Florida man arrested after defrauding Payroll Protection Program to buy himself a Lamborghini
As part of the recent Cares Act, the Payroll Protection Program (PPP) is a federal loan program born from the COVID-19 pandemic crisis responsible for torpedoing the U.S. economy. This particular bank loan was designed to provide a direct incentive for small businesses to keep their workers on the payroll. An attractive feature about this loan is that the feds will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
Scammers have looked to the Cares Act as a quick and easy way to defraud the government, as in the recent report, “Massive criminal fraud scheme uncovered in Maryland,” where approximately 48,000 fraudulent unemployment claims using identity theft totaling over $501 million were paid out through the Cares Act.
But on July 27, one Florida man was reportedly accused of scamming the government via the PPP and used the funds he procured to cruise through dating websites, purchase luxury jewelry and buy himself a Lamborghini.
David T. Hines, 29, of Miami, is accused of fraudulently obtaining $3.9 million in loans from the Paycheck Protection Program (PPP), federal prosecutors said.
Mr. Hines is charged with bank fraud, making false statements to a financial institution and engaging in transactions with unlawful proceeds. ~ The Washington Times
Hines applied for $13.5 million in paycheck protection loans and was ultimately awarded $3.9 million in approved bank loans through that program. Days after receiving those funds, he purchased a 2020 Lamborghini Huracán, jointly registered in his and the name of one of his companies. When it came to light that none of the approximate $4 million he was awarded in PPP loans went to pay any of his employees, the feds swooped in, arrested Hines and seized his $318,000 Lamborghini – and also seized the $3.4 million remaining in his bank accounts.
“Those purported employees either did not exist or earned a fraction of what Hines claimed in his PPP applications,” according to the charging documents. “Collectively, Hines falsely claimed his companies paid millions of dollars in payroll the first quarter of 2020. State and bank records, however, show little to no payroll expense during this period.” ~ NBC News
Following his arrest, Hines was transported to the Federal Detention Center where he stayed for the weekend. Following a court hearing on Monday, he was granted a $100,000 bond and will be allowed to stay at his mother’s home with a GPS monitor.
Hines is scheduled to appear in court again on October 14 for his formal arraignment.
In addition to spending a small fortune on dating websites, jewelry and that Lamborghini, Hines also enjoyed visits and stays at high-end hotels such as the Fontainebleau and Setai on Miami Beach, according to The Miami Herald.
~ Posted by Richard Webster, Ace News Today / Connect with Richard on Facebook and Twitter
