‘Love & Hip Hop: Atlanta’ star, Maurice Fayne has been arrested and charged with federal bank fraud after misusing funds from a Paycheck Protection Program (PPP) loan designed to assist businesses keep employees during the Coronavirus crisis.
Maurice Fayne, also referred to as “Arkansas Mo,” runs an organization called Flame Trucking, and he submitted a PPP application for the corporate on April 15, stating that the business had 107 employees and a mean monthly payroll of $1,490,200, consistent with an affidavit for the criminal complaint.
Flame Trucking asked for a loan of $3,725,500 and authorized that the loan proceeds would be wont to “retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule,” the affidavit alleges.
United Community Bank ultimately funded the loan for $2,045,800 in late April, consistent with the affidavit.
The Paycheck Protection Program was a part of the coronavirus relief package called the CARES Act which was passed and signed into law by President Donald Trump in March.
Maurice Fayne reportedly used quite $1.5 million he obtained within the name of Flame Trucking for himself, rather than retaining workers. He spent $85,000 on jewelry, including a Rolex watch, a diamond bracelet, and a 5.73-carat diamond ring for himself, the US Attorney’s Office for the Northern District of Georgia said during a release.
He also leased a 2019 Rolls-Royce Wraith, and paid $40,000 for support payment , consistent with the statement.
“At a time when small businesses are struggling for survival, we cannot tolerate anyone driven by personal greed, who misdirects federal emergency assistance earmarked for keeping businesses afloat,” said Chris Hacker, agent responsible of FBI Atlanta, within the statement.
Federal agents searched Fayne’s residence in Dacula, Georgia, May 11, where they also discovered about $80,000 in cash, including $9,400 that Fayne had in his pockets, court documents say.
Fayne reportedly told federal agents last week that he used the PPP loan for “pay payroll and other business expenses” of the corporate , and “Fayne expressly denied that he used any of the PPP loan proceeds to pay his personal debts,” consistent with the court document.
Fayne told the agents that he had used the PPP loan to shop for the jewellery , and when asked if he had used any of the loan on the Rolls- Royce, he said, “Kinda, sorta, not really,” consistent with the affidavit.
“Fayne told the agents that he believed he had the proper to use a part of the PPP loan proceeds for ‘other business purposes’ and for ‘working capital,'” the court document said.
Speaking on the fraud case, Fayne’s attorney Tanya Miller said: “There has been considerable confusion among small business owners about PPP guidelines — particularly round the question of whether and the way business owners are permitted to pay themselves a salary or take an owner’s draw. I hope these issues to be better full-clad within the weeks and months to return .”
Fayne was released on a $10,000 bond on Wednesday.
“For obvious reasons, we cannot try these allegations within the media,” Miller said. “We will provide the acceptable response within the proper forum once all the knowledge has been provided to us.