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A Florida man who used COVID-relief funds from the federal Paycheck Protection Program (PPP) to purchase a Lamborghini has been arrested.

Authorities say David T. Hines, of Miami, Florida, fraudulently obtained $4 million in PPP funds and used part of those funds to purchase a $318,000 Lamborghini Huracan Evo sports car.

The feds seized the Lamborghini and $3.4 million from bank accounts at the time of his arrest.

Hines made his initial court appearance before U.S. Chief Magistrate Judge John J. O'Sullivan in the Southern District of Florida on Monday.

He was formally charged with one county of bank fraud, one count of making false statements to a financial institution and one count of engaging in transactions in unlawful proceeds.

The complaint alleges Hines applied for $13.5 million at Bank of America on behalf of his six moving companies. He claimed he had 70 employees with a monthly payroll of $4 million.

Applicants who are approved for PPP loans are required to deposit the funds into a separate bank account created specifically for the loan so the feds can see where the money is spent.

The loans are forgivable if the money is spent on mortgage, rent, and utilities and at least part of the loan is spent on payroll.

The complaint alleges that the bank approved three of the applications for $3.9 million and began depositing hundreds of thousands of dollars into Hines's bank account.

Hines allegedly transferred some of the funds to his savings account within days and wired $318,497 to Lamborghini Miami, a luxury car dealership on Biscayne Boulevard in North Miami Beach on May 18.

The Lamoborghini was jointly registered to Hines and his business, records show.

Bank records show Hines spent some of the cash to make purchases at luxury retailers, on jewelry, and on rooms at luxury resorts in Miami Beach.

The federal complaint further alleges that Hines did not use the money to make payroll payments that he claimed on his loan applications.

Hines' companies showed monthly revenue and expenses averaging about $200,000 - much less than the millions he claimed on the loan applications.

Assistant U.S. Attorney Michael Berger said scammers are able to exploit and defraud the Small Business Association (SBA) because the SBA doesn't bother to check any of the claims made on applications.

"In the ordinary course of providing the loan guaranty, neither the SBA nor any other government agency checked IRS records to confirm that the applicant had paid the payroll taxes represented in the PPP applications," says the criminal affidavit.

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Many unemployed Americans who received an extra $600 pr week in unemployment benefits will lose the additional checks because of a quirk in the system.

The extra benefits are set to expire at the end of July, but many jobless Americans will stop receiving the extra $600 checks on July 25 or July 26.

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The extra $600 benefits is set to expire on July 31. After that, jobless recipients will receive only their state's minimum unemployment checks.

Congress is unlikely to extend the $600 benefits to millions of unemployed Americans.

Republican lawmakers said they will include an extension of the unemployment benefits at a 70% wag replacement. That means some Americans will receive an additional $175 to $200 a week, down from $600 a week.

But the White House has said it will not back their stimulus plan if it extends the $600 unemployment benefits.

Republican Sen. Rob Portman, from Ohio, says extending the $600 weekly benefits past July would be a disincentive to return to work if Americans receive more money than they would if they were working.

An additional 1.4 million Americans filed for unemployment this week.

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Americans who receive an extra $600 in federal unemployment benefits in addition to state benefits may get an extension after the extra $600 ends next month.

Some unemployed Americans receive a windfall of $1,000 a week when they collect an additional $600 in unemployment benefits on top of state benefits.

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The extra $600 was part of the $2.2 trillion stimulus package known as the CARES Act that President Trump signed into law in response to the coronavirus pandemic.

Some lawmakers are considering extending the additional $600 in federal benefits next month, but other say the extra $600 creates "a disincentive to return to work."

There are three proposals on the table for the next round of stimulus funding. Two of the proposals would allow Americans to continue receiving the extra $600 a week.

But one proposal calls for a return-to-work bonus to motivate people to return to work.

Republican Sen. Rob Portman, from Ohio, says extending the $600 weekly benefits past July would be a disincentive to return to work if Americans receive more money than they would if they were working.

The most recent unemployment report shows that 2.5 million Americans went back to work last month -- a sign that economies are rebounding as states reopen.