Ex-NFL player given more than 3 years in prison in $1.2 million COVID fraud scheme
Former NFL player
Joshua Bellamy used a federal program meant to offer COVID-19 relief to small businesses to bilk the government out of more than $1.2 million.
On Friday, Bellamy — who was released from the New York Jets in 2020 the same week he was charged — was sentenced in a Fort Lauderdale federal court to more than three years in prison.
Bellamy, of St. Petersburg, had pleaded guilty to a charge of conspiracy to commit wire fraud in June.
The scheme, which extended from South Florida to Ohio, involved 10 other people, mostly from South Florida.
Investigators say Bellamy obtained $1,246,565 million for his company, Drip Entertainment LLC, through the Paycheck Protection Program (PPP). The loan program was guaranteed by the Small Business Administration as part of the federal coronavirus relief effort.
The problem, investigators said: He used false documents and information to secure the money. He also also sought money from PPP for family and associates, the U.S. Attorney’s Office said Friday.
Instead of employee salaries, Bellamy used $104,000 on luxury goods, including purchases at Dior, Gucci and jewelers. He also
Bellamy spent about $63,000 at the Seminole Hard Rock Hotel and Casino and withdrew $302,000, prosecutors said in the complaint.
Bellamy also admitted that he paid more than $311,000 to James Stote, a co-conspirator in the case, as a kickback for helping him fill out the loan applications, the U.S. Attorney’s Office said.
Stote was charged in
June with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud. His case his still pending.
In addition to his prison sentence, Bellamy will also have to serve three years supervised release, pay $1,246,565 in restitution and $1,246,565 in forfeiture.
Carli Teproff: 305-376-3587, @cteproff