David T. Hines of Miami, Florida, was charged in Miami federal court on Monday for fraudulently obtaining $3.9 million in PPP loans.
The criminal complaint accuses him of using the money to buy himself a $318,000 Lamborghini Huracan.
He also apparently went on a “spending spree” and bought “luxury jewelry, expensive clothes,” The New York Times reports.
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David T. Hines, a 29-year-old man in Miami, Florida, was charged in federal court recently for fraudulently obtaining $3.9 million in Paycheck Protection Program loans and then using the money to buy himself a 2020 Lamborghini Huracan, among other things.
Hines was charged by criminal complaint 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 United States Department of Justice announced on Monday.
The complaint alleges that, through applying from different companies, Hines tried to secure about $13.5 million in PPP loans. The complaint accuses Hines of submitting fake loan applications with misleading and false statements regarding those companies’ payroll expenses. He was approved for and given $3.9 million in loans.
PPP loans are part of the CARES Act, a federal law that was enacted on March 29. Its aim is to give emergency financial help to millions of Americans affected economically during the ongoing COVID-19 pandemic. Through PPP, qualifying small businesses can apply for forgivable loans in order to cover expenses like job retention, payroll costs, mortgage interest, rent, and utilities.
Hines said he had four businesses with 70 employees and $4 million in monthly expenses on his PPP loan applications, The New York Times reports. But in reality, his monthly expenses total about $200,000.
The complaint goes on to say that “within days of receiving the PPP funds,” Hines went and bought a 2020 Lamborghini Huracan. It cost about $318,000, and was registered jointly in his name and the name of one of the companies.
After he received the funds, the complaint says that Hines didn’t make the payroll payments he said he would on his loan applications. Instead, he apparently went on a “spending spree” for “luxury jewelry, expensive clothes, visits to resorts in Miami Beach and expenses on dating websites,” according to The New York Times.
Per the story:
Mr. Hines made two payments in May totaling $30,000 to a person listed as “Mom,” officials said. The same month, he paid more than $4,000 to Saks Fifth Avenue. In June, Mr. Hines paid more than $7,000 to the Setai Hotel in Miami Beach, and $8,500 to the jewelry company Graff.
Hines faces up to 70 years in prison if convicted on all charges, The New York Times reports.
The Times reports via an affidavit from the postal inspector that Hines’ businesses — Unified Relocation Solutions LLC, Promaster Movers Inc., Cash In Holdings LLC, and We-Pack Moving LLC — don’t have “any operating websites.” The affidavit goes on to state that customers have complained about Hines’ two other businesses, however, including that they conducted “bait-and-switch practices and other deceitful activities.”
“Both businesses are F-rated businesses on the [Better Business Bureau] site,” the affidavit states.
Hines’ lawyer, Chad Piotrowski, said in a statement obtained by The New York Times that Hines was “legitimate business owner who, like millions of Americans, suffered financially during the pandemic” and “is anxious to tell his side of the story when the time comes.”
On Monday, the US Department of Justice announced that it had seized the Lamborghini and $3.4 million from bank accounts when Hines was arrested.
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