A Florida man has been arrested and is going through expenses after federal prosecutors say he “fraudulently” obtained practically $four million in Paycheck Safety Program (PPP) loans and used among the cash to purchase a Lamborghini sports activities automotive.
David Hines, 29, of Miami, was charged with one depend of bank fraud, one depend of creating false statements to a monetary establishment and one depend of partaking in transactions in illegal proceeds, the Division of Justice (DOJ) introduced in a press launch on Monday.
The workplace mentioned a grievance filed towards he man alleges he fraudulently obtained $3.9 million in PPP loans, which had been supposed to assist help small companies and different organizations hit by the COVID-19 pandemic, after initially in search of roughly $13.5 million in PPP loans “through applications to an insured financial institution on behalf of different companies.”
“The grievance alleges that Hines precipitated to be submitted fraudulent loan functions that made quite a few false and deceptive statements in regards to the firms’ respective payroll bills. The monetary establishment authorised and funded roughly $3.9 million in loans,” the workplace acknowledged.
After being authorised for a fraction of the quantity by a monetary establishment, he allegedly spent roughly $318,000 on a 2020 Lamborghini Huracan sports activities automotive and registered the automobile in his identify and the identify of one among his firms.
“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 mentioned within the launch.
The division mentioned authorities seized the sports activities automotive and $3.four million from bank accounts on the time of Hines’ arrest.