US man buys Ferrari, Lamborghini using $5 million COVID-19 aid

A man in the United States was arrested on Friday after federal authorities say he fraudulently obtained millions of dollars in coronavirus relief to buy luxurious cars, take lavish vacations and cover personal expenses.

Mustafa Qadiri, 38, obtained about $5 million in Paycheck Protection Program money after claiming to own four businesses, none of which are in business, according to a federal indictment.

The Southern California man has pleaded not guilty to charges he obtained USD 5 million in federal coronavirus-relief loans for phoney businesses.

On May 7 the Official account of the US Attorney's Office for the Central District of California tweeted that "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."

Qadiri, of Irvine, pleaded not guilty on Friday to multiple charges including bank fraud, wire fraud, aggravated identity theft, and money laundering, according to the US Attorney’s Office.

Qadiri's lawyer did not immediately respond to a request for comment.

Prosecutors said Qadiri listed one of four mortgage companies in multiple applications for PPP loans, and three banks awarded him a total of more than $5 million. The companies he listed do not exist now, prosecutors said.

He received US$5 million in loans that investigators said he used to pay for trips, sports cars and personal expenses.

(With inputs from agencies)