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Man Dealing with Up To 40 Years In Jail After Scamming $9 Million In Covid-19 Relief Loans

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Whew! Talk about paying the worth of cashing in on a fast come-up. A California man is dealing with critical time behind bars for allegedly scamming almost 9 million {dollars} from COVID-19 reduction applications. According to the Department of Justice, Andrew Marnell from Los Angeles recently pleaded guilty to 2 federal prices for the scheme.

“The Department of Justice will use every available federal tool—including criminal, civil, and administrative actions—to combat and prevent COVID-19 related fraud,” Attorney General Merrick Garland wrote in a May 2021 memo in regards to the COVID-19 Fraud Enforcement Task Force.

Unlike the viral memes, Andrew’s PPP-funded wealth has ran its course.  According to courtroom paperwork, the 41-year-old instructed police he fraudulently collected cash from seven Payroll Protection Program (PPP) loans. To qualify, Andrew submitted purposes that includes “false and misleading statements” in regards to the enterprise operations and payroll bills of a number of corporations.

Andrew flew beneath the radar of suspicion by utilizing aliases and pretend and altered paperwork. The paperwork trial consists of “bogus federal tax filings and employee payroll records.”

After he secured the loans, he reportedly transferred hundreds of thousands to his brokerage account “to make risky stock market bets.” Not solely that, Andrew additionally blew via hundreds of {dollars} at “gambling establishments.”

According to Newsweek, the Small Business Administration is responsible for establishing the PPP in March 2020 through the Coronavirus Aid, Relief and Economic Security Act (CARES). Their aim was to help corporations with 500 workers or much less, nonprofits and sole proprietors with monetary wants escalated by the pandemic.

In addition to the PPP loans, the CARES Act additionally awarded cash via the Economic Injury Disaster Loan Program (EIDL). Andrew didn’t cross up the extra alternative to money out. He additionally reportedly obtained $170,000 in EIDL loans.

Still, Andrew’s scheme led to a plea settlement. He declared himself responsible to at least one rely of financial institution fraud and one rely of “engaging in a monetary transaction involving criminal proceeds.” The first cost is a heavy hitter, which means it comes with “a 30-year statutory maximum penalty.” Meanwhile, the second cost “carries a 10-year statutory maximum penalty.” Andrew’s sentencing is scheduled for February 14, 2022.

Per his plea deal, Andrew has agreed to forfeit all of the goodies he collected utilizing PPP cash. This checklist consists of “$1.54 million seized from several brokerage accounts, $319,298 in cash recovered from his residence, numerous electronic devices, a Rolex Oyster watch, a Range Rover and a Ducati motorcycle.”

“We look forward to working with our federal government colleagues to bring to justice those who seek to profit unlawfully from the pandemic,” Attorney General Garland wrote.

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