Diamond ‘Baby Blue’ Smith Sentenced to 20 Months in Prison for PPP Loan Fraud

One thing about the government is that they do not play about our money or theirs. For Pretty Ricky’s Baby Blue, he’s now paying the consequences.

In October of last year, the 37-year-old rapper among several other co-conspirators was arrested and indicted for the coronavirus relief fund to which he used the resources to fund a luxurious lifestyle. According to the Justice Department press release, Baby Blue whose real name is Diamond Smith was one of several that was charged for “alleged participation in a scheme to file fraudulent loan applications, seeking more than $24,000,000.00 in forgivable Paycheck Protection Program (IE: PPP) loans.”

Smith would allegedly admit in his plea deal that he obtained over $426,000.00 through falsifying documents to be approved for the relief funding. He also received a second loan of an astronomical amount of over $700,000.00 – totaling his entire payout for over $1 million dollars. The money was under the guise of funding his recording label Blue Star Records LLC; however, the money was spent on luxury trips, jewelry, cars, clothes, and partying. It is also alleged that Smith paid two co-conspirators who aided on preparing and submitting fraudulent loan applications to the government website. 

Along with most of his assets including a $96,000.00 2020 Ferrari – the rapper later pled guilty this year on a plea deal to which he received 20 months instead of 20 years in federal prison as initially intended. 

After receiving a sentence for under 2-years, many chimed in their opinions – stating that the rapper and entrepreneur ‘snitched’ on others. Of course, he cleared his name from the allegations by posting a story on his Instagram account. 

“N***as want me to be a snitch cuz they got snitching in they blood! I’m cut different over here! Ain’t no rats in my family.” He also continued on the same post stating, “I could never be a snitch! My ancestors wouldn’t like that. Whole time, 2 n****s in my case turned informant and telling everything they can.”

Amid all the internet chaos, Baby Blue continued to defend himself; dropping on his perspective of what happened in his case under Hollywood Unlocked post.

“I paid employees, my businesses were legit! The problem was the person who did my paperwork did it incorrectly and once he got grabbed for fraud, he snitched on 90 people, including me!”

He followed with a secondary comment, stating: 

“Two guys snitched on me and one even had a wiretap in my case against me! The same guys who did my loan paperwork, turned to an informant and snitched on me and 90 other people!  Y’all be careful!”

Baby Blue would take his frustrations on the mic and produced a song titled ‘Scapegoat’ which goes in depth of his PPP Fraudulent Loan case.

What are your thoughts? Is Baby Blue innocent or guilty? Does he deserve prison time or should be granted leniency?