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Rapper Gets Busted For Running A $24 MILLION COVID Loan Scam After Buying Himself A Brand New Ferrari

Source - Rapper Baby Blue Whoaaaa, formerly known as Baby Blue from the R&B group Pretty Ricky, is in some hot water after being accused of participating in a scam to file fake loan applications to obtain millions of dollars allocated for small businesses due to the coronavirus pandemic.

According to the U.S. Department of Justice on Tuesday (Oct. 6), Baby Blue, born Diamond Blue Smith, 36, and another man named Tonye C. Johnson, 28, were charged in federal criminal complaints filed in the Southern District of Florida on numerous fraud charges. 

The men were hit with wire fraud, bank fraud and conspiracy to commit wire fraud and bank fraud after seeking more than $24 million in Paycheck Protection Program (PPP) loans promised by the Small Business Administration (SBA) as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Baby Blue Whoaaaa, who gained fame with Pretty Ricky in the mid-2000s for songs like "Grind With Me," was arrested on Monday (Oct. 5) and appeared before a judge in the Northern District of Georgia. 

My how the mighty have fallen. One second you're a one hit wonder of the mid 2000s and the next you're scamming the government out of PPP loans meant for small business struggling to keep their doors open during a global pandemic. Poor Baby got a small taste of the good life and has been chasing that high ever since. It's not even like he was trying to hide it either considering he was making massive cash withdrawals and buying Ferrari's...

The singer allegedly withdrew $271,805 in loan funds as well. In addition to the aforementioned loans, Baby Blue allegedly bought a $96,000 Ferrari, which was seized at the time of his arrest, as well as other luxury items from the loans he received.

He was essentially living like Louis Cafora in Goodfellas. The entire scheme was super involved...

The scheme allegedly involved the preparation of at least 90 fraudulent applications, most of which were submitted…

The DOJ also says that the Florida rapper used false documents to receive a PPP loan for his company, Throwbackjersey.com LLC, in the amount of $426,717. He obtained another loan for his Blue Star Records, LLC company using falsified documents, in which he was given $708,065.

The singer allegedly withdrew $271,805 in loan funds as well. In addition to the aforementioned loans, Baby Blue allegedly bought a $96,000 Ferrari, which was seized at the time of his arrest, as well as other luxury items from the loans he received.

Tonye C. Johnson, who was arrested on Oct. 1, and appeared on Oct. 2 before U.S. Magistrate Judge Henry S. Perkin of the Eastern District of Pennsylvania, is alleged to have obtained a PPP loan of $389,627 for his own company, Synergy Towing & Transport LLC, using falsified documents. He allegedly paid a portion of the loan proceeds to co-conspirators in the scheme.

The government also states that Baby Blue enlisted cohorts to file for loans allowing him to receive kickbacks or illegal payments used as compensation for a transaction or service. Eleven other people are involved in the case.

What a dirt bag. Will Baby Blue get any time? I doubt it. He'll probably be ordered to pay the money back, file for bankruptcy, and get off scot free. That's how it always works. Oh well. Take it way, Blue!