After receiving about Rs 30 crore ($4 million) in paycheck protection program in the United States, given to help small businesses hit by the coronavirus pandemic. The man has been charged with fraud, federal authorities in the country have announced.
David Hines applied for about $13.5 million in PPP loans, used the money h received to shop at luxury stores and resorts in Miami Beach, then lied about how much he had paid to his employees, a US Department of Justice complaint alleges.
Hines 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.
The loan to Hines was approved by Bank of America for 3 applications. In each of the applications he had claimed 70 employees, with monthly payroll expenses totaling $4 million. His accounts for preceding months, however, indicate monthly inflows and outflows of $200,000 and payments resembling payroll were for small amounts and only to 12 people.
On receiving the PPP funds, he made two payments of $30,000 to a recipient noted as “Mom”.
“Within days of receiving the PPP funds, Hines purchased a 2020 Lamborghini Huracan sports car for approximately $318,000, which he registered jointly in his name and the name of one of his companies,” prosecutors said.