Atlanta’s star arrested for fraud involving PPP loans
- A “Love & Hip Hop: Atlanta” star was arrested for fraud against the Bundesbank.
- He is charged with spending money applied for through the Paycheck Protection Program on things like jewelry and child support.
- According to the charges, Maurice Fayne applied for the program under the company name “Flame Trucking”.
- He is charged with filing nearly $ 4 million and claims he had 107 employees with nearly $ 1.5 million monthly payroll.
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Maurice Fayne, who starred in Love & Hip Hop: Atlanta, was arrested for bank fraud and charged with obtaining a loan under the paycheck protection program called “Flame Trucking”.
According to a Ministry of Justice press releaseOn April 15, Fayne filed a PPP loan application with United Community Bank (UCB), claiming his company had 107 employees with an average monthly payroll of $ 1,490,200.
“The defendant allegedly took advantage of the paycheck protection program’s emergency loan terms to help employees and small businesses hit by the coronavirus,” said US Attorney Byung J. “BJay” Pak of the Northern District of Georgia on release.
According to the charges, Fayne was seeking a $ 3,725,500 loan that he would use to pay employees’ paychecks and mortgage payments. He is charged with receiving $ 2,045,800 and spending $ 1.5 million on himself.
“The defendant allegedly stole money to help hard-hit employees and businesses during these troubled times and instead used the money greedily to fund his lavish purchases of jewelry and other personal items,” said Assistant Attorney General Brian A. Benczkowski from the ministry’s judicial crime department said the statement said. “The department will stand firm in our efforts to track down and prosecute Paycheck Protection frauds.”
He is accused of using the PPP loan to purchase “$ 85,000 in jewelry, including a Rolex Presidential watch, diamond bracelet, and 5.73-carat diamond ring for himself within days of receiving the money and pay $ 40,000 to support children ”.
“Such payments are not an approved use of PPP funds under the CARES Act,” the statement said.
The PPP loans, approved under the CARES Act in late March, were intended to help small businesses cope with the economic impact of the coronavirus pandemic. The plan initially included $ 349 billion in “forgivable loans to small businesses for job retention and certain other expenses,” before Congress approved an additional $ 300 billion in April.
According to the press release, Fayne claimed the money was being used on payroll and business expenses when questioned by federal agents on May 6.
Fayne’s house was searched on May 11 and police confiscated jewelry, a Rolls-Royce Wraith with temporary dealership badges on it, and approximately $ 80,000 in cash. About $ 503,000 was also seized after agents received arrest warrants for three bank accounts linked to Fayne.