Maurice “Mo” Fayne, a “Love and Hip Hop Atlanta star” and the ex-husband of Karlie Redd, was found guilty in 2020 of utilizing his Paycheck Protection Program loan fraudulently and received a 17-year jail sentence.
What happened to Karlie Redd’s ex-husband Maurice “Mo” Fayne? Prison sentence explained
Fayne first asserted that he was receiving financial aid from the government to keep his Flame Trucking towing company operating throughout the pandemic and pay his 107 employees, which he falsely claimed to be. But the 38-year-old ultimately used the more than $2 million loan improperly to settle his own debts, including child support, auto loans, and jewelry. As if that weren’t enough, Fayne was said to have defrauded 20 people in a Ponzi scheme between 2013 and 2020.
Prosecutors provided a breakdown of how Fayne utilized his loan, claiming that $40,000 of it was used for child support payments and $85,000 of it went toward diamond purchases. Acting U.S. Attorney Kurt R. Erskine remarked, “Fayne planned to use the PPP program as a cover for his long-running Ponzi scheme. The funds the program supplies serve as a lifeline to many businesses desperately trying to stay afloat during the pandemic, and unfortunately his fraud helped deplete those precious dollars.”
Fayne must repay his Ponzi scheme victims roughly $4.5 million in addition to serving 17 years in prison and will also serve five years of probation.
In their reactions to the news, fans were critical but yet somewhat empathetic. One of them said, “Karlie got out just in time.”
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