New Delhi, Delhi, India

US authorities have arrested a man, who was accused of bank fraud after he bought a Lamborghini sports car by obtaining nearly $4 million in coronavirus relief loans.

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According to the US Department of Justice, David T Hines was charged with bank fraud after making false statements to a financial institution and engaging in transactions in unlawful proceeds. 

If convicted, Hines could face up to 70 years in prison, an official in the prosecutor’s office said.

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At the time of arrest, the authorities seized a Lamborghini Huracan ($318,000) and $2.6 million from the bank accounts. 

According to the reports, the 29-year-old misused America's Paycheck Protection Programme to obtain around $13.5 million on behalf of different companies. 

The prosecutors alleged that Hines submitted fraudulent loan application which made false and misleading statements about the companies' payroll expenses. 

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David T Hines was approved and given about $3.9m (£3m) in loans, it is claimed. The accused then bought 2020 Lamborghini Huracan sports car days after receiving the funds, as per prosecutor's statement. 

The car was registered jointly in his name and the name of one of his companies. Hines made purchases at luxury retailers and resorts in Miami Beach in the following days and weeks, while failing to make payroll payments that he claimed on his loan applications, it is alleged.

According to the Miami Herald, Hines was granted $100,000 by a magistrate judge and will be allowed to stay at his mother's home with a GPS monitor and is due to appear in court on October 14. 

Hines' lawyer, Chad Piotrowski said that the accused is a legitimate business owner who is anxious to tell his side of the story.

The US launched the Paycheck Protection Programme, that would hand out billions of dollars in small business loans for Americans struggling because of the coronavirus pandemic.