Bankof America – $4 million in COVID-19 relief loans used to buy Lamborghini

A South Florida businessman pleaded guilty Wednesday to a federal wire fraud charge after investigators say he used COVID-19 relief loans to buy luxury items including a $318,000 Lamborghini Huracán Evo.

David T. Hines, 29, is scheduled to be sentenced April 14. He was released on a $100,000 bond after his July arrest. His Lamborghini as well as $3.4 million from bank accounts have been seized by federal authorities.

Last year, Hines, who owns South Florida moving businesses, applied to the Bank of America for seven loans under a Small Business Administration program. The Paycheck Protection Program (PPP) loans are meant to help struggling businesses during the pandemic. The loans come out the $650 billion approved by Congress as part of the CARES Act.

The bank approved three of Hines’ applications, totaling $3,984,557. One of his first purchases was the Lamborghini, according to the original complaint. Investigators say Hines also used the loan money for dating websites, jewelry and clothes and stays at high-end hotels such as the Fontainebleau and Setai on Miami Beach.

In July, Hines was involved in a hit-and-run accident, which helped investigators link the Lamborghini to him.

“As part of his guilty plea, Hines admitted that he fraudulently sought millions of dollars in PPP loans through applications to an insured financial institution on behalf of different companies,” the Department of Justice said in a news release. “Plea documents indicate that in the days and weeks following the disbursement of PPP funds, Hines did not make payroll payments that he claimed on his loan applications. He did, however, use the PPP proceeds for personal expenses.”

Hines is not alone in exploiting the PPP loans. According to the DOJ, attorneys have prosecuted more than 100 defendants in more than 70 criminal cases.