MIAMI – A Florida man who allegedly obtained $3.9 million in fraudulent Paycheck Protection Program loans and used part of that money to purchase a Lamborghini sports car has been arrested and charged.
According to officials at the Department of Justice, 29-year-old David T. 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.
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A criminal complaint against Hines states that he allegedly sought $13.5 million in PPP loans through various applications to a financial institution on behalf of different companies.
Hines allegedly falsified loan applications and made misleading statements about payroll expenses and was eventually awarded $3.9 million, according to the complaint.
A press release from the Department of Justice states that the complaint also alleges Hines purchased a 2020 Lamborghini Huracan within days of receiving the PPP funds.
Authorities seized a $318,000 Lamborghini and $3.4 million from his bank accounts.
PPP loans were made available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency financial assistance during the COVID-19 pandemic to U.S. companies with 500 or fewer employees.
PPP loans are not made by the Small Business Association but instead made by lending institutions which are then guaranteed by the SBA. The loans must be used for payroll costs, interest on mortgages, rent and utilities to be eligible for full loan forgiveness.