Former Love & Hip-Hop: Atlanta cast member Maurice "Mo" Fayne, pictured with ex-girlfriend Karlie Redd, has been indicted by the feds for running a Ponzi scheme that netted over $5 million for his trucking business.
Fayne was indicted on Wednesday by a federal grand jury, Page Six reports. Fayne, of Dacula, Georgia, was arrested on May 11 and charged with defrauding a bank to get over $3 million from the federal Paycheck Protection Program (PPP).
Fayne reportedly told the bank he needed the cash to pay 120 employees of his trucking company. But the feds say the trucking company did not turn a profit.
He allegedly spent over $2 million in coronavirus relief funds on jewelry, a Rolex wristwatch, cars, and child support payments.
Federal agents served a search warrant on Fayne's Dacula home, where they recovered $80,000 in cash, including $9,400 that Fayne had in his pockets, and a 2019 Rolls Royce Wraith with the dealer tag still on it.
In addition to bank fraud, he was charged with running a six-year Ponzi scheme to cover large gambling debts, prosecutors said.
The aspiring rapper allegedly convinced 20 individuals to invest $5 million in his trucking business.
He then transferred the $5 million to a casino to cover his gambling debts and entertainment expenses, including hotel suites.
"Fayne used the investors' money to pay his personal debts and expenses, and to fund an extravagant lifestyle for himself," prosecutors said in a statement.
Fayne is out on bond, according to court records.