California man, 38, is charged with using $5 million COVID-19 relief loans to splash out on a Ferrari, Lamborghini and Bentley
A Southern California man has pleaded not guilty to charges he obtained $5 million in federal coronavirus-relief loans for phony businesses and then used the money to splash out on luxury cars.
Mustafa Qadiri, 38, was arrested on Friday on suspicion of scheming to defraud the Paycheck Protection Program, which was introduced last year to help small businesses during the COVID-19 pandemic.
Federal agents have seized a Ferrari, Bentley and Lamborghini along with about $2 million from Qadiri's bank accounts, prosecutors said.
A Southern California man has pleaded not guilty to charges he obtained $5 million in federal coronavirus-relief loans for phony businesses and then used the money to buy a Lamborghini, Ferrari, and Bentley
Mustafa Qadiri, 38, was arrested on Friday on suspicion of scheming to defraud the Paycheck Protection Program, which he allegedly used to purchase a Ferrari
Federal agents have seized the Ferrari, Bentley and Lamborghini cars that Qadiri purchased, along with about $2 million from his bank accounts
Qadiri, of Irvine, surrendered to law enforcement and pleaded not guilty to multiple charges on Friday afternoon in Santa Ana federal court.
They include four counts of bank fraud, four counts of wire fraud, one count of aggravated identity theft, and six counts of money laundering, according to the U.S. Attorney's Office.
If convicted, he faces a maximum penalty of 302 years in prison, a spokesperson for the US attorney's office said.
Qadiri's attorney, Bilal A. Essayli, declined further comment on Monday.
Prosecutors said Qadiri submitted fraudulent PPP loan applications in May and June 2020 to three banks on behalf of four companies that didn't actually exist.
He is accused of claiming to operate four businesses in Newport Beach - All American Lending, Inc., All American Capital Holdings, Inc., RadMediaLab, Inc., and Ad Blot, Inc. - none of which are companies currently in operation.
Qadari allegedly applied for PPP loans with altered bank records, fake tax returns and false information about employees, and then used the money for flashy cars
Qadiri also used someone else's name, Social Security number and signature to fraudulently apply for one of the loans used to purchase a Lamborghini
The applications included altered bank records, fake tax returns and false information about employees, according to the indictment.
Qadiri also used someone else's name, Social Security number and signature to fraudulently apply for one of the loans, prosecutors said.
He received $5 million in loans that investigators said he used to pay for lavish trips, sports cars and personal expenses.
Qadari had bough a 2018 Lamborghini Aventador S and registered it to All American Capital Holdings, one of the non-operational companies listed on his loan applications.
He had also bought a 2011 Ferrari 458 Italia, worth more than $100,000, and registered it with the same company.
A third car, a 2020 Bentley Continental GT Coupe was also allegedly bought by Qadari with the fraudulent loans.
U.S. District Judge Josephine L. Staton scheduled a jury trial for June 29. Qadiri was released on $100,000 bond.
Several people have been arrested for fraudulently claiming Covid-19 relief loans, and Qadari is the third person indicted on charges specifying the purchase of a Lamborghini.
In July, a man was arrested in Florida and in August, a man was arrested in Texas, after they used PPP loans to buy Lamborghinis.
Qadari received $5 million in loans that investigators said he used to pay for lavish trips, sports cars and personal expenses
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