A Texas man allegedly blew coronavirus relief loans meant for small businesses on strip clubs, a brand-new Lamborghini and a Rolex watch, federal prosecutors said Tuesday.
Lee Price III, 29, is accused of scamming the US government’s Payment Protection Program out of more than $1.6 million by claiming he needed the cash for payroll expenses, the Department of Justice said.
He was allegedly involved in a scheme to submit fraudulent PPP loan applications, and did so successfully for two companies — neither of which actually had any employees, prosecutors said.
And, the person listed as CEO on the application for one of the companies, 713 Construction, had died a month before it was submitted, the officials said.
Once Price got his hands on the loans, he allegedly used the cash to make lavish purchases, including a Lamborghini Urus, a 2020 Ford F-350 pickup truck and on real estate transactions.
He also blew thousands at strip clubs and nightclubs in Houston, prosecutors allege.
Price was charged with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions.
He was expected to make his first court appearance before a federal judge in Houston Tuesday.
Feds busted a Miami man on similar offenses late last month. David T. Hines, also 29, was accused of scamming $4 million from the program and also spending the money on a Lamborghini, as well as other luxury items.