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Entrepreneur spent PPP loans of more than $1.6million on a Lamborghini, pick-up truck, Rolex, real estate and splashed THOUSANDS at strip clubs


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A man from Texas has been taken into custody after allegedly fraudulently obtaining more than $1.6 million in Paycheck Protection Program (PPP) loans.

Lee Price III, 29, from Houston, is believed to have spent the money on luxury items including a Lamborghini, real estate and splashed some of the cash for his own amusement at area strip clubs.

Price is charged with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions.

The complaint as detailed by the Department of Justice alleges Price was involved in a scheme to submit fraudulent PPP loan applications to federally insured banks and other lenders. 

The Small Business Administration (SBA) guarantees the loans for COVID-19 relief through the PPP under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

Price is alleged to have made two fraudulent applications for which he received funding.

Price Enterprises Holdings allegedly received more than $900,000, while a loan application made under the firm listing as 713 Construction was approved for over $700,000.

In details of the application, Price claimed that both companies had numerous employees working at them racking up significant payroll expenses. 

However, the complaint suggests that neither is true with both entities having no employees or paying wages consistent with the amounts claimed in the loan applications. 

Furthermore, the person named as CEO on the loan application for 713 Construction died in April 2020, one month before the application was submitted. 

Price is alleged to have used the proceeds of the loan on luxury goods including a Lamborghini Urus which cost more than $200,000, a Rolex watch which have prices starting around $5,000, and various real estate transactions. 

He is also alleged to have spent thousands at strip clubs and other Houston night clubs before using another chunk of loan money to buy a 2020 Ford F-350 pickup truck.

If convicted, Price could face a maximum penalty of up to 30 years in federal prison and $1 million fine on the bank fraud charge and up to 10 years in federal prison and a $250,000 fine for the unlawful transactions charge. 

 

https://www.dailymail.co.uk/news/article-8593503/Entrepreneur-arrested-fraudulently-obtaining-PPP-loans-1-6million.html
 

I'm sure the same is going on here. What happened to that tosser on YouTube bragging about buying property (BTL) with '"bounce back" loans using a Ltd. company ?

 

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No charges yet. Although supercar dealers are reporting increased sales. 

USA is much better at trageting fraud and white collar crime with jail. 

Over here expect a trial of a few unlucky samples with the punishment being banned from being a director for 5 years or something equally pathetic 

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Posted (edited)

Happening here...

Two arrested over alleged £500,000 coronavirus ‘bounce back’ loan scam

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Two men have been arrested over an alleged scam to claim £500,000 through the government’s coronavirus “bounce bank” loan scheme.

Police believe the main suspect – a man in his late 40s – had been recruiting people to set up fake companies and bank accounts to launder money.

Detectives have so far been given permission to freeze 10 accounts containing a total of £553,305.

The alleged fraud was unearthed following a routine drug search of a vehicle in Holland Park, Kensington, London, on 17 June.

Police said officers learned the owner of the vehicle, a man in his early 20s, had travelled some distance to meet a man in order to set up a bank account, for which it was agreed he would be paid £300.

Both the younger man and the main suspect were arrested on suspicion of money laundering and fraud on the same day.

The suspects were taken to a north London police station and have since been released under investigation while police enquiries continue.

Following the arrests, officers searched a residential address in Hounslow.

They found several application forms from a number of suspected fake companies to their banks in request of “bounce back loans” – a government scheme to help small businesses during the Covid-19 pandemic.

Detective Sergeant Neil Stanley, from the Metropolitan Police’s economic crime unit, said: “I would like to assure the public that we take a zero-tolerance approach to fraud-related criminality of any kind within our community, and we are committed to bringing those involved to justice.

“During these unprecedented times, we have intensified our effort to dismantle organised criminal networks and will continue to crackdown on individuals who are found to be exploiting government schemes for their own monetary gain.”

 

https://www.independent.co.uk/news/uk/crime/coronavirus-loan-scheme-fraud-arrests-money-laundering-holland-park-kensington-a9613146.html

Edited by Warlord
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1 hour ago, captainb said:

No charges yet. Although supercar dealers are reporting increased sales. 

USA is much better at trageting fraud and white collar crime with jail. 

Over here expect a trial of a few unlucky samples with the punishment being banned from being a director for 5 years or something equally pathetic 

there is a scam going on with the loan and supercars.

people are taking the loan out for other peoples companies and buying cars, the company has no idea.

 

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41 minutes ago, Warlord said:

Happening here...

Two arrested over alleged £500,000 coronavirus ‘bounce back’ loan scam

https://www.independent.co.uk/news/uk/crime/coronavirus-loan-scheme-fraud-arrests-money-laundering-holland-park-kensington-a9613146.html

Interesting part:

Only discovered through another crime, not control based. 

Secondly the cash to the tune of 500k of public funds had already been paid out.. 

 

17 billion in bounce back loans paid out and they were boasting about cash being paid same day. 

Wait for the debt forgiveness to kick in then no chance of recovery

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4 minutes ago, captainb said:

Interesting part:

Only discovered through another crime, not control based. 

Secondly the cash to the tune of 500k of public funds had already been paid out.. 

 

17 billion in bounce back loans paid out and they were boasting about cash being paid same day. 

Wait for the debt forgiveness to kick in then no chance of recovery

Got to wonder what the 'economic crime unit ' do all day when there are people on Youtube posting on how to scam the system and buy BTL''s

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8 minutes ago, Warlord said:

Got to wonder what the 'economic crime unit ' do all day when there are people on Youtube posting on how to scam the system and buy BTL''s

This is in reality low level crime

They will be chasing far bigger scams and fraud 

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  • 415 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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