Federal prosecutors say Mustafa Qadiri, of Irvine, Calif., Used about $ 5 million in Payments Protection Program loans to live in large quantities, spending COVID relief funds on luxury vacations, cars expensive and more.
Qadiri was named in a federal grand jury indictment on Wednesday indicted on four counts of bank fraud, four counts of wire fraud, one count of aggravated identity theft and six counts of money laundering . He went to the police on Friday.
He is accused of claiming to operate four Newport Beach, California-based companies, none of which are active: All American Lending, Inc., All American Capital Holdings, Inc., RadMediaLab, Inc. and Ad Blot, Inc .
In May and June 2020, Qadiri submitted bogus and fraudulent claims to the Federal Payment Protection Program, or PPP, the small business loan program put in place by Congress to help cover employee salaries and keep salaries down. workers in the books during the pandemic.
“The false information allegedly included the number of employees to whom companies paid salaries, altered bank account records with inflated balances, and fictitious quarterly federal income tax forms,” prosecutors said in a statement. “Qadiri also allegedly used someone else’s name, social security number and signature to fraudulently apply for one of the loans.”
The banks funded the loans and transferred around $ 5 million to accounts controlled by Qadiri, the statement said.
The 38-year-old then embarked on a spending spree.
Federal agents seized the three vehicles, along with $ 2 million in allegedly ill-gotten gains from his bank account.
Qadiri is being held on $ 100,000 bond and is due to stand trial on June 29, according to CBS Los Angeles.