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The Paycheck Safety Program was meant to assist small companies survive the pandemic. As an alternative, some well-known names used it to money in.
And a variety of them acquired caught.
When COVID-19 shut the nation down, the U.S. authorities launched the PPP to maintain staff paid and companies afloat. However the quick rollout got here with little oversight.
That hole created a gap. Scammers jumped in. Amongst them? Some well-known faces who noticed a possibility to cheat the system.
Federal investigators tracked down tons of of fraudsters. Many quietly settled. Others made headlines.
Along with the record under, high-profile musicians Lil Wayne and Chris Brown did discover themselves wrapped in scrutiny surrounding the appropriation of their COVID-19 reduction funds. Although they actually weren’t the one ones.
Lil Wayne
Lil Wayne’s firm, Younger Cash Touring Inc., obtained an $8.9 million SVOG grant supposed to help dwell leisure companies impacted by the pandemic. Reviews point out that the funds had been used for numerous private bills, together with:
Over $1.3 million on personal jet flights
Greater than $460,000 on designer clothes
Roughly $2 million to settle a debt together with his former supervisor
Almost $88,000 billed for a canceled New Yr’s Eve efficiency
Whereas these expenditures have raised questions in regards to the acceptable use of reduction funds, there have been no formal fees filed in opposition to Lil Wayne concerning PPP mortgage fraud.
Chris Brown
Chris Brown’s touring firm, CBE Touring, reportedly secured a $10 million SVOG grant. Allegations recommend that Brown personally obtained $5.1 million of this quantity and spent practically $80,000 on a lavish celebration, which included bills for fashions, an LED dance flooring, and different luxurious gadgets.
Regardless of public criticism over using these funds, Chris Brown has not been charged with any crimes associated to PPP mortgage fraud.
From actuality TV stars to professional athletes and social media influencers, these high-profile figures now face felony fees, huge fines, and even jail time.
Their instances elevate huge questions: How did they slip by? Who helped them? And what comes subsequent?
Right here’s a breakdown of probably the most infamous superstar PPP fraud instances.
And the way every one unraveled.
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Well-known Figures Who Received Charged with PPP Mortgage Fraud
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1. Todd and Julie Chrisley
Actuality TV stars from Chrisley Is aware of Finest, convicted in 2022 of defrauding banks out of over $30 million and evading taxes.
2. Mitchell Summerfield
A pastor from Raleigh, North Carolina, Mitchell Summerfield pleaded responsible to conspiracy to commit financial institution and wire fraud after securing over $400,000 in fraudulent PPP loans.
3. Maurice “Mo” Fayne
Identified from Love & Hip Hop: Atlanta, sentenced to over 17 years for financial institution fraud after misusing over $2 million in PPP funds on luxurious gadgets and a Ponzi scheme.
5. Diamond “Child Blue” Smith
Member of the R&B group Fairly Ricky, sentenced to twenty months in jail for his function in a $24 million COVID-19 reduction fraud scheme.
13. Stephanie Hockridge-Reis
Former TV information anchor indicted alongside her husband for allegedly submitting false PPP mortgage purposes, acquiring $300,000 personally, and profiting practically $300 million by their firm, Blueacorn.
15. Shelitha Robertson
Former Assistant Atlanta Metropolis Legal professional and police officer charged with conspiracy to commit wire fraud and cash laundering after allegedly acquiring over $7 million in PPP mortgage funds.
