Actuality TV star and rapper Maurice “Mo” Fayne has been sentenced to 17.5 years behind bars for working a multi-million Ponzi scheme and stealing greater than $2 million in COVID-19 reduction funds — which he then used to fund his rip-off and lease a Rolls-Royce.
The “Love & Hip Hop: Atlanta” star was handed the prolonged federal jail sentence after pleading responsible to conspiracy and wire fraud fees in Could, the US Legal professional’s Workplace said Wednesday.
He was additionally ordered to pay $4,465,865.55 in restitution to victims.
In April 2020, Fayne submitted a $3.7 million Paycheck Safety Program (PPP) mortgage utility to United Group Financial institution — falsely claiming that he wanted the funds to pay the 107 staff of his trucking enterprise “Flame Trucking,” which was struggling through the pandemic.
Fayne ended up receiving somewhat over $2 million in reduction funds, which prosecutors mentioned he squandered on glitzy jewellery, quick automobiles, and operating his multistate Ponzi scheme.
“Fayne deliberate to make use of the PPP program as a canopy for his long-running Ponzi scheme,” mentioned Appearing US Legal professional Kurt R. Erskine. “The funds this system provides function a lifeline to many companies desperately making an attempt to remain afloat through the pandemic, and sadly his fraud helped deplete these valuable {dollars}.”
As an alternative, prosecutors mentioned Fayne spent $85,000 on jewellery for himself, together with a Rolex Presidential watch, a diamond bracelet, and a 5.73 carat diamond ring.
He spent an extra $136,000 to lease a Rolls-Royce Wraith, and withdrew $65,000 in money.
The rapper, who goes by the title “Arkansas Mo,” additionally used $230,000 of the fraudulent mortgage to prop up his Ponzi scheme that ripped off greater than 20 buyers within the trucking enterprise between March 2013 and Could 2020, prosecutors mentioned.
The fact TV star then cleared his private money owed, which included $40,000 for past-due youngster assist and $50,000 for restitution owed in a earlier fraud case.
“This sentence ought to serve discover that the FBI and our federal companions will examine anybody who misdirects federal emergency help earmarked for companies who want it to remain afloat,” Particular Agent in Cost of FBI Atlanta Chris Hacker mentioned.
“We received’t tolerate anybody pushed by private greed to pocket American taxpayer cash that ought to be going to those that want it.”
In the course of the course of the Ponzi scheme, Fayne spent greater than $5 million at a on line casino in Oklahoma, the US lawyer’s workplace mentioned.
After Fayne lied to federal brokers about spending the coronavirus reduction funds on his enterprise, a search of his Georgia residence on Could 11, 2020, uncovered roughly $80,000 in money, together with $9,400 Fayne had in his pockets.
Brokers additionally executed seizure warrants for 3 financial institution accounts that Fayne owned or managed and seized roughly $503,000 in PPP funds.
“Fayne deliberate to make use of the PPP program as a canopy for his long-running Ponzi scheme,” Appearing US Legal professional Kurt R. Erskine mentioned.
“The funds this system provides function a lifeline to many companies desperately making an attempt to remain afloat through the pandemic, and sadly his fraud helped deplete these valuable {dollars}.”
