A 29-year-old man in Florida, US, as arrested and charged with fraud for buying a Lamborghini car worth nearly Rs 2.4 crore with money he received as a COVID-19 relief fund.
David Hines allegedly applied for about $13.5 million in loans for a few companies and made misleading statements about the firms’ payroll expenses.
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. The loan to Hines was approved by Bank of America for 3 applications.
He had claimed 70 employees, with monthly payroll expenses totaling $4 million in each of his applications. His accounts for preceding months, however, indicate monthly inflows and outflows of $200,000 and payments resembling payroll were for small amounts and only to 12 people.
The mortgage to Hines was accredited by Bank of America for three purposes. In every one of the purposes, he had claimed 70 workers, with month-to-month payroll bills totaling $4 million. His accounts for previous months, nevertheless, point out month-to-month inflows and outflows of $200,000 and funds resembling payroll have been for small quantities and solely to 12 people
On receiving the PPP funds, he made two payments of $30,000 to a recipient noted as “Mom”.
“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,” prosecutors said.