Queens Man Scammed $1M In COVID Funds With Bogus Companies: DA

QUEENS, NY — A Queens man swindled $1 million in COVID relief funds to spend on luxury shopping, a Rolex watch and travel for himself, prosecutors said.

Papa Diakhate, 54, of East Elmhurst, was arraigned Wednesday on a slew of charges, including grand larceny, stemming from accusations he created bogus companies to reap federal pandemic dollars.

Diakhate abused a program intended to keep businesses open and workers employed, said Melinda Katz, Queens district attorney.

"Amidst the misery, the unscrupulous saw opportunities to be exploited," Katz said in a statetment. "We are charging that the defendant was one such individual, someone who shamelessly schemed to profit from the financial hardship wrought by Covid."

Authorities said Diakhate had checks for $325,000 and $859,000 deposited in his business accounts in summer 2020 after he submitted loan applications for two bogus businesses.

With $1.2 million in his pocketbook, Diakhate quickly got to spending, prosecutors said. They accused him of spending:

• $37,000 at Amazon
• $16,000 at Saks Fifth Avenue
• $15,000 at Bergdorf Goodman
• $14,000 at Bloomingdales
• $56,000 on travel

A bank eventually rescinded the loans, but not before Diakhate spent more than $350,000 on personal expenses, prosecutors said.

Diakhate, who faces up to 25 years in prison if convicted, is scheduled to return to court Nov. 27.