A Dacula business owner, who also stars in the reality TV show "Love & Hip Hop: Atlanta," has been arrested on fraud charges after allegedly abusing a program intended to assist small businesses during the COVID-19 pandemic.
Maurice Fayne, who also goes by Arkansas Mo, was charged with bank fraud after prosecutors say he took advantage of the Paycheck Protection Program (PPP) by stealing money meant to assist his employees.
“The defendant allegedly stole money meant to assist hard-hit employees and businesses during these difficult times, and instead greedily used the money to bankroll his lavish purchases of jewelry and other personal items,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division in a statement sent to media Wednesday evening. “The department will remain steadfast in our efforts to root out and prosecute frauds against the Paycheck Protection Program.”
U.S. Attorney Byung J. “BJay” Pak says Fayne submitted a PPP loan application in the name of his company, Flame Trucking, stating that he had 107 employees with a monthly payroll of $1,490,200.
Fayne eventually received a loan of $2,045,800.
Pak says within a matter of days Fayne had used more than $1.5 million to pay $40,000 in child support, make loan payments and lease of 2019 Rolls Royce Wraith. He also purchased $85,000 worth of jewelry, including a Rolex Presidential watch, diamond bracelet, and 5.73 carat diamond ring.
“The defendant allegedly egregiously sought personal gain from a program intended to assist hardworking Americans in this challenging time,” said Special Agent-in-Charge Kevin Kupperbusch of the Small Business Association Office of Inspector General Eastern Region.
Federal agents interviewed Fayne on May 6, but Pak says Fayne claimed he used all loan proceeds to cover payroll and other business expenses, and denied using any of the funds for personal debts and expenses.
However, five days later, a search of his Dacula residence revealed evidence that Fayne had misappropriated the funds.
"Agents...seized approximately $80,000 in cash, including $9,400 that Fayne had in his pockets, and the jewelry he purchased with the PPP funds," Pak said. "Agents also executed seizure warrants for three bank accounts that Fayne owned or controlled and seized approximately $503,000 in PPP funds."
The case is being investigated by the Federal Bureau of Investigation in conjunction with the Atlanta Complex Financial Crimes Task Force. Also investigating are the Gwinnett County Sheriff's Office and the Small Business Administration-Office of the Inspector General.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
http://accesswdun.com/article/2020/5/902981/reality-tv-star-charged-for-misappropriating-funds-received-through-federal-paycheck-protection-program