Pretty Ricky member Diamond Blue Smith, known as Baby Blue, was arrested earlier this week and charged in connection with an alleged $24 million COVID relief loan fraud scheme, according to federal prosecutors.
The U.S. Attorney’s Office for the Southern District of Florida says Smith, 36, of Miramar, and a Pennsylvania man named Tonye, 28, are charged with wire fraud, bank fraud, and conspiracy to commit both. Complex also reported on the arrests. Eleven others face related charges in separate complaints.
Prosecutors allege the group submitted fraudulent applications for Paycheck Protection Program loans totaling more than $24 million. The PPP was created under the $2 trillion CARES Act to help small businesses during the pandemic. According to the government, lenders approved and funded at least $17.4 million of those loans.
Smith, who has appeared on Love & Hip Hop Miami, is accused of obtaining two loans for two of his companies, one for $426,717 and another for $708,065. Prosecutors say he withdrew $271,805 of the money and used some of it to buy a Ferrari worth $96,000. Authorities say the car was seized when he was arrested.
The government says a federal criminal complaint is merely an accusation, and every defendant is presumed innocent unless proven guilty in court. No public response from Smith had been reported at the time of publishing.
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