A southern California man was arrested Friday on federal charges after federal officials said he fraudulently obtained millions of dollars through coronavirus relief funds to buy luxury cars, take vacations lavish and cover personal expenses.
Mustafa Qadiri, a 38-year-old resident of Irvine, Calif., Located nearly 40 miles southeast of Los Angeles, has secured about $ 5 million in payment protection program funds after claiming to own four businesses near Newport Beach, none of which are currently in business, according to a federal indictment.
Qadiri submitted claims for All American Lending, Inc., All American Capital Holdings, Inc., RadMediaLab, Inc. and Ad Blot, Inc. in May and June 2020 with changed bank accounts, fake federal tax return forms and someone else’s identity, according to the United States Attorney’s Office in California. Then, the indictment adds, he used the money he received to spend on vacations, personal expenses, and Ferrari, Bentley and Lamborghini sports cars.
All the cars and $ 2 million in Qadiri’s bank account were seized by federal agents when he surrendered to authorities on Friday morning. He is charged with six counts of money laundering, four counts of bank and wire fraud and one count of aggravated identity theft.
The PPP is part of the CARES Act that was approved by Congress in March 2020. It offered businesses with 500 or fewer workers low-interest loans of up to $ 10 million, which often turn into grants, to cover the costs of the pandemic. The US Small Business Administration said more than 8.2 million loans had been approved as of March 21, for a total of more than $ 718 billion.
But there have been cases of people fraudulently asking for funds, only to be arrested by federal authorities. California officials said at least $ 11 billion was issued in illegal unemployment claims, according to the Los Angeles Times, according to the Los Angeles Times.
Qadiri is currently being held on $ 100,000 bond and his trail is slated for June 29.
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