$3.9 Million is relatively a large sum of money. If you were to receive such amount, what will you do with the money? How will you spend it?
In this time of the pandemic, many people would likely answer the question as spending it through groceries. Giving priority to necessities and other household needs, including bills. While what is left of the money is saved for future use if ever the pandemic crisis will persist through the next few months.
In recent news, a business owner in Florida named David T. Hines received a sum of $3.9 Million as COVID-19 relief.
The money was a loan from the federal Paycheck Protection Program (PPP), the fund was meant to help small businesses and employees affected by the coronavirus pandemic.
After Hines received the money, he went on a shopping spree. Spending the fund on personal expenses instead of giving it to support his company and employees. He bought a 2020 Lamborghini Huracan sports car, luxury jewelry, expensive clothing retailers, and rented a beach resort in Miami.
On Monday, David T. Hines was arrested and charged with fraud after he allegedly swindled the Paycheck Protection Program funds.
The Department of Justice said that Hines did not only embezzled the funds allotted to help his employees but he also made false claims about payroll expenses in his company when he applied for the Paycheck Protection Program.
“Those purported employees either did not exist or earned a fraction of what Hines claimed in his PPP applications…. Hines falsely claimed his companies paid millions of dollars in payroll in the first quarter of 2020. State and bank records, however, show little to no payroll expense during this period,” the complaints said.
If you were given $3.9 Million would you go on a shopping spree like Hines? Or spend it on more practical and household necessities?
In a survey conducted by Schwab’s 2019 Modern Wealth, “What Would Americans Likely do with a Million Dollar?”
Results showed that about 54% would spend it, 28 % would use the money to pay off their debts, 23% would invest the funds to generate income, while 21% chooses to save the money for future use.
What is the Paycheck Protection Program? Why Did Hines Receive $3.9 Million?
The Paycheck Protection Program is established by the CARES Act. This government program aims to support small businesses with funds to pay up employees’ payroll including benefits. The fund can also be used for the company’s mortgages, utilities, and rent. This program gives priority to the Americans employed by small businesses for job retention.
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Jeffry Jeve , News Fior Author, is a dedicated Freelance Writer and a Blogger who stays organized as much as possible. He became a writer in Modern Writers PH and a Managing-Editor-in-Chief in a school publication named “The Lightseekers”.