Stamford man sentenced for CARES Act fraud

Moustapha Diakhate of Stamford was sentenced to 42 months of imprisonment, followed by three years of supervised release, for fraudulent receiving 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. He was ordered to serve three months in home detention when he is released from prison and perform 75 hours of community service while on supervised release.

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 and one count of making an illegal monetary transaction. Citibank and M&T Bank successfully recovered more than $2 million after discovering the fraud, and Diakhate was ordered to pay restitution of $1.7 million.

Diakhate, who is released on a $450,000 bond, is required to report to prison on Oct. 14.