On Wednesday, May 13, the United States Attorney’s Office for the Northern District of Georgia announced another federal prosecution for alleged PPP loan fraud.  This time the defendant is Maurice Fayne, who is also known as “Arkansas Mo” and stars in the reality show Love & Hip Hop: Atlanta.  

According to the DOJ, Fayne submitted an application to a local community bank for a PPP loan for his company, Flame Trucking.  The application allegedly stated that the business had over 100 employees and an average monthly payroll of nearly $1.5 million.   As part of the loan application process, the government alleges that Fayne, like all PPP loan applicants, certified that the loan proceeds would be used to “retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments.” 

According to the government, however, after obtaining the funds, Fayne used over $1.5 million of the PPP loan proceeds to purchase $85,000 in jewelry, including a Rolex watch, diamond bracelet, and 5.73 carat diamond ring, lease a Rolls Royce, and pay $40,000 in child support.  Fayne then allegedly lied to federal agents during an interview about how he used the loan proceeds.  According to the government’s press release, when federal agents executed a search warrant on his house, Fayne had over $9,000 in cash in his pockets.

Fayne has been charged with bank fraud, and is innocent until proven guilty beyond a reasonable doubt.  

The attorneys at Chilivis Grubman represent clients of all types and sizes in connection with government investigations, including fraud investigations and prosecutions.  If you need assistance with such a matter, please contact us today.