A 30-year-old Texas man has been sentenced to 9 years and a pair of months in jail for fraudulently buying greater than $1.6 million in funds via the federal government’s coronavirus pandemic Paycheck Safety Program [PPP], the Division of Justice stated Monday. The federal government stated Lee Value III had pleaded responsible in September to wire fraud and cash laundering.
PPP loans have been provided till Could as a part of the Coronavirus Help, Aid and Financial Safety (CARES) Act to assist small companies financially handle the financial toll of the pandemic. Value, in accordance with authorities, fraudulently submitted mortgage functions to 2 totally different lenders in an try and get greater than $2.6 million.
He was capable of purchase greater than $1.6 million by misrepresenting the variety of staff and the payroll bills for 3 totally different companies. On one of many functions, in accordance with the prison criticism, Value stated that one of many small companies, Value Enterprises, had 50 staff and a median month-to-month payroll of $375,000. Authorities stated the enterprise has no staff and no payroll, and that there is no such thing as a indication the entity has ever employed anybody.
As soon as he obtained the funds, authorities stated, he used the cash to buy a Lamborghini Urus, a Ford F-350 and a Rolex watch. He additionally spent $2,000 at a strip membership, greater than $700 at a liquor retailer, greater than $2,500 at evening golf equipment, and used a part of the funds to repay a mortgage on a residential property. The Justice Division stated it was capable of retrieve over $700,000 of the funds he had fraudulently claimed.
In response to the prison criticism, Value obtained a felony convictions in 2010 for forgery and in 2011 for theft. He’s additionally the defendant in an lively prison case in Texas, the place he is accused of tampering with a authorities report, the criticism states.
Greater than 160 defendants in additional than 95 separate prison circumstances have been prosecuted over fraudulently obtained PPP funds because the CARES act was enacted, authorities stated, including that they’ve seized greater than $75 million in money.
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