Mo Fayne is most known for his stint on season 8 of Love & Hip Hop: Atlanta as the boyfriend of Karlie Redd. Their tumultuous union ended last year during quarantine when she quietly filed for divorce. Fayne has made a name for himself in the headlines for being accused of being involved in numerous fraud activities.
Last May, he was arrested on $2 million worth of bank fraud charges in connection with a PPP loan. In June, he was accused of running a massive $5 million Ponzi scheme. Now, according to TMZ, the former reality star could be facing some serious time behind bars in his PPP loan fraud case.
Fayne pled guilty to six different counts of federal bank fraud after prosecutors accused him of funding the lavish lifestyle he was displaying over social media during the pandemic was with a Paycheck Protection Program loan. These PPP loans are intended to help employees and small businesses most hit hard by COVID.
In court documents obtained by TMZ, Fayne was ordered to give up nearly $100,000 dispersed across several bank accounts, as well as all eight of his 2015 Kenworth T680 trucks that he purchased with the extra money.
In exchange for his guilty plea, federal prosecutors dropped 14 other charges they originally had against him and instead agreed to recommend Fayne get a 151-month prison sentence--or about 12.5 years. Before the deal, he was facing a potential maximum sentence of 30 years.
As explained briefly, Fayne was accused of using a PPP loan of over $2 million to buy $85,000 worth of jewelry and pay off indebted child support. He's been in prison since December for violating bond terms, but his defense is currently looking to get him released before his September sentencing. We'll keep you updated as this case develops.