Baby Blue from Pretty Rickey was sentenced on Dec. 16 to 20 months in prison for conspiring to commit wire fraud and fraudulently obtaining loans from the Paycheck Protection Program, according to court documents, XXL reports.
The Paycheck Protection Program (PPP) loan was initiated to provide financial assistance to businesses to maintain the employment of their workers and to keep them solvent during the COVID-19 pandemic, according to U.S Small Business Administration. However, some people took advantage of the program, and the Justice Department has been attempting to retrieve funds that were fraudulently acquired, The Washington Post reported.
The “Grind with Me” artist confessed to procuring a PPP loan of $426, 717 for his business, Throwbackjersey.com LLC, by forging documents and providing fallacious information. The singer also applied for another PPP loan for his second company, Blue Star Records LLC, receiving an additional $708, 065.
Baby Blue, whose real name is Diamond Blue Smith, admitted to federal authorities of misappropriating PPP loans to finance his opulent lifestyle. He used the funds at the Seminole Hard Rock Hotel and Casino in South Florida and to purchase a Ferrari which was confiscated when he was arrested, as well as other luxury items.
He’s accused of drafting accomplices James R. Stote and Phillip J. Augustin, paying both men more than $250,000 to assist him in producing and submitting the falsifying loan applications, Baller Alert reports.
Source: Pretty Rickey’s Baby Blue Sentenced To 20 Months In Prison For PPP Loan Fraud
