A Southern California man who allegedly conned millions of dollars in coronavirus relief money has been nabbed. Feds claimed the con job netted the scam artist $5 million through the Paycheck Protection Program.
Irvine resident Mustafa Qadiri allegedly used the money to buy luxury cars, pay for vacations and cover personal expenses. The 38-year-old obtained the funds by claiming he owned four businesses located in nearby Newport Beach, authorities said. They said none of the businesses existed.
Qadiri submitted claims with the program for businesses he claimed to own - namely All-American Lending Inc., All-American Capital Holdings Inc., RadMediaLab Inc. and Ad Blot Inc., according to a federal indictment.
The paycheck program is part of legislation approved by Congress in March last year, businesses that employ 500 or fewer workers can take out low-interest loans of up to $10 million.
They can use the money to pay for pandemic-related costs. The U.S. Small Business Administration said it had approved more than $718 billion in more than 8.2 million loans to date.
Qadiri allegedly used fake federal tax returns, bogus bank accounts and stolen identities. The U.S. Attorney's Office of California said Qadiri used the money he received to buy several luxury items, including a Ferrari, a Lamborghini and a Bentley.
Federal agents have seized all of Qadiri's properties, including his cars and more than $2 million in bank accounts. Qadiri has been charged with six counts of money laundering, one count of aggravated identity theft and four counts of bank and wire fraud.
Qadiri is currently on $100,000 bail. He is expected to appear in court June 29.
Federal authorities also arrested others who allegedly fraudulently applied for money with the program and other government aid programs. In California, officials said at least $11 billion had been issued in illegal unemployment claims.
