A person in California who acquired greater than $5 million in Payment Protection Program loans supposed to assist struggling companies throughout the coronavirus pandemic was arrested on Friday on federal financial institution fraud and different expenses after he used the cash to purchase a Lamborghini and different luxurious automobiles, federal prosecutors stated.
The man, Mustafa Qadiri, 38, of Irvine, was indicted by a federal grand jury on 4 counts of financial institution fraud, 4 counts of wire fraud, one rely of aggravated id theft and 6 counts of cash laundering, the U.S. legal professional within the Central District of California introduced.
Federal prosecutors stated Mr. Qadiri’s efforts to acquire federal loans began in late May 2020 and netted him practically $5.1 million by early June. Mr. Qadiri is accused of utilizing that cash to go on a spending spree that included shopping for a Ferrari, a Lamborghini and a Bentley and paying for “lavish vacations,” all of that are prohibited beneath the Payment Protection Program, prosecutors stated.
Online courtroom information didn’t determine a lawyer for Mr. Qadiri, and efforts to achieve him by phone and e mail on Sunday night weren’t profitable.
Mr. Qadiri submitted functions to a few totally different banks for Covid-19 reduction funds in an effort to assist 4 firms primarily based in California that, in reality, weren’t in operation, prosecutors stated. In addition to submitting fraudulent firm info and “altered bank account records,” Mr. Qadiri can be accused of utilizing another person’s identify, Social Security quantity and signature on the functions, based on a press release from prosecutors.
Some of Mr. Qadiri’s property have already been seized, prosecutors stated. Federal brokers confiscated a 2011 Ferrari 458 Italia that was registered to All American Capital Holdings, one of many firms listed on Mr. Qadiri’s P.P.P. mortgage functions, they stated. A 2018 Lamborghini Aventador S, registered to the identical firm, was additionally seized, they stated.
The 2011 Ferrari 458 Italia can promote for greater than $100,000, according to Cars.com, which says in a evaluation that the car “can perform as well as strain gawkers’ necks.” It has a V-8 engine and 570 horsepower and may go from zero to 62 miles per hour in 3.4 seconds, “which is about as fast as anyone can expect to go in a car today that doesn’t shoot flames out the back,” the evaluation says.
Another widespread website for auto fans, Kelley Blue Book, has a list for a 2011 Ferrari 458 Italia promoting for $179,000. The website additionally has a evaluation of the 2018 Lamborghini Aventador S that declares, “There’s no better car to show off your success or stroke your ego.” That automobile has a V-12 engine and 740 horsepower and may go from zero to 60 m.p.h. in lower than three seconds. Among its drawbacks, based on the evaluation: “The Aventador isn’t the most comfortable car to ride in, nor is it terribly efficient, earning an E.P.A. estimated 10 m.p.g. in city driving.”
On Lamborghini.com, the webpage describing the Aventador S has the tag line “Dare your ego.”
Prosecutors stated in a press release that one other luxurious car Mr. Qadiri purchased with PPP cash, a 2020 Bentley Continental GT Coupe, was additionally seized.
A spokesman for the U.S. legal professional’s workplace stated that if Mr. Qadiri was convicted, the costs towards him carried a mixed most penalty of 302 years in jail.
Numerous folks have been arrested and charged with misusing pandemic reduction funds. Mr. Qadiri is no less than the third individual to face expenses specifying the acquisition of a Lamborghini.
In July, a person in Florida who acquired practically $4 million was arrested on financial institution fraud and different expenses after shopping for a blue Lamborghini for $318,497, federal prosecutors stated. In August, a person in Texas who acquired greater than $1.6 million from the identical federal program was arrested on financial institution fraud and different expenses after shopping for, amongst different issues, a 2019 Lamborghini Urus, for $233,337.60, prosecutors stated.
In February, the Florida man, David T. Hines, pleaded responsible to 1 rely of wire fraud, which carries a most punishment of as much as 20 years in jail. He is awaiting sentencing. The case towards the Texas man, Lee Price III, is constant.