A Miramar-based rapper was arrested Monday (October 5) for allegedly using COVID-19 relief loans for personal expenses, according to NBC Miami.
Diamond Blue Smith, 36, was charged along with 28-year-old Tonye C. Johnson, 28, of Pennsylvania for their roles in a $24 million COVID-19 relief fraud scheme. Smith is a cast member on the reality show Love & Hip Hop: Miami and a member of the group Pretty Ricky. Authorities accused him of buying a Ferrari with the loan money.
"The government alleges Smith -- also known as "Baby Blue" -- obtained money for a Ferrari by falsifying documents to get a Paycheck Protection Program (PPP) loan worth nearly $427,000 dollars. He allegedly did the same for another loan worth nearly $1 million," NBC Miami reported.
Smith and Johnson are facing charges of wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud.
Federal officials also found that Smith was allegedly involved in a broader scheme where they convinced others to file for funds while taking kickbacks. Eleven other defendants are involved in the investigation.
PPP loans were part of the $2 trillion CARES Act passed in March, where small businesses received forgivable loans to offset the impact of the pandemic.
"Congress later found more than $1 billion dollars in relief aid was fraudulently obtained," NBC Miami wrote.
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