A South Florida man has been sentenced to six years in prison after fraudulently obtaining nearly $4 million in federal loans meant for small businesses impacted by the coronavirus pandemic and spending it on personal expenses, including a Lamborghini.
David Tyler Hines , 29, of Miami was sentenced Wednesday after pleading guilty back in February to one count of wire fraud related to the scheme, the Justice Department said .
Authorities said Hines requested approximately $13.5 million in Paycheck Protection Program loans using false and fraudulent IRS forms early last year. He successfully secured $3.9 million from the federal government and within a few days he began blowing the money on personal expenses, including on a 2020 Lamborghini Huracan for $318,000.
The money also went to dating websites, jewelry and stays at a local resort. Two payments totaling $30,000 were also documented as going to “mom,” according to the criminal complaint.
The sports car and $3.4 million were ultimately seized following an investigation into the scam, authorities said.
Hines’ Lamborghini purchase was discovered by investigators after he was involved in a hit-and-run accident involving the vehicle back in July. The Lamborghini was linked back to Hines and impounded by Miami police, the Miami Herald previously reported .
PPP loan scams are unfortunately nothing new , with a Southern California man arrested on Friday after allegedly obtaining roughly $5 million in PPP loans and spending a portion of the money on Ferrari, Bentley and Lamborghini sports cars, federal prosecutors said .
The Justice Department in March said it has criminally charged hundreds of people with violations related to the PPP or Economic Injury Disaster Loan programs. A memo released by House Democrats that same month, citing the Justice Department, tallied 173 criminal cases involving 242 defendants for such violations. The PPP charges amounted to $446.8 million in losses.
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