Stamford Developer’s Prospective COVID-19 Credit Scheme Issued On $ 450,000 Bail

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STAMFORD – A city dweller accused of fraudulently obtaining a loan of nearly $ 3 million through the Payroll Protection Program will be released on $ 450,000 bail, the US Attorney’s Office said Friday.

Mustafa Diakata, 45, faces federal bank and electronic fraud charges. He remained in custody since May 7, when he was arrested at his home in Stamford.

The US Attorney’s Office said five family members signed the bond agreement. As part of the agreement, Dyakhat will monitor his movements using GPS, and he will reside with his brother in Hamden, who will also be his third-party custodian.


This role usually involves a person, often a family member, who acts as the eyes and ears of the courts to ensure that the person awaiting trial complies with the terms of his release.

A federal judge rejected a bail offer made by Dyakhat’s attorney following his arrest last month. This proposal would make Diakhat’s wife an outside guardian. Assistant U.S. Attorney Christopher Schmeisser has raised concerns about the deal, in part because prosecutors allege that Diakate used the money from the loans for personal expenses, including luxury cars.

Authorities argued the purchases raised questions about what Dyakhat’s wife knew about the alleged loan fraud.

The PPP program was created to help businesses during the first round of COVID-19 relief funding, signed into federal law last spring. Investigators from the federal agency overseeing loans claimed that Diakhat received loans for five businesses he owned, totaling $ 2,897,100.

Federal authorities said Diakat used the proceeds from the fraudulent loans to pay for cars, including the purchase of Mercedes and BMWs, and to pay off debts for a 2010 Porsche SUV. Prosecutors argued that Diakat also gave money to relatives and paid rent for his house in Stamford.

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