Indictment — United States v. Andrew Marnell (Dkt. 38, C.D. Cal. No. 2:20-cr-00319)

Record facts

U.S. District Court for the Central District of California · No. 2:20-cr-00319-RGK · Doc. 38 · 2021-09-07 · Docket on CourtListener

Full text

1 II TRACY L. WILKISON 
Acting United States Attorney 
2 II SCOTT M. GARRINGER 
Assistant United States Attorney 
3 II Chief, Criminal Division 
KERRY L. QUINN (Cal. Bar No. 302954) 
4 II Assistant United States Attorney 
Major Frauds Section 
5 II 
1100 United States Courthouse 
312 North Spring Street 
6 II 
Los Angeles, California 90012 
Telephone: 
(213) 894-5423 
7 11 
Facsimile: 
(213) 894-6269 
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E-mail: 
Kerry.L.Quinn@usdoj.gov 
JOSEPH BEEMSTERBOER 
9 II Acting Chief, Fraud Section 
SCOTT ARMSTRONG 
10 II Trial Attorney 
Fraud Section, Criminal Division 
11 111400 New York Ave NW 
Washington,· DC, 20005 
12 II Telephone: (202) 353-0801 
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E-mail: 
Scott.Armstrong@usdoj.gov 
Attorneys for Plaintiff 
14 I UNITED STATES OF AMERICA 
15 11 
UNITED STATES DISTRICT COURT 
16 11 
FOR THE CENTRAL DISTRICT OF CALIFORNIA 
1 7 II UNITED STATES OF AMERICA, 
18 II 
Plaintiff, 
19 II 
V. 
20 II ANDREW MARNELL, 
21 II 
Defendant . 
No. CR 20-319-RGK 
PLEA AGREEMENT FOR DEFENDANT 
ANDREW MARNELL 
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1. 
This constitutes the plea agreement between ANDREW MARNELL 
24 11 ("defendant") and the United States Attorney's Office for the Central 
25 II District of California (the "USAO") and the Fraud Section of the 
26 II Criminal Division of the United States Department of Justice 
27 II (collectively with the USAO, the "Offices") in the above-captioned 
28 \lease. 
This agreement is limited to the Offices and cannot bind any 
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other federal, state, local, or foreign prosecuting, enforcement, 
administrative, or regulatory authorities. 
DEFENDANT'S OBLIGATIONS 
2.
Defendant agrees to:
a.
Give up the right to indictment by a grand jury and,
at the earliest opportunity requested by the Offices and provided by 
the Court, appear and plead guilty to counts one and two of the two­
count superseding information in the form attached to this agreement 
as Exhibit A or a substantially similar form, which charges defendant 
with bank fraud in violation of 18 U.S.C. § 1344(2) and money 
laundering in violation of 18 U.S.C. § 1957. 
b. 
Not contest facts agreed to in this agreement. 
c. 
Abide by all agreements regarding sentencing contained 
in this agreement. 
d. 
Appear for all court appearances, surrender as ordered 
for service of sentence, obey all conditions of any bond, and obey 
any other ongoing court order in this matter. 
e. 
Not commit any crime; however, offenses that would be 
excluded for sentencing purposes under United States Sentencing 
Guidelines ("U.S.S.G." or "Sentencing Guidelines") § 4Al.2(c) are not 
within the scope of this agreement. 
f. 
Be truthful at all times with the United States 
Probation and Pretrial Services Office and the Court. 
g. 
Pay the applicable special assessments at or before 
the time of sentencing unless defendant has demonstrated a lack of 
ability to pay such assessments. 
h. 
Defendant agrees that any and all criminal debt 
28 II obligations ordered by the Court will be due in full and immediately. 
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The government is not precluded from pursuing, in excess of any 
payment schedule set by the Court, any and all available remedies by 
which to satisfy defendant's payment of the full financial 
obligation, including referral to the Treasury Offset Program. 
i.
Complete the Financial Disclosure Statement on a form
provided by the Offices and, within 30 days of defendant's entry of a 
guilty plea, deliver the signed and dated statement, along with all 
of the documents requested therein, to the USAO by either email at 
usacac.FinLit@usdoj.gov (preferred) or mail to the USAO Financial 
Litigation Section at 300 North Los Angeles Street, Suite 7516, Los 
Angeles, CA 90012. 
Defendant agrees that defendant's ability to pay 
criminal debt shall be assessed based on the completed Financial 
Disclosure Statement and all required supporting documents, as well 
as other relevant information relating to ability to pay. 
j.
Authorize the Offices to obtain a credit report upon
returning a signed copy of this plea agreement. 
k.
Consent to the Offices inspecting and copying all of
defendant's financial documents and financial information held by the 
United States Probation and Pretrial Services Office. 
3. 
F ORFEITURE AND FINANCIAL ACCOUNTABILITY 
Defendant further agrees: 
a.
To forfeit all right, title, and interest in and to
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any and all monies, properties, and/or assets of any kind, derived 
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from or acquired as a result of, or used to facilitate the commission 
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of, or involved in the illegal activity to which defendant is 
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pleading guilty, specifically including, but not limited to, the 
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following (collectively, the "Forfeitable Property"): 
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i.
$319,298.50 in United States currency seized
from defendant's residence; 
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One Rolex Oyster watch serial 3341V2104 seized 
from defendant's residence; 
iii.
One Rolex Oyster watch serial LW576819 seized
from defendant's residence; 
iv.
One 2020 Land Rover Range Rover, VIN:
SALGS2SE7LA597796 seized from defendant's residence; 
v.
One 2020 Ducati Motorcycle, VIN:
ZDMDAGNW6LB014163 seized from defendant's residence; 
vi.
One SanDisk thumbdrive, 1B80, FBI bar code
E6512901 seized from defendant's residence; 
vii.
One Lenovo ThinkPad 3 Dock, 1B77, FBI bar code
E6512898 seized from defendant's residence; 
viii. 
One MacBook Model A1286, Serial Number: 
W8016CXHAGU, 1B70, FBI bar code E6512891 seized from defendant's 
residence; 
ix. 
One Dell Latitude Laptop, Serial Number: 
6WM6NN2, 1B69, FBI bar code E6512890 seized from defendant's 
residence; 
x.
One Lenovo Yoga Laptop, Model Name: 80Y7,
Serial Number: PF0YW75K, 1B68, FBI bar code E6512889 seized from 
defendant's residence; 
xi.
One Dell Latitude Laptop, Serial Number:
858BJM2, 1B67, FBI bar code E6512888 seized from defendant's 
residence; 
xii.
Five SanDisk USB sticks, 1B65, FBI bar code
E6512886 seized from defendant's residence; 
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xiii. 
One black Apple Watch with black band, 1B64,
FBI bar code E6512885 seized from defendant's residence; 
xiv. 
One Gamer Storm tower, Serial Number: 
DC2016082400194, 1B62, FBI bar code E6512883 seized from defendant's 
residence; 
xv. 
One Lenovo ThinkCentre computer tower, Model 
Number: Sl7Y00, Serial Number: MJ06EL2N, 1B59, FBI bar code E6512880 
seized from defendant's residence; 
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One white and blue PNY USB flash drive, 32GB, 
10 II 1B57, FBI bar code E6512878 seized from defendant's residence; 
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xvii. 
One digital camera Coolpix L310 with SD card 
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in Lowepro case, 1B56, FBI bar code E6512877 seized from defendant's 
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residence; 
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xviii. One iPhone 11 in black Spigen case, 1B54, FBI 
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bar code E6512875 seized from defendant's residence; 
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xix.
One Aria flash drive, 1B52, FBI bar code
E6512873 seized from defendant's residence; 
xx.
One iWatch, Serial Number: FHLQKEBCG9J8 in
42mm case without band, 1B51, E6512872 seized from defendant's 
residence; 
xxi.
One Anker external hard drive, 1B50, FBI bar
code E6512871 seized from defendant's residence; 
xxii. 
One Garmin watch, M/N: HRM-S33 with band, 
1B49, FBI bar code E6512870 seized from defendant's residence; 
xxiii.
One Royal Caribbean flash drive, 1B48, FBI bar
code E6512869 seized from defendant's residence; 
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xxiv.
One white and gold iPhone, Model A1533, IMEI:
357989057801980 in rubber case, 1B46, FBI bar code E6512867 seized 
from defendant's residence; 
xxv.
One white nvery Koolu cell phone, 1B45, FBI
bar code E6512866 seized from defendant's residence; 
xxvi.
One grey MacBook, Model A2251, Serial Number:
C02CWHKFML7H, 1B41, FBI bar code E6512862 seized from defendant's 
8 II residence;
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One iPad in Louis Vuitton case cover, 1B37,
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FBI bar code E6512858 seized from defendant's residence; 
xxviii. One grey MacBook, Model A2179, Serial Number:
C02CQ20MPV4M, in blue case, 1B34, FBI bar code E6512855 seized from 
defendant's residence; 
xxix.
One grey MacBook, Model A2251, Serial Number:
C02CJBZMML7H, 1B33, FBI bar code E6512854 seized from defendant's 
residence; 
xxx.
One Lenovo ThinkPad Xl, Serial Number: R9-
0QGLTR, 1B32, FBI bar code E6512853 seized from defendant's 
residence; 
xxxi.
One grey iPhone in black Spigen phone case,
1B31, FBI bar code E6512852 seized from defendant's residence; 
xxxii.
One grey Samsung phone, IMEI: 352620111233028,
1B30, in black Spigen phone case, FBI bar code E6512851 seized from 
defendant's residence; 
xxxiii. One grey Samsung phone, IMEI: 352620111356092,
1B29, FBI bar code E6512850 seized from defendant's residence; 
xxxiv.
One unknown digital device, 1B66, FBI bar code
E6512887 seized from defendant's residence; 
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xxxv. $165,894.19 seized from an account ending 6944
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at Interactive Brokers LLC held in the name of Xtractd LLC; 
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xxxvi. $3,321.90 seized from an account ending 9164 at
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Interactive Brokers LLC held in the name of Andrew J. Marnell; 
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xxxvii. $ 526.32 seized from an account ending 2842 at
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Interactive Brokers LLC held in the name of Andrew J. Marnell; 
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$1,366,895.04 seized from an account ending
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2627 at Charles Schwab Inc. and Charles Schwab Futures, subsidiaries 
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of Charles Schwab Corporation held in the name of Andrew Marnell; 
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$5,217.77 seized from an account ending 6538
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at Aspiration Financial LLC held in the name of Andrew Marnell; and 
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$324.84 seized from an account ending 6561 at
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Aspiration Financial LLC held in the name of Andrew Marnell. 
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b.
To the Court's entry of an order of forfeiture at or
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before sentencing with respect to the Forfeitable Property and to the 
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forfeiture of the assets. 
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C .
That the Preliminary Order of Forfeiture shall become
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final as to the defendant upon entry. 
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d.
To take whatever steps are necessary to pass to the
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United States clear title to the Forfeitable Property, including, 
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without limitation, the execution of a consent decree of forfeiture 
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and the completing of any other legal documents required for the 
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transfer of title to the United States. 
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e.
Not to contest any administrative forfeiture
25 proceedings or civil judicial proceedings commenced against the 
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Forfeitable Property. 
If defendant submitted a claim and/or petition 
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for remission for all or part of the Forfeitable Property on behalf 
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of himself or any other individual or entity, defendant shall and 
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hereby does withdraw any such claims or petitions, and further agrees 
to waive any right he may have to seek remission or mitigation of the 
forfeiture of the Forfeitable Property. Defendant further waives any 
and all notice requirements of 18 U.S.C. § 983(a) (1) (A). 
f.
Not to assist any other individual in any effort
falsely to contest the forfeiture of the Forfeitable Property. 
g.
Not to claim that reasonable cause to seize the
Forfeitable Property was lacking. 
h.
To prevent the transfer, sale, destruction, or loss of
any and all assets described above to the extent defendant has the 
ability to do so. 
i .
To fill out and deliver to the USAO a completed
financial statement listing defendant's assets on a form provided by 
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the USAO. 
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j.
That forfeiture of Forfeitable Property shall not be
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counted toward satisfaction of any special assessment, fine, 
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restitution, costs, or other penalty the Court may impose. 
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k.
With respect to any criminal forfeiture ordered as a
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result of this plea agreement, defendant waives: (1) the requirements 
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of Federal Rules of Criminal Procedure 32.2 and 43(a) regarding 
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notice of the forfeiture in the charging instrument, announcements of 
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the forfeiture at sentencing, and incorporation of the forfeiture in 
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the judgment; (2) all constitutional and statutory challenges to the 
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forfeiture (including by direct appeal, habeas corpus or any other 
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means); and (3) all constitutional, legal, and equitable defenses to 
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the forfeiture of the Forfeitable Property in any proceeding on any 
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grounds including, without limitation, that the forfeiture 
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constitutes an excessive fine or punishment. 
Defendant acknowledges 
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that the forfeiture of the Forfeitable Property is part of the 
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sentence that may be imposed in this case and waives any failure by 
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the Court to advise defendant of this, pursuant to Federal Rule of 
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Criminal Procedure ll(b) (1) (J), at the time the Court accepts 
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defendant's guilty pleas. 
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THE OFFICES' OBLIGATIONS 
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4.
The Offices agree to:
a.
Not contest facts agreed to in this agreement.
b.
Abide by all agreements regarding sentencing contained
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in this agreement. 
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c.
Except for criminal tax violations (including
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conspiracy to commit such violations chargeable under 18 U.S.C. 
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§ 371), not further criminally prosecute defendant for violations of
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15 U.S.C. § 645 and 18 U.S.C. §§ 1001, 1014, 1028, 1029, 1341, 1344, 
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1956, and 1957, arising out of defendant's conduct described in the 
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agreed-to factual basis set forth in Exhibit B to this agreement. 
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Defendant understands that the Offices are free to criminally 
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prosecute defendant for any other unlawful past conduct or any 
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unlawful conduct that occurs after the date of this agreement. 
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Defendant agrees that at the time of sentencing the Court may 
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consider the uncharged conduct in determining the applicable 
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Sentencing Guidelines range, the propriety and extent of any 
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departure from that range, and the sentence to be imposed after 
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consideration of the Sentencing Guidelines and all other relevant 
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factors under 18 U .S .C. § 3553 (a) . 
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d.
At the time of sentencing, move to dismiss the
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underlying indictment as against defendant. 
Defendant agrees, 
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however, that at the time of sentencing the Court may consider any 
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dismissed charges in determining the applicable Sentencing Guidelines 
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range, the propriety and extent of any departure from that range, and 
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the sentence to be imposed. 
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e.
At the time of sentencing, provided that defendant
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demonstrates an acceptance of responsibility for the offenses up to 
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and including the time of sentencing, recommend a two-level reduction 
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in the applicable Sentencing Guidelines offense level, pursuant to 
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U.S.S.G. § 3El.1, and recommend and, if necessary, move for an 
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additional one-level reduction if available under that section. 
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f.
Recommend that defendant be sentenced to a term of
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imprisonment no higher than the low end of the applicable Sentencing 
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Guidelines range, provided that the offense level used by the Court 
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to determine that range is 31 or higher and provided that the Court 
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does not depart downward in offense level or criminal history 
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category. 
For purposes of this agreement, the low end of the 
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Sentencing Guidelines range is that defined by the Sentencing Table 
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in U.S.S.G. Chapter 5, Part A. 
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NATURE OF THE OFFENSES 
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5.
Defendant understands that for defendant to be guilty of
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the crime charged in count one of the superseding information, that 
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is, bank fraud, in violation of Title 18, United States Code, Section 
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1344(2), the following must be true: 
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First, defendant knowingly carried out a scheme or plan to 
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obtain money or property from a financial institution by making 
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false statements or promises; 
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Second, defendant knew that the statements or promises were 
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false; 
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1 II 
Third, the statements or promises were material, that is, they 
2 II 
had a natural tendency to influence, or were capable of 
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influencing, a financial institution to part with money or 
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property; 
5 II 
Fourth, defendant acted with the intent to defraud, that is, the 
6 II 
intent to deceive and cheat; and 
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Fifth, the financial institution was federally insured. 
8 II 
6. 
Defendant understands that for defendant to be guilty of 
9 II the crime charged in count two of the superseding information, that 
10 llis, money laundering, in violation of Title 18, United States Code, 
11 II Section 1957, the following must be true: 
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First, the defendant knowingly engaged or attempted to engage in 
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a monetary transaction; 
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Second, the defendant knew the transaction involved criminally 
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derived property; 
Third, the property had a value greater than $10,000; 
Fourth, the property was, in fact, derived from bank fraud as 
alleged in count two of the superseding information ; and 
Fifth, the transaction occurred in the United States. 
The term "monetary transaction" means the deposit, withdrawal, 
transfer, or exchange, in or affecting interstate commerce, of funds 
or a monetary instrument by, through, or to a financial institution. 
The term "criminally derived property" means any property 
constituting, or derived from, the proceeds of a criminal offense. 
PENALTIES AND RESTITUTION 
7.
Defendant understands that the statutory maximum sentence
that the Court can impose for a violation of Title 18, United States 
Code, Section 1344(2), is: 30 years' imprisonment; a 5-year period of 
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1 II supervised release; a fine of $1,000,000 or twice the gross gain or 
2 II gross loss resulting from the offense, whichever is greatest; and a 
3 llmandatory special assessment of $100. 
4 II 
8. 
Defendant understands that the statutory maximum sentence 
5 II that the Court can impose for a violation of Title 18, United States 
6 II Code, Section 1957, is: 10 years' imprisonment; a 3-year period of 
7 II supervised release; a fine of $250,000 or twice the twice the amount 
8 llof the criminally derived property involved in the offense, whichever 
9 llis greatest; and a mandatory special assessment of $100. 
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9. 
Defendant understands, therefore, that the total maximum 
11 II sentence for all offenses to which defendant is pleading guilty is: 
12 1140 years' imprisonment; a 5-year period of supervised release; a fine 
13 llof $1,250,000 or twice the gross gain or gross loss resulting from 
14 II the offenses, whichever is greatest; and a mandatory special 
15 II assessment of $200. 
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10. 
Defendant understands that defendant will be required to 
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pay full restitution to the victims of the offenses to which 
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defendant is pleading guilty. 
Defendant agrees that, in return for 
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the Offices' compliance with their obligations under this agreement, 
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the Court may order restitution to persons other than the victims of 
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the offenses to which defendant is pleading guilty and in amounts 
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greater than those alleged in the counts to which defendant is 
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pleading guilty. 
In particular, defendant agrees that the Court may 
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order restitution to any victim of any of the following for any 
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losses suffered by that victim as a result: (a) any relevant conduct, 
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as defined in U.S.S.G. § lBl.3, in connection with the offenses to 
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which defendant is pleading guilty; and (b) any counts dismissed and 
2 8  charges not prosecuted pursuant to this agreement as well as all 
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1 II relevant conduct, as defined in U.S.S.G. § lBl.3, in connection with 
2 II those counts and charges. 
The parties currently believe that the 
3 II applicable amount of restitution is approximately $7,341,376.33, but 
4 II recognize and agree that this amount could change based on facts that 
5 II come to the attention of the parties prior to sentencing. 
6 II 
11. 
Defendant understands that under 21 U.S.C. § 862a, 
7 II defendant will not be eligible for assistance under state programs 
8 II funded under the Social Security Act or Federal Food Stamp Act or for 
9 II federal food stamp program benefits, and that any such benefits or 
10 II assistance received by defendant's family members will be reduced to 
11 II reflect defendant's ineligibility. 
12 II 
12. 
Defendant understands that supervised release is a period 
13 llof time following imprisonment during which defendant will be subject 
14 llto various restrictions and requirements. 
Defendant understands that 
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if defendant violates one or more of the conditions of any supervised 
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release imposed, defendant may be returned to prison for all or part 
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of the term of supervised release authorized by statute for the 
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offense that resulted in the term of supervised release, which could 
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result in defendant serving a total term of imprisonment greater than 
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the statutory maximum stated above. 
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13.
Defendant understands that, by pleading guilty, defendant
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may be giving up valuable government benefits and valuable civic 
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rights, such as the right to vote, the right to possess a firearm, 
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the right to hold office, and the right to serve on a jury. Defendant 
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understands that he is pleading guilty to a felony and that it is a 
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federal crime for a convicted felon to possess a firearm or 
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ammunition. 
Defendant understands that the convictions in this case 
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may also subject defendant to various other collateral consequences, 
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1 II including but not limited to revocation of probation, parole, or 
2 II supervised release in another case and suspension or revocation of a 
3 II professional license. 
Defendant understands that unanticipated 
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collateral consequences will not serve as grounds to withdraw 
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defendant's guilty pleas. 
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14. 
Defendant and his counsel have discussed the fact that, and
7 II defendant understands that, if defendant is not a United States 
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citizen, the convictions in this case makes it practically inevitable 
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and a virtual certainty that defendant will be removed or deported 
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from the United States. 
Defendant may also be denied United States 
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citizenship and admission to the United States in the future. 
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Defendant understands that while there may be arguments that 
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defendant can raise in immigration proceedings to avoid or delay 
14 II removal, removal is presumptively mandatory and a virtual certainty 
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in this case. 
Defendant further understands that removal and 
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immigration consequences are the subject of a separate proceeding and 
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that no one, including his attorney or the Court, can predict to an 
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absolute certainty the effect of his convictions on his immigration 
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status. 
Defendant nevertheless affirms that he wants to plead guilty 
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regardless of any immigration consequences that his pleas may entail, 
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even if the consequence is automatic removal from the United States. 
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FACTUAL BASIS 
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15.
Defendant admits that defendant is, in fact, guilty of the
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offenses to which defendant is agreeing to plead guilty. 
Defendant 
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and the Offices agree to the statement of facts set forth in Exhibit 
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B to this agreement and incorporated herein by reference, and agree 
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that this statement of facts is sufficient to support pleas of guilty 
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to the charges described in this agreement and to establish the 
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1 II Sentencing Guidelines factors set forth in paragraph 17 below but is 
2 II not meant to be a complete recitation of all facts relevant to the 
3 II under lying criminal conduct or all facts known to either party that 
4 II relate to that conduct. 
5 II 
SENTENCING FACTORS 
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1 6. 
Defendant understands that in determining defendant's 
7 II sentence the Court is required to calculate the applicable Sentencing 
8 II Guidelines range and to consider that range, possible departures 
9 II under the Sentencing Guidelines, and the other sentencing factors set 
10 II forth in 18 U.S.C. § 3553(a). Defendant understands that the 
11 II Sentencing Guidelines are advisory only, that defendant cannot have 
12 II any expectation of receiving a sentence within the calculated 
13 II Sentencing Guidelines range, and that after considering the 
14 II Sentencing Guidelines and the other § 3553(a) factors, the Court will 
15 llbe free to exercise its discretion to impose any sentence it finds 
16 II appropriate up to the maximum set by statute for the crimes of 
1 7 II conviction. 
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17. 
Defendant and the Offices agree to the following applicable 
19 11 Sentencing Guidelines factors: 
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Base Offense Level: 
Specific Offense 
Characteristics 
Intended loss greater than 
$9,500,000 and less than or 
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equal to $25,000,000 
+20 
More than $1,000,000 derived 
from a financial institution 
+2 
1957 Money Laundering 
+1 
15 
[ U. S . S. G. § 2B 1. 1 (a) ( 1) ] 
[U.S.S.G. § 2B1.l(b) (1) (K)]
[ U . S • S . G. § 2B 1 . 1 ( b) ( 1 7 ) ]
[ U. S . S. G. §§ 2 S 1. 1 (a) ( 1) &
(b) (2) (A), 3Dl.2(c)] 
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18. 
Defendant and the Offices reserve the right to argue that 
2 II additional specific offense characteristics, adjustments, and 
3 II departures under the Sentencing Guidelines are appropriate. 
4 II 
19. 
Defendant understands that there is no agreement as to 
5 II defendant's criminal history or criminal history category. 
6 II 
20. 
Defendant and the Offices reserve the right to argue for a
7 II sentence outside the sentencing range established by the Sentencing 
8 II Guidelines based on the factors set forth in 18 U.S.C. § 3553 (a) (1), 
9 
10 
11 
12 
13 
14 
15 
(a)(2), (a)(3), (a)(6), and (a)(7). 
WAIVER OF CONSTITUTIONAL RIGHTS 
21. 
Defendant understands that by pleading guilty, defendant 
gives up the following rights: 
a. 
The right to persist in a plea of not guilty. 
b. 
The right to a speedy and public trial by jury. 
c. 
The right to be represented by counsel 
and if 
16 
necessary have the Court appoint counsel -- at trial. 
Defendant 
17 
understands, however, that, defendant retains the right to be 
18 
represented by counsel -- and if necessary have the Court appoint 
19 
counsel -- at every other stage of the proceeding. 
20 
d.
The right to be presumed innocent and to have the
21 
burden of proof placed on the government to prove defendant guilty 
22 
beyond a reasonable doubt. 
23 
e.
The right to confront and cross-examine witnesses
24 
against defendant. 
25 
f.
The right to testify and to present evidence in
26 
opposition to the charges, including the right to compel the 
27 
attendance of witnesses to testify. 
28 
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1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
g. 
The right not to be compelled to testify, and, if 
defendant chose not to testify or present evidence, to have that 
choice not be used against defendant. 
h.
Any and all rights to pursue any affirmative defenses,
Fourth Amendment or Fifth Amendment claims, and other pretrial 
motions that have been filed or could be filed. 
WAIVER OF RETURN OF DIGITAL DATA 
22.
Understanding that the government has in its possession
digital devices and/or digital media seized from defendant, defendant 
waives any right to the return of digital data contained on those 
digital devices and/or digital media and agrees that if any of these 
digital devices and/or digital media are returned to defendant, the 
government may delete all digital data from those digital devices 
and/or digital media before they are returned to defendant. 
WAIVER OF APPEAL OF CONVICTION 
23.
Defendant understands that, with the exception of an appeal
17 
based on a claim that defendant's guilty pleas were involuntary, by 
18 
pleading guilty defendant is waiving and giving up any right to 
19 
appeal defendant's convictions on the offenses to which defendant is 
20 
pleading guilty. 
Defendant understands that this waiver includes, 
21 
but is not limited to, arguments that the statutes to which defendant 
22 
is pleading guilty are unconstitutional, and any and all claims that 
23 
the statement of facts provided herein is insufficient to support 
24 
defendant's pleas of guilty. 
25 
LIMITED MUTUAL WAIVER OF APPEAL OF SENTENCE 
26 
24.
Defendant agrees that, provided the Court imposes a total
27 
term of imprisonment on all counts of conviction of no more than 135 
28 
months, defendant gives up the right to appeal all of the fol lowing: 
17 
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1 II {a) the procedures and calculations used to determine and impose any 
2 II portion of the sentence; (b) the term of imprisonment imposed by the 
3 
Court; {c) the fine imposed by the Court, provided it is within the 
4 
statutory maximum; {d) to the extent permitted by law, the 
5 
constitutionality or legality of defendant's sentence, provided it is 
6 
within the statutory maximum; (e) the amount and terms of any 
7 II restitution order, provided it requires payment of no more than 
8 
$7,341,376.33; (f) the term of probation or supervised release 
9 
imposed by the Court, provided it is within the statutory maximum; 
10 
and {g) any of the following conditions of probation or supervised 
11 
release imposed by the Court: the conditions set forth in Amended 
12 
General Order 20-04 of this Court; the drug testing conditions 
13 
mandated by 18 U.S.C. §§ 3563{a) (5) and 3583(d); and the alcohol and 
14 
drug use conditions authorized by 18 U.S. C. § 3 5 63 (b) (7) . 
15 
25.
The Offices agree that, provided {a) all portions of the
16 
sentence are at or above the statutory minimum and at or below the 
17 
statutory maximum specified above and (b) the Court imposes a term of 
18 
imprisonment of no less than 108 months, the Offices give up their 
19 
right to appeal any portion of the sentence, with the exception that 
20 
the Offices reserve the right to appeal the amount of restitution 
21 
ordered if that amount is less than $7,341,376.33. 
22 
WAIVER OF COLLATERAL ATTACK 
23 
26.
Defendant also gives up any right to bring a post-
24 
conviction collateral attack on the convictions or sentence, 
25 
including any order of restitution, except a post-conviction 
26 
collateral attack based on a claim of ineffective assistance of 
27 
counsel, a claim of newly discovered evidence, or an explicitly 
28 
retroactive change in the applicable Sentencing Guidelines, 
18 
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1 
sentencing statutes, or statutes of conviction. 
Defendant 
2 
understands that this waiver includes, but is not limited to, 
3 
arguments that the statutes to which defendant is pleading guilty are 
4 
unconstitutional, and any and all claims that the statement of facts 
5 
provided herein is insufficient to support defendant's pleas of 
6 
guilty. 
The agreement in this paragraph does not affect in any way 
7 
the right of the Offices to appeal the sentence imposed by the Court. 
8 
RESULT OF WITHDRAWAL OF GUILTY PLEA 
9 
27.
Defendant agrees that if, after entering guilty pleas
10 II pursuant to this agreement, defendant seeks to withdraw and succeeds 
11 
in withdrawing defendant's guilty pleas on any basis other than a 
12 
claim and finding that entry into this plea agreement was 
13 
involuntary, then (a) the Offices will be relieved of all of its 
14 
obligations under this agreement; and (b) should the Offices choose 
15 
to pursue any charge that was either dismissed or not filed as a 
16 
result of this agreement, then (i) any applicable statute of 
17 
limitations will be tolled between the date of defendant's signing of 
18 
this agreement and the filing commencing any such action; and 
19 
(ii)
defendant waives and gives up all defenses based on the statute
20 
of limitations, any claim of pre-indictment delay, or any speedy 
21 
trial claim with respect to any such action, except to the extent 
22 
that such defenses existed as of the date of defendant's signing this 
23 
agreement. 
24 
RESULT OF VACATUR, REVERSAL OR SET-ASIDE 
25 
28.
Defendant agrees that if any count of conviction is
26 
vacated, reversed, or set aside, the Offices may: 
(a) ask the Court 
27 
to resentence defendant on the remaining count of conviction, with 
28 
both the Offices and defendant being released from any stipulations 
19 
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1 
regarding sentencing contained in this agreement, (b) ask the Court 
2 
to void the entire plea agreement and vacate defendant's guilty plea 
3 lion the remaining count of conviction, with both the Offices and 
4 II defendant being released from all their obligations under this 
5 II agreement, and defendant agreeing that any statute of limitations 
6 II will be tolled, and all speedy trial claims and claims of pre-
7 II indictment delay will be waived, to the same extent as if a breach 
8 II had been declared, or (c) leave defendant's remaining conviction, 
9 
sentence, and plea agreement intact. 
Defendant agrees that the 
10 
choice among these three options rests in the exclusive discretion of 
11 
the Offices. 
12 
13 
EFFECTIVE DATE OF AGREEMENT 
29. 
This agreement is effective upon signature and execution of 
14 II all required certifications by defendant, defendant's counsel, and an 
15 
Assistant United States Attorney. 
16 
BREACH OF AGREEMENT 
17 
30.
Defendant agrees that if defendant, at any time after the
18 
effective date of this agreement, knowingly violates or fails to 
19 
perform any of defendant's obligations under this agreement ("a 
20 
breachn), the Offices may declare this agreement breached. 
All of 
21 
defendant's obligations are material, a single breach of this 
22 
agreement is sufficient for the Offices to declare a breach, and 
23 
defendant shall not be deemed to have cured a breach without the 
24 
express agreement of the Offices in writing. 
If the Offices declare 
25 
this agreement breached, and the Court finds such a breach to have 
26 
occurred, then: (a) if defendant has previously entered guilty pleas 
27 
pursuant to this agreement, defendant will not be able to withdraw 
28 
20 
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1 
the guilty pleas, and (b) the Offices will be relieved of all their 
2 
obligations under this agreement. 
3 
31.
Following the Court's finding of a knowing breach of this
4 
agreement by defendant, should the Offices choose to pursue any 
5 
charge that was either dismissed or not filed as a result of this 
6 
agreement, then: 
7 
a.
Defendant agrees that any applicable statute of 
8 
limitations is tolled between the date of defendant's signing of this 
9 
agreement and the filing commencing any such action. 
10 
b.
Defendant waives and gives up all defenses based on
11 
the statute of limitations, any claim of pre-indictment delay, or any 
12 
speedy trial claim with respect to any such action, except to the 
13 
extent that such defenses existed as of the date of defendant's 
14 
signing this agreement. 
15 
c.
Defendant agrees that: (i) any statements made by
16 
defendant, under oath, at the guilty plea hearing (if such a hearing 
17 
occurred prior to the breach); (ii) the agreed to factual basis 
18 
statement in this agreement; and (iii) any evidence derived from such 
19 
statements, shall be admissible against defendant in any such action 
20 
against defendant, and defendant waives and gives up any claim under 
21 
the United States Constitution, any statute, Rule 410 of the Federal 
22 
Rules of Evidence, Rule ll(f) of the Federal Rules of Criminal 
23 
Procedure, or any other federal rule, that the statements or any 
24 
evidence derived from the statements should be suppressed or are 
25 
inadmissible. 
26 
27 
28 
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1 
2 
3 
COURT AND UNITED STATES PROBATION AND PRET RIAL SERVICES 
OFFICE NOT PARTIES 
32. 
Defendant understands that the Court and the United States
4 II Probation and Pretrial Services Office are not parties to this 
5 II agreement and need not accept any of the Offices' sentencing 
6 
recommendations or the parties' agreements to facts or sentencing 
7 
factors. 
8 
33.
Defendant understands that both defendant and the Offices
9 
are free to: (a) supplement the facts by supplying relevant 
10 
information to the United States Probation and Pretrial Services 
11 
Office and the Court, 
(b) correct any and all factual misstatements 
12 
relating to the Court's Sentencing Guidelines calculations and 
13 
determination of sentence, and (c) argue on appeal and collateral 
14 
review that the Court's Sentencing Guidelines calculations and the 
15 
sentence it chooses to impose are not error, although each party 
16 
agrees to maintain its view that the calculations in paragraph 17 are 
17 
consistent with the facts of this case. 
While this paragraph permits 
18 
both the Offices and defendant to submit full and complete factual 
19 
information to the United States Probation and Pretrial Services 
20 
Office and the Court, even if that factual information may be viewed 
21 
as inconsistent with the facts agreed to in this agreement, this 
22 
paragraph does not affect defendant's and the Offices' obligations 
23 
not to contest the facts agreed to in this agreement. 
24 
34.
Defendant understands that even if the Court ignores any
25 
sentencing recommendation, finds facts or reaches conclusions 
26 
different from those agreed to, and/or imposes any sentence up to the 
27 
maximum established by statute, defendant cannot, for that reason, 
28 
withdraw defendant's guilty pleas, and defendant will remain bound to 
22 
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1 
2 
3 
4 
5 
6 
fulfill all defendant's obligations under this agreement. 
Defendant 
understands that no one 
not the prosecutor, defendant's attorney, 
or the Court -- can make a binding prediction or promise regarding 
the sentence defendant will receive, except that it will be within 
the statutory maximum. 
NO ADDITIONAL AGREEMENTS 
7 
35.
Defendant understands that, except as set forth herein, and
8 
in any agreement or addendum signed by all parties, there are no 
9 
promises, understandings, or agreements between the Offices and 
10 
defendant or defendant's attorney, and that no additional promise, 
11 
understanding, or agreement may be entered into unless in a writing 
12 
signed by all parties or on the record in court. 
13 II I I
14 11 I I
15 11 I I
16 II I I
17 
II 
18 
II 
19 
II 
20 
II 
21 
II 
22 
II 
23 
II 
24 
II 
25 II I I
2 6 II I I
27 I I I
28 II I I
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1 
2 
PLEA AGREEMENT PART OF THE GUILTY PLEA HEARING 
36.
The parties agree that this agreement will be considered
3 II part of the record of defendant's guilty plea hearing as if the 
4 II entire agreement had been read into the record of the proceeding. 
5 II AGREED AND ACCEPTED 
6 II UNITED STATES ATTORNEY'S OFFICE 
FOR THE CENTRAL DISTRICT OF CALIFORNIA 
UNITED STATES DEPARTMENT OF JUSTICE 
8 II CRIMINAL DIVISION, FRAUD SECTION 
9 II TRACY L. WILK! SON 
10 
11 
Acting United States Attorney 
KERRY L. QUINN 
12 II Assistant United States Attorney 
SCOTT ARMSTRONG 
Trial Attorney, F raud Section 
NEHA CHRI STERNA 
Attorney for Defendant ANDREW MARNELL 
Date 
Dau 
Date 
13 
14 
15 
16 
17 
18 
19 
20 
21 
CERTIFICATION OF DEFENDANT 
I have read this agreement in its enti rety. 
I have had enough 
22 II time to review and consider this agreement, and I have carefully and 
23 
thoroughly discussed every part of it with my attorney. 
I understand 
24 
the terms of this agreement, and I voluntarily agree to those terms. 
25 
I have discussed the evidence with my attorney, and my attorney has 
26 
advised me of my rights, of possible pretrial motions that might be 
27 
filed, of possible defenses that might be asserted either prior to or 
28 
at trial, of the sentencing factors set forth in 18 U.S.C. § 3553(a), 
24 
9/3/21
09/03/2021
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1 llof relevant Sentencing Guidelines provisions, and of the consequences 
2 llof entering into this agreement. 
No promises, inducements, or 
3 II representations of any kind have been made to me other than those 
4 II contained in this agreement. 
No one has threatened or forced me in 
5 II any way to enter into this agreement. 
I am satisfied with the 
6 II representation of my attorney in this matter, and I am pleading 
7 II guilty because I am guilty of the charges and wish to take advantage 
8 llof the promises set forth in this agreement, and not for any other 
9 
10 
11 
12 
13 
14 
reason. 
` 
WRNELL 
filJ 
I 
l 
Date 
Defendant 
CERTIFICATION OF DEFENDANT'S ATTORNEY 
I am ANDREW MAR NELL's attorney. 
I have carefully and thoroughly 
15 
discussed every part of this agreement with my client. 
Further, I 
16 
have fully advised my client of his rights, of possible pretrial 
17 II motions that might be filed, of possible defenses that might be 
18 II asserted either prior to or at trial, of the sentencing factors set 
19 II forth in 18 U.S.C. § 3553(a), of relevant Sentencing Guidelines 
20 II provisions, and of the consequences of entering into this agreement. 
21 II To my knowledge: no promises, inducements, or representations of any 
22 II kind have been made to my client other than those contained in this 
23 II agreement; no one has threatened or forced my client in any way to 
24 II enter into this agreement; my client's decision to enter into this 
25 II agreement is an informed and voluntary one; and the factual basis set 
26 
27 
28 
25 
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1 II forth in this agreement is sufficient to su pport my client's entry of 
2 II guilty pleas pursuant to this agreement. 
3 
4 II NEHA CHRISTERNA 
Attorney for Defendant 
5 II ANDREW MARNELL 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
Date 
26 
9/3/21
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EXHIBIT A 
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1 
2 
3 
4 
5 
6 
7 
8 
9 
UNITED STA TES DISTRICT COURT 
FOR THE CENTRAL DISTRICT OF CALIFORNIA 
10 II UNITED STA TES OF A!YlERICA, 
11 11 
Plaintiff, 
12 11 
V. 
13 II A NDREW MARNELL, 
aka "Andrew Maxwell,"
14 11 
aka "Andrew Merrill,"
aka "Tyler Lerman," 
15 
Defendant. 
CR No. 20- 319(A)-RGK 
F I R S T 
- - - - -
S U P E R S E D I N G 
-----------
I N F O R M A T I O N 
-----------
[18 U .S .C. § 1344 (2): Bank Fraud;
18 U.S.C. § 1957: Money 
Laundering); 18 U.S.C. § 982: 
Criminal Forfeiture] 
16 
17 
18 
19 
The Acting United States Attorney charges: 
20 IIA.
21 
22 
23 
COUNT ONE 
[18 U.S.C. §§1344(2), 2(b)] 
INTRODUCTORY ALLEGATIONS 
At times relevant to this First Superseding Information: 
Defendant MARNELL and the MARNELL-Controlled Entities 
37.
Defendant ANDREW MARNELL, also known as ("aka") "Andrew
24 II Maxwell," aka "Andrew Merrill," aka "Tyler Lerman," was a resident of 
25 II Los Angeles, California. 
26 
38. 
Defendant MARNELL owned and controlled corporate entities 
27 II registered in various states under various names, including Shale 
28 
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1 
Creek LLC ("Shale Creek"), Slatestone LLC ("Slatestone"), and 
2 
Quicksilver LLC ("Quicksilver") ( the "MARNELL-controlled entities") . 
3 
The Paycheck Protection Program 
4 
39.
The Coronavirus Aid, Relief, and Economic Security
5 
("CARES") Act was a federal law enacted in or around March 2020 and 
6 
designed to provide emergency financial assistance to the millions of 
7 
Americans who were suffering the economic effects caused by the 
8 
COVID-19 pandemic. 
One source of relief provided by the CARES Act 
9 
was the authorization of up to $349 billion in forgivable loans to 
10 
small businesses for job retention and certain other expenses, 
11 
through a program referred to as the Paycheck Protection Program 
12 
("PPP"). 
In or around April 2020, Congress authorized over $300 
13 
billion in additional PPP funding. 
14 
40.
In order to obtain a PPP loan, a qualifying business was
15 
required to submit a PPP loan application signed by an authorized 
16 
representative of the business. 
The PPP loan application required 
17 
the business (through its authorized representative) to acknowledge 
18 
the program rules and make certain affirmative certifications in 
19 
order to be eligible to obtain the PPP loan. 
In the PPP loan 
20 
application, the applicant (through its authorized representative) 
21 
was required to state, among other things, its: (a) average monthly 
22 
payroll expenses; and (b) number of employees. 
These figures were 
23 
used to calculate the amount of money the small business was eligible 
24 
to receive under the PPP. 
In addition, the applicant was required to 
25 
provide documentation showing its payroll expenses. 
26 
41.
A business's PPP loan application was received and
27 
processed, in the first instance, by a participating lender. 
If a 
28 
PPP loan application was approved, the participating lender funded 
2 
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1 
the PPP loan using its own monies. 
Data from the application, 
2 
including information about the borrower, the total amount of the 
3 II loan, and the listed number of employees, was transmitted by the 
4 lllender to the Small Business Administration ("SBA") in the course of 
5 II processing the loan. 
6 II 
42. 
PPP loan proceeds were required to be used by the business 
7 lion certain permissible expenses: 
payroll costs, interest on 
8 I mortgages, rent, and utilities. 
The PPP allowed the interest and 
9 II principal on the PPP loan to be entirely forgiven if the business 
10 II spent the loan proceeds on these expense items within a designated 
11 
period of time after receiving the proceeds and used a certain amount 
12 
of the PPP loan proceeds on payroll expenses. 
13 
Financial Institutions & Bank Account Controlled By Defendant MARNELL 
14 
43.
Lender A was a financial institution based in Texas and was
15 
an SBA approved lender of PPP loans. 
16 
44.
Casino 1 was a casino and gaming establishment with an
17 
annual gaming revenue of more than $1,000,000 and was licensed under 
18 
the laws of the State of Nevada, and qualified as a "financial 
19 
institution" for the purpose of 31 U.S.C. § 5312 and 18 U.S.C. 
20 
§ 1957.
21 
45.
Bank A was a financial institution based in San Francisco,
22 IICalifornia. 
23 
46.
Defendant MARNELL controlled and was a signatory to
24 
multiple accounts at an affiliate of Bank A, which was a broker 
25 
registered with the Securities and Exchange Commission under the 
26 
Securities Exchange Act of 1934 (15 U.S.C. § 78a et seq.), and 
27 
qualified as a "financial institution" for the purpose of 31 U.S.C. 
28 
§ 5312 and 18 U.S.C. § 1957. 
Among the accounts that defendant
3 
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1 II MARNELL controlled at the Bank A affiliate was an individual 
2 llbrokerage account in the name of "Andrew Justin Marnell," account 
3 
number ending in 2627 (the "2627 account") . 
4 
B. 
THE SCHEME TO DEFRAUD 
5 II 
4 7. 
Beginning in or about March 2020, and continuing until on 
6 llor about July 16, 2020, in Los Angeles County, within the Central 
7 II District of California, and elsewhere, defendant MARNELL, together 
8 II with others known and unknown to the Acting United States Attorney, 
9 II knowingly and with intent to defraud, devised, participated in, 
10 II executed, and attempted to execute a scheme to obtain moneys, funds, 
11 I credits, assets, and other property owned by and in the custody and 
12 II control of Lender A by means of materially false and fraudulent 
13 II pretenses, representations, and promises, and the concealment of 
14 llmaterial facts. 
15 
48. 
The fraudulent scheme operated and was carried out, in 
16 II substance, as follows: 
17 
a. 
Defendant MARNELL submitted, and caused to be 
18 
submitted, false and fraudulent applications to Lender A for PPP 
19 
loans purportedly on behalf of the MARNELL-controlled entities 
2 0 
(collectively, the "PPP Applications") . 
Specifically: 
21 
i. On or about April 14, 2020, defendant MARNELL
22 
submitted, and caused to be submitted, an application for a PPP loan 
23 
in the amount of $439,000 for borrower Shale Creek, which was 
24 
represented to be a Montana-headquartered firm, owned and controlled 
2 5 
by "Tyler Lerman," having 2 6 employees and average monthly payroll 
26 
expenses of $175,600; 
27 
ii. On or about April 29, 2020, defendant MARNELL
28 
submitted, and caused to be submitted, an application for a PPP loan 
4 
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1 
in the amount of $1,341,700 for borrower Slatestone, which was 
2 
represented to be a Wyoming-headquartered firm, owned and controlled 
3 
by "Andrew Merrill," having 75 employees and average monthly payroll 
4 
expenses of $536,680; and 
5 
iii.
On or about May 11, 2020, defendant MARNELL
6 
submitted, and caused to be submitted, an application for a PPP loan 
7 
in the amount of $1,818,000 for borrower Quicksilver, which was 
8 
represented to be a Montana-headquartered firm, owned and controlled 
9 
by "Andrew Maxwell," having 129 employees and average monthly payroll 
10 
expenses of $727,200. 
11 
b.
Defendant MARNELL submitted, and caused to be
12 
submitted, false documents and information to Lender A to obtain and 
13 
to try to obtain PPP loans in the names of the MARNELL-controlled 
14 
entities, including the following: 
15 
i. A false identification document concerning the
16 
ownership and control of Quicksilver, namely, a photograph of a fake 
17 
United States passport in the name of "Andrew Maxwell," with 
18 
defendant MARNELL's picture; 
19 
ii. False Internal Revenue Service ("IRS") Form 940 tax
20 
forms for Shale Creek, Slatestone, and Quicksilver, purporting to be 
21 
Employer's Annual Federal Unemployment Tax Act Returns filed with the 
22 
IRS for those entities; and 
23 
iii. False payroll data and documentation for Shale
24 
Creek, Slatestone, and Quicksilver, including documents purporting to 
25 be payroll registers for 2019 and 2020, purporting to show wages paid 
26 
to employees of those entities. 
27 
28 
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3 
4 
5 
6 
7 
8 
9 
10 
11 
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13 
14 
c.
Defendant MARNELL made, and caused to be made, false
statements in the PPP Applications, which defendant MARNELL knew were 
false when he made them and caused them to be made. 
For example: 
i. Defendant MARNELL falsely represented that the funds
sought through the PPP Applications would be used to pay payroll and 
other business expenses of the MARNELL-controlled entities, when, in 
fact, defendant MARNELL intended to use and did use the PPP loan 
proceeds to fund options and futures trading activities, to engage in 
gambling and entertainment activities, and to pay other personal 
expenses; 
ii. Defendant MARNELL falsely represented that "the
Applicant has not and will not receive another loan under the 
Paycheck Protection Program," and that the applicant did not own any 
other business or have common management with any other business, 
15 II when, in fact, defendant MARNELL intended to and did obtain other 
16 
loans under the Paycheck Protection Program for the MARNELL-
17 
controlled entities and all the MARNELL-controlled entities had 
18 
common management; and 
19 
iii. Defendant MARNELL falsely represented that "Tyler
20 
Lerman," "Andrew Merrill," and "Andrew Maxwell" were the owners of 
21 
the MARNELL-controlled entities, when, in fact, as defendant MARNELL 
22 
then knew, he owned and controlled those entities. 
23 
d.
In reliance on defendant MARNELL's materially false
24 
statements and his concealment of material facts, Lender A approved 
25 
and funded the PPP loans sought by defendant MARNELL in the names of 
26 
the MARNELL-controlled entities. 
Specifically, on or about the 
27 
following dates, Lender A sent the following funding wires: 
28 
6 
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1 
i. On or about April 16, 2020, Lender A wired, via ACH
2 
transfer, approximately $439,000 to an account ending 2842 at 
3 
Interactive Brokers LLC, maintained in defendant MARNELL's name; 
4 
ii. On or about May 11, 2020, Lender A wired, via ACH
5 
transfer, approximately $1,341,700 to the 2627 account; and 
6 
iii. On or about May 12, 2020, Lender A wired, via ACH
7 
transfer, approximately $1,818,000 to an account ending 6279 at Live 
8 
Oak Banking Company, which was a business account in Quicksilver's 
9 
name on which defendant MARNELL was the sole signer. 
10 
e.
From on or about April 16, 2020, through on or about
11 
July 16, 2020, in contravention of defendant MARNELL's 
12 
representations to Lender A and PPP rules, defendant MARNELL used PPP 
13 
loan proceeds from Lender A to, among other things, fund options and 
14 
futures trading activities, to engage in gambling and entertainment 
15 
activities, and to pay other personal expenses. 
16 
C.
EXECUTION OF THE SCHEME
17 
49.
On or about April 29, 2020, in Los Angeles County, within
18 
the Central District of California, and elsewhere, defendant MARNELL 
19 
committed and willfully caused others to commit an act which 
20 
constituted an execution of the fraudulent scheme, namely, the 
21 
submission of an application to Lender A for a PPP loan in the name 
22 
of Slatestone. 
23 
24 
25 
26 
27 
28 
7 
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1 
2 
3 
COUNT TWO 
[18 U.S.C. §§ 1957, 2(b)] 
50.
On or about June 5, 2020, in Los Angeles County, within the
4 
Central District of California, and elsewhere, defendant ANDREW 
5 
MARNELL, aka "Andrew Maxwell," aka "Andrew Merrill," aka "Tyler 
6 
Lerman," knowing that the funds involved represented the proceeds of 
7 
some form of unlawful activity, engaged in and willfully caused 
8 
others to engage in a monetary transaction, in and affecting 
9 
interstate commerce, in criminally derived property of a value 
10 
greater than $10,000, namely, the transfer of $150,000 from the 2627 
11 
Account to Casino 1, which property, in fact, was derived from 
12 
specified unlawful activity, namely, bank fraud, in violation of 
13 Title 18, United States Code, Section 1344(2), as charged in Count 
14 
One of this First Superseding Information. 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
8 
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2 
3 
FORFEITURE ALLEGATION ONE 
[18 U.S.C. § 982(a)(2)] 
51.
Pursuant to Rule 32.2(a) of the Federal Rules of Criminal
4 II Procedure, notice is hereby given that the United States of America 
5 l\will ·seek forfeiture as part of any sentence, pursuant to Title 18, 
6 II United States Code, Section 982 (a) (2), in the event of the conviction 
7 II of defendant ANDREW MARNELL, aka "Andrew Maxwell," aka "Andrew 
8 II Merrill," aka "Tyler Lerman," of the offense set forth in Count One 
9 II of this First Superseding Information. 
10 
5 2. 
Defendant MARNELL, if so convicted, shall forfeit to the 
11 II United States of America the following: 
12 II 
(a) All right, title and interest in any and all property,
13 II real or personal, constituting, or derived from, any proceeds 
14 II obtained, directly or indirectly, as a result of the offense; and 
15 
(b) To the extent such property is not available for
16 
forfeiture, a sum of money equal to the total value of the property 
1 7 11 described in subparagraph (a). 
18 
53. 
Pursuant to Title 21, United States Code, Section 853(p),
19 
as incorporated by Title 18, United States Code, Section 982(b), 
20 
defendant MARNELL, if so convicted, shall forfeit substitute 
21 
property, up to the total value of the property described in the 
22 
preceding paragraph if, as the result of any act or omission of 
23 
defendant MARNELL, the property described in the preceding paragraph, 
24 
or any portion thereof: (a) cannot be located upon the exercise of 
25 
due diligence; (b) has been transferred, sold to or deposited with a 
26 
third party; (c) has been placed beyond the jurisdiction of the 
27 
court; (d) has been substantially diminished in value; or (e) has 
28 
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1 
been commingled with other property that cannot be divided without 
2 
difficulty. 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
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1 
2 
3 
FORFEITURE ALLEGATION TWO 
[18 U.S.C. § 982(a) (1)] 
54. 
Pursuant to Rule 32.2(a) of the Federal Rules of Criminal 
4 II Procedure, notice is hereby given that the United States will seek 
5 II forfeiture as part of any sentence, pursuant to Title 18, United 
6 II States Code, Section 982 (a) (1), in the event of the conviction of 
7 II defendant ANDREW MARNELL, aka "Andrew Maxwell," aka "Andrew Merrill," 
8 
aka "Tyler Lerman," of the offense set forth in Count Two of this 
9 
First Superseding Information. 
10 
55. 
Defendant MARNELL, if so convicted, shall forfeit to the
11 11 United States of America the following: 
12 
(a) 
Any property, real or personal, involved in such
13 
offense, and any property traceable to such property; and 
14 
(b)
To the extent such property is not available for
15 
forfeiture, a sum of money equal to the total value of the property 
16 
described in subparagraph (a). 
17 
56.
Pursuant to Title 21, United States Code, Section 853(p),
18 
as incorporated by Title 18, United States Code, Section 982(b) (1), 
19 
and Title 18, United States Code, Section 982(b) (2), the defendant, 
20 
if so convicted, shall forfeit substitute property, if, by any act or 
21 
omission of the defendant, the property described in the preceding 
22 
paragraph, or any portion thereof: (a) cannot be located upon the 
23 
exercise of due diligence; (b) has been transferred, sold to, or 
24 
deposited with a third party; (c) has been placed beyond the 
25 
jurisdiction of the court; (d) has been substantially diminished in 
26 
value; or (e) has been commingled with other property that cannot be 
27 
divided without difficulty. Substitution of assets shall not be 
28 
ordered, however, where the convicted defendant acted merely as an 
11 
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1 II intermediary who handled but did not retain the property in the 
2 II course of the money laundering offense unless the defendant, in 
3 II committing the offense giving rise to the forfeiture, conducted three 
4 llor more separate transactions involving a total of $100,000.00 or 
5 II more in any twelve-month period. 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
TRACY L. WILKISON 
Acting United States Attorney 
SCOTT M. GARRINGER 
Assistant United States Attorney 
Chief, Criminal Division 
RANEE A. KATZENSTEIN 
Assistant United States Attorney 
Chief, Major Frauds Section 
JOSEPH BEEMSTERBOER 
Chief, Fraud Section 
United States Department of Justice 
MONICA E. TAIT 
Assistant United States Attorney 
Deputy Chief, Major Frauds Section 
KERRY L. QUINN 
Assistant United States Attorney 
Major Frauds Section 
SCOTT ARMSTRONG 
Trial Attorney, Fraud Section 
United States Department of Justice 
12 
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EXHIBIT B 
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1 
EXHIBIT B TO PLEA AGREEMENT FOR DEFENDANT ANDREW MARNELL 
2 
STATEMENT OF FACTS SUPPORTING PLEA AGREEMENT 
3 
Defendant ANDREW MARNELL also known as ("aka") "Andrew 
4 II Maxwell," aka "Andrew Merrill," aka "Tyler Lerman" 
5 II ("defendant"), stipulates and agrees that he committed the 
6 
following criminal activity: 
7 
BACKGROUND 
8 II 
1.
At all relevant times, defendant was a resident of Los
9 
Angeles, California, within the Central District of California. 
10 
2.
Defendant owned and controlled corporate entities
11 
registered in various states under various names, including 
12 
Shale Creek LLC ("Shale Creek"), Slatestone LLC ("Slatestone"), 
13 
Quicksilver LLC ("Quicksilver"), xtracted LLC ("xtracted"), 
14 
Stratrock Ventures LLC ("Stratrock"), and East Bay Associates 
15 
LLC ("East Bay Associates") (collectively, the "defendant-
16 
controlled entities"). 
17 
The Paycheck Protection Program 
18 
3.
The Coronavirus Aid, Relief, and Economic Security
19 
("CARES") Act was a federal law enacted in or around March 2020 
20 
and designed to provide emergency financial assistance to the 
21 
millions of Americans who were suffering the economic effects 
22 
caused by the COVID-19 pandemic. 
One source of relief provided 
23 
by the CARES Act was the authorization of up to $349 billion in 
24 
forgivable loans to small businesses for job retention and 
25 
certain other expenses, through a program referred to as the 
2 6 
Paycheck Protection Program (" PPP") . 
In or around April 2 02 0, 
27 
Congress authorized over $300 billion in additional PPP funding. 
28 
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2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
4.
In order to obtain a PPP loan, a qualifying business
was required to submit a PPP loan application signed by an 
authorized representative of the business. 
The PPP loan 
application required the business (through its authorized 
representative) to acknowledge the program rules and make 
certain affirmative certifications in order to be eligible to 
obtain the PPP loan. 
In the PPP loan application, the applicant 
(through its authorized representative) was required to state, 
among other things, its: (a) average monthly payroll expenses; 
and (b) number of employees. 
These figures were used to 
calculate the amount of money the small business was eligible to 
receive under the PPP. 
In addition, the applicant was required 
to provide documentation showing its payroll expenses. 
5.
A business's PPP loan application was received and 
15 
processed, in the first instance, by a participating lender. 
If 
16 
a PPP loan application was approved, the participating lender 
17 
funded the PPP loan using its own monies. 
Data from the 
18 
application, including information about the borrower, the total 
19 
amount of the loan, and the listed number of employees, was 
20 
transmitted by the lender to the Small Business Administration 
21 
22 
("SBA") in the course of processing the loan. 
6.
PPP loan proceeds were required to be used by the
23 
business on certain permissible expenses: 
payroll costs, 
24 
interest on mortgages, rent, and utilities. 
The PPP allowed the 
25 
interest and principal on the PPP loan to be entirely forgiven 
26 
if the business spent the loan proceeds on these expense items 
27 
within a designated period of time after receiving the proceeds 
28 
2 
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1 
and used a certain amount of the PPP loan proceeds on payroll 
2 
expenses. 
3 
The Economic Injury Disaster Loan Program 
4 II 
7. 
The Economic Injury Disaster Loan Program ("EID L") was
5 llan SBA program that provided low-interest financing to small 
6 
businesses, renters, and homeowners in regions affected by 
7 
declared disasters. 
8 
8.
The CARES Act authorized the SBA to provide EIDL loans
9 
of up to $2 million to eligible small businesses experiencing 
10 
substantial financial disruption due to the COVID-19 pandemic. 
11 
9.
To obtain an EIDL loan, a qualifying business was
12 
required to submit an application to the SBA and provide 
13 
information about the business's operations, such as the number 
14 
of employees, gross revenues for the 12-month period preceding 
15 
the disaster, and cost of goods sold in the 12-month period 
16 
preceding the disaster. 
In the case of EIDL loans for COVID-19 
17 
relief, the 12-month period was the 12-month period from January 
18 
31, 2019, to January 31, 2020. 
The applicant was also required 
19 
to certify that all of the information in the application was 
20 
true and correct to the best of the applicant's knowledge. 
21 
10.
EIDL loan applications were submitted directly to the
22 
SBA and processed by the agency with support from a government 
23 
contractor. 
The amount of the loan, if the application was 
24 
approved, was determined based, in part, on the information 
25 
provided by the applicant about employment, revenue, and cost of 
26 
goods sold, as described in paragraph 9 above. 
Any funds issued 
27 
under an EIDL loan were issued directly by the SBA. 
28 
3 
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11.
EIDL loan funds could be used for payroll expenses,
2 
sick leave, production costs, and business obligations, such as 
3 
debts, rent, and mortgage payments. 
If the applicant also 
4 
obtained a loan under the PPP, the EIDL loan funds could not be 
5 
used for the same purpose as the PPP loan funds. 
6 
Financial Institutions 
7 
12.
"Lender A" was a federally-insured financial
8 
institution based in Texas that was an approved SBA lender of 
9 
PPP loans. 
10 
13.
"Lender B" was a non-bank lender based in New York,
11 
New York that was an approved SBA lender of PPP loans. 
12 
14.
"Lender C" was a non-bank lender based in San
13 
Francisco, California that was an approved SBA lender of PPP 
14 
loans. 
15 
15.
"Lender D" was a federally-insured financial
16 
institution based in Reading, Pennsylvania that was an approved 
17 
SBA lender of PPP loans. 
18 
16.
"Lender E" was a non-bank lender based in Atlanta,
19 
Georgia that was an approved SBA lender of PPP loans. 
20 
17.
Casino 1 was a casino and gaming establishment with an
21 
annual gaming revenue of more than $1,000,000 and was licensed 
22 
under the laws of the State of Nevada, and qualified as a 
23 
"financial institution" for the purpose of 31 U.S.C. § 5312 and 
24 
18 u.s.c. § 1957. 
25 
Bank Accounts Controlled by Defendant 
26 
18.
Bank A was a financial institution based in San
27 
Francisco, California. 
28 
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1 
19. 
Defendant controlled and was a signatory to multiple 
2 
accounts at an affiliate of Bank A, which was a broker 
3 
registered with the Securities and Exchange Commission under the 
4 
Securities Exchange Act of 1934 (15 U.S.C. § 78a et seq.), and 
5 
which qualified as a "financial institution" for the purpose of 
6 
31 U.S.C. § 5312 and 18 U.S.C. § 1957. 
Among the accounts that 
7 
defendant controlled at the Bank A affiliate was an individual 
8 
brokerage account in the name of "Andrew Justin Marnell," 
9 
account number ending in 2627 (the "2 627 account") . 
10 11 I. 
BANK FRAUD SCHEME (COUNT 1) 
11 
20. Beginning in or about March 2020, and continuing until 
12 
on or about July 16, 2020, in Los Angeles County, within the 
13 
Central District of California, and elsewhere, defendant, 
14 
together with others known and unknown to the Grand Jury, 
15 
knowingly and with intent to defraud, devised, participated in, 
16 
executed, and attempted to execute a scheme to obtain moneys, 
17 
funds, credits, assets, and other property owned by and in the 
18 
custody and control of Lender A by means of materially false and 
19 
fraudulent pretenses, representations, and promises, and the 
20 
concealment of material facts, in violation of 18 U.S.C. 
21 
§ 1344 (2) .
22 
21. 
The fraudulent scheme operated and was carried out, in 
23 
substance, as follows: 
24 
a.
Defendant submitted, and caused to be submitted,
25 
false and fraudulent applications to Lender A for PPP loans 
26 
purportedly on behalf of the defendant-controlled entities 
27 
(collectively, the "PPP Applications to Lender A"). 
28 
Specifically: 
5 
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1 
i. On or about April 14, 2020, defendant
2 
submitted, and caused to be submitted, an application for a PPP 
3 
loan in the amount of $439,000 for borrower Shale Creek, which 
4 
was represented to be a Montana-headquartered firm, owned and 
5 
controlled by "Tyler Lerman," having 26 employees and average 
6 
monthly payroll expenses of $175,600; 
7 
ii. On or about April 29, 2020, defendant
8 
submitted, and caused to be submitted, an application for a PPP 
9 
loan in the amount of $1,341,700 for borrower Slatestone, which 
10 
was represented to be a Wyoming-headquartered firm, owned and 
11 
controlled by "Andrew Merrill," having 75 employees and average 
12 
monthly payroll expenses of $536,680; and 
13 
iii.
On or about May 11, 2020, defendant
14 
submitted, and caused to be submitted, an application for a PPP 
15 
loan in the amount of $1,818,000 for borrower Quicksilver, which 
16 
was represented to be a Montana-headquartered firm, owned and 
17 
controlled by "Andrew Maxwell," having 129 employees and average 
18 
monthly payroll expenses of $727,200. 
19 
b. 
Defendant submitted, and caused to be submitted, 
20 
false documents and information to Lender A to obtain and to try 
21 
to obtain PPP loans in the names of the defendant-controlled 
22 
entities, including the following: 
23 
i. A false identification document concerning the
24 
ownership and control of Quicksilver, namely, a photograph of a 
25 
fake United States passport in the name of "Andrew Maxwell," 
26 
with defendant's picture; 
27 
ii. False Internal Revenue Service ("IRS") Form
28 
940 tax forms for Shale Creek, Slatestone, and Quicksilver, 
6 
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2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
purporting to be Employer's Annual Federal Unemployment Tax Act 
Returns filed with the IRS for those entities; and 
iii. False payroll data and documentation for
Shale Creek, Slatestone, and Quicksilver, including documents 
purporting to be payroll registers for 2019 and 2020, purporting 
to show wages paid to employees of those entities. 
c.
Defendant made, and caused to be made, false
statements in the PPP Applications to Lender A, which defendant 
knew were false when he made them and caused them to be made. 
For example: 
i. Defendant falsely represented that the funds
sought through the PPP Applications to Lender A would be used to 
pay payroll and other business expenses of the defendant­
controlled entities, when, in fact, defendant intended to use 
and did use the PPP loan proceeds to fund options and futures 
trading activities, to engage in gambling and entertainment 
activities, and to pay other personal expenses; 
ii. Defendant falsely represented that "the
Applicant has not and will not receive another loan under the 
Paycheck Protection Program," and that the applicant did not own 
an y other business or have common management with any other 
business, when, in fact, defendant intended to and did obtain 
other loans under the Paycheck Protection Program for the 
defendant-controlled entities and all the defendant-controlled 
entities had common management; and 
iii. Defendant falsely represented that "Tyler
Lerman," "Andrew Merrill," and "Andrew Maxwell" were the owners 
7 
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1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
of the defendant-controlled entities, when, in fact, as 
defendant then knew, he owned and controlled those entities. 
d.
In reliance on defendant's materially false
statements and his concealment of material facts, Lender A 
approved and funded the PPP loans sought by defendant in the 
names of the defendant-controlled entities. 
Specifically, on or 
about the following dates, Lender A sent the following funding 
wires: 
i. On or about April 16, 2020, Lender A wired, via
ACH transfer, approximately $439,000 to an account ending 2842 
at Interactive Brokers LLC, maintained in defendant's name; 
ii. On or about May 11, 2020, Lender A wired, via
ACH transfer, approximately $1,341,700 to an account ending 2627 
at Charles Schwab Inc., maintained in defendant's name; and 
iii. On or about May 12, 2020, Lender A wired, via
ACH transfer, approximately $1,818,000 to an account ending 6279 
at Live Oak Banking Company, which was a business account in 
Quicksilver's name on which defendant was the sole signer. 
e.
From on or about April 16, 2020, through on or
about July 16, 2020, in contravention of defendant's 
representations to Lender A and PPP rules, defendant used PPP 
loan proceeds from Lender A to, among other things, fund options 
and futures trading activities, to engage in gambling and 
entertainment activities, and to pay other personal expenses. 
C.
EXECUTIONS OF THE SCHEME
22.
On or about the following dates, in Los Angeles
County, within the Central District of California, and 
elsewhere, defendant committed and willfully caused others to 
8 
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1 II commit the following acts, each of which constituted an 
2 II execution of the fraudulent scheme: 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
DATE 
4114/2020 
4/29/2020 
5/11/2020 
ACT 
Submission of application to Lender 
A for PPP loan in the name of Shale 
Creek. 
Submission of application to Lender 
A for PPP loan in the name of 
Slatestone. 
Submission of application to Lender 
A for PPP loan in the name of 
Quicksilver. 
I I I . MONEY LAUNDERING ( COUNT 2) 
23.
Defendant also engaged in and willfully caused others
to engage in the transfer, in or affecting interstate commerce, 
of funds by, through, or to a financial institution ("monetary 
transactions") using the proceeds of his bank fraud scheme to 
fund gambling activities, among other uses of criminal proceeds, 
including the following monetary transaction: 
On June 1, 2020, 
in Los Angeles County, defendant caused a $150,000 wire transfer 
from the 2726 account to Casino 1, which represented more than 
$10,000 in proceeds of the $1,341,700 PPP loan that defendant 
obtained from Lender A in the name of Slatestone. 
At the time 
of the monetary transaction, defendant knew that the $150,000 
constituted, or was derived from, the proceeds he obtained from 
his bank fraud scheme, described above. 
Defendant understands 
and acknowledges that the transfer of the $150,000 constituted 
money laundering in violation of 18 U.S.C. § 1957. 
IV.
WIRE FRAUD SCHEME (RELEVANT CONDUCT)
24.
Defendant also agrees that he engaged in the following
related criminal conduct during and in prep aration for the bank 
fraud scheme described above and that the bank fraud scheme and 
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1 
wire fraud scheme described below and the conduct involved in 
2 
both schemes were part of the same course of conduct and a 
3 
common scheme or plan, and are relevant conduct under United 
4 
States Sentencing Guideline lBl.3. 
5 
6 
A.
THE SCHEME TO DEFRAUD
25.
Beginning in or about March 2020, and continuing until
7 
in or about July 2020, in Los Angeles County, defendant 
8 
knowingly and with intent to defraud, devised, participated in, 
9 
executed, and attempted to execute a scheme to defraud Lenders 
10 
A, B, C, D, and E and the SBA as to material matters, and to 
11 
obtain moneys, funds, assets, and other property owned by and in 
12 
the custody and control of Lenders A, B, C, D, and E and the SBA 
13 
by means of material false and fraudulent pretenses, 
14 
representations, and promises, and the concealment of material 
15 
facts. 
16 
26.
The fraudulent scheme operated and was carried out, in
17 
substance, as follows: 
18 
a.
Defendant submitted false and fraudulent
19 
applications to Lenders A, B, C, D, and E and to the SBA for PPP 
20 
and EIDL loans purportedly on behalf of the defendant-controlled 
21 
entities. 
22 
b.
Defendant submitted false documents and
23 
information to Lenders A, B, C, D and E and to the SBA to obtain 
24 
and to try to obtain PPP and EIDL loans in the names of the 
25 
defendant-controlled entities, including the submission of false 
26 
identification documents, false Internal Revenue Service ("IRS") 
27 
tax forms, and false payroll data and documentation. 
28 
10 
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c. 
Defendant made, and caused to be made, materially 
2 
false and fraudulent statements in the applications for PPP and 
3 
EIDL loans, which defendant knew were false and fraudulent when 
4 
he made them and caused them to be made, including the 
5 
following: 
6 
i. Defendant knowingly submitted fake payroll 
7 II documentation, fake identification documents, and fake IRS tax 
8 
forms as supporting documentation to obtain PPP and EIDL loans. 
9 
ii. Defendant falsely represented that the funds
10 
sought through the applications for PPP and EIDL loans would be 
11 
used to pay payroll and other business expenses of the 
12 
defendant-controlled entities, when, in fact, defendant intended 
13 
to use and did use the loan proceeds to fund options and futures 
14 
trading activities, to engage in gambling and entertainment 
15 
activities, and to pay other personal expenses; 
16 
iii. Defendant falsely represented in PPP loan
17 
applications that "the Applicant has not and will not receive 
18 
another loan under the Paycheck P rotection Program," and that 
19 
the applicant did not own any other business or have common 
20 
management with any other business, when, in fact, defendant 
21 
intended to and did obtain other loans under the Paycheck 
22 
Protection Program for the defendant-controlled entities and all 
23 
the defendant-controlled entities had common management; and 
24 
iv. Defendant falsely represented that "Tyler
25 
Lerman," "Andrew Merrill," "Andrew Maxwell," and defendant's 
26 
husband, S.R., were the owners of the defendant-controlled 
27 
entities, when, in fact, as defendant then knew, he owned and 
28 
controlled those entities. 
11 
Case 2:20-cr-00319-RGK     Document 38     Filed 09/07/21     Page 51 of 54   Page ID
#:269

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2 
3 
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18 
19 
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21 
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26 
27 
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d.
In reliance on defendant's materially false
statements and his concealment of material facts, Lenders A, B, 
C, and D and the SBA approved and funded PPP and EIDL loans 
sought by defendant in the names of the defendant-controlled 
entities. 
27.
The PPP loans that that defendant obtained or
attempted to obtain as part of the fraudulent scheme included 
the following: 
Lende 
Borrower 
Listed 
Requested 
Funded 
Amount Still 
r 
Princip 
Loan 
Amount 
Outstanding 
al 
Amount/ 
(Restitution) 
Intended 
Loss 
Lende 
Shale 
Tyler 
$439,000 
$439,000 
$439,000 
r A 
Creek 
Lerman 
Lende 
Quicksilv 
Andrew 
$1,818,000 
$1,818,000 
$0 
r A 
er 
Maxwell 
Lende 
Slateston 
Andrew 
$1,341,700 
$1,341,700 
$1,341,700 
r A 
e 
Merrill 
Lende 
Quicksilv 
Andrew 
$1,842,929. 
$1,842,929. 
$1,842,929.17 
r B 
er 
Maxwell 
17 
17 
Lende 
Stratrock 
S.R. 
$1,842,929. 
$1,842,929. 
$1,842,929.16 
r B 
16 
16 
Lende 
East Bay 
Andrew 
$456,917 
$352,500 
$352,500 
r C 
Associate 
Maxwell 
s 
Lende 
Xtractd 
Andrew 
$1,352,318 
$1,352,318 
$1,352,318 
r D 
Marnell 
Lende 
Slates ton 
Andrew 
$1,301,050 
$0 
$0 
r E 
e 
Merrill 
Lende 
East Bay 
Andrew 
Not 
$0 
$0 
r E 
Associate 
Maxwell 
Available 
s 
Lende 
Quicksilv 
Andrew 
Not 
$0 
$0 
r E 
er 
Merrill 
Available 
Total 
$10,394,843 
$8,989,376 
$7,171,376.33 
s 
28.
Defendant also obtained and attempted to obtain EIDL
loans for defendant-controlled entities as part of the same 
fraudulent scheme and based on similar misrepresentations as he 
used to obtain and to attempt to obtain PPP loans, including 
misrepresentations concerning the revenue of defendant-
12 
Case 2:20-cr-00319-RGK     Document 38     Filed 09/07/21     Page 52 of 54   Page ID
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1 II controlled entities and the intended use of loan proceeds. 
The 
2 IIEIDL loans that defendant obtained as part of the scheme 
3 II included the following: 
4 
5 
6 
7 
8 
9 
Lender 
SBA 
SBA 
Totals 
Borrower 
Listed 
Principal 
xtractd 
I Andrew 
Marnell 
Slatestone I Andrew 
Marnell 
Requested 
Loan 
Amount/ 
Intended 
Loss 
$160,000 
$160,000 
$320,000 
Funded 
Amount 
$160,000 
$10,000 
$170,000 
Amount Still 
Outstanding 
(Restitution) 
$160,000 
$10,000
$170,000 
10 
11 
12 
29. 
As set forth above, defendant purposefully sought to 
13 II obtain $10,714,843 in fraudulent PPP and EIDL loans from Lenders 
14 IIA through E and the SBA in connection with this fraud scheme, 
15 II and he owes approximately $7,341,376.33 in restitution. 
16 
17 
B.
USE OF THE WIRES
30.
As one example of the use of interstate wires to
18 II execute the fraudulent scheme, on or about May 11, 2020, in Los 
19 II Angeles County, defendant caused Lender A to transfer $1,341,700 
20 II via an interstate wire sent to the 2627 account, representing 
21 II fraudulently-obtained PPP loan proceeds defendant had obtained 
22 II from Lender A for borrower Slates tone. 
23 II 
Victim Impact & Other Sentencing Factors 
24 
31. 
In total, defendant fraudulently sought more than 
25 II $10.7 million in small business loans, ultimately causing actual 
26 II losses of more than $7 million. 
27 
28 
13 
Case 2:20-cr-00319-RGK     Document 38     Filed 09/07/21     Page 53 of 54   Page ID
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1 
32.
Defendant obtained more than $1,000,000 from a
2 II financial institution as part of the fraudulent scheme, because 
3 llhe obtained more than $1 million from Lenders A, B, C, and D. 
4 
33. 
Defendant admits and acknowledges that the scheme 
5 II involved money laundering in violation of 18 U.S.C. § 1957, 
6 II including the money laundering transaction charged in count two 
7 llof the superseding information. 
8 
9 
10 
* 
* 
*
CERTIFICATION OF DEFENDANT 
I have read this STATEMENT OF F ACTS IN SUPPORT OF PLEA 
11 II AGREEMENT ("statement of facts") in its entirety. 
I have had 
12 II enough time to review and consider this statement of facts, and 
13 11 I have carefully and thoroughly discussed every part of it with 
14 II my attorney. 
I agree that this statement of facts is accurate 
15 11 and correct, and is sufficient to support p leas of guilty to the 
16 II charges described in the plea agreement and to establish the 
17 II Sentencing Guidelines factors set forth in paragraph 17 of the 
18 
19 
20 
21 
22 
plea agreement. 
,Rlu 
NDR: 
 
-y,zW' MA{NELL 
Defendant 


Dat 
CERTIFICATION OF DEFENDANT'S ATTORNEY 
I am ANDREW MARNELL's attorney. 
I have carefully and 
23 !!thoroughly discussed every part of this statement of facts with 
24 
my client and agree that it is sufficient to support pleas of 
25 
guilty to the charges described in the plea agreement and to 
26 
establish the Sentencing Guidelines factors set forth in 
27 
paragraph 17 of the plea agreement. 
28 
14 
9/3/21
Case 2:20-cr-00319-RGK     Document 38     Filed 09/07/21     Page 54 of 54   Page ID
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