David Hines used federal loans he received for his small business during the pandemic, totaling up to $4 million, to spend it on personal expenses including a Lamborghini.
A Miami man was sentenced to six years in prison for fraudulently obtaining millions in coronavirus relief funds and using the money to buy lavish items including a Lamborghini.
David Hines, 29, was charged with wire fraud for fraudulently obtaining $4 million in federal loans intended for small businesses during the coronavirus pandemic.
He pleaded guilty in February and was sentenced Wednesday to six years in prison, according to the Department of Justice.
Hines reportedly requested $13.5 million in Paycheck Protection Program loans under the guise of false and fraudulent IRS forms last year, according to the justice department. He claimed to have had dozens of employees and to have paid millions in payroll each month.
Authorities say he managed to secure $3.9 million from the federal government and started spending the cash within a few days on personal expenses, including a 2020 Lamborghini Huracan for $318,000.
He also reportedly spent the money on dating websites, jewelry, and vacations at a local resort. There were also two payments to "mom" totaling $30,000, the criminal complaint said.
Investigators discovered the scheme after Hines was involved in a hit-and-run accident involving another car in July, the Miami Herald reported.
He also allegedly advised other individuals in obtaining fraudulent PPP loans.
The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, was implemented in March 2020 to provide emergency federal financial assistance for Americans. The relief package authorized up to $349 billion in forgivable loans to small businesses.
Businesses were required to spend PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities.
