Case 1:20-mj-03237-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 1 of 11

UN ITED STA TES D ISTRIC T C O U RT

SOUTHERN DISTRICT O F FLORIDA

C A SE N O . 1:20-M I-03237-BECERRA

UN ITED STA TES O F A M E RICA

Y.

DA V ID TY LER H IN ES,

D efendant
l

CR IM W A L C O V ER SH E ET

Did thism atteroriginate from a m atterpending in the CentralRegion ofthe United States
Attomey'sOx cepriortoAugtst9,2013(Mag.JudgeAliciaValle)? - Yes y-.No
Did thism atteroriginate âom a matterpending in the Northern Region ofthe United States
Attomey'sOffcepriortoAugust8,2014(M ag.JudgeShaniekM aynard)? Yes X No
Did thism atter origim te âom a m atterpending in the CentralRegion oftheUnited States
Attomey'sOx cepriortoOctober3,2019(M ag.JudgeJaredSkauss)? - Yes & No
Respectfully submitteda

A RIAN A FA JA RD O O R SH AN
U N ITED STAT ES A TTO RN EY

M .
M ICHA EL N .BERG ER
AssistantUnited StatesAttom ey
Southem DiskictofFlorida
C ourtID N o.A 5501557
99 N ortheast41 Skeet,41 Floor
M inm i,Florida33132-2111
Telephone:(305)961-9445
E-m ail:m ichael.berzerz@ usdoi.eov

EM ILY SCRU G G S
TrialA ttorney
CourtID N o.A 5502310
DepaM entofJuséce
1400 N ew York A ve,N W
W ashington,D C 20530
Telephone:(202)616-2488
Em ail:Elllilsr.sclraastdtsdoi.aov
 Case 1:20-mj-03237-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 2 of 11
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CRIM INAL COM PLAINT BY TELEPH ONE O R OTH ER RELIABLE ELECTRO NIC M EANS

1,the com plainantin thiscase,state thatthe following istrueto thc bestofmy k-nowlcdgeand bclief.
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)tloraboutthedatcts)of May9,13,$.-
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ledefendantts)violated:
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Wc Scction O-t/i
tnseDcvs'c?'fh/&pz7
18 U.S.C.j 1014 False Statementto Lending Instituti
on
18 U.S.C.j 1344 Bank Fraud
18 U.S.C.j 1957 Engaging inTransactions in UnlawfulProceeds

Thiscrim inalconlplailltis based on thesefacts:

SEE AU ACHED AFFIDAVIT.

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Attested to by tlle A pplicallti11accordallce lvitllthe requircnlellts ofFed-lt.criln.4.1by telephone.

Date: 7.23.20
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Case 1:20-mj-03237-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 3 of 11

AFFIDAVIT IN SVPPORT OF A CRIM INAL COM PLAINT

1,Bl-yan M aslnela,being firstduly sw orn,state'

.

A G ENT BA C K G RO tJND .AN D IN TR O D U CTIO N

1. 1am a United States PostalInspectorand have been em ployed by theU nited States

Postal lnspection Service since Feblamry 2003. As a U .S. Postal lnspector, your affiant is

responsible forthe investigation ofviolations of U nited States law ,incltlding violations of Title

18 ofthe United StatesCode. lam cun'ently assigned to the m ailfraud temn in the M iam iDivision

and m y dtdies include investigating cases related to lnailfraud, w ire fraud,bank fraud,m oney

laundering,and related financial crilnes. l am authorized to obtain and execute tkderal arrest,

search,and seizure wan-ants.

2. This affidavitism ade in supportofa crim inalcom plaintcharging D AV ID TYLER

HINES (CCHINES'') with violations of Title l8, United States Code, Sedions 1014 (False
StatementstoaFinanciallnstitution),1344(Bank Fraud),and 1957(EngaginginTransactionsin
UnlawfulProceeds).
3. This .
affidavit is based on m y personal ilw estigation and investigation by others,

including federaland locallaw enforcem entom cials whom Iknow to be reliable and tnzstw orthy.

The facts contained herein have been obtained by intenziew ing w itnesses and exam ining

docum ents obtained in the course of the ilw estigation as w ell as through other m eans.

at-
fidavit does not include every factlk
-1zown to m e aboutthis ilw estigation,but ratheronly those

factssuflicientto establish probable cause.

Case 1:20-mj-03237-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 4 of 11

O V ERV IEW O F TH E SC H EM E A N D TH E PA Y C H EC K PR O T ECTIO N PR O G M M

Overviob'oftheJkyc/lcc/zProteaionProgram
4. TheCoronavirusAid,Relief,and EconomicSecurity(CLCARES'')Actisafederal
1aw enacted in or around M arch 2020 designed to provide em ergency l-
inancialassistance to the

m illionsofAm ericansw ho aresuftkring the econom ic eftkctscaused by theCO V ID-19pandem ic.

One source ofreliefprovided by the CARES Actwasthe authorization ofup to $349 billion in

forgivable loans to slnallbusinesses forjob retention and certain other expenses,through a

prograln refen-ed to asthe Paycheck Protection Prograln (çTPP''). ln or around April2020,
Conr essatlthorized over$300 billion in additionalPPP ftlnding.
5. In order to obtain a PPP loan, a qualifying business m tlst subm it a PPP loan

application, w lzich is signed by an autholized representative of the business. R'he PPP loan

application requires the business (through its autlzorized representative)to acknowledge the
program l-ules and lnak.e certain am nnative certificationsin orderto be eligible to obtain the PPP

loan.InthePPP loan application,thesmallbusiness(through itsauthorizedrepresentative)must

state,amongotherthings,its:(a)averagelnonthlypayrollexpenses'
,and(b)numberot-employees.
These t'igures are used to calculate the am ountof m oney the slnallbusiness is eligible to receive

underthe PPP. ln addition,businessesapplying fora PPP loan m ustprovide doctlm entation to the

lending institution showing theirpayrollexpenses;typically,businesses w ould supply docum ents

showingtheamountofpayrolltaxesrepol-tedtotheIntenAalRevenueSelwiceC:IRS'').
6. A PPP loan applieation nzustbe processed by a participating lender. Ifa PPP loan

application is approved,tlze participating lenderfunds the PPP loan using its ow n m onies,w hich

are 100f
?4)guarantced by Slnalll3usinessytdlnillistration (&:Sl3.
?
:
t''). Data ti-om the applicatitm,
ilzehldillg illfbnalation aboutthe borroqver,the totalanlolultoftlle loall,alld the listed lzunlber of
Case 1:20-mj-03237-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 5 of 11

em ployees,is transm itted by the lenderto the SBA in the course of processing the loan. hzthe

ordinary course ofproviding the loan guaranty,neitherthe SBA norany othergovenunentagency

checked IRS recordsto confinn thatthe applicanthad paid the payrolltaxesrepresented in the PPP

applications.

7. PPP loan proceedsm ustbe used by the businesson cellain pennissible expenses

payrollcosts,intereston m ortgages,rent,and tltilities. The PPP allow sthe interestand principal

on the PPP loan to be entirely forgiven ifthe business spends the loan proceeds on these expense

item s uzithin a desiglmted period oftilne afterreceiving the proceeds and uses a certain am ountof

the PPP loan proceedson payrollexpenses.

BackgroundOfHINES tu1#Overview oftlteScheme

'lhe U nited States isinvestigating fraudtllentapplications subm itted in the nam e of

com paniesoperated by D A VID TY LER HIN ES,to a lenderapproved by the SBA . HIN ES sought

approxim ately $13.5 million in PPP funds,purportedly for the purpose of paying em ployees.

Thoseptlrported employeeseitherdidnotexistoreanzed afraction ofwhatHINES claim ed in his

PPP applications. Collectively,H IN ES falsely claim ed his colnpaniespaid m illions of dollars in

payroll in tlze ls1-st quarter of 2020. State and bank records,how ever,show litlle to no payroll

expense during this period.

9. '
Fhe lender approved three applications and paid $3,984,557.00 in PPP loans.

Instead offunding payroll,H IN ES spentthe PPP m oney on personalexpenses atdating w ebsites,

luxuryjewelozandclothingretailers,andM iamiBeachresorts. HINES alsospentPPP ftmdsto

purchasea2020Latnborghinisportscarfor$318,497.53thatheregisteredjointlyin hisnameand
the nmne ofhis com pany.
Case 1:20-mj-03237-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 6 of 11

H IN ES vvasa residentofsliam i,Florida atalltim esrelevantto the eventsdescribed

herein. H IN ES lists hilnself as authorized represelztative and either lnanager or presidentoffour

com paniesthatapplied for PPP loans.

The w ebsite for the Florida State Division of Corporations

(hdps'
.,
'/dos.lnyforida.com/stlnbiz/)liststhefollowinginfonnationforeachofthefourcompanies

(collectively,theCCHINES Companies'l:
Entity Nam e PrincipalAddress Status asofthis
Filin
Unified Relocation Solutions.LLC ($CURS''I 150SE 2ndAve Active-
ElN 82-1949494 M iam i,FL 33131 Reinstatem entfiled
l1/16/19
PromasterM overs,lnc.Cpromaster'') 4000HollywoodBlvd Inactive
E1N 82-4192745 Suite 555-5
Hollyavood,FL 33021

Cash in HoldingsLLC (û6CIH'') 8150SW 72ndAve Active-

ElN 81-3594154 Stlite 1822 Reinstatelnentt'
iled
M ialni,FL 33143 3/4/20
W e-pack M ovilzgLLC (çCW PM '') 2054VistaParkway Active-
E1N 81-1412635 Suite 400 Reinstatem entfiled
N am e changed to JB H unt M overs LLC W estPalm Beach,FL 3/4/20
effective 9/3/2019

HINES islisted astheregistered agentforeach com pany.

l2. The undersigned conducted an Intem et search for these businesses and fotm d no

record of any operating w ebsites.1

Tlte Lending # /Izl#

13. Bank A isafinancialinstitutionfederally insured bythe FederalDepositInsurance

Col-
poration (ççFD1C''). Bank A isbasedin Charlotte,North Carolinawith branchesthroughout

1 Theonlyrecorded activity ofabusinessonlinecomestiom reviewsontheBetterBusinessBureau website

forPromasterand I.VPNI.80th businessesareF-rated buginessesonthesite.Based oncustoluercomments,
itappearsthatPronlasterand TRTPNIactedasbrokersformovàv sen'ices, Virtuallyallofthereviewsinclude
complaintsrelatingto bait-and-switch practicesand otherdeceitfulactivities.
Case 1:20-mj-03237-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 7 of 11

the United States. Bank A participated in the SB A 'S PPP as a lenderand,assuch,w as authorized

to lend fundsto eligible bol-row erstm derthetenus ofthe PPP.

### Loan Applications Subm itted ây H IN ES to B ank ,4

14. The govenm zent has obtained and I have review ed a copy of seven PPP loan

applicationsthatw ere subm itted by H IN ES to Bank A . Bank A funded three ofthe seven loans:

Loan Entity Application N um berof A m ountSought/claim ed A mount D ate

# Name StartDate Emqloyees AverageMonthlyPayroll Disbursed Deposited
Clalmed
(IA'' URS 4/18/20 8 $10,380.00 $10,380.00 5/11/20
//7631 $40,0O0/'
m onth
idB'' CH'
l 5/9.
/20 49 $794,835.00 $794,835.00 5/13/20
#6l06 $317,934.25/m0nth

ù%C'' Prolnaster 5/9/20 13 $3,179,342.00 $3,l79,342.00 5/26/20

#6065 $1,271,736.99/m0n1
d(D'' LFRS d/b/a 5/10/20 9 $6,358,684.00 Closedby
#t)803 BT M $2,543,473,60/n10n1 BOA
itE'' Promaster 5/23/20 170 S1,800,000 Closedby
#2Olt) $720,t)00/month BOA

.$F'' CIH 5/26/20 49 $787,500.00 Closedby

#6437 $315,000/month BOA
UG'' C'H.l 5/27/20 49 $612,000.00 Closedby
//1l32 S244,800/month BOA

Total $13,542,741.00 * ,984,557.00

O n each loan application,H IN ES identitied him self asthe m anagerand authorized

l-epresentative ofthe applicanttnusiness. According to Bank A ,H IN ES signed and subm itted his

applications electronically through his online Bank A accotmts. H IN ES also subm itted pum orted

copiesofIntenzalRevenueSenzice(ççIRS'')taxfonnsin supportofhisapplications.
16. The proceedsforthese accotlntsw ere to be disbursed in the fbllow ing fourBank'z'
:
t

accotlntsthatI'
IINES opelled in N'
Iianzi,Florida betweell2016and2018(collectively,the::I-
IINES
ConlpalliesAccotlnts-'l:(l)checki
'ng accoulltx7423 (in thel'
lanze ofURSI,(2)savingsaccotmt
Case 1:20-mj-03237-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 8 of 11

x0857 (in thenalneofURS),(3)checking accountx6470 (in thename ofPromaster),and (4)

cheeking accotmtx6016 (in thenameofCIH).HINES wasthesole signeron theCIH andthe
U RS clzecking accounts,and one of only tw o authorized sir ers on the Prolnaster checking and

LJRS savings accounts. 1have reviewed accotmtopening records and bank statem ents forthese

accountsfrom JanuarythroughJune2020.Bank A verifiedtheidentityofHINESwhen heopened

the Prom asterand C1H accounts by recording thenulnberofhisFlorida driver'slicense. The sam e

license num berand nam e are associated w ith the registration ofthe Lam borghinispol-tscar.

FalseStatem ents tuz### Applications

17. HIN ES lnade a nunzberoffalse represelztations on his PPP loan applications.

18. First,H INES m ade false representations regarding the num ber of enzployees and

m onthly payroll. HIN ES claim ed in the applications to have atleast 70 em ployees and m onthly

payrollofapproximately $4 million attheHINES Com panies.

19. A review ofthe H FN ES Com paniesA ecounts from January tlzrough Aprilof2020

shows monthly intlows and outtlows averaging around $200,000- farlessthan the m illions of

dollars in payrollthatH IN ES soughtin the PPP applications.

20. From January through April2020,the blm k records show paym ents to atm ost a

dozen dilTerent individuals from HIN ES Com panies'accounts. Paym ents identified as work or

pap related w eretypically m ade by electronic m oney transferselwices Zelle orV enm o and in no

case amotlnted to m ore than $3,000 (e.g.,Zelle transferto CtGerard hvorkf'for $704.81,
.Zelle
transferto iilordan W ork''for$1,531.64'
,Check for$1,698,m emo line:k:pay throtlgh 2/161').
21. '
lX e Florida D epartm entofR evenue requires em ployersto reportrecords ofw ages

paid to elnployees by Florida col-porations as partof '

the paynlent 0f reelnploynzent tax. The

6
Case 1:20-mj-03237-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 9 of 11

FloridaDepartlnentofRevenue had no record ofwage infonnation paid to em ployeesofHINES

Colnpaniesfroln thet'
irstquarterof2015through the firstquarterof2020.

### ProceedsSpenton falzxlzry,and PersonalItem s,fac/lztfïzlg Lam borghiniSportscar

22. M oreover,H IN ES m ade a num beroffalse statem entsrelating to the use ofthe PPP

funds in hisloan applications. Forexam ple,HIN ES electronically certified that:

A 11SBA loan proceedsw illbe used only forbusiness-related pul-poses asspecitied

in the loan application and consistent with the Paycheck Protection Program
lkule....

The funds w illbe used to retain w orkers and m aintain payroll or lnake m ortgage
paym ents,lease paym ents,and utility paym ents',as specitied underthe Paycheck
Protection Prol aln Rule;1 tmderstand that if the funds are know ingly used for
unauthorizedpurposes,thefederalgovernm entm ay hold me legally liable,such as
forcharges offraud....

These statem ents w ere know ingly false wllen m ade because,as ftlrtlzer detailed below ,H IN ES

neverhad the payrollobligationsthatheclaim ed to have,and HINES im m ediately diverted loan

proceedsforunauthorized uses.

23. On A
'lay 11, 2020 and M ay 13, 2020, Bank A deposited $10,380.00 and

$794,835.00 in PPP funds in the respective LJRS and C1H checking accounts. Prior to those

deposits,therespectivebalancesinthose accountswere $.30 and -$31,369.17. Between M ay 11

alld M ay 14,$408,100.00 in PPP m oney wastransfen'

edfrom those accountsto the URS savings

accotlnt.Therewereno otherdepositsinto thataccountbetween M ay 1andM ay 14,2020,which

openedthem onth with abalance of$8,693.08.On M ay 18,2020,awirefor$318,497.53wassent

ti-
om LJRS savings accountto ::C:U'D ealership''w ith the follow ing note:çt am borghiniH uracan

EV0 ''

Records froln ttcal-lAealership''shoAv H IN ES,identifsed by llis lk

-lorida driver-s

license, purchased a Lalnbor ini sportscar (vehicle identification nunlber

Case 1:20-mj-03237-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 10 of 11

ZHW LJF4ZF3LLA13255)for$318,497.53on May 18 in North M iamiBeach,Florida. Florida

departlnentofmotorvehiclesrecordsshow theLamborghinisportscarisregisteredjointlyinthe
nam e ofH IN ES and U nified Relocation Solutions LLC,a self-described lnoving com pany.

25. The largest paynzents drawn on these accotmts in M ay and Jtme are listed below .

Theredoesnotappearto be any tnusinesspurposeform ost,ifnotall,ofthese expenses.

D ate Payee A m ount

5/13/20 ltklom'' $15>000.00
5/14/20 HINES cash $9,500.00
5/27/20 ççNlom'' $15 000.00
5/27/20 Saks Fifth Ave $4,622.40
6,
/3/20 SubjectB $15,000.00
6/5/20 Fontainebleau M iami $4,089.00
6/8/20 H INES cash $9,500.00
6/8/20 SubjectA $10,000.00
6/9/20 SubjectC $15,000.00
6/10/20 The SetaiHotelM iam iBeach $7,264.97
6/'10/20 SubjectC $6,200.00
6/15/20 SubjectD $5,000.00
6/15,/20 Grat'
rDiam onds $8,530.00
6,/22720 TheM iam iBeach E $5,988.02
26. M any ofthe sm allerpaym entslnade from the H IN ES Com paniesA ccounts in M ay

and June wereforrideshare and food delivery services. HIN ES him selfdoesnothave any personal

accotmts atBank A but appearsto usethe H IN ES Com panies Accotmts forpersonalpurposes.

Balzk A closed the H IN ES Com panies A ccounts on June 24,2020. 'Ihe account

balancestetaled $3,463,162.68andtherehavebeen norepaym entson the loans.

C onclusion

28. Based on m y training and experience,and the infonnation provided in thisatx davit,

ll'espectfully subm itthatthere isprobable cause to believe that:

On 01-abotlt N,
faJ,
'9, 2020,in the Southem D istrict01: -Florida and elsewhere,the
defendant,D A V ID 7-.IIINES.did km oAvingly lnake a false statenzentand reportfor
the ptu-
pose ofinfluencing the aetion 017a tinancial instittltion w hose deposits are
insured by the Federal Deposit lnsurance Corporation in connection w ith a loan
Case 1:20-mj-03237-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 11 of 11

application,in thatthe defendantfalsely represented on his application fora PPP

loan to Bank A thathe had averagemonthly gayrollforhiscompanj Cash in
Holdings LLC ofapproximately $245,135,in vlolation ofTitle l8,Unlted States
Code,Section 1014.

On oraboutM ay 13,2020,in the Southern DistrictofFlorida and tlsewhere,the

defendant,D AV ID T.HIN ES,did know ingly,and w ith intentto defraud,execute,
and attem pttoexecute,and causetheexecutionof,aschem eand artificetodefraud
a financialinstitution,which scheme and artifice employed a m aterialfalsehood,
and did knowingly,and with intentto defraud,execute,and attemptto execute,and
causetheexecutionofaschemeandartificetomoneysand fundsownedby,and
under the custody and controlof a financialinstitutlon,by means offalse and
fraudulentgretenses,representations,andpromisesrelatingtoamaterialfact,that
is,by causlng Bank A to deposit$794,835.00 into an accountcontrolled by the
defendant,in violation ofTitle 18,United StatesCode,Section 1344.

* On oraboutM ay 18,2020,in the Southern DistrictofFlorida,and elsewhere,the

defendant,DAVID T.HINES,did knowingly engage and attemptto engage in a
monetary transaction affecting interstateand foreigncom m erceincriminalderived
property ofa value greaterthan $10,000,which the defendantknew was derived
from a specified unlawfulactivity,to wit:tht purchmse of a 2020 Lamborghini
sportscarin tht amountof$318,497.53,which fundsrepresented tht proceedsof
fundsobtainedthrough W ireFraud and BankFraud,in violationofTitle 18,United
StatesCode,Section 1957.
FURTHER YOUR AFFIANT SA YETH NAUGHT.

>

Bryantm smela
Unlted StatesPostallnspector

Attested to by theApplicantin accordancewith the requirementsof

Fed.R.Crim .P,4.1by 'relephone this 23 day ofJtlly 2020.

HONORABLE J 'QUELINE BECERRA

UNITED STAT M AGISTRATE JUDGE
SOU TH ERN DISTRICT O F FLO RID A