The state gave him a million dollars in aid to fight Covid, and he spent it on expensive cars and watches.
Lee Price III, a 30-year-old resident of the US state of Texas, was sentenced to nine years and two months in prison for illegally obtaining more than $ 1,6 million. writes CBS.
The US Department of Justice says Price pleaded guilty in September to embezzlement and money laundering.
The US government passed the Assistance, Support and Economic Security Act (CARES) following the outbreak of the pandemic to help small businesses overcome the economic crisis caused by the spread of the coronavirus.
The law also includes the Wage Protection Program (WPP), a program under which entrepreneurs were offered cash loans by May 2021 to help them cope with the economic costs of the pandemic.
According to the US Department of Justice, Price has sued PPP for fraud in two different loans worth more than $ 1,6 million.
Price raised more than $ 1,6 million by lying about how many people worked for his three companies and what their salaries were. Price stated that "Price Enterprise" employs 50 people and that the monthly salary costs in the company are 375 thousand US dollars. The investigation established that no one worked in that company and that no salaries were paid, and it was concluded that there were no indications that anyone ever worked in it.
Lamborghini, Ford and Rolex
After receiving the money, Price spent it on cars such as Lamborghini Urus and Ford F-350, as well as a Rolex watch. He spent $ 2.000 in a strip club, more than $ 700 in a liquor store, more than $ 2.500 in nightclubs, and used some of the money to pay off a real estate loan.
The US Department of Justice says it has managed to repay $ 700.000 that Price fraudulently withdrew from PPP.
The indictment against Price states that he was convicted of fraud in 2010 and robbery in 2011. He is being sued in Texas for manipulating business data with the state.
The United States has so far sued more than 160 people for manipulating PPPs and taken more than $ 75 million from them.