COVID-19 Relief Loan Fraud

Federal Prosecutors have filed charges in the Southern District of Florida again three local residents for their alleged participation in a scheme to file fraudulent loan applications seeking more than $24 million in forgivable Paycheck Protection Program (PPP) loans. One of them being Diamond Blue Smith, of the group Pretty Ricky. He is facing federal charges after investigators say he obtained a coronavirus relief loan fraudulently to purchase a $96,000 Ferrari and other luxurious items. Smith is being charged with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud.  The feds claim that Smith used falsified documents to secure a $426,717 loan under the Paycheck Protection Program for his company Throwbackjersey.com LLC. The Paycheck Protection Program is part of the Coronavirus Aid, Relief and Economic Security (CARES) Act – intended to provide emergency financial help for the millions of Americans suffering from the economic effects of the COVID-19 pandemic. According to federal prosecutors, Smith sought out another $708,064 for his other company. Blue Star Record LLC, again using fabricated documents. Authorities say Smith took the scheme a step further and sought PPP loans for other people in order to receive kickbacks. One of the people a part of the scheme was Josh Bellamy, former wide receiver in the NFL, who attempted to get over $24 million in PPP loans. Bellamy was arrested and charged with bank and wire fraud. He Bellamy assisted with 11 other small-business owners to get PPP loans. Investigators say he bought $104,000 worth of luxury goods and spent more than $62,000 of the loan at the Seminole Hard Rock & Casino. According to the United States Justice Department, the other defendants allegedly involved in the scheme include: 

• Tiara Walker, 37, of Miami Gardens, was charged in a federal criminal complaint filed on Sept. 3, 2020, in the Southern District of Florida, with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
• Damion O. Mckenzie, 38, of Miami Gardens, was charged in a federal criminal complaint filed on Aug. 3, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
• Andre M. Clark, 46, of Miramar, was charged in a federal criminal complaint filed on Aug. 3, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
• Keyaira Bostic, 31, of Pembroke Pines, was charged in a federal criminal complaint filed on Aug. 3, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
• Phillip J. Augustin, 51, of Coral Springs, was charged in a federal criminal complaint filed on July 28, 2020, in the Northern District of Ohio with wire fraud, bank fraud, conspiracy to commit wire fraud and bank fraud, and obstruction;
• Wyleia Nashon Williams, 44, of Fort Lauderdale, was charged in a federal criminal complaint filed on July 28, 2020, in the Northern District of Ohio with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
• James R. Stote, 54, of Hollywood, was charged in a federal criminal complaint filed on June 24, 2020, in the Northern District of Ohio with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
• Ross Charno, 46, of Fort Lauderdale, was charged in a federal criminal complaint filed on June 24, 2020, in the Northern District of Ohio with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
• Deon D. Levy, 50, of Bedford, Ohio, was charged in a federal complaint filed on June 8, 2020, in the Northern District of Ohio with wire fraud and conspiracy to commit wire fraud; and
• Abdul-Azeem Levy, 22, of Cleveland, Ohio was charged in a federal complaint filed on June 8, 2020, in the Northern District of Ohio with wire fraud and conspiracy to commit wire fraud.

The complaints allege that the scheme involved the preparation of at least 90 fraudulent applications, most of which were submitted.  Augustin, Williams, Mckenzie, Clark, Bostic, and other conspirators in the scheme are alleged to have applied for PPP loans that are together worth more than $24 million dollars.  Many of those loan applications were approved and funded by financial institutions, paying out at least $17.4 million.