“Love & Hip Hop: Atlanta” star Maurice “Mo” Fayne was arrested for allegedly misusing more than $1.5 million of a coronavirus stimulus loan intended for small business expenses, Washington Post reports.
According to the report, prosecutors alleged Fayne spent $85,000 on jewelry, $40,000 on child support and purchased a 2019 Rolls-Royce Wraith luxury coupe which costs upwards of $320,000.
According to the U.S. Attorney’s Office for the Northern District of Georgia, Fayne received a $2 million bank loan through the Small Business Administration’s paycheck protection program for his Flame Trucking company.
The paycheck protection program requires recipients to use the relief funds to pay workers and other small business expenses as the nation navigates the coronavirus pandemic.
“The defendant allegedly took advantage of the emergency lending provisions of the Paycheck Protection Program that were intended to assist employees and small businesses battered by the Coronavirus,” said U.S. Attorney Byung J. “BJay” Pak, according to The Post. “We will investigate and charge anyone who inappropriately diverts these critical funds for their own personal gain.”
Following his arrest on May 13, Fayne appeared in federal court and was charged with bank fraud.
According to Fayne’s lawyer Tanya Miller, he will fight the charges.
Miller issued the following statement to The Post saying that the case will not be tried through the media and that the government needed to clear up confusion about the stimulus program’s rules.
“We will provide the appropriate response in the proper forum once all the information has been provided to us,” said Miller in the statement to The Post. “There has been considerable confusion among small business owners about PPP guidelines — particularly around the question of whether and how business owners are permitted to pay themselves a salary or owner’s draw. This ambiguity and confusion for business owners needs to be addressed immediately as the PPP program is still in its infancy.”