The US Department of Justice has charged David T. Hines, a 29-year old a resident of Miami, Florida for misappropriation of funds which were meant for relief measures during the coronavirus pandemic. Hines allegedly used loaned amount designated to pay employees of his companies to buy himself a new Lamborghini Huracan Evo worth around $318,000 USD (~Rs 2.4 crore). The US department of justice has charged Hines with fraudulently obtaining $3.9 million in Paycheck Protection Program (PPP) loans to purchase the Italian sportscar. Authorities are said to have seized the vehicle and the remaining amount from Hines’ bank accounts when he was arrested.
The Paycheck Protection Program (PPP) was created to provide loans to businesses allowing them to pay their employees during the coronavirus lockdown when businesses were not operational. It is reported that Hines misused the programme by applying for loans seeking $13.54 million to pay employees. However, $3.9 million had been disbursed already with which Hines is said to have used to purchase a blue Lamborghini Huracan Evo. Officials claim that Hines bought the Lamborghini which was registered jointly in the name of his multiple companies. Additionally, following the disbursement of the loan amount, the USDOJ states “Hines did not make payroll payments that he claimed on his loan applications. He did, however, make purchases at luxury retailers and resorts in Miami Beach.”
It is reported that in the US, the Small Business Administration which controls the PPP loans does not verify the claims in the applications. The story only came to light when Miami police impounded the vehicle in July following a hit and run case which is said to have involved the blue Lamborghini. The US Department of Justice reports that six government departments have been involved in the investigation of the case.
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. If convicted, Hines reportedly could face up to 70 years in prison but is currently out on a $100,000 bond (~Rs 74 lakh) while wearing a GPS monitor until he is to appear on court on October 14.
Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.