Florida man uses $4million from PPP loan to buy Lamborghini, spends the rest on dating website and others

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A Florida man is going through fees after authorities say he fraudulently obtained $4 million in federal loans meant for small companies impacted by covid-19 pandemic and used it to buy a Lamborghini, spent the remaining on dating website, luxurious shops, and Miami resorts.

David T. Hines, 29, of Miami, was charged with financial institution fraud, making a false assertion to a lending establishment and partaking in transactions in illegal proceeds, in accordance to prosecutors in the U.S. District Court for the Southern District of Florida. If convicted on all fees, he may face up to 70 years in jail, The New York Times reported.

Trouble began for Hines after he was concerned in a hit-and-run accident involving his Lamborghini on July 11 and authorities began investigation.

The Lamborghini was linked again to him and impounded by Miami police, in accordance to the Miami Herald.

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In April this 12 months, Hines from Miami Florida joined 1000’s of small enterprise house owners impacted by the coronavirus pandemic to search monetary assist from the federal Paycheck Protection Program (PPP), a loan program created to assist small companies which are struggling due to the pandemic

Authorities stated Hines requested about $13.5 million in PPP loans and that he submitted seven loan purposes in May, which contained “numerous false and misleading statements” about his alleged shifting corporations’ respective payroll bills.

Hines said on his loan utility that he operated 4 companies with 70 workers and had $4 million in month-to-month bills.

“Those purported employees either did not exist or earned a fraction of what Hines claimed in his PPP applications,” Huffpost reported, quoting Masmela, who additionally stated that authorities have been unable to discover any report of working web sites linked to Hines’ companies.

Authorities stated that $3,984,557 of Hines loan request have been accredited. As that cash got here in, he continued submitting requests for extra funds. Eventually, his requests totaled $13,542,741, officers stated.

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Hines allegedly spent about $318,000 to buy a 2020 Lamborghini Huracan sports activities automotive. He additionally spent 1000’s of {dollars} in funds to dating web sites, jewellery shops and luxurious clothes retailers, in addition to to Miami Beach resorts. Two funds totaling $30,000 have been additionally documented as going to “mom,” in accordance to the prison grievance.

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“Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities,” the Department of Justice said in a release announcing Hines’ charges. “The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.”

The financial institution accounts listed as belonging to Hines’ shifting corporations have been reportedly closed and $3.4 million was seized from the accounts as quickly as he was arrested.

In an announcement to The Washington Post, Hines’ lawyer defended him as a “legitimate business owner who, like millions of Americans, suffered financially during the pandemic.”

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“While the allegations appear very serious, especially in light of the pandemic, David is anxious to tell his side of the story when the time comes,” stated lawyer Chad Piotrowski.

UPDATE: 

David T. Hines was sentenced May 12, 2021 to greater than six years in jail. He pleaded guilty to one count of wire fraud on Feb. 10. Read extra at Justice.gov

Here are the big companies that depleted the payroll loans meant for small businesses