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Details Behind ‘Love & Hip Hop: Atlanta’ Star Accused Of Spending $2 Million Payroll Loan To Keep Up Lavish Lifestyle

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Details Behind ‘Love & Hip Hop: Atlanta’ Star Accused Of Spending $2 Million Payroll Loan To Keep Up Lavish Lifestyle

And poof! Just like that Karlie Redd is as ghost as Casper! But what really happened?! Let’s get ta snoopin’ shall we?!

Via Google Images

Karlie’s ex-fling, Maurice “Arkansas Mo” Fayne is now being accused of blowing federal money on senseless jewelry and unpaid child support.

The Love & Hip Hop: Atlanta co-star was arrested on federal bank fraud charges. Allegedly Maurice “Arkansas Mo” Fayne used a $2 million Paycheck Protection Program on a lavish and expensive shopping spree, his first court appearance was on last Wednesday (May 13).

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division released statement: 

“The defendant allegedly stole money meant to assist hard-hit employees and businesses during these difficult times, and instead greedily used the money to bankroll his lavish purchases of jewelry and other personal items. The department will remain steadfast in our efforts to root out and prosecute frauds against the Paycheck Protection Program.”

Allegedly Fayne went through over $1.5 million between personal items, and child support. Prosecutors claims he spent $85,000 on jewelry, which included a Rolex Presidential watch, a diamond bracelet, and a 5.73 carat diamond ring, and $40,000 to pay child support.

Chris Hacker, a Special Agent in Charge of FBI’s Atlanta office says:

“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”

Via Google Images

Although Fayne applied for a $3.7 million PPP loan for his Flaming Trucking business, he was only approved for $$2,045,800 million. Fayne took out the loan stating that the company had 107 employees and that payroll cost over $1.4 million per month. The sole purpose of the PPP loan was to “retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule.”

When interviewed by federal agents earlier in the month, Fayne confirmed that he did apply for the PPP loan but flat out denies misusing the money. According to him the money was used for payroll and additional business purposes. On Monday (May 11), authorities searched Faye’s residence in Dacula, Ga., and seized around $80,000 in cash, which included $9,400 that was found in his pockets. Authorities also discovered a 2019 Rolls-Royce Wraith with temp dealer plates, and about $503,000 in PPP money from three bank accounts he reportedly owned.

Via Google Images

Fayne’s attorney, Tanya Miller tells CNN:

“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 take an owner’s draw. I hope these issues to be better fleshed out in the weeks and months to come.”

She continues:

“For obvious reasons, we cannot try these allegations in the media. We will provide the appropriate response in the proper forum once all the information has been provided to us.”

Welp! At least he looked out for the kid! Too soon?!

What’s your 2 cents?!

Both the Editor in Chief and Lead Entertainment Reporter for PhatGyrlSnoop

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