Baby Blue Faces Life Imprisonment Over $24 Million Covid Scam

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US Rapper, Baby Blue, who is a member of Pretty Ricky, is neck deep in dangerous waters with the federal government after being accused of having a hand in a $24 million COVID-19 loan scam.


According to South Florida artist, he could pay a life-changing price if found guilty.

On Friday, October 9, Blue informed fans of his predicament on Instagram, posting a photo of himself wearing a suit and captioning the pic, “Wish me luck. Seeing the judge in 30 mins.”

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The photo was reposted by media channel, The Shade Room shortly afterwards, who pointed out the troubling situation the rapper has found himself in. After his first trial in court, Baby Blue commented on TSR post informing fans on the update, which has a frightening scenario. “Had a good first day in court,” he wrote. “Facing life in prison but #ImInnocent. Everything ain’t always what it seems.”

 

As earlier reported, Blue, with real name, Diamond Blue Smith, 36, was arrested on October 5. The following day, he appeared before a judge in the Northern District of Georgia and was charged with wire fraud, bank fraud and conspiracy to commit wire fraud and bank fraud, according to the U.S. Department of Justice.

 

The rapper is being charged for abusing the federal Paycheck Protection Program (PPP) loans promised by the Small Business Administration (SBA) as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act by filing fake loan applications to obtain millions of dollars.

 

The DOJ claims Blue falsely obtained $426,717 for his company throwbackjersey.com LLC. He also illegally got a $708,065 loan for his music label Blue Star Records, LLC.

 

The singer allegedly withdrew $271,805 in loan funds as well, and allegedly used some of the ill-gotten funds to buy a $96,000 Ferrari. The car and other luxury items were seized at the time of his arrest.

 

The alleged fraud involves several co-defendants, most notably Tonye C. Johnson, who was arrested on Oct. 1, and is being accused of conspiring with Blue to illegally milk millions out of the program with the help of others.

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