‘Love & Hip Hop’ Star Karlie Redd’s Ex ‘Arkansas Mo’ Accused Of Running $5 Mill Ponzi Scheme, Indicted For Laundering COVID-19 Relief Funds

June 26, 2020 by Sincerely Liz in Reality TV with 0 Comments

Karlie Redd, Arkansas Mo

‘Love & Hip Hop’ Star Karlie Redd’s Ex-Husband ‘Arkansas Mo’ Indicted For Bank Fraud & Laundering COVID-19 Relief Funds

The ex-husband of VH1’s “Love & Hip Hop: Atlanta” star Karlie Redd has officially been indicted for claims against him.

In an official press release from the Department of Justice United States Attorney’s Office in the Northern District of Georgia, it was confirmed that Maurice Fayne, otherwise known as Arkansas Mo, was indicted on previously reported charges of the misuse of funds received through one of the initiatives of the U.S. government to help small businesses affected by the coronavirus. According to the release, the charges against Arkansas Mo are quite serious. He’s been

“charged with bank fraud, making a false statement to a federally-insured financial institution, and money laundering, all in connection with a Paycheck Protection Program (PPP) loan. In addition, Fayne is charged with wire fraud in connection with a Ponzi scheme.”

Karlie Redd, Arkansas Mo

The press release details exactly how a federal grand jury was able to indict Arkansas Mo, specifying that none of the funds were used to help what he claimed to be was his failing business:

From approximately August 2014 through approximately May 2020, Fayne posed as the owner of a profitable trucking business. In truth, Fayne’s trucking business never generated enough revenue to cover its expenses. Nevertheless, Fayne caused approximately 20 individuals to invest over $5 million in his trucking business. Fayne promised that he would use the investors’ money to purchase and operate trucks. Instead, Fayne used the investors’ money to pay his personal debts and expenses and to fund an extravagant lifestyle for himself. During the wire fraud scheme, Fayne transferred more than $5 million to a casino to cover his personal gambling and entertainment expenses.

Love & Hip Hop: Atlanta vet Karlie Redd has not been named as part of the allegations or charges.

Arkansas Mo, who also appeared in season nine of Love & Hip Hop: Atlanta, was formally indicted Wednesday (June 24). The press release also details the specifics of what he said in his application for the PPP loan and broke down the numbers of what the charges say he allegedly did with the funds:

The release also indicates that while Arkansas Mo was under investigation for bank fraud, several bank account balances, cash at his residence, and more was seized by federal agents: