MIAMI, FL- August 4, 2020 - According to an online news report from CBSMiami, a man from Miami made national news after being arrested and accused of allegedly defrauding the U.S. government out of $4 million. The man reportedly defrauded the government when he applied for COVID-19 relief fund loan but used some of the funds on a $300, 000 Lamborghini.
According to the news report, a law enforcement source stated the man received a $100 citation for not wearing a face covering. A Neighborhood Enhancement Team gave the suspect the citation with the Miami Police Department's who were monitoring North Bayshore Drive. The source also stated that the suspect allegedly complained that wearing a face mask was both "disturbing and hilarious," and wearing a face covering was not going to be effective in the coronavirus pandemic. The man allegedly stated he knew of social distancing and the requirement to maintain at least 6 feet away from other people, but he felt "silly" using a surgical mask outside, and he didn't want to participate in the "insanity."
According to the Federal authorities, the suspect was granted a loan of $4 million. The loan was part of the Payroll Protection Program authorized through the U.S. Small Business Administration. Congress authorized the $650 million program to provide loans to small businesses during the COVID-19 pandemic. These loans were meant to help companies to maintain employee payroll during the shutdowns.
The suspect's arrest affidavit stated that the suspect was arrested on federal charges after the suspect made several payments on items not permitted under the Payroll Protection Program. Federal prosecutors claim the suspect spent well over $300,000 on a Lamborghini Huracan EVO. The purchase was made at the local North Miami Beach Lamborghini dealership. The suspect is alleged to have spent approximately $16,000 at luxury hotels. The suspect is also accused of using the loan funds to purchase dating website services, clothing, and jewelry.
The suspect's arrest affidavit also alleges the suspect falsely reported that his business paid out millions of dollars in payroll during the first fiscal quarter of 2020. The arrest report states that the suspect's bank records and Florida tax records only confirm a small amount of payroll to almost no payroll expenses paid out during the first quarter of 2020. The suspect's criminal complaint alleges the suspect applied for a total of $13.5 million in seven separate Small Business Administration loan applications through Bank of America. The suspect allegedly declared the loan funds would be used to pay about 70 employees, and that the monthly payroll totaled $4 million. Three of the seven SBA loan applications were approved.
Federal authorities reported that their investigators found a balance of over $3.4 million of the loan money in a few of the suspect's bank accounts. The suspect was able to bond out of jail for $100,000. The suspect made bail and is scheduled to be in court on October 14, 2020, for his arraignment. The suspect was granted release by a federal Magistrate on the condition that the suspect lived with his mother, and the suspect wears a GPS monitoring device.