Baby Blue sentenced to 20 months for participating in PPP loan fraud
Roommates, last year during the height of the COVID-19 pandemic, it seemed like everyone and their mothers were applying for PPP loans to help maintain their lifestyles, including some celebrities like Pretty Ricky rapper Baby Blue. Blue shocked people when they found out he was caught with various charges, including bank fraud, bank fraud and conspiracy to commit transfer fraud, for his participation in a PPP loan scam for more than $ 24 million in October 2020. It has been almost a year since any new information in the Blues case was released so far.
It appears that the Florida native has been formally convicted of his actions. According to the U.S. Department of Justice, Blue, born Diamond Smith, was sentenced Dec. 16 to 20 months after pleading guilty on Aug. 4 in the Southern District of Florida to conspiracy to commit fraud. As we previously reported, Blue admitted to obtaining a $ 426,717 PPP loan for its company, Throwbackjersey.com LLC, by using forged documents and information. After completing that loan, he was not done!
Blue obtained another $ 708,065 PPP loan for its second company, Blue Star Records LLC, using forged documents and information. Blue was sentenced to pay $ 1,111,345.23 in restitution and $ 1,134,782 in forfeiture beyond his jail term. The rapper has been quiet and has not commented on the matter since May 2021, when he offered his followers advice on PPP loans.
At the time, he released a statement online in which he said, “I want to take a moment to use my platform and tell all my followers and anyone who sees this … If anyone comes to you with an offer of an OPP -loan, just tell them NO THANK YOU! ” He continued: “Ignorance is not a legal defense, and when you stand before a judge and jury, you will not be able to say ‘I did not know’.” Roommates, we will stay informed if Blue says anything about the sentencing!