Supply: Paul Archuleta / Getty
The Paycheck Safety Program was meant to assist small companies survive the pandemic. As a substitute, some well-known names used it to money in.
And loads of them obtained 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 chance to cheat the system.
Federal investigators tracked down tons of of fraudsters. Many quietly settled. Others made headlines.
Along with the checklist 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 assist reside leisure companies impacted by the pandemic. Experiences point out that the funds have 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
-
Practically $88,000 billed for a canceled New Yr’s Eve efficiency
Whereas these expenditures have raised questions concerning the acceptable use of reduction funds, there have been no formal costs filed towards Lil Wayne relating to 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 almost $80,000 on a lavish birthday celebration, which included bills for fashions, an LED dance flooring, and different luxurious objects.
Regardless of public criticism over the usage of 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 costs, large fines, and even jail time.
Their circumstances increase huge questions: How did they slip by means of? Who helped them? And what comes subsequent?
Right here’s a breakdown of essentially the most infamous superstar PPP fraud circumstances.
And the way every one unraveled.
Supreme Courtroom Blocks Order To Rehire Federal Staff
Why Iman Shumpert Is Asking The Courtroom to Jail Teyana Taylor
Offset Seeks Spousal Assist From Cardi B in Ongoing Divorce
Well-known Figures Who Obtained Charged with PPP Mortgage Fraud
was initially printed on
newstalkcleveland.com
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 objects 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 almost $300 million by means of their firm, Blueacorn.
15. Shelitha Robertson
Former Assistant Atlanta Metropolis Lawyer and police officer charged with conspiracy to commit wire fraud and cash laundering after allegedly acquiring over $7 million in PPP mortgage funds.