A Florida man has been arrested and is facing charges after federal prosecutors say he “fraudulently” obtained nearly $4 million in Paycheck 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 transactions in unlawful proceeds, the Department of Justice (DOJ) announced in a press release on Monday.
The office said a complaint filed against he man alleges he fraudulently obtained $3.9 million in PPP loans, which were intended to help support small businesses and other organizations hit by the COVID-19 pandemic, after initially seeking roughly $13.5 million in PPP loans “through applications to an insured financial institution on behalf of different companies.”
“The complaint alleges that Hines caused to be submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ respective payroll expenses. The financial institution approved and funded 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 roughly $318,000 on a 2020 Lamborghini Huracan sports car and registered the vehicle 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,” the DOJ said in the release.
The department said authorities seized the sports car and $3.4 million from bank accounts at the time of Hines’ arrest.
