IRVINE, Calif. — A Southern California male has pleaded not responsible to fees he acquired $5 million in federal coronavirus-aid financial loans for phony enterprises and then utilised the funds for lavish vacations and to invest in a Ferrari, Bentley and Lamborghini, prosecutors mentioned Monday.
Mustafa Qadiri, 38, was arrested final week on suspicion of scheming to defraud the Paycheck Safety System, which was applied past calendar year to assistance modest businesses battling all through the COVID-19 pandemic.
Qadiri, of Irvine, pleaded not responsible Friday to various prices like financial institution fraud, wire fraud, aggravated id theft, and money laundering, according to the U.S. Attorney’s Business office. Qadiri’s legal professional, Bilal A. Essayli, declined even further remark Monday.
Prosecutors stated Qadiri submitted fraudulent PPP mortgage applications to 3 banking companies on behalf of 4 businesses that failed to in fact exist. The apps included altered lender documents, bogus tax returns and untrue data about personnel, in accordance to the indictment.
Qadiri also employed an individual else’s title, Social Security number and signature to fraudulently apply for a single of the financial loans, prosecutors mentioned.
He acquired $5 million in financial loans that investigators stated he used to pay out for excursions, athletics vehicles and individual bills.
Federal brokers have seized the Ferrari, Bentley and Lamborghini automobiles that Qadiri purchased, alongside with about $2 million from his bank accounts, prosecutors mentioned.
U.S. District Judge Josephine L. Staton scheduled a jury trial for June 29. Qadiri was produced on $100,000 bond.