Broker Busted Misusing $4 MILLION in PPP Loans to Buy Lamborghini, Jewelry, and Girls
Miami, FL – A Florida man has been arrested and charged with the misuse of nearly $4 million in Paycheck Protection Program (PPP) loans, which he applied for and obtained in the name of four companies — three of which have ties to the trucking industry.
David Tyler Hines, 29, of Miami, appeared on Tuesday before U.S. Chief Magistrate Judge John O’Sullivan in the Southern District of Florida, on one count of bank fraud, one count of making false statements to a financial institution and one count of engaging in transactions in unlawful proceeds.
In a criminal complaint obtained by Transportation Nation Network (TNN), Assistant United States Attorney Michael Berger and United States Postal Inspector Bryan Masmela claim Hines used PPP funds to purchase a Lamborghini sports car, luxury jewelry, fund high end department store shopping sprees, stays at Miami Beach resorts and personal expenses on dating websites.
Court documents allege Hines sought $13.5 million in PPP loans in the name of Miami, FL-based Unified Relocation Solutions; Hollywood, FL-based Promaster Movers, Inc.; West Palm Beach, FL-based JB Hunt Movers LLC; and Miami, FL-based Cash in Holdings LLC.
In a total of seven loan applications submitted to an unidentified bank based out of Charlotte, NC, Hines identified himself as the president or manager in each of the four companies.
In the applications, Hines certified that “the funds will be used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments.”
Ultimately, three of Hines’s seven applications were approved in the amount of $3,984,557.
According to the criminal complaint, Hines claimed 70 employees with a monthly payroll expense of approximately $4 million.
However, Berger and Masmela state multiple bank accounts from Hines’s companies reveal monthly inflows and outflows of approximately $200,000 a month.
Monies from the bank account being used to pay nearly a dozen individuals were paid via electronic money transfer services such as Venmo and Zelle and never exceeded $3,000 in a single transaction.
Additionally, the Florida Department of Revenue had no record of wage information paid to employees at any of Hines’s companies between the first quarter of 2015 and the first quarter of 2020.
The nearly $4 million in PPP funds was deposited into Hines’s accounts between May 11-26, 2020.
On May 18, court documents reveal Hines wired $318,497 from his bank account to a local car dealership for a 2020 Lamborghini Huracan Evo, which was registered to both Hines and Unified Relocation Solutions.
Additionally, between May 13 and June 22, Hines’s bank records reveal $30,000 of the PPP loans went to Hines’s mother; $9,500 was withdrawn as cash; $8,530 was spent at Graff Diamonds; $7,264 was spent at The Setai Hotel in Miami Beach; $4,622 was spent at Saks Fifth Avenue; $4,089 was spent at Fountainebleau Miami; and a collective $51,200 was paid to unidentified subjects A, B, C and D.
In a similar story, trucking company owner and star of VH1’s “Love & Hip Hop: Atlanta,” Maurice Fayne, was indicted by a federal grand jury in June on multiple charges connected with misuse of funds from (PPP) he obtained in the name of Flame Trucking.
Read more about that case HERE.
TransportationNation.com will continue to bring you more information on Hines’s case as it becomes available.