The coronavirus pandemic has lead to severe economic losses for businesses all across the globe. Thus, governments in various countries have implemented programs to help people out with their finances. Some have announced relief packages, while others are giving out stimulus checks. Many countries have also made available special loans for small businesses.
One such loan is the. This loan is supposed to help business owners help pay their employees’ salaries during the economic slowdown.
However, one such owner used this loan money for selfish purposes.
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WHAT DID THIS BUSINESS OWNER DO WITH THE MONEY FROM A CORONAVIRUS RELIEF LOAN?
Maurice Fayne is the sole proprietor Flame Trucking, a Georgia-based corporation. He applied for a $3.74 million Paycheck Protection Program (PPP) loan. Fayne stated that the loan would be utilized to give out salaries to his employees and make other payments.
He ended up getting a loan of more than $2 million.
However, Fayne did not use the money for its specified purpose. He used the money to buy himself jewelry and make personal payments.
Fayne’s property was searched by Federal agents on 11th May.
According to prosecutors –
“Within days, Fayne allegedly used more than $1.5 million of the PPP loan proceeds to purchase $85,000 in jewelry, including a Rolex Presidential watch, a diamond bracelet, a 5.73 carat diamond ring for himself, and to pay $40,000 for child support. Such payments are not an authorized use of PPP funds under the CARES Act.”
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“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,” said U.S. Attorney Byung J.
Byung added –
“We will investigate and charge anyone who inappropriately diverts these critical funds for their own personal gain.”
The case is currently under investigation by the FBI.