California used $5M to purchase sports cars

A Southern California man was arrested on federal charges Friday after federal authorities say he fraudulently obtained millions of dollars through coronavirus relief funds to buy luxurious cars, take lavish vacations and cover personal expenses.

Mustafa Qadiri, a 38-year-old resident of Irvine, California, located nearly 40 miles southeast of Los Angeles, obtained approximately $5 million in Payment Protection Program funds after claiming to own four businesses in nearby Newport Beach, none of which are currently in business, according to a federal indictment.

Qadiri submitted claims for All American Lending, Inc., All American Capital Holdings, Inc., RadMediaLab, Inc., and Ad Blot, Inc. in May and June 2020 with altered bank accounts, fake federal tax return forms and someone else’s identity, according to the U.S. Attorney’s Office of California. He then, the indictment adds, used the money he received to spend on vacations, personal expenses, and Ferrari, Bentley and Lamborghini sports cars.

All cars and $2 million from Qadiri’s bank account were seized by federal agents when he surrendered himself to authorities on Friday morning. He is charged with six counts of money laundering, four counts of bank fraud and wire fraud and one count of aggravated identity theft.