The owner and operator of the Del Mar Fairgrounds has agreed to pay over $5.6 million to resolve allegations that it obtained a $4.7 million pandemic-related loan without being eligible, the Department of Justice announced Tuesday.
While numerous Paycheck Protection Program loans were provided to small businesses affected by the COVID-19 pandemic, the Department of Justice said the 22nd District Agricultural Association was not eligible for such a loan because it is a government-owned entity.
However, the 22nd DAA's CEO, Carlene Moore, obtained a $4,713,700 PPP loan in May of 2020, leading the government to pay out the loan amount, plus $97,890 in fees and interest to the bank that processed the loan.
The settlement, which includes an agreement to have the 22nd DAA and Moore pay $5,664,015, was reached without any determination of liability.
Get top local stories in San Diego delivered to you every morning. Sign up for NBC San Diego's News Headlines newsletter.
"These loans were intended to provide critical relief to eligible businesses during a time of global crisis," said San Diego U.S. Attorney Tara McGrath in a statement. "This settlement upholds the integrity of the COVID relief program and holds the DAA accountable for obtaining millions in taxpayer-funded benefits to which they were not entitled."
