Reality TV star Maurice Fayne (37) has been indicted for allegedly using coronavirus relief funds intended to help small businesses survive to pay for luxuries such as a Rolls-Royce and custom jewelry, federal officials said.
Fayne from the show “Love & Hip Hop: Atlanta” is accused of abusing the PPP, a federal program designed to help small businesses make ends meet while they were closed or severely restricted because of the coronavirus.
Fayne, who also goes by the nickname Arkansas Mo on the VH1 reality show, was arrested May 11. He was also charged with fraud relating to a Ponzi scheme.
In a news release, the Department of Justice said Fayne was charged with bank fraud, making a false statement to a federally insured financial institution and money laundering.
“Despite the difficult times the recent Coronavirus pandemic has caused, the FBI and our federal partners continue to be vigilant in making sure funds provided by programs like PPP are used as intended,” Chris Hacker, the special agent in charge of the Atlanta FBI office said.
Fayne, who uses the alias Arkansas Mo on the popular reality show, was arrested on 11 May.
In April 2020, it is alleged, he applied for a $3.7 million PPP loan, saying he had 107 employees at his trucking company, Flame Trucking, and that he’d use the money to pay expenses and retain staff.
However, federal officials say in the six years of its existence, the company never made enough money to cover its own expenses. Fayne instead used the company as a criminal enterprise, duping investors who unwittingly funded his extravagant lifestyle.
Federal officials say Fayne used the stimulus money allocated to him for luxury items like a Rolls-Royce for $136,000, custom-made jewelry worth $85 000, and restitution in a previous fraud case.
