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Houston man pleads guilty to federal charges for fraudulently getting $1.6M in PPP loans

A Houston man has pleaded responsible Monday to federal fees for getting greater than $1.6 million in Paycheck Safety Program loans, designed to assist struggling small companies pay their staff and keep afloat throughout the COVID-19 pandemic.

Lee Value III, 30, submitted two fraudulent PPP mortgage purposes to 2 totally different lenders on the behalf of entities 713 Building LLC and Value Enterprises Holdings LLC, in response to courtroom paperwork. The mortgage utility for 713 Building LLC was submitted underneath the identify of an individual who died shortly earlier than the appliance was submitted, in response to courtroom paperwork.

Value acquired over $1.6 million in PPP loans from the mixture of the 2 mortgage purposes, in response to courtroom paperwork. He falsely represented the variety of staff and payroll bills in every of the PPP mortgage purposes, in response to prosecutors. Value additionally submitted fraudulent tax data and different supplies, prosecutors stated.

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READ: Houston man accused of fraudulently getting $1.6M from a COVID-19 relief program was one of many, records show

After receiving the funds, Value went on a buying spree for luxurious gadgets, spending lots of of 1000’s of {dollars} in a matter of days, in response to courtroom paperwork. Value purchased a $233,000 Lamborghini Urus, an $85,000 Ford F-350 pickup truck, and a $14,000 Rolex, in response to courtroom paperwork. Prosecutors say he additionally spent 1000’s of {dollars} at Houston nightclubs and strip golf equipment, and greater than $100,000 to lease workplace house in Memorial Metropolis.

The Division of Justice, together with legislation enforcement companions, seized over $700,000 of the disbursed PPP funds on this matter, in response to a launch.

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Value pleaded responsible to 2 counts of wire fraud and three counts of cash laundering. He’s scheduled to be sentenced on Nov. 29 and faces a most penalty of 20 years in jail for every depend of wire fraud and 10 years in jail for every depend of cash laundering, in response to a launch.

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