US authorities have sentenced Texas resident Lee Price III to 110 months in prison for fraudulently obtaining and laundering over $1.6 million from the US government’s COVID-19 relief program, particularly the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act. Price pleaded guilty to wire fraud and ML in September 2021.
Price submitted fraudulent PPP loan applications on behalf of three entities, namely, 713 Construction LLC, Price Enterprises Holdings LLC, and Price Logistic Services LLC. He requested $2.6 million in PPP loans, receiving over $1.6 million. Price intentionally misreported the number of employees and related payroll expenses in his loan applications and presented fake tax records and other documents.
Price used the PPP loan funds to purchase luxury vehicles and goods and to pay off a loan on a residential property. Authorities have seized over $700,000 of the fraudulently-obtained funds.
Source: US Department of Justice