Criminal Complaint — U.S. v. Fayne

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U.S. District Court, N.D. Ga. · No. 1:20-mj-00370-JSA · Doc. 1 · 2020-05-12 · Docket on CourtListener

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United States District Court 
NORTHERN DISTRICT OF GEORGIA 
 
UNITED STATES OF AMERICA 
 
v. 
CRIMINAL COMPLAINT 
MAURICE FAYNE, a/k/a “Arkansas Mo” 
Case Number:  1:20-mj-370 
(UNDER SEAL) 
 
 
I, the undersigned complainant being duly sworn, state the following is true and correct to the best of my 
knowledge and belief. On or about April 28, 2020, in Gwinnett County, in the Northern District of 
Georgia, the defendant did 
knowingly execute and attempt to execute a scheme and artifice to defraud United Community Bank, a 
financial institution as defined in Title 18, United States Code, Section 20, and to obtain moneys and 
funds owned by and under the custody and control of United Community Bank, by means of materially 
false and fraudulent pretenses, representations, and promises, and by the omission of material facts, 
in violation of Title 18, United States Code, Section 1344. 
 
I further state that I am a Special Agent of the Federal Bureau of Investigation, and that this complaint is 
based on the following facts: 
PLEASE SEE ATTACHED AFFIDAVIT, WHICH IS INCORPORATED BY REFERENCE HEREIN. 
 
Continued on the attached sheet and made a part hereof.    Yes 
 
 
 
 
  Signature of Complainant 
 Paul Fike 
 
Based upon this complaint, this Court finds that there is probable cause to believe that an offense has 
been committed and that the defendant has committed it.  Sworn to before me by telephone pursuant to 
Federal Rule of Criminal Procedure 4.1. 
 
May 12, 2020 
at  Atlanta, Georgia 
Date 
 
 
City and State 
JUSTIN S. ANAND 
 
 
UNITED STATES MAGISTRATE JUDGE 
 
 
Name and Title of Judicial Officer 
 
Signature of Judicial Officer 
AUSA Russell Phillips / 2020R00423 
 
Issued pursuant to Federal Rule of Criminal 
Procedure 4.1 
 
 
  Paul Fike
 FILED IN CHAMBERS 
 U.S.D.C ATLANTA  
Date: __________________________ 
JAMES N. HATTEN, Clerk
By: ____________________________
 Deputy Clerk 
May 12 2020
s/B. Evans
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Affidavit 
I, Paul Fike, hereby depose and state under penalty of perjury that the 
following is true and correct to the best of my knowledge and belief: 
 
I am a Special Agent with the Federal Bureau of Investigation (“FBI”), and 
I have been so employed since 1996. I am currently assigned to the Atlanta 
Division investigating financial crimes, including wire fraud, mail fraud, 
bank fraud, and securities fraud. I am a law enforcement officer of the 
United States within the meaning of 18 U.S. C. §2510(7), and I am 
empowered by law to conduct investigations and to make arrests for 
federal felony offenses. 
 
This affidavit is made in support of a criminal complaint charging Maurice 
Fayne, a/k/a “Arkansas Mo” (hereinafter, Fayne), with bank fraud in 
violation of 18 U.S.C. § 1344. 
 
This affidavit is based, in part, on my conversations with other law 
enforcement agents and witnesses, and my review of bank records and 
other documents. This affidavit does not include every fact known to the 
government, but only those facts necessary to support a finding of 
probable cause to support the issuance of the requested arrest warrant. 
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Applicable Criminal Laws 
 
The bank fraud statute, 18 U.S.C. § 1344, makes it a federal crime for 
anyone to knowingly execute or attempt to execute a scheme and artifice 
to defraud a financial institution, as defined in 18 U.S.C. § 20, or to obtain 
moneys and funds owned by and under the custody and control of a 
financial institution, by means of materially false and fraudulent pretenses, 
representations, and promises, and by the omission of material facts. 
The Paycheck Protection Program 
 
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a 
federal law enacted in or around March 2020 and was intended to provide 
emergency financial assistance to millions of Americans who are suffering 
the economic effects caused by the COVID-19 pandemic. One source of 
relief provided by the CARES Act was the authorization of up to $349 
billion in forgivable loans to small businesses for job retention and certain 
other expenses, through a program referred to as the Paycheck Protection 
Program (“PPP”). In or around April 2020, Congress authorized over $300 
billion in additional PPP funding. 
 
In order to obtain a PPP loan, a qualifying business must submit a PPP 
loan application, which must be signed by an authorized representative of 
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the business. The PPP loan application requires the business (through its 
authorized representative) to acknowledge the program rules and make 
certain affirmative certifications in order to be eligible to obtain the PPP 
loan. In the PPP loan application, the small business (through its 
authorized representative) must state, among other things, its: (a) average 
monthly payroll expenses; and (b) number of employees. These figures are 
used to calculate the amount of money the small business is eligible to 
receive under the PPP. In addition, businesses applying for a PPP loan 
must provide documentation showing their payroll expenses.  
 
A PPP loan application must be processed by a participating financial 
institution (the lender).  If a PPP loan application is approved, the 
participating financial institution funds the PPP loan using its own monies, 
which are 100% guaranteed by Small Business Administration (SBA). 
 
PPP loan proceeds must be used by the business on certain permissible 
expenses—payroll costs, interest on mortgages, rent, and utilities. The PPP 
allows the interest and principal on the PPP loan to be entirely forgiven if 
the business spends the loan proceeds on these expense items within a 
designated period of time (usually eight weeks of receiving the proceeds) 
and uses at least 75% of the PPP loan proceeds on payroll expenses. 
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Flame Trucking Inc. 
 
According to records on file with the Georgia Secretary of State: 
a. 
Fayne incorporated Flame Trucking Inc. (“Flame Trucking”) on 
April 4, 2019; 
b. 
Fayne is the CEO and CFO of Flame Trucking; and 
c. 
Flame Trucking’s principal office is located at 4029 Mountain Side 
Trail, Dacula, Georgia 30019; and 
 
Fayne resides at 4029 Mountain Side Trail, Dacula, Georgia 30019. 
Flame Trucking’s PPP Loan Application 
 
United Community Bank (“UCB”) is a federally insured financial 
institution and has its headquarters in Blairsville, Georgia. UCB was an 
approved SBA lender and has participated as a lender in the PPP.  
 
On April 15, 2020, Fayne signed and submitted to UCB a PPP loan 
application in the name of Flame Trucking. Fayne told UCB that Flame 
Trucking had 107 employees and an average monthly payroll of 
$1,490,200.  
 
In Flame Trucking’s PPP loan application, Fayne certified that the loan 
proceeds would be used to “retain workers and maintain payroll or make 
mortgage interest payments, lease payments, and utility payments, as 
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specified under the Paycheck Protection Program Rule.” Fayne stated that 
he understood he could be prosecuted for fraud if the PPP loan proceeds 
were “knowingly used for unauthorized purposes.” 
 
Flame Trucking’s PPP loan application requested a loan in the amount of 
$3,725,500, and UCB originally funded the loan in that amount on April 22, 
2020. 
 
But UCB subsequently discovered that the loan exceeded the maximum 
amount that Flame Trucking could borrow under PPP regulations. 
Therefore, to comply with the regulations, UCB took back part of the loan 
proceeds on April 28 and April 30, 2020, thereby reducing the loan amount 
to $2,045,800. 
Fayne’s Fraudulent use of PPP Loan Proceeds 
 
On or about April 23, 2020, Fayne used Flame Trucking’s PPP loan 
proceeds to fund a number of wire transfers, including the following: 
a. 
$30,000 to D.J; 
b. 
$50,000 to M.S.; and 
c. 
$350,000 to C.W. 
 
The $30,000 wire to D.J. and the $50,000 wire to M.S. were payments on 
loans. 
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C.W. told a Wells Fargo investigator that she was not an employee of 
Flame Trucking, and that Fayne is her “brother.” C.W. also told the Wells 
Fargo investigator that, after receiving the $350,000 wire transfer from 
Fayne, she disbursed that money according to Fayne’s directions. 
 
C.W.’s bank records show that, on or about April 28, 2020, C.W. wire 
transferred $84,000 to a jewelry store in Duluth, Georgia for “investment.” 
 
C.W.’s bank records also show that, on or about April 30, 2020, C.W. wire 
transferred $40,000 to a woman in Alexander, Arkansas for “child support 
completion.” 
 
When C.W. was later interviewed by federal agents, she stated that Fayne 
is her “godbrother,” not her “brother.” C.W. also told federal agents that, 
before she received the $350,000 wire transfer from Fayne, Fayne told her 
he had received a COVID-19 loan from the U.S. government and would be 
sending her some of it so that she could handle “payroll” for him when he 
was not around. C.W. said Fayne told her that both of the wire transfers he 
directed her to make (one to a jewelry store in Georgia and one to a 
woman in Arkansas) were for “payroll” purposes.  
 
Loan payments, jewelry purchases, and child support payments are not 
authorized uses of PPP loan proceeds. 
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According to information obtained from the jewelry store, Fayne paid a 
total of $85,065 (including the $84,000 wire transfer and a cash payment of 
$1,065) for three pieces of jewelry, specifically: (1) one custom-made 18-
karat Rolex 41mm Presidential watch, serial number 5636S3S8, with 
diamonds, which sold for $52,000; (2) one 10-karat custom-made Cuban 
bracelet with 34.75 carats of diamonds, which sold for $24,500; and (3) one 
14-karat custom-made ring with 5.73 carats of diamonds, which sold for 
$3,750. 
 
The following photograph shows a man, believed to be Fayne, wearing the 
three pieces of jewelry described above: 
 
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On April 24, 2020, in support of Fayne’s assertion that Flame Trucking had 
an average monthly payroll of $1,490,200, Fayne sent an email to UCB, 
attaching what Fayne represented to be October, November, and 
December 2019 bank statements for Flame Trucking’s account at Arvest 
Bank. 
 
According to Arvest Bank, Flame Trucking’s account was closed on 
September 17, 2019.  
 
Investigators provided Arvest Bank with copies of the purported October, 
November, and December 2019 bank statements that were submitted to 
UCB as part of Flame Trucking’s PPP loan application. Arvest Bank 
reviewed those documents and informed investigators that they were not 
genuine. 
 
On April 27, 2020, Fayne withdrew $65,000 in cash from the UCB account 
that held the PPP loan proceeds. 
Fayne’s False Exculpatory Statements to Federal Agents 
 
On May 6, 2020, Fayne was interviewed by federal agents. Fayne admitted 
that he submitted a PPP loan application on behalf of Flame Trucking. But 
Fayne claimed that he used all of the PPP loan proceeds to pay payroll and 
other business expenses incurred by Flame Trucking. And Fayne expressly 
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denied that he used any of the PPP loan proceeds to pay his personal debts 
and expenses. 
Search and Seizure Warrants 
 
Between May 7 and May 11, 2020, agents executed seizure warrants and 
seized a total of approximately $503,000 in PPP loan proceeds from three 
bank accounts used by Fayne to disburse the loan proceeds, including one 
at UCB, one at Wells Fargo, and one at Navy Federal Credit Union. 
 
On May 11, 2020, investigators executed a search warrant at Fayne’s 
residence, which purportedly was also the principal office of Flame 
Trucking. 
 
During the search, agents told Fayne that they had seizure warrants for the 
three pieces of jewelry described above. Fayne told agents that the jewelry 
was stored in his bedroom, and agents seized the jewelry as authorized by 
the seizure warrants. Fayne admitted that he purchased this jewelry with 
proceeds of the PPP loan that UCB made to Flame Trucking. 
 
Fayne told the agents that he believed he had the right to use part of the 
PPP loan proceeds for “other business purposes” and for “working 
capital.” Fayne also stated that he believed the jewelry would increase in 
value because he would be wearing it, which would make it more valuable. 
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During the search, agents found a bag containing exactly $70,000 in U.S. 
currency, most of which was bundled in $2,000 stacks and separated with 
paper wrappers bearing the name “United Community Bank” and 
stamped “April 23, 2020” or “April 24, 2020.” Two bundles of money were 
in envelopes bearing the name “Navy Federal Credit Union.” When asked 
where he got this cash, Fayne stated that it was his “personal money.” 
 
During the search, agents seized $9,400 in U.S. currency from the pockets 
of the clothes Fayne was wearing.  
 
During the search, Fayne voluntarily agreed to speak with the agents. 
Fayne was shown the Arvest Bank statements for October, November, and 
December 2019, which were submitted to UCB as part of Flame Trucking’s 
PPP loan application. Fayne denied that these were his bank statements, 
but he admitted that they were transmitted from his email account to UCB. 
Fayne stated that his employees also had access to his email account. 
Fayne further stated that the entity identified in those documents as 
“Heartland Payroll Systems” was not the payroll processor used by Flame 
Trucking. Fayne claimed that he could not remember the name of the 
payroll processor Flame Trucking actually used. 
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Agents asked Fayne whether he knows the Arkansas woman who received 
the $40,000 wire transfer for “child support completion.” Fayne stated that 
he does not know that woman, but he added that he does not know the 
names of all of his “employees.” 
 
In Fayne’s garage, Agents found a 2019 Rolls-Royce Wraith, VIN:  
SCA665C53KUX87297, which still had a temporary dealer tag on it. Agents 
asked Fayne whether he used any of the PPP loan proceeds to purchase 
that vehicle, and Fayne said:  “Kinda, sorta, not really.” According to 
documents available online, the total suggested retail price of that vehicle 
was $381,975. See https://www.bentleygoldcoast.com/2019-rolls-royce-
wraith-c-8148.htm, last visited 05/12/2020. 
Conclusion 
 
Based on my training and experience, and the information provided in this 
affidavit, I respectfully submit that there is probable cause to believe that 
Fayne’s conduct, as described above, violated the bank fraud statute, 18 
U.S.C. § 1344, and I request that the Court issue a warrant for his arrest on 
those charges. 
 
 
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Request for Sealing 
 
I further request that the Court order that this affidavit, the proposed 
criminal complaint, the proposed arrest warrant, the motion to seal, and 
the proposed sealing Order be sealed until further order of the Court. 
These documents discuss an ongoing criminal investigation that is neither 
public nor known to the target of the investigation. Accordingly, there is 
good cause to seal these documents because their premature disclosure 
may give the target an opportunity to flee, destroy or tamper with 
evidence, change patterns of behavior, intimidate potential witnesses, 
notify confederates, or otherwise seriously jeopardize the investigation. 
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