Pretty Ricky member Baby Blue is facing federal charges for alleged involvement in a coronavirus relief fraud scheme, and is accused of pocketing the money to buy a Ferrari.
The Love & Hip Hop: Miami star and Tonye C. Johnson of Pennsylvania were arrested for their roles in the $24 million scheme. They both face charges of wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud, according to the Department of Justice.
Florida Recording Artist and Pennsylvania Man Charged for Role in $24 Million COVID-Relief Fraud Scheme https://t.co/do0TbGerQt
— Justice Department (@TheJusticeDept) October 6, 2020
Baby Blue, real name Diamond Smith, allegedly obtained a $426,717 loan under the Paycheck Protection Program (PPP) for his company, Throwbackjersey.com “using falsified documents.” He then obtained another $708,065 PPP loan for his other company, Blue Star Records LLC, again “using falsified documents.”
The Paycheck Protection Program, part of the Small Business Administration’s Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provides emergency financial aid for those affected by the ongoing coronavirus pandemic.
The rapper allegedly used the money to purchase a $96,000 Ferrari “and made other luxury purchases using PPP loan proceeds.” Authorities seized the car upon his arrest.
The FBI’s investigation also revealed that Smith and Johnson were allegedly part of a larger scheme, with at least 11 other defendants.