Man buys Lamborghini using Covid-19 small business loan

Florida man buys Lamborghini using Covid-19 small business loan

David Hines took almost four million dollars in loan and used it to buy luxury goods, including a lamborghini

Represenative image. Credit: AFP Photo

A Florida man allegedly took nearly four million dollars in a loan, under the Paycheck Protection Programme (PPP) and used it to buy luxury goods.

The PPP is launched by the US Small Business Association (SBA) to provide loans to small businesses so that they can stay afloat through the pandemic and keep their employees on the payroll. 

Florida man, David Hines, is believed to have applied on behalf of several companies for loans amounting to $13.5 million. 

He is believed to have received almost four million dollars in the loan, a considerable chunk of which he used to purchase luxury goods and services. To authorities, he falsified details about how much he paid his employees. 

Hines took out three loans from Bank of America. Each time, he claimed to have 70 employees on his payroll. However, actual payments made next month amounted to a comparatively modest $200,000, with small payments made to 12 employees. 

Hines also made two payments of $30,000 and titled them “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,” said the prosecutor

Republicans have unveiled a pandemic aid plan worth $1 trillion, which if passed, would mean another round of $1,200 cheques and another round of PPP, which would allow small businesses with less than 300 employees to take loans.

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