Florida man arrested, Lamborghini seized in alleged COVID-relief fund fraud case
07/29/2020 10:31 am PDT
via U.S. Department of Justice:
MIAMI (TCD) -- A Florida man was arrested and charged with fraudulently obtaining $3.9 million in Paycheck Protection Program (PPP) loans and using part of the money to buy a Lamborghini for himself, the U.S. Dept. of Justice announced Monday.
Authorities seized the $318,000 sports car and $3.4 million from bank accounts of 29-year-old Miami resident David T. Hines.
Hines is 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.
Hines allegedly submitted fraudulent loan applications about payroll expenses for different associated companies when he applied for approximately $13.5 million in PPP loans. The federal loans were designed to provide low-interest-rate forgivable loans to small business for payrolls during the economic impact of the COVID-19 epidemic. A financial institution approved and funded approximately $3.9 million in loans for Hines, according to the DOJ.
Within days of receiving that money, Hines allegedly 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, according to the DOJ. The complaint alleges Hines did not make payroll payments in the weeks after he received the funds, but he did make purchases at luxury retailers and resorts in Miami Beach.
Hines spent thousands of dollars on dating websites, jewelry and clothes, along with stays at high-end hotels such as the Fontainebleau and Setai on Miami Beach, the Miami Herald reports.
Hines was involved in a hit-and-run accident on July 11 in the Lamborghini, and Miami Police impounded his car, the Herald reports. Hines was granted a $100,000 bond and will be allowed to stay at his mother's home with a GPS monitor.
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