charges of fraudulently obtaining $5 million (Dh18.3 million) in Covid-19 relief loans to buy a Ferrari and other luxury cars.
Prosecutors said on Monday that Mustafa Qadiri, 38, used fake businesses to get the loan grants, which he spent on lavish vacations and a Ferrari, Bentley and Lamborghini.
The luxury cars were seized from his home in southern California following his arrest last week on defrauding the Paycheck Protection Program (PPP).
The loan program was launched last year to help small businesses struggling during the Covid-19 pandemic.
Qadiri pleaded not guilty to multiple charges, including bank fraud, wire fraud, aggravated identity theft, and money laundering, according to the US Attorney’s Office.
Prosecutors said Qadiri submitted fraudulent PPP loan applications to three banks on behalf of four fake companies. He also used tampered bank records and fake tax returns.
Qadiri also used someone else’s name, Social Security number and signature to apply for one of the loans, prosecutors said.
He received $5 million in loans that investigators said he used to pay for trips, sports cars and personal expenses.
Federal agents have seized the Ferrari, Bentley and Lamborghini cars that Qadiri purchased, along with about $2 million from his bank accounts, prosecutors said.
Qadiri has been released on a $100,000 bond. A jury trial is scheduled for June 29. ICA/Expat Media
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