According to Delaware Bankruptcy Court documents, Urban Commons directors Taylor Woods and Howard Woo divided Queen Mary employee salaries into two groups and offered two different Federal Salary Protection Program (PPP) loans. ). He applied and claimed to have agreed to maximize the grant.
According to the document, they then depleted their bank accounts “within hours” when they received a $ 2.4 million loan and paid the money into various accounts for personal use.
The accusation stems from the sale of the hotel portfolio in bankruptcy court by Queen Mary’s current operator, Eagle Hospitality Trust, which filed for Chapter 11 bankruptcy in January. According to the document, the hotel chain received more than $ 480 million in bids for 14 hotels last week, but Queen Mary Reese has yet to find a qualified bidder.
Meanwhile, the city of Long Beach has asked that Queen Mary’s crown candidacy be postponed until the end of this summer in a court battle with Urban Commons. A series of failed rental bonds..
Long Beach owns the Queen Mary, but for decades has been leasing vessels to various operators in the face of financial difficulties.
Urban Commons, a Los Angeles-based real estate and investment company, has experienced a series of financial and procedural issues since signing a lease to operate the Queen Mary in 2016. In 2019, the company created the Eagle Hospitality Trust to be listed in Singapore. Stock. Exchange to raise funds for a $ 250 million development project Called Queen Mary’s Island..
Eagle Hospitality suffers from its own financial problems and later Finished Master Lease Agreement for Hotels in Urban Commons including the Queen Mary – Actions which essentially eliminate Urban Commons as the operator of the Queen Mary.
However, city officials said Urban Commons remained mandated under the Queen Mary lease agreement.
Woods and Wu, the two executives of the company, Currently accused of deceiving their own listed companies Allegedly requesting a PPP loan without authorization or without notifying Eagle Hospitality manager.
Eagle’s hospitality in bankruptcy court documents indicates that unless a judge intervenes, “defendants are likely to take immediate action to divert their assets to inaccessible places” so that companies turn to the federal government. He said he could be held responsible for the refund.
A court hearing is scheduled for Thursday.
The Urban Commons representative did not respond to a call for comment on Tuesday. Woods did not immediately call for comment and could not contact Wu.
It is not known if the FBI, which is handling the PPP fraud case, is investigating the case. Laura Eyemiller, spokeswoman for the FBI’s Los Angeles field office, was not invited to comment on Tuesday.
Woods previously told the Post that he applied for a PPP loan incorrectly and was working to resolve the issue. However, court records have shown their behavior differently.
According to court records, “worse, once the defendant was able to manage the income from the loan, he quickly ran out within a few weeks and used it for his own benefit …”.
According to court documents, the allegations and records:
Woods and Wu were in trouble during last year’s pandemic. Woods was writing a message to Wu at one point. “”[w]I need a really bad income. The email is paired was Allegedly Notice the Queen Mary over 500 people employee, They were not eligible for a PPP loan “Fix the problem” by asking for a split salary Two PPP loans linked to the Queen Mary: one in the name of the former master QMLB lease Another for Queen Mary and for Urban Commons Queensway, now Land lease holder Under the eagle’s hospitality.
Urban Commons Queensway app was Signed by Woods, he was not authorized to do so. Then the couple hid the problem from the lender When Newtek Small Business Finance asks for more information.
Defendant received a $ 2.34 million PPP loan for the Queen Mary on May 21, 2020, immediately paid funds to another account and at least $ 17.5 million in PPP from other properties in the Urban portfolio Commons. Mixed with loan income.
The Queen Mary has never seen funds to “keep workers, keep wages or pay mortgage interest,” according to court documents. By June 5, 2020, Woods and Wu had depleted all funds except for $ 2.3 million deposited into various accounts. The account contained $ 1.29 million at an entity called ASAP Holdings. From $ 175,000 Account Called “Taylor Family Equity” and “$ 50,000 for “Distribution” to “Taylor” and “Howard”. “
The couple also “distributed hundreds of thousands of dollars, if not millions, to various individuals and groups such as law firms, escrow accounts and apparent business partners.”
Spreadsheet fund accounting showed that an employee’s salary entry was less than $ 200,000.
Some Urban Commons employees asked how the money was spent. Scott Ostlander, vice president of operations and asset management at Urban Commons, wrote in an email on July 6: [did] All [PPP] money [go]??? The 1 cent coin was not donated[n] In the hotel … “
Tony Don, Senior Financial Analyst at Urban Commons, later wrote “I don’t know if forgiveness was really the intention of most of these loans. I don’t know how the proceeds have been spent since the April funding.
It is not clear whether the owner of the Queen Mary will see the funds.
Last month, a group of creditors filed for Chapter 7 bankruptcy in California Central District Court with a claim of more than $ 1 million against Urban Commons.