California man fraudulently Obtained $5M in COVID-19 relief Cash to buy a Ferrari, Bentley and Lamborghini, Police say
A Southern California man was arrested on federal charges Friday after federal police say he fraudulently obtained millions of dollars from coronavirus relief to purchase luxury automobiles, take extravagant vacations and pay for personal expenses.
Mustafa Qadiri, 38, of Irvine, almost 40 miles north of Los Angeles, acquired approximately $5 million in Paycheck Protection Program cash after claiming to possess four companies in nearby Newport Beach, none of which can be running a company, according to a federal indictment.
Then he, the indictment states, used the money for holidays, personal costs, and Ferrari, Bentley and Lamborghini sports cars.
All automobiles and $2 million in Qadiri’s bank accounts had been seized by federal agents when he surrendered to police Friday morning.
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The PPP is currently Component of their CARES Act accepted by Congress in March 2020. It provided companies employing 500 or fewer employees low-interest loans of around $10 million, which frequently become grants, to pay pandemic-related expenses. The U.S. Small Business Administration stated over 8.2 million loans are accepted at March 21 for over $718 billion.
However you can find have been cases of people fraudulently using for cash , just for them to be detained by national authorities. California officials have stated at least $11 billion was issued in illegal unemployment claims, based on this Los Angeles Times