Atlanta Reality Star charged with federal bank fraud for misusing PPP Funds

[King_of_Posts]

For those of you who accepted the loan, please be aware if you claim a 1099 employee situation you will definitely be audited. I'm saying this because we audit businesses who claim they only have contractors all the time at the state level. Not to mention we notify the IRS. I'm sure there's possibly loopholes but I wouldn't risk it. Just my 2 cents

You're probably right. Also, you have to apply to have the loan forgiven and that's when they'll scrutinize to see how you handled the funds. It won't be automatic. If you fail the verification, it turns into a 2 year loan at 1% interest

 

[A to Dah K]

He’s 37? Dude look 54

 

[BDR]

making a payment or two to pay it off still would be reported. you buy a 100k + car financed and pay it off in two payments? in a situation like his they can easily say structuring.

A finance is a loan and a loan is not reportable on your taxes except the interest paid..

You can absolutely finance a 100k vehicle and pay it off after the second or 3rd payment if there is no payoff penalty

 

[jagu]

For those of you who accepted the loan, please be aware if you claim a 1099 employee situation you will definitely be audited. I'm saying this because we audit businesses who claim they only have contractors all the time at the state level. Not to mention we notify the IRS. I'm sure there's possibly loopholes but I wouldn't risk it. Just my 2 cents

What's wrong with having a 1099 employee? I have one and she is a legitimate 1099 employee.

 

[drae_joker]

What's wrong with having a 1099 employee? I have one and she is a legitimate 1099 employee.

There's nothing wrong with having one but there are policies that determine if a person is a contractor versus an employee. If you get audited they will look at past records and etc to make a determination. It varies from state to state. Texas is pretty strict with its statutes. Last week I saw 3 different employers who genuinely believed their contractors were 1099 but the state determined they were indeed employees. So they will have to back pay 3 years of taxes or lose their certified status with the IRS. Which is a major headache. This is happening due to so many people applying for unemployment. 1099 people are applying. Tax accounts are being created for those who have never registered. It's a lot to it. Nonetheless, look into your state's tax statutes regarding 1099 workers.

 

[jayrob777]

They should have never given niggas COVID money...

 

[Adam Knows]

A finance is a loan and a loan is not reportable on your taxes except the interest paid..

You can absolutely finance a 100k vehicle and pay it off after the second or 3rd payment if there is no payoff penalty

it is a loan yes.

BUT

transactions of of 10k regardless of who it's going to or how you pay it is subject. shit you're looked at under a microscope if you make huge payments to the IRS like that. Especially in his situation, "IF" he got a car loan on a wraith and paid it off 2nd month they will hit him with structuring.

 

[Complex]

How long was he behind in child support?

Seems like eh was close to going to jail for that, and this was probably the scam to get the money. They gave him $2 mil and it became Christmas.

I hope he didn't post any of that shit online.

 

[BDR]

it is a loan yes.

BUT

transactions of of 10k regardless of who it's going to or how you pay it is subject. shit you're looked at under a microscope if you make huge payments to the IRS like that. Especially in his situation, "IF" he got a car loan on a wraith and paid it off 2nd month they will hit him with structuring.

ok not saying most people will do that but the smartest thing could be to put that lump sum aside and just making the monthly payments until the lease or finance is paid off

 

[Adam Knows]

ok not saying most people will do that but the smartest thing could be to put that lump sum aside and just making the monthly payments until the lease or finance is paid off

Then yeah that would have been the smartest thing to do

 

[comment101]

Dumbass could have just increased his salary but nooooooooooo. I got a nice chunk but if I got anywhere close a million, I would be extremely cautious.

 

[brickcityhustla]

How did the media find out? Were any CACs prosecuted for fraud?

 

[TENT]

Prosecutors wrote and issued a press release they made it easy for the media to copy and paste the story.
It is post in this thread. I found it odd. Even his lawyers mentioned that is is odd and they are trying their client in the media.

They are using black people as the face of scamming the system.

Mind you big corporations are taking money from the SBA.

SBA = small business association.

How did the media find out? Were any CACs prosecuted for fraud?

 

[Helico-pterFunk]

Love & Hip Hop: Atlanta star Maurice Fayne at home following arrest

The reality star and businessman, 37, was pictured taking a phone call outside of his home in Georgia over the weekend.

www.dailymail.co.uk

 

[TENT]

If charges get dropped. He snitched on someone.

 

[BlackRob]

Thanks for the update. I like the comments from his Attorney, Tanya Miller.
Basically suggesting its Trumps fault. Trump didn't say applicants couldn't give themselves a gift for saving their company and employees.
Trump should write better laws and stop injecting himself with BS.

Tanya said let my client go. And they did. Good job lady lawyer.

Fayne's attorney Tanya Miller said there was 'considerable confusion' about PPP guidelines and over whether owners could 'pay themselves a salary' when asked about the charges by CNN.

She added that she hopes these 'issues' will be better explained in the near future.

He was released on $10,000 bond.

-----------------------------------

* $100k car
* $85k jewerly
* $40k child support

True dat. Its a salary he deserves, and Tanya sold it. Gotta appreciate a lawyer like that.

 

[TENT]

A Wraith isn't a 100k car.
The report said he spend 1.5 million.
He was given 2m.

That is more than a "raise".

Thanks for the update. I like the comments from his Attorney, Tanya Miller.
Basically suggesting its Trumps fault. Trump didn't say applicants couldn't give themselves a gift for saving their company and employees.
Trump should write better laws and stop injecting himself with BS.

Tanya said let my client go. And they did. Good job lady lawyer.

Fayne's attorney Tanya Miller said there was 'considerable confusion' about PPP guidelines and over whether owners could 'pay themselves a salary' when asked about the charges by CNN.

She added that she hopes these 'issues' will be better explained in the near future.

He was released on $10,000 bond.

-----------------------------------

* $100k car
* $85k jewerly
* $40k child support

True dat. Its a salary he deserves, and Tanya sold it. Gotta appreciate a lawyer like that.

 

[King_of_Posts]

Thanks for the update. I like the comments from his Attorney, Tanya Miller.
Basically suggesting its Trumps fault. Trump didn't say applicants couldn't give themselves a gift for saving their company and employees.
Trump should write better laws and stop injecting himself with BS.

Tanya said let my client go. And they did. Good job lady lawyer.

Fayne's attorney Tanya Miller said there was 'considerable confusion' about PPP guidelines and over whether owners could 'pay themselves a salary' when asked about the charges by CNN.

She added that she hopes these 'issues' will be better explained in the near future.

He was released on $10,000 bond.

-----------------------------------

* $100k car
* $85k jewerly
* $40k child support

True dat. Its a salary he deserves, and Tanya sold it. Gotta appreciate a lawyer like that.

And don't forget he said his company had 107 employees when it only actually had 2. He lied on official docs. A company with two trucks and two employees would NEVER had received over 2 million in funds. She's reaching, but it's her job to do so.

How will she explain that away???

 

[jagu]

Prosecutors wrote and issued a press release they made it easy for the media to copy and paste the story.
It is post in this thread. I found it odd. Even his lawyers mentioned that is is odd and they are trying their client in the media.

They are using black people as the face of scamming the system.

Mind you big corporations are taking money from the SBA.

SBA = small business association.

News

www.justice.gov

Nah, the US District Attorney's office always has press releases on their website. I used to read it all the time during the mortgage fraud days because I knew many people who got caught up in the caught up.

 

[jagu]

And don't forget he said his company had 107 employees when it only actually had 2. He lied on official docs. A company with two trucks and two employees would NEVER had received over 2 million in funds. She's reaching, but it's her job to do so.

How will she explain that away???

She can't explain it. It's a slam dunk case for the feds and she will have to plead it down as best as possible.

 

[jagu]

Love & Hip Hop: Atlanta star Maurice Fayne at home following arrest

The reality star and businessman, 37, was pictured taking a phone call outside of his home in Georgia over the weekend.

www.dailymail.co.uk

Damn he fell hard. From a phantom to a 650..smh

LOL

 

[Hotlantan]

‘Love and Hip Hop’ star indicted on fraud charges, accused of running Ponzi scheme
https://www.ajc.com/news/crime--law...-running-ponzi-scheme/JiQRvntwtuCtjtX0PxOLvJ/



A “Love & Hip Hop: Atlanta” star accused of spending his government business loan on personal expenses now faces additional charges after federal investigators said he ran a Ponzi scheme for years.

Maurice Fayne, who goes by the name Arkansas Mo on the hit VH1 show, came under investigation earlier this year after borrowing more than $2 million from the Paycheck Protection Program designed to keep struggling businesses afloat amid the COVID-19 pandemic.

Authorities said he borrowed the money for his transportation business, Flame Trucking, after telling the bank he had 107 employees and a monthly payroll of nearly $1.5 million.

He was charged with fraud last month after authorities learned he spent the emergency loan on custom jewelry, a down payment on a Rolls Royce and $40,000 in past-due child support, AJC.com previously reported.


RELATED: Feds: ‘Love & Hip Hop’ star spent emergency business loan on jewelry, Rolls Royce


On Wednesday, however, authorities said Fayne also ran a Ponzi scheme and used his trucking business to cheat investors out of millions of dollars over nearly six years.

“Fayne posed as the owner of a profitable trucking business,” prosecutors said in a news release. “In truth, Fayne’s trucking business never generated enough revenue to cover its expenses.”

Authorities said he convinced about 20 people to invest more than $5 million into his business since 2014, promising to use the funds to purchase and operate trucks.

“Instead, Fayne used the investors’ money to pay his personal debts and expenses, and to fund an extravagant lifestyle for himself,” prosecutors said. “During the wire fraud scheme, Fayne transferred more than $5 million to a casino to cover his personal gambling and entertainment expenses.”

Fayne was indicted Wednesday on charges of bank fraud, wire fraud, making a false statement to a federally insured financial institution and money laundering, prosecutors said in a news release.

So far, federal investigators have seized more than $600,000 from Fayne’s six bank accounts, nearly $80,000 in cash from his Dacula home, his leased Rolls Royce, eight Kenworth semi trucks, six refrigerated trailers and three pieces of jewelry worth more than $80,000.

 

[mailboxpimp]

‘Love and Hip Hop’ star indicted on fraud charges, accused of running Ponzi scheme
https://www.ajc.com/news/crime--law...-running-ponzi-scheme/JiQRvntwtuCtjtX0PxOLvJ/



A “Love & Hip Hop: Atlanta” star accused of spending his government business loan on personal expenses now faces additional charges after federal investigators said he ran a Ponzi scheme for years.

Maurice Fayne, who goes by the name Arkansas Mo on the hit VH1 show, came under investigation earlier this year after borrowing more than $2 million from the Paycheck Protection Program designed to keep struggling businesses afloat amid the COVID-19 pandemic.

Authorities said he borrowed the money for his transportation business, Flame Trucking, after telling the bank he had 107 employees and a monthly payroll of nearly $1.5 million.

He was charged with fraud last month after authorities learned he spent the emergency loan on custom jewelry, a down payment on a Rolls Royce and $40,000 in past-due child support, AJC.com previously reported.


RELATED: Feds: ‘Love & Hip Hop’ star spent emergency business loan on jewelry, Rolls Royce


On Wednesday, however, authorities said Fayne also ran a Ponzi scheme and used his trucking business to cheat investors out of millions of dollars over nearly six years.

“Fayne posed as the owner of a profitable trucking business,” prosecutors said in a news release. “In truth, Fayne’s trucking business never generated enough revenue to cover its expenses.”

Authorities said he convinced about 20 people to invest more than $5 million into his business since 2014, promising to use the funds to purchase and operate trucks.

“Instead, Fayne used the investors’ money to pay his personal debts and expenses, and to fund an extravagant lifestyle for himself,” prosecutors said. “During the wire fraud scheme, Fayne transferred more than $5 million to a casino to cover his personal gambling and entertainment expenses.”

Fayne was indicted Wednesday on charges of bank fraud, wire fraud, making a false statement to a federally insured financial institution and money laundering, prosecutors said in a news release.

So far, federal investigators have seized more than $600,000 from Fayne’s six bank accounts, nearly $80,000 in cash from his Dacula home, his leased Rolls Royce, eight Kenworth semi trucks, six refrigerated trailers and three pieces of jewelry worth more than $80,000.

could have made more with the trucks.

 

[illdog]

Whats wrong with that nigga, he think he white?

Amateur...

 

[A to Dah K]

Another one down

Pretty Ricky's Baby Blue Arrested for $24 Million COVID Loan Scam

Details here.

www.xxlmag.com

Rapper Baby Blue Whoaaaa, formerly known as Baby Blue from the R&B group Pretty Ricky, is in some hot water after being accused of participating in a scam to file fake loan applications to obtain millions of dollars allocated for small businesses due to the coronavirus pandemic.

According to the U.S. Department of Justice on Tuesday (Oct. 6), Baby Blue, born Diamond Blue Smith, 36, and another man named Tonye C. Johnson, 28, were charged in federal criminal complaints filed in the Southern District of Florida on numerous fraud charges. The men were hit with wire fraud, bank fraud and conspiracy to commit wire fraud and bank fraud after seeking more than $24 million in Paycheck Protection Program (PPP) loans promised by the Small Business Administration (SBA) as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Baby Blue Whoaaaa, who gained fame with Pretty Ricky in the mid-2000s for songs like "Grind With Me," was arrested on Monday (Oct. 5) and appeared before a judge in the Northern District of Georgia. The DOJ also says that the Florida rapper used false documents to receive a PPP loan for his company, Throwbackjersey.com LLC, in the amount of $426,717. He obtained another loan for his Blue Star Records, LLC company using falsified documents, in which he was given $708,065.

The former Love & Hip Hop: Miami cast member allegedly withdrew $271,805 in loan funds as well. In addition to the aforementioned loans, Baby Blue allegedly bought a $96,000 Ferrari, which was seized at the time of his arrest, as well as other luxury items from the loans he received.

Tonye C. Johnson, who was arrested on Oct. 1, and appeared on Oct. 2 before U.S. Magistrate Judge Henry S. Perkin of the Eastern District of Pennsylvania, is alleged to have obtained a PPP loan of $389,627 for his own company, Synergy Towing & Transport LLC, using falsified documents. He allegedly paid a portion of the loan proceeds to co-conspirators in the scheme.

The scheme allegedly involved the preparation of at least 90 fraudulent applications, most of which were submitted.

The government also states that Baby Blue enlisted cohorts to file for loans allowing him to receive kickbacks or illegal payments used as compensation for a transaction or service. Eleven other people are involved in the case.

Baby Blue and Tonye C. Johnson's cases were investigated by the IRS Criminal Investigation (IRS-CI) in Miami and Cincinnati, FBI in Miami and Cleveland and the Small Business Association Office of Inspector General (SBA-OIG).

In a post shared by The Shade Room on the arrest, Baby Blue Whoaaaa wrote in the comment section, "#FREEBABYBLUEWHOAAAA."

Either Baby Blue Whoaaaa or a person running his personal Instagram account proclaimed the rapper's innocence and promoted a new song today. "Click link in bio! #BUSSDOWN If you fucks with Whoaaaa Repost! #FreeBabyBlueWhoaaaa 'He Innocent,'" the IG post reads.

 

[shaddyvillethug]

Niggas was getting bands

and we still iS

These niggas wanna be like us

but yaw can’t. Y’all already a microscope being on TV

O well. Mo money for us

 

[shaddyvillethug]

Damn he fell hard. From a phantom to a 650..smh

LOL

this niggu

 

[The Untouchable GDFOLKS]

Another one down

Pretty Ricky's Baby Blue Arrested for $24 Million COVID Loan Scam

Details here.

www.xxlmag.com

Rapper Baby Blue Whoaaaa, formerly known as Baby Blue from the R&B group Pretty Ricky, is in some hot water after being accused of participating in a scam to file fake loan applications to obtain millions of dollars allocated for small businesses due to the coronavirus pandemic.

According to the U.S. Department of Justice on Tuesday (Oct. 6), Baby Blue, born Diamond Blue Smith, 36, and another man named Tonye C. Johnson, 28, were charged in federal criminal complaints filed in the Southern District of Florida on numerous fraud charges. The men were hit with wire fraud, bank fraud and conspiracy to commit wire fraud and bank fraud after seeking more than $24 million in Paycheck Protection Program (PPP) loans promised by the Small Business Administration (SBA) as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Baby Blue Whoaaaa, who gained fame with Pretty Ricky in the mid-2000s for songs like "Grind With Me," was arrested on Monday (Oct. 5) and appeared before a judge in the Northern District of Georgia. The DOJ also says that the Florida rapper used false documents to receive a PPP loan for his company, Throwbackjersey.com LLC, in the amount of $426,717. He obtained another loan for his Blue Star Records, LLC company using falsified documents, in which he was given $708,065.

The former Love & Hip Hop: Miami cast member allegedly withdrew $271,805 in loan funds as well. In addition to the aforementioned loans, Baby Blue allegedly bought a $96,000 Ferrari, which was seized at the time of his arrest, as well as other luxury items from the loans he received.

Tonye C. Johnson, who was arrested on Oct. 1, and appeared on Oct. 2 before U.S. Magistrate Judge Henry S. Perkin of the Eastern District of Pennsylvania, is alleged to have obtained a PPP loan of $389,627 for his own company, Synergy Towing & Transport LLC, using falsified documents. He allegedly paid a portion of the loan proceeds to co-conspirators in the scheme.

The scheme allegedly involved the preparation of at least 90 fraudulent applications, most of which were submitted.

The government also states that Baby Blue enlisted cohorts to file for loans allowing him to receive kickbacks or illegal payments used as compensation for a transaction or service. Eleven other people are involved in the case.

Baby Blue and Tonye C. Johnson's cases were investigated by the IRS Criminal Investigation (IRS-CI) in Miami and Cincinnati, FBI in Miami and Cleveland and the Small Business Association Office of Inspector General (SBA-OIG).

In a post shared by The Shade Room on the arrest, Baby Blue Whoaaaa wrote in the comment section, "#FREEBABYBLUEWHOAAAA."

Either Baby Blue Whoaaaa or a person running his personal Instagram account proclaimed the rapper's innocence and promoted a new song today. "Click link in bio! #BUSSDOWN If you fucks with Whoaaaa Repost! #FreeBabyBlueWhoaaaa 'He Innocent,'" the IG post reads.

Dumb ass nigga is going to prison prison

 

[shaddyvillethug]

Dumb ass nigga is going to prison prison

Yea he ova wit

I never do business wit niggas that HAD money and now u don’t.

folks what u been on out here

 

[The Untouchable GDFOLKS]

Yea he ova wit

I never do business wit niggas that HAD money and now u don’t.

folks what u been on out here

Yeah Moe, niggas like that are always scumbags desperately looking for a come up to bring them back that shine they once had.

Shit, been on a whole lot of gang shit...u?

 

[shaddyvillethug]

Yeah Moe, niggas like that are always scumbags desperately looking for a come up to bring them back that shine they once had.

Shit, been on a whole lot of gang shit...u?

Mannnnnnnn

Let’s just say iowa wide open.

whole time, niggas finna start these LLC’s and get this Legit paper with legal avenues.OF COURSE witha sprinkle of criminal shit.

I just been cooling collecting shit I always wanted.

u heard about them 2 females getting popped off Wilcox? One gat popped in the head.

shit crazy

I just wanna see my niggas flourish and everybody be happy.

2 many niggas dying.

 

[The Untouchable GDFOLKS]

Mannnnnnnn

Let’s just say iowa wide open.

whole time, niggas finna start these LLC’s and get this Legit paper with legal avenues.OF COURSE witha sprinkle of criminal shit.

I just been cooling collecting shit I always wanted.

u heard about them 2 females getting popped off Wilcox? One gat popped in the head.

shit crazy

I just wanna see my niggas flourish and everybody be happy.

2 many niggas dying.

ehh...got two niggas who got life fucking around in Des Moines...no fly zone for me.

Naw I didn't hear about that fam.

 

[shaddyvillethug]

ehh...got two niggas who got life fucking around in Des Moines...no fly zone for me.

Naw I didn't hear about that fam.

 

[BlackRob]

17.5 years

 

[BlackRob]

Damn there are a lot of PPP loan posts here on BGOL.

Will they all result in football numbers??

BGOL - Help Pay back the PPP Loan