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Covid-19: CT Man Sentenced For Fraudulently Obtaining $4M-Plus In Relief Funds

A Connecticut man has been sentenced for defrauding assistance programs meant to help small businesses suffering due to the COVID-19 pandemic.

A Connecticut man will spend 3 ½ years in federal prison for defrauding assistance programs meant to help small businesses suffering due to the COVID-19 pandemic.

A Connecticut man will spend 3 ½ years in federal prison for defrauding assistance programs meant to help small businesses suffering due to the COVID-19 pandemic.

Photo Credit: Pixabay/Brett_Hondow

Fairfield County resident Moustapha Diakhate, age 46, of Stamford, was sentenced to three-and-a-half years in federal prison Tuesday, Aug. 16, in federal court in Hartford.

It followed his guilty plea in January 2022 to charges of wire fraud and making an illegal monetary transaction.

Prosecutors said beginning in May 2020, Diakhate, who had ownership or management stakes in six small businesses, gave banks false and fraudulent information when applying for loans through the Paycheck Protection Program (PPP).

The forgivable loans are meant to assist businesses with payroll and other expenses, like interest on mortgages, rent, and utilities.

Altogether, Diakhate received more than $4 million in PPP loans for his six companies, prosecutors said.

He then used the money for various personal expenses, including to pay off a loan for a 2010 Porsche Panamera Turbo, according to prosecutors. He also bought a new Mercedes and BMW.

Diakhate’s spending wasn’t limited to just cars, as he also purchased a $50,000 certificate of deposit with his PPP funds, and gave money to various friends who were not connected to his businesses.

Citibank and M&T Bank, who issued the PPP loans, were able to recover more than $2 million after discovering the fraud. A judge ordered him to pay an additional $1.7 million in restitution.

In addition to his prison time, Diakhate must also serve three months of home detention and complete 75 hours of community service.

He is currently out on a $450,000 bond and must report to prison on Friday, Oct. 14. 

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