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Pretty Ricky’s Baby Blue Gets Prison Sentence Over $24M PPP Loan Scam

Pretty Ricky’s Baby Blue Gets Prison Sentence Over $24M PPP Loan Scam
Written by Publishing Team

Rapper Diamond “Baby Blue Smith” was sentenced in Florida for more than a year after being arrested in a COVID-19 loan scheme.

According to court documents, the 37-year-old Pretty member Ricky will be jailed for 20 months after being found guilty on August 4 of conspiracy to commit online fraud. In October 2020, he was arrested for submitting fraudulent loan applications in order to receive money from the Paycheck Protection Program. Baby Blue was involved in a scam that received $24 million from the COVID relief program.

For one of his companies, Throwbackjersey.com LLC, Blue took out a $426,717 loan, and his other Blue Star Records LLC took out $708,065. He later admitted to forging documents and information, using money at the Seminole Hard Rock Hotel and Casino, and buying luxury items including a Ferrari. The car was seized by the authorities when the rapper was arrested.

In addition to the prison term, he was ordered to pay $1,111,345 in compensation and $1,134,782 in forfeiture.

Baby Blue addressed his legal status on Instagram, where he shared a tweet and captioned, “We all make mistakes…I admit I made a mistake, I learned from it the hard way and I won’t make it again. My mistakes don’t define me as a man and I’m going to come out of this more than I ever have been.” With more integrity, more character, more knowledge of myself, wiser, more powerful!”

In a separate post he wrote, “I can’t go back and change the beginning but I can start where I am and change the end. There are things in life that we don’t want to happen but have to accept; lessons in life that we don’t want to know but have to learn. We have to remember that the greatest Life lessons are usually learned in the worst of times and from the worst mistakes.”

Last year, the FBI found that Baby Blue was part of a larger scam where people were recruited to apply for fraudulent PPP loans. Smith also admitted paying more than $250,000 in bribes to two men, James R. Stott and Philip J. Augustin, who led the fraudulent effort. Stote and Augustin plead guilty to conspiracy to commit online fraud, and each face a maximum of 20 years in prison for their efforts to illegally make $35 million.

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