MIAMI–A former National Football League (NFL) player has been charged for his alleged participation in a scheme to file fraudulent loan applications seeking more than $24 million in forgivable Paycheck Protection Program, according to the Justice Department.
Joshua J. Bellamy, 31, of St. Petersburg, Fla., who played for the Kansas City Chiefs, Chicago Bears and more recently the New York Jets, was charged in a federal criminal complaint filed in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud. Bellamy was arrested this morning and appeared today before U.S. Magistrate Judge Christopher Tuite of the Middle District of Florida.
The complaint alleges Bellamy conspired with 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,” the Justice Department said in a statement. “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.”
Luxury Goods Allegedly Purchased
Bellamy is alleged to have obtained a PPP loan of $1,246,565 for his own company, Drip Entertainment LLC. Bellamy allegedly purchased more than $104,000 in luxury goods using proceeds of his PPP loan, including purchases at Dior, Gucci, and jewelers, the Justice Department said.
He is also alleged to have spent approximately $62,774 in PPP loan proceeds at the Seminole Hard Rock Hotel and Casino in South Florida, and to have withdrawn over $302,000. Bellamy also allegedly sought PPP loans on behalf of his family members and close associates.
The complaint alleges that the scheme involved the preparation of at least 90 fraudulent applications, most of which were submitted. Augustin, Bellamy, and other conspirators in the scheme are alleged to have applied for PPP loans that are together worth more than $24 million dollars. Many of those loan applications were approved and funded by financial institutions, paying out at least $17.4 million, the Justice Department said.
In all, 11 people were allegedly involved in the scheme.