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.”
According to the complaint, Hines submitted fraudulent loan applications that made “numerous false and misleading statements” about the companies’ payroll expenses. Hines was approved for approximately $3.9 million in loans,
Federal agents seized the car, valued at $318,000, and $3.4 million from his bank accounts when he was arrested, the Justice Department said.
The criminal complaint against Hines was unsealed on Monday July 27, upon his initial appearance before U.S. Chief Magistrate Judge John J. O’Sullivan in the Southern District of Florida.
Within days of receiving the PPP loan in May, Hines allegedly bought a 2020 Lamborghini Huracan for $318,497, which he registered jointly in his name and in the name of one of his companies.
The Department of Justice alleges that Hines did not make the payroll payments he claimed on his loan applications, but also spent thousands of dollars on dating websites, jewelry and clothes and stayed at high-end hotels such as the Fontainebleau and Setai on Miami Beach, the Herald reported.
Hines was ordered to stay at his mother’s home with a GPS monitor until his next arraignment on Oct. 14.