A Florida man is facing federal fraud charges after allegedly obtaining over $3.5 million from the Paycheck Payment Program. David Hines, 29, was arrested on Monday in Miami on charges of bank fraud, making false statements to a financial institution, and engaging in transactions in unlawful proceeds.
“The complaint alleges that Hines sought approximately $13.5 million in PPP loans through applications to an insured financial institution on behalf of different companies,” the Department of Justice said in a press release.
“The complaint alleges that Hines caused to be submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ respective payroll expenses. The financial institution approved and funded approximately $3.9 million in loans.”
The Department of Justice did not list the names of the companies Hines used to file the PPP applications for. However, his alleged fraud came to authorities’ attention when the approved $3.9 million did not go into the payroll for the companies listed under Hines applications.
The Department of Justice said six agencies participated in the investigation, including the Internal Revenue Service and Small Business Administration.
Within days of authorities looking into the Hines, it was discovered he had spent over $300,000 on a 2020 Lamborghini Huracan luxury sports car. Hines had also made purchases at several luxury retailers around Miami in the days after being approved for the $3.9 million from the PPP.
At the time of his arrest, Hines still had around $3.4 million in multiple bank accounts.
It isn’t the only fraud case the Department of Justice has reported on in July, either. Hines arrest comes nearly two weeks after the arrest of Joshua Argires in Houston on federal fraud charges. Argires is accused of transferring around $1 million in funds from the PPP to private bank accounts from applications by shell companies.