(CMR) Miami resident David T. Hines (29) has been 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, according to the U.S. Department of Justice.
The U.S. Attorney of the Southern District of Florida announced the arrest on Monday.
He was arrested on Sunday after federal authorities say he fraudulently obtained $3.9 in loans from the Paycheck Protection Program (PPP) and used the money to purchase a 2020 Lamborghini Huracan valued at $318,000. The DOJ also seized $3.4 million from various bank accounts.
According to the criminal complaint, Hines applied for approximately $13.5 million in Paycheck Protection Program (PPP) loans, using false information on the applications about the respective payroll expenses of the companies he was applying on behalf of. He was funded nearly $3.9 million in approved loans.
Turns out “those purported employees either did not exist or earned a fraction of what Hines claimed in his PPP applications,” the affidavit states.
When the money arrived, Hines allegedly did not make the payroll disbursements and instead made purchases at luxury retailers and resorts in Miami Beach included the Lamborghini. He also spent thousands of dollars on dating websites, jewelry and clothes and stays at posh hotels in Miami Beach, the complaint alleges.
The matter came to the attention of the authorities after he was involved in a hit-and-run on July 11.
Hines' had a previous run-in with the law two years ago when he was arrested with his girlfriend in Miami Beach. In that case, he faced a number of charges, including fleeing from officers, following reports of a stolen Lamborghini.
The money that Hines was allegedly seeking was from the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted on March 29. Some of the funds from the act were intended to provide emergency financial assistance to millions of Americans who have been negatively impacted by the economic effects of the COVID-19 pandemic. This act authorized up to $349 billion in forgivable loans to small businesses for various expenses through PPP loans.
“Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities,” according to the DOJ.