Florida business owner, David Hines, has been charged with fraud after receiving nearly $4 million in Paycheck Protection Program funds.
Hines was 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.
READ MORE: Kanye West’s Yeezy received millions in PPP federal loans
Hines took the funds and shopped at luxury stores and resorts in Miami Beach and he purchased a $300,000 Lamborghini.
The US Department of Justice alleges that Hines applied for up to $13 million in PPP funds. He claimed that he had 70 employees at three different businesses and that his payroll topped $4 million monthly.
However, the DOJ investigation revealed that his businesses paid out only $200,000 in payroll to just 12 people.
According to The Guardian, prosecutors allege that “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.”
(Photo by Chris Hondros/Getty Images)
The report notes that he issued two payments of $30,000 each to a recipient simply noted as “Mom.”
There have been at least 15 other fraud cases filed in federal court in numerous states.
Love & Hip Hop: Atlanta star, Arkansas Mo, was charged with federal bank fraud charges after investigators discovered he used funds from a $2 million Paycheck Protection Program loan to buy luxury items for himself.
Mo, born Maurice Fayne, allegedly purchased $85,000 worth of jewelry, including a Rolex Presidential watch, a diamond bracelet, and a 5.73-carat diamond ring. He also paid $40,000 in back child support.
READ MORE: ‘Love & Hip Hop’ star Maurice Fayne charged with PPP loan fraud
The Paycheck Protection Program has come under significant scrutiny as millions in funds have been denied to African Americans.
Wells Fargo is being scrutinized for how they have distributed funds, noting that of the 12,000 PPP loans of $150,000 or more that the bank dispersed, only one went to a Black-owned business.
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