During the coronavirus pandemic (COVID-19), the government quickly put in place specific programs to keep businesses and families afloat. Some people have taken advantage of the Paycheck Protection Program (PPP) to fund extravagant purchases of personal supercars like Lamborghinis, Ferraris and even a Rolex or two. What is PPP fraud and how do I buy a Lamborghini with it?
Paycheque Protection Program (PPP) Fraud: Lamborghini Edition
According to the Justice Department’s public affairs office, Lee Price III, 30, of Houston, pleaded guilty to fraud charges this week. The Texas man fraudulently obtained over $ 1.6 million in PPP loans. The Small Business Administration (SBA) under the Coronavirus Aid, Relief and Economic Security (CARES) Act guaranteed these loans. After receiving the money, Price almost immediately bought a Lamborghini Urus.
Pricing applied for loans using two different apps and two different lenders on behalf of 713 Construction LLC and Price Enterprises Holdings LLC. After that, he filed the loan for 713 Construction on behalf of a recently deceased person.
Price falsified the number of employees and salary expenses on applications to qualify for a larger loan. He also falsified tax records and other documents to supplement fraudulent claims. According to court documents, the government approved the loan of $ 752,452 for 713 Construction. Next, a loan of $ 937,500 for Price Enterprises Holdings was approved. After that, the Lamborghini was almost his.
Why not buy a Lamborghini and a Rolex with $ 1.6 million in loans?
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According to court documents, Price pulled out all the stops as soon as he received the money. He bought a Rolex watch for $ 14,343.13. He also bought a 2019 Lamborghini Urus for $ 233,337 and a 2020 Ford F-350 truck for $ 85,000. After that, Price paid off the loan on a house and made other smaller purchases. According to a previous Justice Department announcement, Price spent thousands of dollars in Houston strip clubs and nightclubs in addition to the Lamborghini.
However, the companies on the apps weren’t legitimate and didn’t need the requested amount for payroll or other costs.
“On Claim 1, PRICE claimed that 713 Construction had 30 employees and an average monthly payroll of $ 300,981. However, 713 Construction actually had no employees and no payroll.
The Courts of the United States of the Southern District of Texas | Case 4: 20-cr-00522
In court, Price pleaded guilty to two counts of wire fraud and three counts of money laundering. Each count of wire fraud is punishable by 20 years in prison. Likewise, each count of money laundering is punishable by 10 years in prison.
File it under “what not to do”
Price is far from the only one to have tried to rip off the government. Since the government announced PPP loans, there have been numerous cases of people getting money and immediately buying a Lamborghini or a Ferrari. It seems the lure of buying a supercar with ill-gotten gains is too strong to ignore. In many cases, these people have already been arrested and brought to justice.
The government turned down loans to small businesses that applied for them and gave loans to people like Lee Price III. The above fraud won’t be the last time the government arrests someone for fraudulently using PPP funds to buy a Lamborghini, that’s for sure. The courts will convict Price on November 29. The cops theme song.
RELATED: Florida Man Used $ 3.9 Million PPP Loan to Buy Lamborghini