Florida Businessman Charged with Multiple Criminal Offenses After Using a PPP Loan to Buy a Lamborghini

After the $2 trillion coronavirus bill was signed into law in March, with $349 billion set aside for forgivable loans for small businesses, business owners rushed to get their applications filed with the U.S. Small Business Administration (SBA). While some used the money they received for operating costs and to cover payroll, others took advantage of the government handout and put the money toward things that they knew would not benefit their company and its operations.

David T. Hines is one business owner in Florida who has been accused of doing just that.

The Washington Post says that prosecutors are accusing Hines of illegally obtaining a $4 million loan from the federal Paycheck Protection Program (PPP) and using the money to make frivolous purchases. Hines, whose “corporate bank account was in the red by more than $30,000” in May, received a quick $4 million after three of his seven PPP loan applications were approved. The source says Hines initially requested $13.5 million in loans for his seven businesses, but the bank only approved $3.9 million.

After Hines began receiving the funds on May 11^th, he allegedly “wired $320,000 for a Lamborghini Huracán EVO, registering the car under both his name and one of the companies that received a PPP loan.” Hines was also accused of spending $4,600 on a shopping spree at Saks Fifth Avenue, more than $8,500 on jewelry, and thousands of dollars on ride-hailing apps, food delivery, dating websites, and luxury hotels. Not only is Hines being accused of making these frivolous purchases that do not appear to serve any purpose for his business, but he allegedly made false claims when applying for the PPP loans.

After it was discovered that Hines had accepted the loan and began spending it on items that allegedly did not support his businesses, he was arrested and charged with making false statements to a lending institution, bank fraud, and engaging in transactions in unlawful proceeds.”

Has the COVID-19 pandemic left your Orlando business struggling financially?

Business loans are provided to companies that are in need of financial relief or to help keep operations going. Loans provided to business owners should not be spent on frivolous items that serve no purpose to the business. If you need help acquiring a business loan or need the terms of a business loan to be clarified so that you understand what you are agreeing to, you can always consult with the Orlando, FL business law lawyers at Legal Counsel, P.A.

In the event your Orlando business is facing legal troubles, don’t hesitate to contact Legal Counsel P.A. to speak with a reputable Orlando, FL business law lawyer.

Legal Counsel P.A. has an office in Orlando which is located at:

189 S. Orange Avenue, Ste. 1800

Orlando, FL 32801

Phone: 407-395-2653

Website: www.legalcounselpa.com

Email: [email protected]