“Arkansas Mo” Fayne, who appeared on “Love & Hip Hop: Atlanta” as Karlie Redd’s love interest, was sentenced to 17 years in federal prison on multiple federal charges.
Mo’s charges include bank fraud and conspiracy for his part in fraudulently obtaining a PPP loan and for running a Ponzi scheme through his towing business.
Fayne owns Flame Trucking in Georgia, and he applied for a $3.7 million PPP loan through United Community Bank in April 2020.
He claimed he was going to use the money to fund the payroll of the 107 employees at his company.
According to prosecutors, he certified the loan 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.”
He received a little more than $2 million, which prosecutors say he used for personal items.
According to U.S. Attorney Kurt R. Erksine, “Fayne planned to use the PPP program as a cover for his long-running Ponzi scheme.”
Prosecutors say Fayne spent more than $1.5 million of the loan proceeds to purchase $85,000 worth of jewelry, to lease a 2019 Rolls Royce Wraith, to make loan payments, and to pay $40,000 in child support.
Arkansas Mo ran a multistage Ponzi scheme that defrauded more than 20 people between March 2013 – May 2020. He promised investors he would use the money to operate the business, but he used the money to pay his personal debts and expenses, and to front his extravagant lifestyle.
Reportedly, he spent more than $5 million at a casino in Oklahoma.
On May 11, he was convicted of bank fraud, making false statements to a financial institution, conspiracy and wire fraud related to a Ponzi scheme.
Fayne is facing 17 years in prison, five additional years of probation, and he must repay nearly $4.5 million to his victims.
Watch the news report below:
Mo Fayne had to know that all that fraud was going to catch up to him one day.
Source: FOX 5 Atlanta