An Atlanta-based rapper and reality TV star has been sentenced to more than 17 years in prison for his involvement in a Paycheck Protection Program (PPP) loan fraud program.
Maurice Fayne, 38, was sentenced by U.S. District Judge Mark Cohen on charges of bank fraud and misrepresenting a financial institution in what the Department of Justice (DOJ) described as a Ponzi scheme in a statement released Wednesday.
Fayne, known by his rap pseudonym “Mo Fayne”, appeared on the hit reality show VH1. “Love and hip-hop: Atlanta. ”
According to court documents, Fayne ran a multi-state program from 2013 to 2020 that defrauded more than 20 people who invested in his trucking business, using the money to pay off debts and personal expenses and spending more than $ 5 million. of dollars at an Oklahoma casino.
Fayne also submitted a $ 3.7 million PPP loan last April to a local bank, mistakenly claiming that his trucking company had 107 employees and an average monthly payroll of $ 1.4 million.
The reality TV star used the PPP loan for expenses such as child support payments, custom jewelry, luxury car rentals, cash withdrawals and starting a new business in Arkansas, the DOJ said.
“This sentence should mean that the FBI and our federal partners will investigate anyone who hijacks federal emergency aid intended for companies that need it to stay afloat,” said the Atlanta-based FBI Special Agent, Chris Hacker. “We will not tolerate anyone driven by personal greed to pocket US tax dollars that should go to those in need.”
Fayne, who pleaded guilty to the charges in May, will be on probation for 5 years after serving his prison sentence, and has also been ordered to pay $ 4.4 million in restitution to his alleged victims.