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Baby Blue Charged in Covid Relief Scheme

Pretty Ricky member Baby Blue and  Love & Hip Hop: Miami star and Tonye C. Johnson I Pennsylvania were arrested for their $24 million scheme.

Real name name Diamond Smith, rapper Baby Blue is facing federal charges for alleged involvement in the coronavirus relief fraud scheme and is accused of pocketing the money to buy a Ferrari after allegedly obtaining a $426,717 loan under the Paycheck Protection Program.

The Paycheck Protection Program

The Paycheck Protection Program is part of the Small Business Administration’s Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provides emergency financial aid for those affected by the ongoing coronavirus pandemic.

The rapper allegedly used the money obtained for his company,, “using falsified documents.” He then received another $708,065 PPP loan for his other company, Blue Star Records LLC, again “using falsified documents.” The rapper then allegedly used the money to purchase a $96,000 Ferrari “and made other luxury purchases using PPP loan proceeds.” Authorities seized the car upon his arrest.

Baby Blue’s Involvement  with Tonye C. Johnson

The FBI’s investigation revealed that both Smith and Johnson were allegedly part of a larger scheme, with at least 11 other defendantsDiamond “Blue Blue” Smith was arrested and charged with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud, according to the New York Daily News. He appeared Monday before a U.S. Magistrate Judge in Georgia.

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.

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