A Florida man was charged with fraud Monday after receiving $3.9 million in loans from the Paycheck Protection Program to buy himself, among other things, a Lamborghini sports car, authorities said.
David T. Hines of Miami, Florida, was charged with one count of bank fraud, one count of making false statements to a financial institution and one count of engaging in transactions in unlawful proceeds, according to a statement released by the U.S. Department of Justice.
Authorities allege that Hines, 29, applied on behalf of a few companies for $13.5 million in loans provided by Paycheck Protection Program, which was designed to keep small businesses afloat amid the coronavirus pandemic.
The complaint also alleges Hines lied about the amount paid to employees. Instead, he used the funds to shop at luxurious stores and resorts in Miami Beach, according to the statement.
Federal prosecutors said in a statement “that within days of receiving the PPP funds, Hines purchased a 2020 Lamborghini Huracan sports car for approximately $318,000, which he registered jointly in his name and the name of one of his companies.”
In the days and weeks following the disbursement of PPP funds, the complaint alleges that Hines did not make payroll payments that he claimed on his loan applications. He did, however, make purchases at luxury retailers and resorts in Miami Beach.
Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March to help Americans and businesses suffering from the economic fallout amid the COVID-19 pandemic.
Senate Republicans unveiled a $1 trillion coronavirus pandemic aid package that includes a second round of $1,200 stimulus payments and a “sequel” to the Paycheck Protection Program which would help hard-hit firms with 300 or fewer workers a second opportunity to draw from the fund.
