Love & Hip Hop: Atlanta Star Faces Federal Fraud Charges

ATLANTA, GA — Love & Hip Hop: Atlanta cast member Maurice Fayne, or “Arkansas Mo," has been arrested. The reality star has been charged with federal bank fraud charges in connection with a loan he received during the coronavirus pandemic. It was meant for his employees, but prosecutors say he stole it and used it for jewelry and other personal items instead.

The money was loaned through a Paycheck Protection Program (PPP), prosecutors said. According to the program’s website, the loan is meant to help businesses keep their workforce employed during the Coronavirus pandemic.

Fayne 37, of Dacula, was in court Wednesday.

“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 in a news release. “The department will remain steadfast in our efforts to root out and prosecute frauds against the Paycheck Protection Program.”

Fayne runs a corporation called Flame Trucking and applied for the PPP loan for the company on April 15. The business had 107 employees with an average monthly payroll of $1,490,200.

In seeking a loan in the amount of $3,725,500, Fayne 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.”

Fayne used more than $1.5 million of the funds to buy $85,000 in jewelry, which included a Rolex watch, a diamond bracelet, and a 5.73 carat diamond ring for himself, according to the US Attorney's Office for the Northern District of Georgia.

He also leased a 2019 Rolls-Royce Wraith and paid $40,000 for child support.

"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," said Chris Hacker, Special Agent in Charge of FBI Atlanta.

An attorney for Fayne told CNN the PPP guidelines can be confusing.

"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,” said attorney Tanya Miller said in a statement.
“I hope these issues to be better fleshed out in the weeks and months to come. 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.”

The federal government’s PPP loan program was created for small businesses to help them and their workers during the coronavirus pandemic. The loan must be used by businesses on payroll costs, interest on mortgages, rent, and utilities.

On May 11, agents executed a search at Fayne’s residence in Dacula, Georgia. They found about $80,000 in cash, including $9,400 that Fayne had in his pockets, plus the jewelry.

The agents also executed seizure warrants for three of Fayne’s bank accounts and seized about $503,000 in PPP funds.

Fayne was released on a $10,000 bond Wednesday.

Love & Hip Hop premiered in 2012 and airs on VH1. The show chronicles the lives of several people in Atlanta involved with hip hop music.