After fraudulently receiving nearly $4 million in federal loans intended for small businesses affected by the coronavirus pandemic, a South Florida man was sentenced to six years in prison. The man reportedly used the funds on lavish personal expenses, including purchasing a Lamborghini.
According to the Justice Department, David Tyler Hines, 29, of Miami, was sentenced on Wednesday after pleading guilty to one count of wire fraud in connection with the scheme in February.
Hines allegedly demanded $13.5 million in Paycheck Protection Program loans using false and fraudulent IRS forms early last year, according to authorities. He was successful in obtaining $3.9 million from the federal government, and within days, he started squandering the funds on personal expenses, including the purchase of a $318,00 Lamborghini Huracan in 2020.
The money was also spent on dating websites, jewelry, and resort stays in the area. According to the criminal complaint, two payments totaling $30,000 were also reported as going to “mom.”
Authorities said the sports car and $3.4 million were eventually confiscated after an investigation into the fraud.
Investigators discovered Hines’ Lamborghini purchase after he was involved in a hit-and-run collision with the car in July. The Lamborghini was linked to Hines and seized by Miami police, according to the Miami Herald.
Unfortunately, PPP loan scams are nothing new, as a Southern California man was arrested on Friday after reportedly collecting $5 million in PPP loans and investing a portion of the money on Ferrari, Bentley, and Lamborghini sports cars, according to federal prosecutors.
In March, the Justice Department announced that hundreds of individuals had been charged with violating the PPP or Economic Injury Disaster Loan programs. The same month, House Democrats issued a memo citing the Justice Department that listed 173 criminal cases involving 242 suspects for such infractions. The losses from the PPP charges totaled $446.8 million.