By Nathan Hale

Law360 (September 10, 2020, 8:24 PM EDT) -- NFL player Josh Bellamy was charged Thursday for allegedly participating in a scheme that sought to fraudulently obtain $24 million in forgivable loans through the Paycheck Protection Program established as part of the federal government's response to the COVID-19 pandemic.

Bellamy, 31, who played last season for the New York Jets, was charged in the Southern District of Florida with wire fraud, bank fraud and conspiracy to commit wire fraud and bank fraud, according to the U.S. Department of Justice.

He allegedly obtained a PPP loan worth more than $1.2 million for his Miami-based company Drip Entertainment LLC and also sought additional PPP loans on behalf of family members and close associates, the DOJ said.

The St. Petersburg, Florida, resident was arrested and made an initial appearance via Zoom before U.S. Magistrate Judge Christopher Tuite of the Middle District of Florida on Thursday. He was allowed to remain free on $250,000 bond and was ordered to appear before U.S. Magistrate Alicia O. Valle in Miami on Monday, according to court records.

"It's very early in the case, and Mr. Bellamy is presumed innocent. I hope the public will give him the benefit of the doubt at this time." Diego Weiner of Jeffrey Weiner PA, who is representing Bellamy, told Law360. "All too often, professional athletes are taken advantage of by people purportedly acting on their behalf as agents or advisers."

Prosecutors claim Bellamy conspired with others, including Phillip J. Augustin, who has worked as a manager for professional football players, to obtain millions of dollars in PPP loans. They allege that early on in the scheme, Augustin, 51, of Coral Springs, Florida, obtained a fraudulent PPP loan for his talent management company and then began to work with others to submit fraudulent loan applications in exchange for kickbacks for obtaining the loans.

"The case is brand-new and the charges are obviously very serious and we look forward to learning more about the investigation in the coming weeks," Augustin's counsel Michael Grieco told Law360 on Thursday. "History has shown many times that lawyers making bold statements or deflecting blame too early in federal cases end up eating their words in a change of plea hearing, and therefore we have no further comment at this time."

At least 90 fraudulent applications were prepared as part of the scheme, and most were submitted, resulting in financial institutions paying out at least $17.4 million, according to the DOJ.

Congress authorized $349 billion in forgivable PPP loans for small businesses as part of the CARES Act passed on March 29 and has since authorized an additional $300 billion in PPP funding.

Bellamy allegedly purchased more than $104,000 in luxury goods with proceeds of his PPP loan, including items from Dior, Gucci and several jewelers. Prosecutors also claim he spent more than $62,000 in PPP funds at the Seminole Hard Rock Hotel and Casino in South Florida and withdrew more than $302,000.

In addition to Bellamy and Augustin, who was charged in July, nine other defendants were previously charged in connection with the scheme in the Southern District of Florida and the Northern District of Ohio.

Bellamy, who plays wide receiver and special teams, originally signed with the NFL's Kansas City Chiefs out of the University of Louisville in 2012. He spent five seasons with the Chicago Bears and also played for the Washington Redskins before joining the Jets before the 2019 season. He is currently a free agent.

Bellamy is represented by Diego Weiner and Jeffrey S. Weiner.

The case is U.S. v. Bellamy, case number 0:20-mj-6428, in the U.S. District Court for the Southern District of Florida.

--Editing by Stephen Berg.

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