'Love & Hip Hop' alum used coronavirus small business PPP loan to buy $85K of jewelry: Feds
Maurice 'Mo' Fayne allegedly used small business loan to pay for jewelry, child support
FOX Business' Charlie Gasparino says financial executives are telling the White House to investigate Paycheck Protection Program fraud after firms reportedly pocketed the money marked for small businesses. He also breaks down the new plan for Major League Baseball's reopening which will require salary cuts for players.
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A reality TV personality from the show "Love & Hip Hop: Atlanta" was in court Wednesday after allegedly using funds from the Paycheck Protection Program, meant to help small businesses suffering because of coronavirus, to buy jewelry and pay child support.
Maurice "Mo" Fayne, 37, was arrested on federal bank fraud charges. He's the owner of Georgia-based Flame Trucking.
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“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,” Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division said in a statement. “The department will remain steadfast in our efforts to root out and prosecute frauds against the Paycheck Protection Program.”
Maurice "Mo" Fayne attends "Ferrari Karlie" Single Release Party at Buckhead Loft on July 18, 2018, in Atlanta, Georgia. (Paras Griffin/Getty Images)
When reached through his company's phone number, Fayne told FOX Business he had "no comment."
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Fayne received a $2,045,800 loan from United Community Bank after certifying he had 107 employees a month on a payroll of nearly $1.5 million, according to the Justice Department. He allegedly bought $85,000 in jewelry, including a Rolex Presidential watch, diamond bracelet and 5.73-carat diamond ring. Fayne also allegedly used the money to pay $40,000 in child support.
The FBI and Small Business Administration Office of the Inspector General are investigating the case.