Karlie Redd's Ex Mo Fayne Accused Of Running $5 Million Ponzi Scheme
Love & Hip Hop: Atlanta star Mo "Arkansas Mo" Fayne, who was married to Karlie Redd until recently, has been accused of running a $5 million Ponzi scheme for the last six years. The reality star was indicted on Wednesday (June 24th) by a federal grand jury for committing bank fraud by obtaining a $3,725,500 Paycheck Protection Program (PPP) loan and using it for personal expenses. When applying for the loan, Mo had claimed that he would use it to pay the salaries of 107 workers for his trucking firm, but instead, he blew it on fancy jewelry, child support, and a 2019 Rolls-Royce.
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While these bank fraud charges were made public knowledge last month when he was arrested, what was unbeknownst to anyone was that he has also allegedly been running a $5 million Ponzi scheme for the past six years in order to cover up his major gambling problem. According to prosecutors, Mo has been "pos[ing] as the owner of a profitable trucking business," despite the fact that the firm "never generated enough revenue to cover its expenses."
“Nevertheless, Fayne caused approximately 20 individuals to invest over $5 million in his trucking business,” the prosecutors' statement reads. “Fayne used the investors’ money to pay his personal debts and expenses, and to fund an extravagant lifestyle for himself.” It goes on to specify that he "transferred more than $5 million to a casino to cover his personal gambling and entertainment expenses."
According to court records, Mo has been out on bond after getting arrested on May 11th. Altogether, he has been charged with wire fraud, bank fraud, money laundering, and making a false statement to a federally-insured financial institution.