OC Mann fraudulently obtained $ 5 million in PPP loans, purchased Bentley different automobiles, federal officers declare

IRVINE, Calif. (KABC) – A man from Irvine reportedly received approximately $ 5 million in coronavirus aid loans for his counterfeit businesses and then spent the funds on himself, including buying Ferrari, Bentley and Lamborghini sports cars according to federal agencies.

Mustafa Qadiri, 38, of Irvine, was arrested Friday over the alleged program related to the federal payment protection program that was passed last year to help small businesses struggling during the COVID-19 pandemic.

A federal grand jury indictment returned on Wednesday accused Qadiri of four cases of bank fraud, four cases of wire fraud, one case of aggravated identity theft and six cases of money laundering, according to US prosecutors.

Qadiri surrendered to law enforcement and was due to appear in federal court in Santa Ana on Friday afternoon.

The federal indictment alleges that Qadiri owned four Newport Beach-based companies, none of which were actually operating.

He then allegedly filed fraudulent PPP loan applications with three banks on behalf of those companies, according to the court records. According to the Federal Prosecutor’s Office, these applications contained false information about employees who earn wages for the companies, changed bank records and fictitious quarterly federal tax return forms.

Qadiri also reportedly used someone else’s name, social security number and signature to fraudulently apply for one of the loans.

The false information helped him obtain a $ 5 million bank loan. Federal officials say he then spent the money on himself, including buying luxury sports cars, lavish vacations and paying for his own personal expenses.

Federal agents have confiscated the Ferrari, Bentley and Lamborghini cars that Qadiri bought using the allegedly fraudulently obtained PPP loans, along with $ 2 million in allegedly illicit profits from his bank account.

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