Arkansas Mo, one of the stars of Love & Hip Hop: Atlanta, was recently arrested on federal charges for allegedly using his loan from the federal Paycheck Protection Program on jewelry and a luxury car.
Arkansas Mo, real name Maurice Fayne, is also married to Karli Redd, another star of Love & Hip Hop.
According to AJC, the VH1 star was loaned more than $2 million from the federal program. The loan was for businesses who may be struggling to make ends meet following the COVID-19 shutdown. Arkansas Mo was fortunate to have been approved for the loan, as many small businesses were denied.
"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," said Assistant Attorney General Brian A. Benczkowski of the Justice Department's Criminal Division. "The department will remain steadfast in our efforts to root out and prosecute frauds against the Paycheck Protection Program."
Other officials were equally as harsh in their assessment of the reality television star's alleged mishandling of his loan.
So what did he do? Well the feds say that In April, Arkansas Mo signed and submitted to United Community Bank (UCB) a PPP loan application in the name of Flame Trucking stating that the business had 107 employees and an average monthly payroll of $1,490,200. In seeking a loan in the amount of $3,725,500, Arkansas Mo certified that the loan proceeds would be used to “retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule.”
UCB approved the loan for $2,045,800. Within days, Arkansas Mo allegedly used more than $1.5 million of the 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.
Arkansas Mo has been charged with bank fraud. If convicted, he faces up to 25 years in prison.