Maurice Fayne aka Arkansas Mo, who stars on “Love & Hip Hop: Atlanta”, was indicted Wednesday afternoon by a federal grand jury. Fayne is charged with bank fraud, making a false statement to a federally-insured financial institution, and money laundering, all in connection with a Paycheck Protection Program (PPP) loan. In addition, Fayne is charged with wire fraud in connection with a Ponzi scheme.
“The emergency lending provisions of the Paycheck Protection Program were intended to help small businesses survive the COVID-19 pandemic,” said U.S. Attorney Byung J. “BJay” Pak. “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.”
According to the indictment, from August 2014 through May 2020, Fayne posed as the owner of a profitable trucking business. However, Fayne’s trucking business never generated enough revenue to cover its expenses. Fayne caused approximately 20 individuals to invest over $5 million in his trucking business. Fayne promised that he would use the investors’ money to purchase and operate trucks. Instead, Fayne used the investors’ money to pay his personal debts and expenses and to fund an extravagant lifestyle for himself. During the wire fraud scheme, Fayne transferred more than $5 million to a casino to cover his personal gambling and entertainment expenses.
As soon as Fayne took control of the PPP loan proceeds, he began using the PPP loan proceeds for improper purposes, including the following:
· $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.
“At a time when small businesses are struggling for survival, we cannot tolerate anyone driven by personal greed, who misdirects federal emergency assistance earmarked for keeping businesses afloat,” said Chris Hacker, Special Agent in Charge of FBI Atlanta, in the statement.
During the investigation, federal agents seized the following proceeds of Fayne’s bank fraud scheme:
· $617,000 seized from seven bank accounts;
· $136,000 used as a down payment on the 2019 Rolls-Royce;
· $79,482 in cash seized at Fayne’s residence;
· eight Kenworth T-680 trucks;
· six Great Dane refrigerated trailers;
· a $3,750 diamond ring;
· a $24,500 diamond bracelet; and
· a $52,000 Rolex watch.
The Paycheck Protection Program is intended to keep the nation’s small businesses afloat as the COVID-19 pandemic ravages America.
“It is unconscionable to fraudulently attempt to gain access to PPP funds at the expense of those who need it most,” said Inspector General Hannibal “Mike” Ware of the Small Business Association Office of Inspector General. “Our office and its law enforcement partners will aggressively investigate false statements made in attempt to receive funds from SBA’s programs . I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
