PPP loan scam: Houston man Lee Price III gets 9 years in prison for spending CARES Money Act and Strip Clubs

HOUSTON, Texas (KTRK) – A Houston businessman has been sentenced to nine years in prison for a conspiracy in which he took and laundered more than $1.6 million in Paycheck Protection Program (PPP) loans. Sponsored by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES).

According to the US attorney’s office, Lee Price III, 30, who pleaded guilty to wire fraud and money laundering charges, submitted fraudulent Paycheck Protection Program (PPP) applications to banks and other lending institutions on behalf of three entities: 713 Construction LLC, Price Enterprises Holdings LLC and Price Logistic Services LLC.

The video above is from an earlier story.

Through the apps, Price searched for more than $2.6 million and raised $1.6 million.

SEE MORE: Man accused of stealing $1.6 million in CARES Act money to buy cars and travel

The defendants state that each organization has a large number of employees and significant payroll costs. In addition, Price gave the name of a person who died shortly before the application was filed.

After receiving the money, Price used the money to buy a Lamborghini Urus, a Ford F-350 truck, a Rolex watch and to pay off a loan to buy a house. He also spent thousands of dollars at strip clubs and other nightclubs in Houston.

Price was arrested and charged with making false statements to a financial institution, wire fraud, bank fraud and engaging in illegal currency transactions. He pleaded guilty in September to fraud and money laundering charges.

The CARES Act was enacted in March to provide emergency financial assistance to Americans due to the COVID-19 pandemic. Congress has authorized more than $300 billion in additional PPP funding.