A Florida man accused of blowing nearly $4 million in coronavirus relief aid on dating sites, hotel getaways and a brand new Lamborghini has been arrested and charged with three felonies.
David Hines is facing one count of bank fraud, one for making false statements to a financial institution and a third count of engaging in transactions in unlawful proceeds, according to a statement from the U.S. Department of Justice.
In April, Hines, like thousands of others, applied for $13.5 million on behalf of four companies through the Paycheck Protection Program, a federal loan program established to assist small businesses amid the coronavirus pandemic.
According to authorities, the 29-year-old Miami man lied about the number of employees under his authority as well as the amount he needed to cover their paychecks amid the pandemic.
Hines was eventually approved for funding and received $3.9 million, but his “purported employees either did not exist or earned a fraction of what Hines claimed in his PPP applications,” the affidavit reads.
“Collectively, Hines falsely claimed his companies paid millions of dollars in payroll in the first quarter of 2020. State and bank records, however, show little to no payroll expense during this period.”
Within days of receiving the funding, Hines purchased a 2020 Lamborghini Huracan sports car worth approximately $318,000, “which he registered jointly in his name and the name of one of his companies.” He also shelled out for “dating websites, luxury jewelry, clothing retailers, and Miami Beach resorts,” according to the criminal complaint.
Congress in March passed the Coronavirus Aid, Relief, and Economic Security Act to help Americans and businesses remain afloat amid the economic fallout sparked by the global health pandemic. Money provided to any company through the program is supposed to be used for rent or mortgage costs, employee salaries and utilities.
Hines was arrested on Friday and charged Monday. If convicted, he faces up to 70 years behind bars.
