Lockdown because of the pandemic led to loss of jobs for a lot of US citizens. The result has been that more people than ever there have applied for unemployment.?
People can also file for loans there under the Payment Protection Program (PPP) to keep their businesses running. But one man from Florida allegedly used the money from PPP to buy himself a Lamborghini.?
David Hines was arrested and charged with fraud for purchasing a Lamborghini sports car and other luxury goods with the funds he received from the Payment Protection Program (PPP).
Hines from Miami was charged with bank fraud, making false statements to a financial institution and engaging in transactions in unlawful proceeds, CBS News reported the Justice Department as saying.?
According to the report, Hines applied for about $13.5 million in PPP loans on behalf of at least four companies. He received $3.9 million from the fund that is supposed to help struggling small businesses due to the coronavirus pandemic. However, instead of using that money to support his ¡®companies¡¯ and employees prosecutors say Hines spent hundreds and thousands of dollars on a sports car.
Also Read:?Lamborghini Worth Almost Rs 2 Crore Wrecked In An Accident, Just 20 Minutes After Purchase
The 29-year-old allegedly purchased a 2020 Lamborghini Huracan sports car for just over $318,000 (Rs 2.4 crore, approx) within days of receiving the money and also went on a luxury shopping spree at stores in Miami.?
¡®Instead of funding payroll, Hines spent the PPP money on personal expenses at dating websites, luxury jewelry and clothing retailers,¡¯ the criminal complaint alleges.
According to the Justice Department Hines made false claims about payroll expenses when he filed his PPP applications.
¡®Those purported employees either did not exist or earned a fraction of what Hines claimed in his PPP applications. 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,¡¯ the complaint reportedly said.?
Also Read:?5-YO 'Steals' Parents' Car To Go Buy Himself A Lamborghini With Rs 230 He Had In His Pocket
During his arrest, authorities seized the sports car and $3.4 million from various bank accounts.
PPP loans are part of the CARES Act, a federal law that was enacted on March 29. Its aim is to give emergency financial help those Americans affected economically during the ongoing COVID-19 pandemic. Through PPP, qualifying small businesses can apply for forgivable loans in order to cover expenses like job retention, payroll costs, mortgage interest, rent, and utilities.
If convicted on all charges, Hines faces up to 70 years in prison.?
Also Read:?Dubai Man Delivers Mangoes To Customers In A Lamborghini & Offers Them 'Joy Rides' Too