Stamford resident Moustapha Diakhate has waived his right to be indicted and pleaded guilty to offenses related to his fraudulent receipt of more than $4 million in Covid-19 relief funds guaranteed by the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to the charges brought against him, Diakhate maintained an ownership or management interest in several small business entities including Ansonia Developers LLC, Winsbay Inc., Buyers Association Group LLC, Washington Management LLC, Diakhate Capital, Inc. and Poulson & Gold Inc. Beginning in May 2020, Diakhate provided Citibank and M&T Bank with false and fraudulent information during the PPP loan application process in order to obtain Paycheck Protection Program (PPP) loans for each of his six entities totaling more than $4 million.
However, Diakhate used a portion of the funds to cover personal expenses, including the settlement of a loan for the purchase of a 2010 Porsche Panamera Turbo and the subsequent purchase both a Mercedes and BMW. He also purchased a $50,000 certificate of deposit with PPP funds and disbursed funds to various and individuals unrelated to his business entities.
Diakhate was arrested on a federal criminal complaint on May 7, 2021. He pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 30 years, and one count of making an illegal monetary transaction, which carries a maximum term of imprisonment of 10 years.
Diakhate is released on a $450,000 bond pending sentencing pending an April 21 sentencing.
