NEW YORK (1010 WINS/WCBS 880) — A Queens man was sentenced to a maximum of three years in prison on Friday for stealing over $1 million in federal pandemic relief funds for bogus companies, and spending over $350,000 of the cash for personal expenses, the Queens District Attorney's Office said.
Papa Diakhate, 54, of East Elmhurst, pleaded guilty to grand larceny in December and was sentenced on Friday to one to three years in prison.
The charges state that Diakhate submitted Federal Paycheck Protection Program loan applications for two fake businesses he started, and both were approved. He was listed as the sole owner of the businesses he claimed were located at 162-02 Jamaica Avenue.
On June 29, 2020 and July 14, 2020, about $1.2 million was deposited into Diakhate's Citibank business accounts, prosecutors said.
Officials said that Diakhate spent $14,000 on a Rolex, $36,874 at Amazon, $16,461 at Saks Fifth Avenue, $15,377 at Bergdorf Goodman, $13,626 at Bloomingdales and $56,247 on travel.
Citibank rescinded the loans, but not before Diakhate spent over $350,000 of the business loan cash, which is stipulated be used on solely business expenses, for personal reasons.
"At the height of the pandemic, the health crisis was exacting a devastating human and economic toll around the world, especially here in New York. Amidst the misery, the defendant saw an opportunity and shamelessly schemed to profit from the financial hardship wrought by Covid. For his thievery, he is now being held accountable," Queens District Attorney Melinda Katz said.
