A Florida man has been charged for allegedly using fraudulently obtained coronavirus relief funds to fuel his lavish tastes.
Miami resident David Hines, 29, had his first appearance in U.S. district court on Monday. Investigators have alleged that he sought around $13.5 million in Paycheck Protection Program loans and ended up receiving about $3.9 million. Hines allegedly made false or misleading statements about the payroll expenses of the companies for which he was applying on behalf.
According to court documents, just days after being approved for the $3.9 million in loans, Hines purchased a 2020 Lamborghini Huracan sports car for about $318,000.
“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 Justice Department said.
According to the criminal complaint, Hines spent $4,622 on a shopping spree at Saks Fifth Avenue, about $8,500 at Graff Diamonds, and more than $4,000 at the Fontainebleau, an iconic luxury hotel in Miami Beach.
The Coronavirus Aid, Relief, and Economic Security Act authorized up to $349 billion in forgivable PPP loans to small businesses impacted by the coronavirus pandemic, which has left some companies struggling to pay their employees and put millions out of work.
Hines 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.
