Florida man pleads guilty for using coronavirus loan to buy Lamborghini sports car

US Department of Justice on February 10 anunced that a Florida man pleed guilty to fraudulently obtaining nearly $4 million in PPP loans and using it to buy himself a $318,000 Lamborghini sports car. According to Associated Press, officials seized car and $3.4 million from bank accounts of 29-year-old David T. Hines of Miami at times of his arrest. David has pleed guilty to one count of wire fraud and is scheduled to be sentenced on April 14. 

As per reports, Hines mitted that he fraudulently sought millions of dollars in PPP loans through applications to an insured financial institution on behalf of different companies. He caused to be submitted fraudulent loan applications that me numerous false and misleing statement about companies’ respective payroll expenses. financial institution h approved and funded approximately $3.9 million in PPP loans. 

Furr, 29-year-old mitted that within days of receiving PPP funds, he used money to purchase a 2020 Lamborghini Huracan sports car for approximately $318,000. According to AP, documents indicate that in days and weeks following disbursement of PPP funds, Hines did t make payroll payments that he claimed on his loan applications. However, he did use PPP proceeds for personal expenses. 

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CARES Act 

It is with ting that Coronavirus Aid Relief, and Ecomic Security (CARES) Act is a federal law enacted back in March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering ecomic effects caused by COVID-19 pandemic. One source of relief provided by Act was authorisation of up to $349 billion in forgivable loans to all businesses for job retention and certain or expenses, though PPP. 

PPP allows qualifying small business and or organisations to receive loans with a maturity of two years and an interest rate of one per cent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgs, rent and utilities. PPP also allows interest and principal to be forgiven if businesses spent proceeds on se expenses within a set time period and use at least a certain percent of loan towards payroll expenses. 

(With inputs from AP) 

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