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The Florida man has been accused of bank fraud after lying about loan applications to help small businesses during a coronavirus pandemic and spending the proceeds on luxury goods, including Lamborghini, under a criminal complaint reviewed by BuzzFeed News.
Federal prosecutors said David Tyler Hines, 29, asked for about $ 13.5 million. USD from the Paycheck Protection Program, which was set up in March to provide a loan to small business workers to pay out during a pandemic. Congress in March Approved $ 349 billion for the first round of PPP loans, and more than $ 300 billion for the second round in April.
Hines said the funds were used to pay for his business employees, but U.S. postal inspectors said those employees were either absent or earning only a portion of the salary he demanded.
Nonetheless, Hines was approved for nearly $ 4 million for three exempt, low-interest PPE loans that it later issued for personal expenses, including clothing, jewelry, Miami beach resorts, dating sites, and the 2020. Lamborghini Huracán Evo, which costs more than $ 318,000, prosecutors said.
Based on the complaints, Hines said he is the manager or president of four separate companies based in Miami. He said he employed 70 people with a monthly salary cost of $ 4 million. USD. However, the researchers said the state of Florida has not had any wages paid to employees of one of the Hines companies since 2015. Until 2020 The first quarter.
The complaint notes that the reviews on the Better Business Bureau website were the only evidence found on the Internet about Hines ’business. Feedback from Promaster Movers, Inc. and We-Pack Moving LLC, both of which have emerged as relocation services. Both received FB ratings from the BBB, as well as complaints about “bait and switch practices” and “fraudulent practices”.
The complaint alleges that Hines “never had any wage obligations that he claimed to have” and that, after receiving PPP payments into a bank account related to his business, he “immediately diverted the loans for misuse”.
Hines ’biggest spending in May and June was nearly $ 5,000 spent on Saks Fifth Avenue, a $ 8,530 jewelry store, more than $ 11,000 at several Miami hotels, and a total of $ 30,000 received by a recipient that prosecutors noted as“ mother “.
“There does not appear to be a greater, if not all, business goal for these costs,” the complaint reads.
Hines lawyer Chad Piotrowski did not immediately return BuzzFeed News’s request for comment, but CNN said his client was “a legitimate business owner” who “suffered financial damage during the pandemic.”
“While the allegations seem very serious, especially given the pandemic, David wants to tell half of his story when the time comes,” Piotrowski added.
Hines faces charges of bank fraud, a false statement to the lending union and illegal income operations. The first two charges are punishable by a maximum term of imprisonment of 30 years and a fine of up to $ 1,000,000 pending conviction.
Last week in Miami, WSVN-TV filmed Hines, who police have pointed out for not wearing a face mask in public, for which he received a $ 100 ticket.
While keeping his tickets, he complained at the station about the distribution of PPE loans.
“Every business has gone out of business,” he said. – Government, Treasury – They gave $ 2 trillion for PPP loans to small businesses. 85 percent went to large corporations. ”
Hines was previously arrested in 2018, reporting that his girlfriend stole his Lamborghini, NBC Miami reported.