Former Chicago Bears WR Josh Bellamy arrested in alleged PPP loan fraud scheme

Former Bears receiver Josh Bellamy was arrested Thursday morning and charged for his alleged participation in a scheme to file fraudulent loan applications through the federal government’s coronavirus relief program.

The scheme, which involved numerous others, allegedly sought more than $24 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration in the CARES Act, according to a news release sent out by the Department of Justice.

Bellamy, 31, of St. Petersburg, Florida, 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 appeared Thursday before U.S. Magistrate Judge Christopher Tuite of the Middle District of Florida.

Bellamy spent five seasons with the Bears from 2014 through 2018. He played in 67 games with Chicago, catching 76 passes for 999 yards and five touchdowns. He also played in 15 games last season with the New York Jets, mostly on special teams, before suffering a shoulder injury.

The Jets cut Bellamy from their reserve/PUP list on Tuesday, two days before his arrest.

The complaint alleges Phillip J. Augustin, 51, of Coral Springs, Florida, obtained a fraudulent PPP loan for his talent management company using falsified documents. 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, in order to receive kickbacks for obtaining the forgivable loans for them.

Bellamy is alleged to have obtained a PPP loan of more than $1.2 million for his own company, Drip Entertainment LLC. He allegedly used money obtained through the loan to purchase more than $104,000 in luxury goods, including purchases at Dior, Gucci and other jewelers. He also allegedly spent more than $62,000 in PPP loan money at the Seminole Hard Rock Hotel and Casino. He allegedly withdrew an additional $302,000.

Bellamy also sought PPP loans on behalf of his family members and other associates.

The scheme allegedly involved at least 90 fraudulent loan applications. Many of those applications were submitted, approved and funded by financial institutions. In total, at least $17.4 million was paid out.

Besides Bellamy and Augustin, nine other were charged in the scheme: Tiara Walker, 37, of Miami Gardens, Florida; Damion O. Mckenzie, 38, of Miami Gardens, Florida; Andre M. Clark, 46, of Miramar, Florida; Keyaira Bostic, 31, of Pembroke Pines, Florida; Wyleia Nashon Williams, 44, of Ft. Lauderdale, Florida; James R. Stote, 54, of Hollywood, Florida; Ross Charno, 46, of Ft. Lauderdale, Florida; Deon D. Levy, 50, of Bedford, Ohio; Abdul-Azeem Levy, 22, of Cleveland, Ohio.

Bellamy had been expected to miss the entire 2020 season with a shoulder injury suffered in 2019. According to spotrac.com, his career earnings totaled more than $7.6 million.