On July 15, 2020, the Department of Justice ("DOJ")
charged Andrew Marnell with bank fraud in connection with $8.5
million worth of Paycheck Protection Program ("PPP")
loans he obtained for fake business expenses, that were then spent
on gambling and stock market bets, incurring millions of dollars in
losses. See United States v. Marnell, No.
2:20-mj-03313-DUTY (C.D. Cal. Jul. 15, 2020).
The PPP is a form of emergency relief to support job retention
for small businesses suffering from the economic effects of the
COVID-19 pandemic. Catalyzed by the Coronavirus Aid, Relief, and
Economic Security ("CARES") Act, enacted on March 29,
2020, the PPP provides qualifying small businesses 1% interest
loans with a two-year maturity for payroll costs, interest on
mortgages, rent, and utilities, with the interest and principal
amount forgiven if the proceeds are spent on these expenses within
a certain period of time.
