Stamford developer to plead guilty in federal PPP loan fraud, filings show

Photo by Peter Yankowski

Moustapha Diakhaté in a 2013 file photo. Peter Hvizdak / New Haven Registrar

Peter Hvizdak / New Haven Registry

Moustapha Diakhate, a Stamford developer accused of fraudulently obtaining nearly $3 million in loans under the federal Paycheck Protection Program, intends to plead guilty in a remote hearing on Wednesday, according to documents filed in Federal Court.

The decision is part of a plea deal with the government, according to documents in the case filed in U.S. District Court in Connecticut. Details of the plea deal were not immediately available, and the documents did not clearly indicate what charges Diakhaté would plead guilty to.

Diakate was arrested at his home in Stamford on May 7, 2021 and charged with bank and wire fraud.

Investigators alleged that Diakate obtained $2,897,100 through the Paycheck Protection Program, a federal program created during the first wave of COVID-19 pandemic relief legislation. The program gave businesses repayable loans that they were supposed to use to retain staff amid the pandemic’s initial economic downturn.

But prosecutors allege Diakate instead spent the money on expensive cars – including buying a BMW and a Mercedes – and gave the money away to others unrelated to his businesses.

Diakhaté has been free on $450,000 bond since June last year.

The developer was also implicated in the failed development of two sites in Ansonia town center in 2016, after his company went bankrupt.

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