A Florida man has been arrested and faces charges after federal prosecutors say he “fraudulently” obtained nearly $ 4 million in Check Protection Program (PPP) loans and used some of the money to buy a Lamborghini sports car.
David Hines, 29, of Miami, was charged with one count of bank fraud, one count of making false statements to a financial institution and one count of engaging in illegal profit transactions, the Justice Department (DOJ) announced in a Press release. Monday.
The office said a complaint filed against him alleges that he fraudulently obtained $ 3.9 million in PPP loans, which were intended to help small businesses and other organizations affected by the COVID-19 pandemic, after initially seeking $ 13.5 million in PPP loans. “through requests to an insured financial institution on behalf of different companies.”
“The complaint alleges that Hines caused fraudulent loan applications to be filed that made numerous false and misleading statements about the companies’ respective payroll expenses. The financial institution approved and financed approximately $ 3.9 million in loans,” the office stated.
After being approved for a fraction of the amount by a financial institution, he allegedly spent approximately $ 318,000 on a Lamborghini Huracan 2020 sports car and registered the vehicle in his name and the name of one of his companies.
“In the days and weeks after the PPP funds were disbursed, the complaint alleges that Hines did not make payroll payments that he claimed in his loan applications. However, he made purchases at luxury stores and resorts in Miami Beach, ”the Justice Department said in the statement.
The department said authorities confiscated the sports car and $ 3.4 million from bank accounts at the time of Hines’ arrest.
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