Officials: Man lied to get $3.9M in coronavirus loans, used money to buy Lamborghini
MIAMI (AP) — A South Florida man fraudulently obtained $3.9 million in federal coronavirus relief loans, using some of the money to buy a $318,000 Lamborghini Huracan, prosecutors said.
David T. Hines, 29, of Miami, was arrested and charged last week with bank fraud, making false statements to a financial institution and engaging in transactions in unlawful proceeds.
Defense attorney Chad Piotrowski said Hines is a legitimate business owner who is anxious to tell his side of the story.
Hines applied to a bank for approximately $13.5 million in Paycheck Protection Program loans on behalf of different companies, according to a criminal complaint. Fraudulent loan applications were submitted about the companies’ respective payroll expenses, investigators said. Hines was approved for $3.9 million, officials said.
Hines bought the Lamborghini within days of the receiving the money, prosecutors said. Instead of using the money for payroll payments, Hines made purchases at luxury retailers and resorts in Miami Beach, officials said. Authorities seized the car and about $3.4 million when Hines was arrested.
The Paycheck Protection Program represents billions of dollars in forgivable small business loans for Americans struggling because of the COVID-19 pandemic. It’s part of the Coronavirus Aid, Relief and Economic Security Act, which became federal law in March.