Houston man sentenced to more than 9 years in prison for getting nearly $1.6M in PPP loans and spending it on Lamborghini, strip clubs

HOUSTON – The Houston male implicated of going on a shopping spree after getting more than $1.6 million from the Small company Association’s Income Security Program has actually been sentenced to 110 months in jail, the U.S. Justice Department revealed Monday.

According to court files, 30-year-old Lee Rate III pleaded guilty in September to charges of wire scams and cash laundering, sending deceitful PPP loan applications to 2 various loan providers on behalf of 3 organizations: 713 Building and construction LLC, Rate Enterprises Holdings LLC, and Rate Logistic Solutions LLC.

Through these loan applications, Rate looked for over $2.6 million and really gotten over $1.6 million in PPP loan funds. Court files stated Rate wrongly reported the variety of staff members and payroll costs in each of the PPP loan applications.

According to the main criminal problem versus Rate, he began investing that PPP cash nearly right away on exceptionally extravagant products, consisting of a $233,000 Lamborghini Urus, an $85,000 Ford F-350 pickup and a $14,000 Rolex.

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District attorneys state he likewise invested countless dollars at Houston clubs and strip clubs, and more than $100,000 to rent office in Memorial City.

The Department of Justice, along with police partners, took over $700,000 of the funds Rate fraudulently gotten, court files stated.

On Might 17, 2021, the Chief law officer developed the COVID-19 Scams Enforcement Job Force to marshal the resources of the Department of Justice in collaboration with companies throughout the federal government to improve efforts to fight and avoid pandemic-related scams.

Copyright 2021 by KPRC Click2Houston – All rights booked.

Jobber Wiki author Frank Long contributed to this report.