Get All Access for $5/mo

NFL Season Kicks Off With Former Jet Wide Receiver's Alleged PPP Fraud Football free agent Josh Bellamy is among those accused of using a share of his small-business loan on personal indulgence.

By Kenny Herzog Edited by Dan Bova

Al Pereira | Getty Images

As we have covered over the past several months, the federal government's Paycheck Protection Progam (PPP) — a core component of the Trump administration's CARES Act that launched in early April and expired on August 8 — has been a mixed bag. It distributed billions in small-business loans that have helped thousands of companies rehire employees and cut the national unemployment rates back down by nearly half from a May peak of 14.7 percent. But it also disproportionately advantaged businesses that were already cozy with big banks and had the resources to exploit PPP's flexibility (e.g. large hotel chains such as Omni divvying up millions per individual location). Plus, concerns over loan forgiveness contributed to $130 billion of its total kitty being left unclaimed. And that's without getting into the massive franchises (looking at you, Starbucks) that wet their beak, only to return the millions reaped after media shaming (see "Related" link below).

Related: Which Public Companies Have Returned Their SBA PPP Loans? (Updated)

Most disconcerting is the steady drumbeat of headlines outing outright PPP fraudsters. Dozens of individuals and entities have been flagged by the Department of Justice for deliberately manipulating PPP guidelines for their own ends, misappropriating the allocated funds, or both. But yesterday, mere hours before the 2020-'21 NFL season was set to kick-off, the DOJ made a conspicuously timed splash by announcing that free-agent wide receiver Josh Bellamy (most recently of the New York Jets) was busted as part of a multi-party conspiracy to defraud the PPP program out of $24 million.

According to the Department's press release, Bellamy, talent manager Phillip J. Augustin and several others were complicit in submitting phony applications on behalf of enterprises including Bellamy's Drip Entertainment LLC, as well as soliciting kickbacks for their efforts. Bellamy reportedly spent nearly $200,000 of his more than $1.2 million haul on luxury goods and an outing at a Hard Rock Casino and Hotel located in Florida. The statement does not elaborate on whether Bellamy maintained social distancing while allegedly gambling the government's money away.

Bellamy, 31, faces charges of wire fraud, bank fraud and conspiracy to commit wire fraud and bank fraud. We will update this story as more information is made available.

Kenny Herzog

Entrepreneur Staff

Digital Content Director

Kenny Herzog is currently Digital Content Director at Entrepreneur Media. Previously, he has served as Editor in Chief or Managing Editor for several online and print publications, and contributed his byline to outlets including Rolling Stone, New York Magazine/Vulture, Esquire, The Ringer, Men's Health, TimeOut New York, A.V. Club, Men's Journal, Mic, Mel, Nylon and many more.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Business News

A Former Corporate Lawyer Now Makes Six Figures on YouTube — Here's How She Does It

Here are the secrets to starting and growing a successful YouTube channel, according to a YouTuber with millions of subscribers.

Growing a Business

How to Determine The Ideal Length of Your Marketing Emails Your Customers Will Actually Read

Wondering how long your marketing emails should be? Here's what consumers say — so you can send them exactly what they like.

Business News

New Southwest Airlines Major Investor Wants to Force Out CEO, Slams Company's 'Stubborn Unwillingness to Evolve'

Elliot Investment Management announced a $1.9 billion stake in the Dallas-based Southwest Airlines on Monday and is urging shareholders to vote for new leadership.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.