Fairgrounds Operator To Pay $5.6M To Settle Pandemic Loan Allegations

SAN DIEGO, CA — 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.

"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."

— City News Service