- Prosecutors are investigating abuse of the Paycheck Protection Program (PPP), and have found a man who used the government handouts to purchase a Lamborghini, Bentley and Ferrari.
- Mustafa Qadiri of Irvine, was indicted on 4 counts of bank fraud, 4 counts of wire fraud, 1 count of aggravated identity theft, and 6 counts of money laundering.
- Mr. Qadiri revealed that he is an active Republican donor, who owns a venture capital firm, All American Capital Holdings, LLC.
Sarah K. Burris from Rawstory writes:
“California prosecutors are investigating abuse of the Paycheck Protection Program (PPP), the loans given to businesses suffering under the economic crisis ushered in from the coronavirus pandemic.
According to the New York Times, one person used the government handouts to purchase a Lamborghini, Bentley and Ferrari.
“The man, Mustafa Qadiri, 38, of Irvine, was indicted by a federal grand jury on four counts of bank fraud, four counts of wire fraud, one count of aggravated identity theft and six counts of money laundering, the U.S. attorney in the Central District of California announced,” said the Times.
Prosecutors say that Qadiri’s attempts to obtain a federal loan began in May 2020 and scored him $5.1 million less than a month later. He then went on a “spending spree,” according to the Times report, purchasing not only the luxury cars but funding “lavish vacations,” while the country was under lockdown. All of the purchases violate the PPP spending rules.
“Mr. Qadiri submitted applications to three different banks for Covid-19 relief funds in order to help four companies based in California that, in fact, were not in operation,” said the report, citing prosecutors in the case…”
See full story here.