Federal prosecutors on Monday accused a Florida man of fraudulently obtaining about $ 4 million from the Paycheck Protection Program and using part of the money to buy a Lamborghini sports car.
David T. Hines, 29, of Miami, was charged with bank fraud in court documents released Monday.
Federal agents seized the car, valued at $ 318,000 and $ 3.4 million from his bank accounts when he was arrested, the Justice Department said.
Court documents say Hines applied for $ 13.5 million in PPP loans through requests on behalf of different companies that included false statements about employee payroll expenses.
“Those alleged employees either did not exist or earned a fraction of what Hines claimed in his PPP applications,” according to prosecution documents. “Collectively, Hines falsely claimed that his companies paid millions of dollars in payroll in the first quarter of 2020. However, state and bank records show little or no payroll spending during this period.”
The bank approved $ 3.9 million in loans. Within days of receiving the money, prosecutors said, Hines purchased a 2020 Lamborghini Huracán sports car, which he jointly registered on his behalf and that of one of his companies.
But in the following weeks, according to court documents, he made no payroll and instead purchased luxury goods and services from Miami retailers and resorts.
Hines briefly appeared Monday before United States Chief Magistrate Judge John J. O’Sullivan to be formally notified of the charges. An attorney appointed to represent him at the hearing did not immediately respond to a request for comment.
The Paycheck Protection Program was enacted as part of the CARES Act coronavirus relief bill, which was approved by Congress and signed by President Donald Trump in March.
The program provides forgivable loans to small businesses that keep their employees on the payroll. Last month, Trump enacted a temporary extension of the program.
Phil Helsel contributed
