By CBSLA Staff

LOS ANGELES (CBSLA) — A Beverly Grove man was being held without bond Thursday after being arrested on federal charges alleging that he fraudulently obtained millions of dollars in Paycheck Protection Program loans, the U.S. Department of Justice announced.

Andrew Marnell, 40, was arrested Thursday morning on on federal charges alleging he fraudulently obtained millions of dollars in Paycheck Protection Program loans. (Credit: U.S. Department of Justice)

Andrew Marnell, 40, has been charged with one count of bank fraud for allegedly obtaining more than $8 million in PPP loans through applications to insured financial institutions, and others, on behalf of different companies, according to a criminal complaint.

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Prosecutors said they now believe he received approximately $9 million in fraudulent loans. They also believe that number could rise as the investigation continues.

According to court documents, Marnell submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ business operations and payroll expenses. Court documents also allege that Marnell, often using aliases, submitted fake and altered documents, including federal tax filings and employee payroll records.

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

If convicted as charged, Marnell faces a statutory maximum sentence of 30 years in federal prison, according to the DOJ. He is due back in court Tuesday.

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