Florida rapper Money Rod has pleaded guilty to a COVID-19 loan fraud scheme.
The hip-hop artist and music producer, born Rodney McClain, struck a deal with prosecutors in Miami on Tuesday, June 11, the U.S. Attorney’s Office for the Southern District of Florida said in a news release.
McClain, 35, pleaded guilty to one count of wire fraud.
He admitted to submitting “false information” about his North Miami Beach music production company, Dreams Come True Records, LLC, in order to obtain a Paycheck Protection Program (PPP) loan, according to the U.S. Attorney’s Office.
Prosecutors alleged the company’s loan application incorrectly stated the “number of employees and payroll expenses in 2019 and 2020,” adding that the application for COVID-19 relief included “two falsified IRS tax forms.”
“McClain received over $600,000 in PPP loan proceeds as a result of this fraudulent loan application, and he spent more than $100,000 of the fraudulently obtained loan proceeds on personal and other impermissible expenses,” the news release said.
As part of the agreement, McClain has what’s called a “forfeiture money judgment” against him for over $113,000. He must “forfeit his music rights, master recordings, and music compositions” as part of his plea deal with the federal government.
McClain also faces up to 20 years in prison for the wire fraud conviction. His sentencing hearing is scheduled for Aug. 29 in Miami.
The IRS Criminal Investigation division investigated the case. Assistant U.S. Attorney Emily R. Stone prosecuted the case and is handling the asset forfeiture.
U.S. Attorney Markenzy Lapointe and Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI) division in Miami announced the plea.
Money Rod did not immediately respond to a request for comment.
According to his artist page on Apple Music, McClain developed an early interest in music and performed in the church choir, but was eventually drawn to the streets.
His underground recordings helped him build up a fan base. Among his songs are “Money,” “Give It Away,” and “No Help.”
In a 2021 interview with Rolling Out, the rapper said “fate” pulled him into the music business.
“Honestly, my brother and my cousin led me to music. They were writing and rapping before me. I would always watch them, and that inspired me to do a couple rhymes,” he said. “Then one of my homeboys forced me to go to the studio'”
He added, “I stepped in front of the mic, recorded my first track and I said, ‘Oh sh– this is what I want to be in life.”
