Published 10:29 IST, July 29th 2020
US man arrested for using $3.9 million COVID-19 relief funds to buy Lamborghini
A Florida resident has been charged with fraudulent and criminal offenses after receiving $3.9 million in COVID-19 relief funds and used the money to buy car.
- World News
- 2 min read
A Florida resident has been charged with fraudulent and criminal offenses after receiving $3.9 million in COVID-19 relief funds and used the money to purchase a Lamborghini and many other things. The 29-year-old man, David T. Hines, was arrested on July 24 and charged on July 27, the Department of Justice reportedly said in a statement. According to the reports, more than $3 million has been seized from his bank accounts along with the luxurious sports vehicle.
Man fraudulently applies about $13.5 in PPP
According to the international media reports, the authorities allege that Hines fraudulently applied for million in Paycheck Protection Program (PPP) loans for a few companies, as Coronavirus Aid, Relief, and Economic Security Act, enacted on March 29 to provide small businesses with forgivable loans. The DOJ's statement reportedly said that Hines lied on the loan applications and provided false statements about the expenses of the companies, including the amount paid to employees. The U.S. Postal Inspector Bryan Masmela reportedly said that those purported employees did not exist. The report added that Hines falsely claimed his companies paid millions of dollars in payroll in the first quarter but the state and bank records did not match anything like that. Hines was approved for funding and received $3.9 million after which he bought a Lamborghini and purchased other luxury items from the stores.
Meanwhile, the United States Senate on June 30 passed legislation extending the deadline for businesses to apply for coronavirus aid under the Paycheck Protection Program(PPP) scheme, whose deadline was scheduled to lapse on Tuesday. The bill was reportedly passed unanimously extending the deadline of PPP to August 8. According to international media reports, there is $130 billion unspent money in the funds.
Highlighting that there is a need for another round of help to small businesses, Senator Ben Cardin, the top Democrat on Senate Small Business Committee said that extension will delay the deadline until senate goes to its August recess. Commenting on the bill, he said that the resources and need, both are there, there was only the need to change the date.
Image: Pixabay
Updated 10:29 IST, July 29th 2020
