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California man bought Lamborghini, luxury cars with PPP loan, prosecutors say

California man bought Lamborghini, luxury cars with PPP loan, prosecutors say
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Prosecutors say a California man used a loan under the COVID-19 relief bill's Paycheck Protection Program (PPP) to purchase a Lamborghini and other luxury cars, according to a New York Times report. 

The U.S. attorney in the Central District of California announced on Friday that authorities had arrested Mustafa Qadiri on charges of fraudulently obtaining $5 million in loans under the program, which was meant to help businesses survive the pandemic.

According to the press release, prosecutors claim that Qadiri ran four now-defunct businesses and in May and June of 2020 he submitted false PPP loan applications on those businesses using his employees' paid wages, and someone else’s name and Social Security number. He is accused of transferring the money to his personal accounts. 

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Prosecutors say Qadiri spent the $5 million on vehicles, including a Lamborghini, a Ferrari and a Bentley. Prosecutors said police had seized the vehicles he purchased, according to the release. 

Qadiri also is accused of spending the money on lavish vacations.

A grand jury on Wednesday indicted Qadiri, 38, on four counts of bank fraud and wire fraud, one count of aggravated identity theft and six counts of money laundering.

A spokesman for the U.S. attorney's office told the Times that if Qadiri is convicted, he could face up to a maximum sentence of 302 years in prison.