Miami resident David Hines pleaded guilty to fraudulently obtaining $3.9 million in federal coronavirus loans and using some of the money to buy a Lamborghini Huracan.
Hines pleaded guilty in a South Florida court in a hearing held via Zoom, where it was decided that Hines will be sentenced next April, according to The Associated Press.
The case stands out in Florida, a state economically affected by the pandemic, where there have been countless complaints about the difficulty for people to get loans and the slowness of the procedures to obtain federal aid.
Hines acknowledged receiving $3.9 million in loans from the federal government on behalf of different companies he managed, fraudulently claiming they would be used to pay employees affected by the pandemic.
He instead used the proceeds to go on a spending spree that included shelling out $318,000 on a Lamborghini sports car, as well as running up bills at a jewelry store and a luxury hotel in Miami Beach.
This is not the first time a case of loan fraud has been detected. In August, 2020 a Houston man was arrested on allegations that he fraudulently obtained more than $1.6 million in loans from the Paycheck Protection Program (PPP) that serves to help businesses affected by COVID-19.
Lee Price III, 29, spent the money on luxury items, real estate and personal entertainment, according to the complaint disclosed, following his arrest.
The Paycheck Protection Program has sent billions of dollars in forgivable small business loans for Americans struggling with the pandemic. It is part of the Coronavirus Assistance, Relief, and Economic Security Act, which became federal law last March.