August 25, 2025 The Best Source of News, Culture, Lifestyle for Culver City, Mar Vista, Del Rey, Palms and West Los Angeles

Westside Man Pleads Guilty to Gambling Away Fraudulently-Obtained COVID-Relief Loans

Andrew Marnell pleads guilty to one count of bank fraud 

By Chad Winthrop

A West Los Angeles man pleaded guilty this week to federal charges stemming from a scheme that used a series of corporations he controlled to fraudulently obtain approximately $9 million in loans from COVID-relief programs, some of which he used on gambling excursions to Las Vegas and transferred to his stock trading accounts.

Andrew Marnell, 41, who resides in the Beverly Grove neighborhood, pleaded guilty to one count of bank fraud and one count of money laundering.

Marnell admitted that he fraudulently obtained Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Marnell obtained seven PPP loans from financial institutions for corporations he controlled that brought him just under $9 million.

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

The PPP program was implemented by the CARES Act, which was signed into law in March 2020 and was designed to provide relief to businesses affected by the coronavirus pandemic. The CARES Act also provided funding to The Economic Injury Disaster Loan Program (EIDL) administered by the SBA. Marnell admitted that he fraudulently obtained $170,000 in EIDL loans.

Once the loans were funded, Marnell transferred millions of dollars from the fraudulently obtained loan proceeds to his brokerage accounts to make risky stock market bets, according to court documents, which note that Marnell spent hundreds of thousands of dollars in fraudulently obtained loan proceeds at various gambling establishments.

As part of the plea agreement, Marnell agreed to forfeit items related to the pilfered PPP loan funds, including more than $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.

As a result of his guilty pleas, Marnell will face a statutory maximum sentence of 40 years in federal prison when he is sentenced by United States District Judge R. Gary Klausner on February 14, 2022. In addition to any prison sentence he receives, Marnell has agreed to pay restitution to the victim lenders to compensate the losses this case, an amount believed to be $7,341,376.

Marnell has been in custody since his arrest in this matter on July 16, 2020.

in Crime, News
Related Posts

Sawtelle Neighborhood Could See Seven New Small-Lot Homes Under SB 684

August 25, 2025

August 25, 2025

Plans Filed Call for Replacing a Single-Family Residence With Two-Story Homes A proposed housing development could build seven small-lot homes...

18-Year-Old Woman Fatally Shot While Trying to Break Up a Fight on a Metro Bus

August 24, 2025

August 24, 2025

Police Say the Teen Was Killed in Westchester After Intervening in a Dispute  Efforts to break up a fight on...

Chuck Lorre Buys $27.5 Million Bel Air Mansion With Hollywood Regency Pedigree

August 24, 2025

August 24, 2025

TV Producer Closed on the John Elgin Woolf–Designed Estate at a Discount Chuck Lorre, the television producer behind The Big...

Is $1,500 Enough Anymore? The L.A. Tradeoffs Between Address and Actual Living Space

August 24, 2025

August 24, 2025

New Analysis Shows What 1500 Really Buys in the LA Metro In Greater Los Angeles, $1,500 rents less space than...

Two Days, Two Denials: Menendez Brothers Rejected for Parole

August 23, 2025

August 23, 2025

Erik Denied After 10-Hour Hearing; Lyle Rebuffed the Next Day Erik Menendez, convicted along with his brother in the 1989...

Rob Reiner to Attend for ‘This is Spinal Tap’ as Cinespia Wraps Summer at Hollywood Forever

August 23, 2025

August 23, 2025

Cinespia Closes Out Summer: Fan Favorites and DJs Return to Hollywood Forever Cinespia will close out summer with four outdoor...

Amber Alert for a Critical Missing Incident: Two Foster Brothers Abducted

August 23, 2025

August 23, 2025

Police Seek Non-Custodial Mother Jackeline Hernandez-Torres The California Highway Patrol issued a statewide Amber Alert after two foster brothers, ages...

Culver City Police Seize Ghost Gun: Suspect Arrested After Traffic Stop

August 23, 2025

August 23, 2025

Officers Uncover Untraceable Firearm With High-Capacity Magazine Police say a traffic stop near Prospect Avenue and Venice Boulevard resulted in...

Man Arrested After Burglary Report at Lionel Richie’s Beverly Hills Home

August 22, 2025

August 22, 2025

Police Say the Singer Was Home When the Suspect Entered the Property One suspect was taken into custody early Friday...

Extreme Heat Warning Extended in L.A. County: Officials Urge Safety Precautions

August 22, 2025

August 22, 2025

National Weather Service Alerts Cover Valleys, Mountains, and Coastal Areas Dangerous heat is expected to persist through the weekend in...

Ex-Culver City Recreation Worker Indicted: Charged With Exploiting 7-Year-Old in Federal Case

August 22, 2025

August 22, 2025

Prosecutors Say the Former After-School Employee Faces Child Pornography Charges Federal prosecutors say a former Culver City after-school employee has...

Jury Awards $3.8M to Man Injured by Rubber Bullet During 2020 George Floyd Protest in the Fairfax District

August 22, 2025

August 22, 2025

Filmmaker Suffered Permanent Injuries After Being Struck by a Sheriff’s Deputy’s Round Los Angeles County must pay nearly $4 million...

LAPD Urges Possible Victims to Come Forward in Sexual Assault Case Linked to Social Media

August 22, 2025

August 22, 2025

Suspect Arrested Aug. 20 on Suspicion of Forcible Rape Los Angeles police are asking for the public’s help in identifying...

Frozen Shrimp Recall Expanded to California After Radioactive Contamination Concerns

August 21, 2025

August 21, 2025

Southwind Foods Adds California Shrimp Recall Tied to Possible Cesium-137 Exposure Southwind Foods, LLC is recalling select packages of frozen...

LAPD to Step Up DUI Enforcement With Weekend Checkpoints and Patrols

August 21, 2025

August 21, 2025

Police Plan Multiple Operations Across Los Angeles August 22-24  The Los Angeles Police Department will operate a series of DUI...