August 13, 2020 #1 Local News, Information and Event Source for the Century City/Westwood areas.

West L.A. Man Charged With Fraudulently Obtaining and Gambling Away COVID-Relief Loans

Andrew Marnell faces up to 30 years in prison

By Staff Writer

A resident of the Beverly Grove neighborhood of Los Angeles was ordered held without bond this afternoon after being arrested on federal charges alleging he fraudulently obtained millions of dollars in Paycheck Protection Program (PPP) loans, some of which he used on gambling excursions to Las Vegas and transferred to his stock trading accounts.

Andrew Marnell, 40, was arrested this morning by federal authorities. Marnell made his initial court appearance this afternoon in United States District Court in Los Angeles, where he was ordered detained pending a hearing on Tuesday.

A criminal complaint unsealed in court this afternoon charges Marnell with one count of bank fraud and alleges he obtained more than $8 million in PPP loans through applications to insured financial institutions, and others, on behalf of different companies. During today’s court hearing, prosecutors said they now believe Marnell received approximately $9 million in fraudulent loans – a number that could rise as the investigation continues.

The affidavit in support of the complaint alleges that Marnell submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ business operations and payroll expenses. The affidavit also alleges that Marnell, often using aliases, submitted fake and altered documents, including bogus federal tax filings and employee payroll records.

The complaint further alleges that Marnell then transferred millions of dollars from the fraudulently obtained loan proceeds to his brokerage accounts to make risky stock market bets. The affidavit also outlines how Marnell spent hundreds of thousands of dollars in fraudulently obtained loan proceeds at the Bellagio Hotel & Casino and other gambling establishments as recently as last weekend.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April, Congress authorized more than $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

The bank fraud count alleged in the complaint against Marnell carries a statutory maximum sentence of 30 years in federal prison.

Related Posts

Longtime Westside Donut Shop Taking Over Stan’s Donuts

August 11, 2020

August 11, 2020

Westwood Village Stan’s Donuts to be taken over by Primo’s Donuts By Sam Catanzaro A longtime Westside donut shop will...

County Reaches Somber COVID-19 Milestone

August 11, 2020

August 11, 2020

Hospitalizations continue to decline By Sam Catanzaro L.A. County reached a somber milestone Tuesday of over 5,000 COVID- 19 deaths....

Fatal Shooting Occurs Near West LA Police Station

August 10, 2020

August 10, 2020

By Staff Writer A man is in custody after a person was fatally shot near a West Los Angeles police...

Edify TV: Westsiders Embracing Aquatic Activities

August 10, 2020

August 10, 2020

While social and physical distancing continues, Westsiders have been taking to the ocean for some sunshine and recreation. Learn more...

New Vaccine Requirements for University of California Schools: Century City, Westwood Beat – August, 10, 2020

August 10, 2020

August 10, 2020

Century City, Westwood Beat – August, 10, 2020 – Local news and culture in under 5 minutes. * New Vaccine...

Column: Nine-Bill Housing Package Derails Local Choices

August 10, 2020

August 10, 2020

By Tom Elias, Century City-Westwood News Columnist The silver lining provided by some past pandemics has been that they opened minds,...

Edify TV: Flurry of Development in Westside Neighborhood

August 10, 2020

August 10, 2020

A Westside neighborhood, known for its ramen restaurants and all things Japanese, is undergoing a flurry of development. Learn more...

Edify TV: Notable Westside Properties Hit Market

August 10, 2020

August 10, 2020

From architecturally unique houses in Venice and Pacific Palisades to a property once valued at $100 million in Bel Air,...

Nearly 60% of New COVID-19 Cases Occur in Younger Residents

August 6, 2020

August 6, 2020

Younger adults continue to make up the majority of new COVID-19 cases County health officials say. The Los Angeles County...

Open Air Homes: Bringing High-End Rentals to LA

August 6, 2020

August 6, 2020

By Toi Creel In 2012 Brad Greiner, an independent filmmaker found himself in a financial pinch where he could no...

UCLA Decreases In-Person Learning Options: Century City, Westwood Beat – August, 6, 2020

August 6, 2020

August 6, 2020

Century City, Westwood Beat – August, 6, 2020 – Local news and culture in under 5 minutes. * UCLA Decreases...

UCLA Football Players Test Positive for COVID-19

August 6, 2020

August 6, 2020

LA County Dept. of Public Health confirms positive tests  By Sam Catanzaro  Los Angeles County health officials have announced members...

Additional Sexual Assault Charges Filed Against Former UCLA Doctor

August 4, 2020

August 4, 2020

James Mason Heaps faces up to 67 years in prison By Sam Catanzaro An obstetrician-gynecologist formerly employed by the University...

Edify TV: The Art of Making Noise

August 3, 2020

August 3, 2020

Local Venice Beach residents and artists came together to create a live art exhibition bringing awareness to racial violence in...

Karen Bass For Vice President? Century City, Westwood Beat – August, 3, 2020

August 3, 2020

August 3, 2020

Local news and culture in under 5 minutes. * Karen Bass For Vice President? * LA Rents Decreasing?  All this...

Comments
Leave a Reply

Your email address will not be published. Required fields are marked *