Posts Tagged: white collar crime

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‘Love and Hip Hop’ Star Paid $5 Million to Casino to Cover Gambling Debts

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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.

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Couple accused of stealing $13 Million from Medicaid to Fund Lavish Lifestyle On Instagram

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Instagram.com

A Las Vegas couple has been charged with defrauding Medicaid out of $13 million and laundering the money by purchasing expensive jewelry, cars, designer handbags and other luxury goods.

Timothy and Latisha Harron were charged with seven counts of defrauding the North Carolina Medicaid system, according to Insider.com.

According to the U.S. Department of Justice, the couple committed "massive fraud" by laundering $13 million through their purchase of expensive luxury goods, gym equipment, luxury watches, high-end vehicles and a private jet worth $900,000.


 

The Harrons flossed their affluent lifestyle on social media where they shared photos of Tiffany Jewelry boxes, designer clothes and handbags, and vacations to exotic locales, including Bora Bora and Cancun.

A federal grand jury indicted the couple on May 19, according to the DOJ. The Harrons, who married in 2018, were arrested Wednesday and charged with seven counts of conspiracy to commit health care fraud and wire fraud, aggravated identify theft, conspiracy to commit money laundering and making false statements related to health care matters.

The Harrons allegedly stole the money by submitting fraudulent bills to Medicaid through Agape Healthcare Systems, Inc. -- a company founded by Latisha, 44, in North Carolina in 2010.

She committed fraud by registering the company with Medicaid in NC without disclosing she had previously been convicted of identity theft.

The couple allegedly searched through obituaries to find people who had recently died in North Carolina. Using information from the obituaries, they would turn to the NC Medicaid eligibility tool to find whether the person had a Medicaid Identification Number.

Using that number, they back billed Medicaid for "fictitious services" they claimed to have provided to the person before death.

The couple flaunted their extravagant lifestyle on Instagram, showing off expensive jewelry, and posing for pictures at 5-star restaurants, luxury suites at sporting events, and on lavish vacations. Mr. Harron tagged the photos "#millionaire, #billionaire, #entrepreneur" and "millionaire lifestyle."


 

In one caption for a photo gallery showing off Tiffany boxes and high end shoes and bags, Harron wrote, "Sometimes it's a @tiffanyandco , @brioni_official & @louisvuitton kind of day! All delivered and didn't have to leave the #penthouse. Mrs. Harron, nothing but the best!"

When the couple was arrested, the feds seized an Aston Martin sports car and the couple's expensive wine collection.
 

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Sen. Richard Burr steps down amid investigation into stocks he sold in early days of coronavirus outbreak

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NC Senator Richard Burr has agreed to step down as chairman of the Senate Intelligence Committee after he allegedly sold stocks to avoid huge financial losses amid the coronavirus outbreak.

Burr faces allegations of insider trading, which is punishable by prison time and stiff fines.

Burr, a member of the Republican Party, is the first to step down after a handful of GOP and Democrat lawmakers were accused of selling stocks during the early stages of the coronavirus pandemic in March.

The list of senators under investigation include Georgia Senator Kelly Loeffler (GOP), Calif. Sen. Dianne Feinstein (Democrat), and Oklahoma Senator Jim Inhofe (GOP).

The news comes after Burr was served with a warrant to search his cellphone on Wednesday after previously being served with a warrant to access his iCloud account.

Burr and his wife are accused of selling $1.7 million worth of stocks to avoid huge losses before the country was ordered to shut down.

Burr's brother was also accused of selling stocks on the same day.

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LHHATL Star Charged with Fraud for Misusing $2 Million in PPP Funds

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A reality TV personality who starred in VH1's Love & Hip-Hop: Atlanta has been arrested and charged with misusing over $2 million from the federal Paycheck Protection Program (PPP).

Maurice "Mo" Fayne, of Dacula, Georgia, was charged with bank fraud for allegedly spending over $2 million in coronavirus relief funds on jewelry, cars and late child support payments.

Fayne submitted an application for a $3.7 million bailout loan under the name Flame Trucking, claiming he needed the cash to pay his 107 employees with an average monthly payroll of $1,490,200.

In submitting the application to United Community Bank, Fayne certified that he would use the money to "retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the PPP guidelines.

UCB Bank immediately funded the loan in the amount of $2,045,800, and Fayne allegedly went on a shopping spree.

The Department of Justice (DOJ) said he immediately spent $85,000 on jewelry, including a Rolex Presidential wristwatch, a diamond bracelet for a lucky lady, a 5.73-carat diamond pinky ring for himself and a luxury vehicle worth over $300,000.

The feds say he also spent $40,000 on child support.

Acting on a tip, the feds interviewed Fayne on May 6, whereupon he allegedly lied about what he did with the money.

Fayne told federal investigators that he spent the $2,045,800 loan on payroll and other expenses for his trucking company. He denied spending the cash on luxury items for himself.

Federal agents soon served a search warrant on Fayne's Dacula home. There they recovered $80,000 in cash, including $9,400 that Fayne had in his pockets. And they seized a 2019 Rolls Royce Wraith, which still had the dealer tag on it.

The MSRP for a base Rolls Royce Wraith without options is $327,000.

Agents also executed seizure warrants for three bank accounts that Fayne owned or controlled and seized approximately $503,000 in PPP funds.

None of the expenditures were authorized under the CARES Act guidelines. The money is intended to go to small businesses for employe retention, mortgage insurance, rent and other allowable business expenses.

The loan is forgiven if used within eight weeks to retain employees.

"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.

"The defendant allegedly took advantage of the emergency lending provisions of the Paycheck Protection Program that were intended to assist employees and small businesses battered by the Coronavirus," said U.S. Attorney Byung J. "BJay" Pak of the Northern District of Georgia.

"We will investigate and charge anyone who inappropriately diverts these critical funds for their own personal gain."

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Ex bank employee faces life in prison for stealing $88K, posting photos of cash on social media

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Photos: Instagram.com

A former bank employee is accused of stealing more than $88,000 from a North Carolina bank, then posting photos of the stolen loot on social media.

Arlando Henderson, 29, was arrested by the FBI in San Diego, California on Dec. 4. A criminal indictment was unsealed in federal court in Charlotte, NC following his arrest.

According to the indictment, Henderson was employed by the financial institution in Charlotte, and had access to the bank vault.

On 18 separate occasions, Henderson stole cash from customer deposit boxes in the bank's vault.

Henderson then posted photos of himself flashing the cash on social media. Henderson reportedly used the cash for personal expenses and to make a $20,000 down payment on a new Mercedes-Benz.

The indictment also alleges Henderson committed fraud by falsifying documents to obtain a car loan at another bank for the balance owed on the Mercedes.

Bank officials became suspicious after Henderson - by then an ex-employee - posted photos of himself flashing stacks of cash on his Facebook and Instagram accounts.

The aspiring rapper also posted photos of himself posing next to a white 2019 Mercedes-Benz.

Henderson captioned one photo: "I make it look easy but this... really a PROCESS."

"Throughout July and August 2019, Henderson used a social media account to post several pictures of him holding large stacks of cash," the indictment reads.

The feds allege Henderson "destroyed certain documents" and "made, or caused others to make, false entries in the bank's books and records to cover up the thefts."

Henderson had an initial appearance before U.S. Magistrate Judge Gallo, in the U.S. District Court for the Southern District of California earlier this month.

He is charged with two counts of financial institution fraud, 19 counts of theft, embezzlement and misapplication, and 12 counts of making false entries.

The felony charges carry a maximum penalty of 30 years in prison and a $1 million fine for each count. He is also charged with transactional money laundering, which carries additional penalties of 10 years in prison and a $250,000 fine.
 

Copyright Disclaimer: I do not own the rights to the photograph(s) used in this post. Under Section 107 of the Copyright Act of 1976, allowance is made for "fair use” of photographs for purposes such as parody, criticism, commentary, news reporting, education, and research.

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Trump’s Ex-fixer Michael Cohen Claims He Paid Firm $50K to Rig Online Polls in Trump’s Favor

Michael Cohen

President Donald Trump's former consigliere Michael Cohen confirmed a bombshell WSJ report that he paid a tech firm $50,000 to rig online polls in his boss's favor prior to the 2016 presidential elections.

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Howard University confirms 6 financial aid employees fired for embezzling $1 million

Six Howard University financial aid employees were terminated in 2017 for embezzling $1 million in grant funds and tuition remission. An internal investigation determined that the six employees stole university-based grants, the school president said on Wednesday.

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Hillary Clinton Faces Criminal Indictment; FBI Has ‘Solid’ Case Against Her

Hillary Clinton

The FBI has enough evidence on Hillary Clinton to charge her with a plethora of white collar federal offenses.

PJ Media -- Washington insiders say that the evidence in the FBI's investigation into Clinton's "unique email arrangement" has reached "critical mass." The American Spectator's R. Emmett Tyrrell, Jr. joins former prosecutor Joe DiGenova in predicting that a decision to indict is coming soon.

The charges will consist of some of the following:

1. Improper disclosure or retention of classified information

2. Destruction of government records

3. Lying to federal agents

4. Lying under oath

5. Obstruction of justice

And that's not all…

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