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Law360 (February 11, 2021, 6:01 PM EST) -- A Florida man pled guilty Wednesday to fraudulently securing nearly $4 million in Paycheck Protection Program loans and using a portion of those funds to purchase a Lamborghini.
David T. Hines, 29, of Miami, copped to one count of wire fraud, admitting to lying on PPP loan applications for his four companies, with at least two companies belonging to unnamed co-conspirators, according to a plea agreement.
Hines was ultimately awarded a total of $3.9 million in PPP loans for his own businesses and caused an additional loss of more than $800,000 by helping the co-conspirators lie on their applications, prosecutors said.
He identified himself as the manager of Cash In Holding LLC, Promaster Movers Inc., Unified Relocation Solutions LLC and We-Pack Moving LLC on PPP loan applications seeking funds purportedly for payroll expenses, court filings show.
Hines falsely claimed to employ more than 70 people and to have monthly payroll expenses of about $4 million. In reality, Hines' combined monthly business expenses came out to less than $200,000, prosecutors said.
Days after receiving the $3.9 million in PPP funds, he used $318,000 to buy a 2020 Lamborghini Huracan sports car. He never used any of the funds to pay his employees, prosecutors said.
Hines also offered to help two unidentified co-conspirators with their own PPP loan applications in exchange for a cut of the funds.
Between his own fraudulent loans and those of his co-conspirators, prosecutors dinged Hines with a total intended loss of more than $4.8 million, although they are seeking forfeiture in the amount of $3,984,557, according to the plea agreement.
Law enforcement authorities arrested Hines in July, seizing $3.4 million and the luxury vehicle at that time, the DOJ said.
The PPP is part of the Coronavirus Aid Relief and Economic Security Act, and allows small businesses to obtain low interest rate, forgivable loans intended to be spent on specific business expenses, such as payroll, rent and utilities.
Congress most recently authorized $248 billion for the third round of PPP loans in December 2020.
Counsel for Hines did not immediately respond to requests for comment Thursday.
Hines is represented by federal public defender Elizabeth Blair.
The government is represented by Daniel S. Kahn, Michael N. Berger and Nicole Grosnoff of the U.S. Attorney's Office for the Southern District of Florida and Emily Scruggs of the DOJ's Criminal Division.
The case is U.S. v. Hines, case number 1:21-cr-20011, in the U.S. District Court for the Southern District of Florida.
--Editing by Stephen Berg.
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