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TRUMPISM: Florida man received millions in coronavirus aid. He used it to buy a Lamborghini.
(WP - paywall. Use incognito to view)
https://www.washingtonpost.com/nation/2020/07/28/florida-ppp-coronavirus-lamborghini/
Before May 13, David T. Hines’s corporate bank account was in the red by more than $30,000. But after the 29-year-old Florida man nabbed a nearly $4 million loan from the federal Paycheck Protection Program (PPP), his fortunes quickly changed.
In fact, just one week after receiving money from the fund meant to bail out businesses affected by the coronavirus pandemic, Hines was cruising around Miami Beach in a new blue Lamborghini Huracán EVO, which cost more than $318,000.
Now, federal prosecutors say Hines illegally used hundreds of thousands of dollars in PPP loans meant for his moving companies to buy the car as well as a host of personal expenses, including shopping sprees and high-end hotel stays, instead of covering his companies’ payroll. The Justice Department announced Monday he was arrested and charged with making false statements to a lending institution, bank fraud and engaging in transactions in unlawful proceeds, officials said.
“Collectively, Hines falsely claimed his companies paid millions of dollars in payroll in the first quarter of 2020,” Bryan Masmela, a U.S. Postal inspector, said in an affidavit. “State and bank records, however, show little to no payroll expense during this period.”
. . .
Hines’s arrest is the latest case of alleged fraud to beset the program, with business owners inflating employee numbers and claiming higher operating costs. Some even claimed loans for defunct companies. Federal prosecutors have filed numerous charges, including against reality star Maurice “Mo” Fayne, who allegedly spent his funds on a Rolls-Royce and $85,000 in jewelry.
In fact, just one week after receiving money from the fund meant to bail out businesses affected by the coronavirus pandemic, Hines was cruising around Miami Beach in a new blue Lamborghini Huracán EVO, which cost more than $318,000.
Now, federal prosecutors say Hines illegally used hundreds of thousands of dollars in PPP loans meant for his moving companies to buy the car as well as a host of personal expenses, including shopping sprees and high-end hotel stays, instead of covering his companies’ payroll. The Justice Department announced Monday he was arrested and charged with making false statements to a lending institution, bank fraud and engaging in transactions in unlawful proceeds, officials said.
“Collectively, Hines falsely claimed his companies paid millions of dollars in payroll in the first quarter of 2020,” Bryan Masmela, a U.S. Postal inspector, said in an affidavit. “State and bank records, however, show little to no payroll expense during this period.”
. . .
Hines’s arrest is the latest case of alleged fraud to beset the program, with business owners inflating employee numbers and claiming higher operating costs. Some even claimed loans for defunct companies. Federal prosecutors have filed numerous charges, including against reality star Maurice “Mo” Fayne, who allegedly spent his funds on a Rolls-Royce and $85,000 in jewelry.
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