The purchase of jewelry and the payment of child support are not authorized uses of PPP funds.
When Fayne was interviewed by federal agents about the spending on May 6, he allegedly denied using the money for personal expenses, according the U.S. Department of Justice.
However, when federal agents searched Fayne's home on May 11, they allegedly seized $80,000 in cash, including $9,400 that Fayne allegedly had on his person.
The U.S. Department of Justice says federal agents also discovered the jewelry and found a 2019 Rolls-Royce Wraith.
The U.S. Department of Justice also revealed that agents also seized three bank accounts into which Fayne had allegedly transferred $503,000 worth of PPP funds.
Fayne made his initial court appearance on Wednesday. It is not immediately clear when he is due back in court, nor if he has entered a plea.
"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," Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division said.
"The department will remain steadfast in our efforts to root out and prosecute frauds against the Paycheck Protection Program."
U.S. Attorney Byung J. "BJay" Pak of the Northern District of Georgia also spoke out, saying, "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."
"The defendant allegedly egregiously sought personal gain from a program intended to assist hardworking Americans in this challenging time. SBA OIG and its law enforcement partners will aggressively pursue allegations of wrongdoing to maintain the integrity of SBA's programs," said Special Agent in Charge Kevin Kupperbusch of the Small Business Association Office of Inspector General (SBA OIG) Eastern Region.
Fayne is most known for appearing on season 8 of Love & Hip Hop: Atlanta.
He was previously engaged to his costar Karlie Redd, but it appears the two called it quits last year, BET reported.
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