[California] Man accused of funding luxury lifestyle with PPP loans

A California man was released on a $100,000 bond on May 7 after he was charged with fraudulently obtaining more than $5 million in government-backed Paycheck Protection Program loans and using them to fund a luxury lifestyle, NBC News reports.

Prosecutors said Mustafa Qadiri (38) from Irvine, California, used the money to buy three high-end cars each costing six figures: a 2011 Ferrari 458 Italia, a 2018 Lamborghini Aventador S, and a Bentley Continental GT.

Mr Qadiri was charged in an indictment with four counts of bank fraud, four counts of wire fraud, one count of aggravated identity theft and six counts of money laundering. He was arrested on the morning of May 7. 

U.S. Attorney's spokesperson Ciaran McEvoy said Mr Qadiri pleaded not guilty in federal court. Mr Qadiri's lawyer did not immediately respond to NBC News’s request for comment.

Prosecutors said Mr Qadiri listed one of four mortgage companies in multiple applications for PPP loans, three banks awarded him loans totalling more than $5 million. Prosecutors said the companies he listed no longer exist.

According to a statement from the U.S. Attorney's Office in Los Angeles, Mr Qadari is also accused of using PPP money for "lavish vacations" and "the payment of personal expenses."

Prosecutors claim he falsified the number of employees at the companies, inflated bank balances and used another person's identity to obtain the loans. He obtained the money "for payroll and company expenses that did not exist," the money was then wired to accounts Mr Qadari controlled, prosecutors said in the indictment.

The COVID-19 relief programme offered small businesses up to $10 million in forgivable loans for payroll and basic expenses.

Federal agents seized the three luxury cars and $2 million "in alleged ill-gotten gains from his bank account," the U.S. Attorney's Office statement said.

A California man was released on a $100,000 bond on May 7 after he was charged with fraudulently obtaining more than $5 million in government-backed Paycheck Protection Program loans and using them to fund a luxury lifestyle, NBC News reports.

Prosecutors said Mustafa Qadiri (38) from Irvine, California, used the money to buy three high-end cars each costing six figures: a 2011 Ferrari 458 Italia, a 2018 Lamborghini Aventador S, and a Bentley Continental GT.

Mr Qadiri was charged in an indictment with four counts of bank fraud, four counts of wire fraud, one count of aggravated identity theft and six counts of money laundering. He was arrested on the morning of May 7. 

U.S. Attorney's spokesperson Ciaran McEvoy said Mr Qadiri pleaded not guilty in federal court. Mr Qadiri's lawyer did not immediately respond to NBC News’s request for comment.

Prosecutors said Mr Qadiri listed one of four mortgage companies in multiple applications for PPP loans, three banks awarded him loans totalling more than $5 million. Prosecutors said the companies he listed no longer exist.

According to a statement from the U.S. Attorney's Office in Los Angeles, Mr Qadari is also accused of using PPP money for "lavish vacations" and "the payment of personal expenses."

Prosecutors claim he falsified the number of employees at the companies, inflated bank balances and used another person's identity to obtain the loans. He obtained the money "for payroll and company expenses that did not exist," the money was then wired to accounts Mr Qadari controlled, prosecutors said in the indictment.

The COVID-19 relief programme offered small businesses up to $10 million in forgivable loans for payroll and basic expenses.

Federal agents seized the three luxury cars and $2 million "in alleged ill-gotten gains from his bank account," the U.S. Attorney's Office statement said.