WTNH/YOUTUBE
Moustapha Diakhate
HARTFORD — A Stamford resident who once promised to redevelop long-vacant properties in downtown Ansonia was sentenced to three and a half years in federal prison on Tuesday.
Moustapha Diakhate, 46, was arrested for allegedly receiving more than $4 million in fraudulent COVID-19 relief funds from the federal government. Prosecutors said Diakhate used the money for personal expenses, such as paying off a loan for a Porsche, which violated the terms of the government’s paycheck protection program.
Diakhate was introduced to Ansonia by former Mayor James Della Volpe during a press conference in 2013. Diakhate had just purchased 398,107 square feet of former Farrel properties straddling both sides of Main Street in downtown Ansonia, including 501 E. Main St., the Farrel Corp.‘s former “Process Lab.”
He and his company promised mixed-use development, but did nothing with the properties. By 2016, no development plans had been submitted, and Diakhate’s company was seeking bankruptcy protection after being sued by its mortgage lender.
Shaw Growth Ventures is now building apartments downtown, while the city converted a former Farrel office building at 65 Main St. into a police station. A senior center will also be constructed within the building.
The government alleged that Diakhate listed Washington Management LLC, the company that initially purchased the Ansonia properties, and Ansonia Developers, LLC on his PPP loan applications.
In court Tuesday, U.S. District Judge Michael P. Shea ordered Diakhate to serve three months under house arrest when he is released from prison. He was also ordered to perform 75 hours of community service.
Diakhate was arrested in May 2021. He had pleaded guilty in January to one count of wire fraud and one count of making an illegal monetary transaction
According to a prepared statement from the U.S. Attorney’s Office, Citibank and M&T Bank recovered more than $2 million after discovering Diakhate’s fraud. The court ordered Diakhate to pay restitution of $1,702,479.
Diakhate will report to prison in October.
