Many of us may be working from home or are even still temporarily furloughed (sadly) as the result of coronavirus, but that hardly means fraud has taken a holiday. With the advent of the federal Paycheck Protection Program (PPP) for example, an assistance program designed to aid businesses, we again see the fraudsters coming out to play.
Lamborghini Huracán EVO
I am pretty sure (unless someone surprises me with a winning lottery ticket), that a $318,000 Lamborghini Huracán EVO will ever find its way into my garage. But somehow, it made its way to David T. Hines, who up until recently, was more than $30,000 in debt.
The 29-year-old, an entrepreneur who claims to own moving companies, filed a request for Paycheck Protection Program (PPP loan) loans to the tune of $4 million. After receiving the money, it was less than a week before he bought the ridiculously expensive car.
Obviously, PPP loans are meant to buoy businesses during this difficult time. According to official sources, the PPP loan applies to “Any small business with 500 or fewer employees…This includes small businesses, S corporations, C corporations, LLCs, private nonprofits, faith-based organizations, tribal groups and veteran groups.”
However, Hines had a different idea. According to federal prosecutors:
“Hines illegally used hundreds of thousands of dollars in PPP loans meant for his moving companies to buy the car as well as a host of personal expenses, including shopping sprees and high-end hotel stays.”
The money was not used to cover payroll. The DOJ arrested him on Monday, July 27, 2020 and “charged [Hines] with making false statements to a lending institution, bank fraud and engaging in transactions in unlawful proceeds.”
Essentially, though he claimed he paid out millions in payroll in the first three months of 2020, records retrieved from his bank by inspectors found “little to no payroll expense during this period.”
“I’m Innocent”
Naturally, Hines has secured a lawyer. The lawyer has issued the following statement:
“David is a legitimate business owner who, like millions of Americans, suffered financially during the Pandemic. While the allegations appear very serious, especially in light of the Pandemic, David is anxious to tell his side of the story when the time comes.”
He had better have a good story “when the time comes,” for according to the government, Hines requested in excess of $13 million from a Charlotte, NC bank. They began sending him checks based on nearly $4 million in loan requests starting May 11, 2020.
The government alleges Hines is a flat-out fraudster who claims 70 employees and a few moving companies, but there are no records to prove this. The government found that Hines’ company took in about $200,000 during the first quarter.
The government also found that in addition to the Lamborghini, he also used the funds for high-end shopping sprees, food deliveries, luxury hotels, jewelry and dating apps.
While we are all entitled to our opinions and our day in court, the case against Hines has all of the elements of serious fraud – and apparently, the DOJ knows this.
Hines, amid the unexpected “opportunity” he saw as a “businessman,” realized that with scant oversite, he could allegedly fabricate a story about having several businesses, 70 employees and million in revenues, and cash in on the government give-away.
The need he had to commit the fraud was unethically obvious. Any arguments he could possibly make in regard to protecting the salaries of his employees, went immediately out the door when he was seen driving the Lamborghini around South Florida a week after getting the money.
He wanted money, prestige and the power millions of dollars could bring. It is the classic “ends-means” phenomenon, where someone confuses working for the money with having it to spend.
In times of confusion, fraudsters enjoy and even rationalize taking advantage of the system. How could Hines justify his shopping sprees and life-style? He probably rationalized that “everyone was doing it.” There was no basis for this thinking. The government’s money is not part of a give-away contest; it is taxpayer money. While Hines was enjoying his new-found wealth, through the PPP loan, there were legitimate business could not get approved. There was only so much to go around.
As I write this, David T. Hines, a fraudster who went from debt to being an instant millionaire, has become a national laughingstock, and poster-child for fraud. His problems are just beginning. I hope the memories of the $300,000 Lamborghini will see him through his jail sentence.
LEAVE YOUR COMMENTS!
