A man from California frauds at least $8M over coronavirus aid. He has been arrested for having fraud over coronavirus aid. He used to claim that he was having coronavirus aid for which he earned at least $8million.He got arrested over these claims.
He is found to be Andrew Marnell who is 40. He is accused of submitting fake loan applications on behalf of different companies to fix Paycheck Protection Program funds.
In Los Angeles, Prosecutors reveal that he spends hundreds of thousands of dollars at Las Vegas casinos. He was in a habit to gamble the money. It was also revealed that he also gambles his money that was earned by fraud for having coronavirus aid
He also spent the funds to make high-risk stock market bets. Andrew Marnell will face up to 30 years in prison if he was convicted of bank fraud.
Criminal Complaint to be Charged
He is charged by criminal complaint, unsealed today upon his arrest, in the Central District of California with one count of bank fraud.
The complaint alleges that Marnell obtained approximately $8.5 million in PPP loans through applications to insured financial institutions, and others, on behalf of different companies. The complaint alleges that Marnell caused to be submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ respective business operations and payroll expenses. The complaint also alleges that, in further support of the fraudulent loan applications, Marnell submitted fake and altered documents, including fake federal tax filings and employee payroll records. The complaint also alleges that these loan applications were made by using false and fraudulent identifications that were aliases of Marnell.
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 in fraudulently-obtained loan proceeds at a Las Vegas casino.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is 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 2020, Congress authorized over $300 billion in additional PPP funding.
source: Department of Justice Office of Public Affairs https://www.justice.gov/opa/pr/california-man-charged-covid-relief-fraud