Business owner spent COVID-19 relief money on Lamborghini, strip clubs, feds say

A Texas businessman is accused of buying a Lamborghini and going to strip clubs with COVID-19 relief money intended to help small businesses survive the pandemic, the feds say.

Lee Price III, a 29-year-old Houston man, fraudulently obtained more than $1.6 million in Paycheck Protection Program loans, which are supposed to be used for payroll, rent and other expenses, according to the U.S. Department of Justice.

Instead, he spent the money on a Lamborghini Urus, Ford F-350, Rolex watch, real estate and at strip clubs and bars, prosecutors say.

Price obtained the money for two companies through a loan application stating each business had numerous employees and large payroll expenses — but neither of the companies paid wages similar to the Price’s claim, prosecutors say. In fact, the CEO listed on one of the applications died a month before the application was submitted, according to prosecutors.

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

Paycheck Protection Program loans are part of the CARES Act, a law intended to provide small businesses with financial assistance during the coronavirus pandemic.

Price is not the first business owner to be accused of purchasing a Lamborghini using CARES Act money.

This story was originally published August 4, 2020 at 5:10 PM with the headline "Business owner spent COVID-19 relief money on Lamborghini, strip clubs, feds say."