“Love & Hip Hop” star Maurice Fayne has been accused of using money from his $2 million PPP loan to pay off a Ponzi scheme.
Fayne was indicted on charges of bank fraud, making a false statement to a federally-insured financial institution and money laundering, according to a press release published Wednesday by Georgia’s U.S. Attorney’s Office. Fayne was also charged with wire fraud stemming from his alleged involvement in a Ponzi scheme.
Feds charge Love & Hip Hop Atlanta Star Maurice Fayne: allegedly used more than $1.5 million of PPP loan proceeds to purchase $85,000 in jewelry, including a Rolex Presidential watch, a diamond bracelet, a 5.73 carat diamond ring for himself, and to pay $40,000 for child support.
— Justin Gray (@JustinGrayWSB) May 13, 2020
From August of 2014 through 2020, Fayne reportedly convinced 20 investors to invest $5 million into his trucking business.
“Fayne’s trucking business never generated enough revenue to cover its expenses,” the press release said. (RELATED: ‘Love & Hip Hop: Atlanta’ Star Used $2 Million PPP Loan To Buy Diamond Jewelry And Rolex, Feds Claim)
U.S. Attorney Byung J. Pak claimed Fayne used the PPP loan to support his “luxurious lifestyle.”
“The emergency lending provisions of the Paycheck Protection Program were intended to help small businesses survive the COVID-19 pandemic,” Pak said in a statement. “Fayne allegedly used PPP loan proceeds to live a luxurious lifestyle that included leasing a Rolls Royce and purchasing expensive jewelry, as well as making payments to individuals involved in a Ponzi scheme. We intend to investigate and charge anyone who inappropriately diverts these critical funds for personal gain.”
The press release also included estimated amounts he spent on different things.
- $40,000 for past-due child support;
- $50,000 for restitution owed in a previous fraud case;
- $65,000 in cash withdrawals;
- $85,000 for custom-made jewelry;
- $136,000 to lease a 2019 Rolls-Royce;
- $230,000 to associates who helped him run a Ponzi scheme;
- $907,000 to help an associate start a new business.