California Man Charged For Using COVID Loans To Buy A Ferrari, A Lamborghini And A Bentley

A man from California has been arrested after he received more than $5 million in Payment Protection Program loans during the coronavirus pandemic and purchased vehicles including a Ferrari 458 Italia, a Lamborghini Aventador S, and a Bentley Continental GT.

The U.S. attorney in the Central District of California announced this week that 38-year-old Mustafa Qadiri has been 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.

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The New York Times reports that Qadiri began to obtain federal loans in late May 2020 and by early June, he had netted nearly $5.1 million. It is alleged the 38-year-old submitted applications to three different banks for COVID-19 relief funds to help four companies based in California. However, prosecutors state that these companies were not in operation and believe Qadiri used someone else’s name, Social Security number and signature on the applications.

Federal agents have seized three luxury sports cars allegedly purchased by Mustafa Qadiri, 38, of Irvine, with fraudulently obtained COVID-19 Payment Protection Program (PPP) loans. pic.twitter.com/MIdkjFeZx2

— US Attorney L.A. (@USAO_LosAngeles) May 7, 2021

Federal agents have seized a 2011 Ferrari 458 Italia and a 2018 Lamborghini Aventador S that were both registered to All American Capital Holdings, one of the companys that Qadiri listed on his loan applications. They also seized a 2020 Bentley Continental GT that was allegedly purchased with Payment Protection Program money. Qadiri is also accused of using the money on “lavish vacations” and had $2 million in alleged ill-gotten gains seized from his bank account.

If convicted, the charges against Qadiri carry a combined maximum penalty of 302 years in prison.

This isn’t the first time federal prosecutors have arrested and charged an individual with fraudulently obtaining Payment Protection Program loans and spending them on lavish cars. In July 2020, a 29-year-old man was caught out after purchasing a 2020 Lamborghini Huracan Evo after receiving almost $4 million in funds. One month later, a man in Texas was arrested after receiving more than $1.6 million in funds and purchasing a Lamborghini Urus. In the same month, a 41-year-old from Washington D.C. was arrested after obtaining more than $2.1 million in funds and buying a Kia Stinger and a $1.123 million house.