South Florida rapper is accused of buying Ferrari with coronavirus relief money

For his part in one of the country’s largest coronavirus relief schemes, South Florida rapper and reality star Diamond Blue Smith has been charged with fleecing more than $1 million from a federal loan program for struggling businesses and buying a $96,000 Ferrari with the proceeds.

Smith, 36, a cast member on “Love & Hip Hop: Miami” and a member of the group Pretty Ricky, was arrested this week along with a Pennsylvania towtruck operator for their alleged roles in a COVID-19 relief scheme involving $24 million in fraudulent loan applications, authorities said Wednesday.

This summer, a Miami moving man was accused in a similar scam of buying a $318,000 Lamborghini with millions that he allegedly bilked from the same Small Business Administration program.

In the latest case, Smith and Tonye C. Johnson, 28, of Pennyslvania, face federal charges of wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud in the Southern District of Florida. Smith, who had his first federal court appearance Monday in Atlanta, could not be immediately reached for comments.

Eleven other defendants linked to their case, mostly from Florida, have been charged with conspiring to defraud the Small Business Administration’s Paycheck Protection Program approved by Congress as part of the CARES Act. It is meant to help businesses suffering from the economic downturn caused by the COVID-19 pandemic.

Federal prosecutors allege that Smith, also known as “Baby Blue,” obtained $427,000 in a PPP loan through his company, Throwbackjersey.com, by falsifying documents for the SBA relief program. A bank approved the loan, which is guaranteed by the federal agency. Smith also allegedly obtained another loan of $708,000 through another company, Blue Star Records LLC.

Before his arrest, Smith not only bought the Ferrari but also withdrew about $272,000 in loan proceeds from his bank account, prosecutors said.

The FBI’s investigation revealed that Smith was allegedly part of a broader scheme involving others who helped file applications for the coronavirus relief funds while taking kickbacks.