During the coronavirus pandemic, many small businesses struggled to stay afloat and took out COVID-19 Paycheck Protection Program (PPP) loans to help, but reports of PPP fraud are now on the rise, including at least three people who were arrested for allegedly fraudulently obtaining large sums of money and using some of it to buy luxury cars.
In Florida, a man pleaded guilty after he fraudulently obtained $3.9 million in PPP loans, and used $318,000 of the money to buy a Lamborghini. David T. Hines, 29, of Miami, pleaded guilty to one count of wire fraud and is scheduled to be sentenced on April 14, according to authorities.
A California man is accused of getting $5 million in COVID-19 relief PPP loans and buying a Ferrari, Bentley and Lamborghini. Mustafa Qadiri was arrested in May and charged with four counts of bank fraud, four counts of wire fraud, one count of aggravated identity theft and six counts of money laundering, according to the Department of Justice. Qadiri has pleaded not guilty.
A third man in Texas, Dinesh Sah, also admitted that he submitted 15 fraudulent applications and sought approximately $24.8 million in PPP loans, and you guessed it, he also bought luxury cars.
But what would cause someone to buy a flashy car with stolen money? Dr. Colleen Cira, a licensed clinical psychologist, said there could be various reasons.
“It depends on who we’re talking about,” Cira told Inside Edition Digital. “If the people buying luxury cars with…