DOJ: Entrepreneur spent PPP loans on Lamborghini, Rolex, strip clubs

The Hill ^ | 08/05/20 02:40 PM EDT | BY J. EDWARD MORENO

[Fido969]

Very enterprising!

[Chewbarkah]

What percentage of the PPP cash spew went for legitimate purposes?

Who approved handing out ridiculous sums like these with zero due diligence? They need to be Lee Price III’s cellmates.

[crosdaddy]

True, about the semantics ie: several, as I stated up thread, the bank processing the loan should do some due diligence , re total number of employees involved,ie quarterly fillings.

[cherry]

and some freepers are upset that lowly taxpayers might get $1200.....

[BubbaBobTX]

They never really closed in Texas. They are essential businesses after all.

[Bernard]

I just retired as an accountant working with small businesses, so I saw several of these loans as they happened. The banks were overwhelmed and were trying to be "good citizens" during the money spewing. Many of the banks really had little experience with SBA loans, and while you were supposed to go through your primary bank who already "knew" your business, it was not required. The clients I worked with were honest and the loan amounts made sense based on their payroll history, but those guys don't make headlines because they got caught lying on the application.

I've always thought that some percentage (10% ???) of all government spending is always wasted, especially when the after the fact facts come out.

The real surprising part of this story it that it happened so fast; they guy just got the money a few months ago and has already been charged. So somebody blew the whistle on him, or this story would not have come out until a year from now. Hope he had a good time, because life is going to be miserable from now on.

And we can expect to see more headlines like this, as the more normal process of repayment or loan forgiveness comes into play. Most likely as the calendar-year accounting cranks up to process 2020 business income tax returns. But, again, a lot of the front-line enforcement got placed on the banks, and most were not prepared for this flood.

[Thank You Rush]

Quick - let’s guess WHAT lawmakers think it’s a good idea to check these people out BEFORE handing out the money. They aren’t aware that there are hucksters outside of Congress just as big as the ones INSIDE Congress who will take whatever the idiots pass to be handed out? Who are the fools here? Absolutely disgusting.

Only a few months have passed since those first funds were deposited/mailed so this is pretty good work on the part of the government to come to this conclusion this fast!

“”some lawmakers have called for safeguards to prevent fraud in larger loans while also disbursing the funds quickly.””

[Thank You Rush]

Sorry - I didn’t catch that these were loans...but that doesn’t change the fact/question of WHO was supposed to be watching the store? Seems to be the SBA??? Remember a guy by the name of Biden who was put in charge of managing stimulus funds handed out some years ago? Guess it was never required of him before he left our payroll! But did he really leave?

[Honest Nigerian]

Like my brother said - “It’s a free country. Well, it used to be.”

[jdsteel]

“ They never really closed in Texas. They are essential businesses after all.”

God bless Texas!

[PAR35]

Why bother with due diligence if you don’t have any skin in the game. Collect your processing fees, watch someone else take on the risks, and hit the golf course. It’s not like the bank examiners will be climbing all over you.