Purchasing a Rolls-Royce Is Not a Permissible Use of PPP Funds

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Federal prosecutors continue to quickly respond to PPP loan fraud, bringing two additional cases that allege clear misuse of the funds intended for small businesses. Prosecutors in Georgia charged reality TV personality Maurice Fayne, aka “Arkansas Mo” of Love & Hip Hop: Atlanta, with bank fraud for allegedly spending $1.5 million of a $2 million PPP loan on a Rolls-Royce, child support, and jewelry including a Rolex Presidential watch, a diamond bracelet, and a 5.73-carat diamond ring.

Prosecutors have also charged Texas engineer Shashank Rai with using a fake company to apply for $13 million in loans. He allegedly applied for two different loans on behalf of Rai Family LLC, claiming 250 employees on a monthly payroll of between $1.2 million and $4 million, but which apparently does not exist.

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