LOS ANGELES (CBSLA) — A Beverly Grove man has pleaded guilty to taking out $9 million in fraudulent COVID relief loans and spending it on gambling trips to Las Vegas, a Rolex Watch, a Range Rover and a Ducati motorcycle.
READ MORE: Dodgers' Scherzer Planned NLCS Game 1 Starter Against Braves
Andrew Marnell, 41, pleaded guilty Tuesday to one count each of bank fraud and money laundering. He has been in custody since July 16 of last year.READ MORE: McDonald's To Roll Out Meatless 'McPlant' Burger In South Bay On Nov. 3
Marnell admitted to taking PPP and CARES Act loans using aliases and fake or altered documents that included bogus federal tax filings and employee payroll records, according to the Department of Justice. Once the loans were granted, prosecutors say Marnell transferred the money to his brokerage accounts and made risky stock market bets and spent hundreds of thousands of dollars at various casinos in Las Vegas.
According to his plea agreement, Marnell agreed to forfeit items related to the fraudulent PPP funds, including more than $1.54 million seized from his brokerage accounts, $319,298 in cash recovered from his home, several electronic devices, a Rolex Oyster watch which can retail for as much as $6,000, a Range Rover and a Ducati motorcycle.MORE NEWS: Anesthesiologist Dr. Amir Friedman Sentenced For Bribery Charges
Marnell faces a statutory maximum sentence of 40 years in federal prison at his sentencing, which is scheduled for Feb. 14, 2022. He has also agreed to pay more than $7.3 million in restitution to the victim lenders in this case.