Former Love & Hip-Hop: Atlanta star Maurice “Mo” Fayne was just caught defrauding millions from the government, and now he’s being accused of running a $5 million Ponzi scheme for the past six years.
On Wednesday (Jun. 24), Fayne was indicted on several bank fraud charges after utilizing the $3,735,500 federal loan he received through the Paycheck Protection Program (PPP) for personal use.
Fayne—who was married to LHHATL star Karlie Redd—requested the loan to ensure payment for the 107 workers of his trucking company during the COVID-19 pandemic.
However, prosecutors now say the Fayne had been using the trucking company as a Ponzi scheme to cover his gambling debts for six years.
Prosecutors said in a statement that Fayne “posed as the owner of a profitable trucking business,” but the company has “never generated enough revenue to cover its expenses.”
“Nevertheless, Fayne caused approximately 20 individuals to invest over $5 million in his trucking business,” the statement continued.
The reality star is accused of using the $5 million “investment” for personal debts and to fund his lavish lifestyle.
Prosecutors also alleged that Fayne “transferred more than $5 million to a casino to cover his personal gambling and entertainment expenses.”
In addition to federal bank fraud, Fayne was also charged with wire fraud for the Ponzi scheme, money laundering, and making a false statement to a federally-insured financial institution.
Fayne was arrested in May after he was caught spending the PPP loan on expensive jewelry, a Rolls-Royce, personal debts, and even child support payments.
Fayne has been out on a $10,000 bond since May.