A California man who received more than $ 5 million in payment protection program loans to help businesses in trouble during the coronavirus pandemic was arrested Friday on Friday on Friday after serving with the Federal Bank on fraud and other charges Prosecutors said the money had bought a Lamborghini and other federal luxury cars.
The man, Mustafa Qadiri, 38, from Irvine, was charged by a federal grand jury on four cases of bank fraud, four cases of wire fraud, one case of aggravated identity theft and six cases of money laundering, the U.S. attorney in the Central District of California announced.
Prosecutors said Mr. Qadiri’s federal loan efforts began in late May 2020 and grossed him nearly $ 5.1 million by early June. Mr. Qadiri is accused of using that money on a shopping spree that included buying a Ferrari, a Lamborghini and a Bentley, and paying for “wasteful vacations,” all of which are banned under the payment protection program, prosecutors said.
Bilal A. Essayli, a lawyer for Mr. Qadiri, declined to comment.
Mr. Qadiri filed applications for Covid-19 relief funds with three different banks to help four California-based companies that were actually down, according to prosecutors. In addition to submitting fraudulent company information and “changed bank account details”, a statement from the prosecutor said Mr. Qadiri was using someone else’s name, social security number and signature on applications.
Some of Mr. Qadiri’s assets have already been confiscated, prosecutors said. Federal agents seized a 2011 Ferrari 458 Italia registered with All American Capital Holdings, one of the companies listed on Mr. Qadiri’s PPP loan applications. A 2018 Lamborghini Aventador S registered with the same company was also confiscated.
The 2011 Ferrari 458 Italia can sell for more than $ 100,000, according to Cars.com. It has a V-8 engine and 570 horsepower and can go from zero to 62 mph in 3.4 seconds. Says the rating.
Another popular website for auto enthusiasts, Kelley Blue Book, has a listing for a 2011 Ferrari 458 Italia that sells for $ 179,000. The website also has a 2018 report on the Lamborghini Aventador S that states, “There is no better car to showcase your success or to stroke your ego.” This car has a V-12 engine and 740 horsepower and can go from zero to 60 mph in less than three seconds. According to the test report, one of its disadvantages is: “The Aventador is neither the most comfortable car to drive in, nor is it terribly efficient. It deserves an EPA estimated at 10 mpg for city driving. “
May 10, 2021, 2:10 p.m. ET
On Lamborghini.com, the website describing the Aventador S has the slogan “Dare your ego”.
Prosecutors said in a statement that another luxury vehicle Mr. Qadiri bought with PPP money, a 2020 Bentley Continental GT Coupe, had also been confiscated.
A US law firm spokesman said that if Mr. Qadiri were convicted, the charges against him would result in a maximum sentence of 302 years in prison.
Dozens of people have been arrested and charged with misusing pandemic aid funds. Mr. Qadiri is at least the third person to be charged with buying a Lamborghini.
In July, a Florida man who had received nearly $ 4 million was arrested on bank fraud and other charges after buying a blue Lamborghini for $ 318,497. In August, a Texas man who received more than $ 1.6 million from the same federal program was arrested on bank fraud and other charges after buying a 2019 Lamborghini Urus for $ 233,337.60, among other charges.
In February, Florida man David T. Hines pleaded guilty to wire fraud with a maximum sentence of up to 20 years in prison. He is waiting to be sentenced. The case against Texas man Lee Price III continues.