NFL Star, Josh Bellamy and 10 other people including Phillip J. Augustin have been arrested for allegedly obtaining more than $1.2 million as part of a COVID-relief fraud scheme.
The former Jets wide receiver has been charged in a federal criminal complaint with fraud, bank fraud, and conspiracy to commit wire fraud.
According to the U.S. Department of Justice. Josh Bellamy allegedly conspired with others to “submit numerous fraudulent” small-business loan applications in order to receive millions of dollars guaranteed by the Small Business Administration under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The money was intended for businesses that were financially struggling due to the COVID-19 pandemic. Many of the loans Bellamy and others applied for were approved, totaling to at least $17.4 million.
U.S prosecutors said: “The complaint alleges that Bellamy conspired with 10 others to obtain millions of dollars in fraudulent PPP loans. Early in the scheme, Phillip J. Augustin allegedly obtained a fraudulent PPP loan for his talent management company using falsified documents,
“After submitting that application, Augustin then began to work with other co-conspirators, including Bellamy, on a scheme to submit numerous fraudulent PPP loan applications for confederate loan applicants, in order to receive kickbacks for obtaining the forgivable loans for them.”
According to the Justice Department, Bellamy spent more than $62,000 in loan money at the Seminole Hard Rock Hotel and Casino in Florida. He also is accused of withdrawing more than $302,000 and using more than $104,000 for luxury goods, including purchases at Dior, Gucci, and various jewelers.
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Bellamy’s arrest is another hit for the NFL star. Earlier in the week, The New York Jets released him. He missed much of the 2020 season due to a shoulder injury.