photo credit: ungvar // Shutterstock
Arkansas Mo, the ex of Love & Hip Hop’s Karlie Redd is in big trouble with the governement.
Mo filed for a Paycheck Protection Program (PPP) loan under his trucking company Flame Trucking. The program in intended for small business affected by COVID-19 to help assist employees. In the loan application, Mo stated that Flame Trucking had 107 employees and averaged a monthly payroll total of $1,490,200. He stated that the money would be used to “retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule.”
Mo asked for $3,725,500 and was given $2,045,800. Within days of receiving the loan, Mo allegedly used more than $1.5 million of the money 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 in child support that he owed.
“Such payments are not an authorized use of PPP funds under the CARES Act,” the news release said.
Mo was interviewed by federal agents and admitted to submitting the loan application in his business name, but claimed that he used all of the proceeds to pay payroll and other business expenses for Flame Trucking, denying using the loan money for personal debts and expenses.
On May 11th, agents executed a search at Mo’s residence in Georgia, seizing approximately $80,000 in cash, including $9,400 that Mo had in his pockets, and the jewelry he purchased with the PPP funds, and further discovered a 2019 Rolls-Royce Wraith, which still had a temporary dealer tag on it, according to authorities.
Agents also executed seizure warrants for three bank accounts that Mo owned or controlled and seized approximately $503,000 in PPP funds.