According to the U.S. Attorney's office, Lee Price III, 29, submitted fraudulent Paycheck Protection Program (PPP) applications to banks and other lenders.
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Price Enterprises Holdings allegedly received more than $900,000, while a loan application listing 713 Construction was approved for more than $700,000.
The applications allegedly stated both entities each had numerous employees and significant payroll expenses.
The U.S. Attorney's office said Price used the money to buy a Lamborghini Urus, a Rolex watch and several real estate transactions.
He also allegedly spent thousands at strip clubs and other Houston night clubs, and bought a 2020 Ford F-350 pickup truck.
Price was arrested and charged with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions.
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He made his first court appearance on Tuesday.
The CARES Act was enacted in March to provide emergency financial assistance for Americans due to the COVID-19 pandemic.
Congress authorized more than $300 billion in additional PPP funding.
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