This past November, the Department of Justice sentenced Lee Price III of Houston, TX to 9 years in federal prison for money laundering as part of a Paycheck Protection Program scheme. Price pleaded guilty in September “to charges of wire fraud and money laundering, submitted fraudulent PPP loan applications to two different lenders on behalf of three entities” to illegally obtain over $1.6 million.
According to the Washington Post, Price spent the money on “a roughly $14,000 Rolex watch, a $2,000 trip to a Houston-area strip club and a roughly $233,000 2019 Lamborghini Urus” as well as to pay off real estate debts. The Department of Justice, along with law enforcement partners, seized over $700,000 of the funds Price fraudulently obtained. In addition to the nearly decade-long prison sentence, over $700,000 of the fraudulent profits were seized by law enforcement, with the assets purchased using the profits likely to also be seized.
The judge’s high penalty sentence is intended to deter others from submitting false applications and show that the federal government is not taking these offenses lightly. In fact, the Fraud Section has gone after more than 150 defendants and has seized over $75 million in cash proceeds, numerous real estate properties, and luxury assets since the CARES act was established. With the creation of a specific COVID-19 Fraud Enforcement Task Force in May 2021, we are not anticipating the pressure to lessen at all on these kinds of prosecutions, making it vital to review any applications with an attorney who can ensure everything is submitted legally and with proper documentation.
