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Authorities in Atlanta announced the arrest of Maurice Fayne, who stars in Love & Hip Hop: Atlanta, for allegedly misusing funds he obtained from a Paycheck Protection Program (PPP) loan he received for his business.

Fayne, 37, was charged with bank fraud. It is unclear if he has acquired the services of an attorney.

According to the U.S. Attorney’s Office, Fayne is the sole owner of a Georgia business called Flame Trucking. On April 15, he allegedly submitted a PPP loan application to United Community Bank (UCB) for his business, stating that it employed 107 people and had an average monthly payroll of $1,490,200. Fayne was reportedly seeking a loan of $3,725,500 that would be used to “retain workers and maintain payroll or make mortgage interest payments, and utility payments, as specified under the Paycheck Protection Program Rule.”

The PPP is a COVID-19 relief program for small businesses that was passed under the CARES Act, a law enacted March 29 to provide financial aid to the millions affected by the economic effects of the coronavirus pandemic. The CARES Act authorized up to $349 billion in forgivable loans to be given to small business owners through the PPP for job retention and certain other expenses.

The PPP allows qualifying businesses to receive loans with a maturity of two years and an interest rate of one percent. The proceeds of the loan must be used for payroll costs, interest on mortgages, rent, and utilities. The program allows the interest and principal to be forgiven if businesses spend the funds on those expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.

UCB ultimately funded a loan of $2,045,800 for Fayne’s business. Within days of receiving the funds, Fayne is accused of using more than $1.5 million to buy $85,000 in jewelry, lease a 2019 Rolls Royce Wraith, make personal loan payments, and pay $40,000 in child support payments.

“The defendant allegedly took advantage of the emergency lending provision of the Paycheck Protection Program that was intended to assist employees and small businesses battered by the coronavirus,” said U.S. Attorney Byung J. Pak. “We will investigate and charge anyone who inappropriately diverts these critical funds for their own personal gain.”

Fayne was questioned by federal agents about the alleged inappropriate payments on May 6. He allegedly admitted to submitting a PPP loan application on behalf of Flame Trucking, but said he had used all of the loan proceeds to pay payroll and other business expenses. He denied using any of the proceeds for his personal debts and expenses.

Federal agents executed a search at Fayne’s residence in Dacula, GA, on May 11 and seized approximately $80,000 in cash as well as the jewelry he had allegedly purchased using PPP funds. Agents also executed seizure warrants for three bank accounts controlled by Fayne and seized approximately $503,000 in PPP funds.

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

Bank fraud is theft crime that occurs when a person knowingly uses fraudulent means to secure a loan or acquire funds from a financial institution. It is a serious crime that can result in high fines and lengthy jail sentences for those convicted. Anyone facing charges of bank fraud should immediately consult an experienced attorney.

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Accused of bank fraud? Contact Brian Silber, P.A. to set up a free initial consultation and work with one of South Florida’s most experienced bank fraud attorneys.

Source: 5.13.20 Reality TV personality charged with bank fraud.pdf

2019-07-03 Trump Signs Collins’ IRS Civil Asset Forfeiture Bill President Trump has signed into a law a bill reforming the use of civil asset forfeiture by the Internal Revenue Service (IRS). The bill passed both houses of Congress unanimously this year.

The bill was partially inspired by the case of Andrew Clyde. In April 2013, Clyde’s gun shop in Athens, Georgia, was doing amazing business. In response to fear that the Obama administration may limit access to firearms, Clyde’s store, Clyde Armory, was virtually empty.

“We had sold everything in the store. I normally have 1,500 guns in this store on display. There might have been 100 [left], maybe less than that,” said Clyde.

While Clyde was celebrating his success, the IRS seized $950,000 from his account. “I didn’t have any money for payroll,” explained Clyde. “I had to go borrow $80,000 in order to make payroll and to pay some of the accounts payable of the stuff that had started to come in.”

The IRS used civil asset forfeiture to take Clyde’s money. This is a legal procedure where law enforcement agencies may take an individual’s property or money if it is suspected of being involved in a crime. In most states, no criminal conviction—nor even a criminal charge—is required before property can be taken.

The IRS accused Clyde of “structuring” his bank deposits. “Structuring” is an illegal practice where an individual knowingly parcels what should be a single, large bank deposit into several smaller ones of less than $10,000 each. In this way, the individual is able to avoid reporting requirements. Structuring is often found in federal indictments involving financial crimes such as money laundering.

For his part, Clyde denies he was structuring payments and instead asserts his insurance only covered him for off-premises losses of $10,000. Regardless of this, the IRS never filed criminal charges against Clyde. “They audited my tax records for four years,” said Clyde, “and they found absolutely nothing.”

“I personally believe they thought I was an easy target. All they really wanted was money,” said Clyde.

After six months, the IRS eventually agreed to settle, and they returned $900,000 to Clyde. They did, however, retain $50,000.

“At that point, I decided that $50,000 was going to be my retreat,” said Clyde, a U.S. Navy veteran. “It was going to guarantee my survival, and it was going to allow me to retreat so I could fight another day.”

Clyde’s case helped inspire Representative Doug Collins of Gainesville, Georgia to introduce the Clyde-Hirsch-Sowers Respect Act, later known as the RESPECT Act. Under the RESPECT Act, the IRS may only use civil asset forfeiture to seize money in cases of structure after prosecutors have demonstrated probable cause that the money was obtained or used illegally. The bill was co-sponsored by Representative John Lewis of Atlanta, Georgia.

“For too long, hardworking individuals and small business owners like Andrew Clyde have fallen victim as the IRS has abused civil asset forfeiture,” said Collins. “With the RESPECT Act finally becoming law, law-abiding citizens can rest easy knowing they no longer have to fight the federal government just to prove their innocence.”

Civil Asset Forfeiture Attorney

If your lawful property has been seized, then you should hire a lawyer. Contact us to set up a free initial consultation and work with one of Florida’s most experienced civil forfeiture defense attorneys.

Source

2019-07-03 Trump Signs Collins’ IRS Civil Asset Forfeiture Bill

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Reality TV Personality from Atlanta, GA, Charged with Bank Fraud

The IRS Took $950K from Andrew Clyde. His Case Inspired Federal Civil Asset Forfeiture Reform