A 30-year-old Texas man has been sentenced to 9 years and a couple 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 mentioned Monday. The federal government mentioned 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 Support, Reduction and Financial Safety (CARES) Act to assist small companies financially handle the financial toll of the pandemic. Value, based on authorities, fraudulently submitted mortgage functions to 2 completely different lenders in an try to 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 completely different companies. On one of many functions, based on the prison criticism, Value mentioned that one of many small companies, Value Enterprises, had 50 staff and a mean month-to-month payroll of $375,000. Authorities mentioned the enterprise has no staff and no payroll, and that there isn’t a indication the entity has ever employed anybody.
As soon as he acquired the funds, authorities mentioned, 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 mentioned it was capable of retrieve over $700,000 of the funds he had fraudulently claimed.
In keeping with the prison criticism, Value acquired 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 file, the criticism states.
Greater than 160 defendants in additional than 95 separate prison instances have been prosecuted over fraudulently obtained PPP funds for the reason that CARES act was enacted, authorities mentioned, including that they’ve seized greater than $75 million in money.
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