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A member of the rap group Pretty Ricky bought a $96,000 Ferrari and other luxury items using money meant for small-business coronavirus relief, federal prosecutors say.
Diamond Blue Smith, 36, of Miramar, who also stars on the VH-1 reality series “Love and Hip Hop in Miami,' is accused of filing fraudulent applications for federal Paycheck Protection Program loans — cash intended for business owners struggling to stay afloat during the pandemic.
The criminal complaint alleges Smith obtained a PPP loan of $426,717 for his company, Throwbackjersey.com LLC and another PPP loan of $708,065 for his other company, Blue Star Records LLC, using falsified documents.
Authorities seized the Ferrari and $271,805 cash, which he allegedly got from PPP loan proceeds.
He also allegedly applied for PPP loans on behalf of others in exchange for kickbacks payments.
Smith appeared before a judge in Georgia Monday on federal charges that included wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud.
Eleven others have been charged in the scheme, including NFL wide receiver Josh Bellamy, 31, of St. Petersburg.
Prosecutors allege that the professional football player spent tens of thousands of dollars meant for small-business coronavirus relief on designer jewelry and jaunts to the Seminole Hard Rock Hotel and Casino.
Bellamy, a wide receiver who was cut from the New York Jets in early September, is alleged to have fraudulently obtained about $1.25 million dollars of PPP money. On Sept. 9, 2020, he was charged with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud.
He got the cash with the help of the Phillip J. Augustin, 51, prosecutors say, a Coral Springs man who now sits at the center of a $24 million dollar coronavirus relief fraud ring.
The majority of those indicted as part of the ring are from Florida, but two — Deon D. Levy, 50, and Abdul-Azeem Levy, 22 — are from Ohio. Tonye C. Johnson, 28, of Pennsylvania, was charged the same day as Smith.
In addition to Augustin, the South Floridians facing charges are Andre M. Clark, 46, of Miramar; Keyaira Bostic, 31, of Pembroke Pines; James R. Stote, 54, of Hollywood; Wyleia Nashon Williams, 44, and Ross Charno, 46, of Ft. Lauderdale; Tiara Walker, 37, and Damion O. Mckenzie, 38, of Miami Gardens.
Wayne K. Roustan can be reached at wkroustan@sunsentinel.com or 561-379-6119 or on Twitter @WayneRoustan
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