He had filed applications for the federal Paycheck Protection Program in May and June of 2020 on behalf of four separate Newport Beach companies that were actually defunct at the time, according to officials.
Qadiri created fake tax returns and falsified bank balances in exchange for the funds, which Congress had allocated to provide emergency aid to small businesses that were being paralyzed by the pandemic.
Authorities say Qadiri fraudulently “obtained $5 million in COVID-relief loans for his sham businesses, then used the money on himself, including purchasing Ferrari, Bentley and Lamborghini cars.”
The loans were also used to fund lavish vacations and other personal expenses, officials said.
Qadiri pleaded guilty in July 2021 to one count of bank fraud, one count of aggravated identity theft and one count of money laundering.
In May and June of 2020, authorities say Qadiri submitted false Paycheck Protection Program loan applications to three banks on behalf of four nonexistent Newport Beach-based companies.
The applications included altered bank records, sham tax returns and false information about employees and their wages, according to court documents.
Qadiri also used someone else’s name, Social Security number and signature to apply for one of the loans, prosecutors said.
PPP loans were created to provide financial support to struggling businesses during the COVID-19 pandemic.
Homeland Security Investigations, the Small Business Administration Office of Inspector General, the FBI and IRS Criminal Investigation investigated the case as part of the El Camino Real Financial Crimes Task Force.
Anyone with information about attempted fraud involving COVID-19 can report it to the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or online.
No comments:
Post a Comment