Los Angeles man arrested charged with PPP loan fraud
US law enforcement arrested and charged a man with fraudulently obtaining loans through the Paycheck Protection Program (PPP).
On July 16, Acting Assistant Attorney General Brian C. Rabbitt of the Criminal Division of the Department of Justice and United States Attorney Nicola T. Hanna of the Central District of California announced the arrest of Andrew Marnell, 40, of Los Angeles, California.
A criminal complaint unsealed the same day charged Marnell with one count of bank fraud for allegedly submitting bogus claims through the PPP, an initiative created in response to the 2019 coronavirus (COVID-19) outbreak to encourage employers to keep their workers on the payroll.
Using pseudonyms backed by false and fraudulent identifications, Marnell is accused of submitting loan applications making misleading or false statements about the companies he was filing for. He allegedly backed these claims with false federal income tax returns, employee payroll records and other relevant documents.
Marnell reportedly received around $ 8.5 million in P3 loans received as a result of these activities, according to the criminal complaint.
A declaration from the Department of Justice’s Public Affairs Office (DOJ) clarified what Marnell would have done with the money he received:
The complaint further alleges that Marnell then transferred the fraudulently obtained loan proceeds to his brokerage account to make risky stock market bets and similarly spent hundreds of thousands of dollars on loan proceeds fraudulently obtained at a casino in Las Vegas.
The Justice Department press release did not specify when Marnell could face trial for his alleged crimes.
This is not the first time that crooks have abused the prospect of economic relief from COVID-19 for their own gang. In mid-March, for example, malicious actors sent fraudulent emails informing beneficiaries that economic stimulus checks in the amount of $ 1,000 awaited them.
The emails then informed the recipients that they simply needed to send their personal information, bank details, and social security numbers – in essence, all the data needed to perform identity theft – to collect their information. funds.