The 22nd District Agricultural Association (DAA), the organization that owns and operates the Del Mar Fairgrounds, has agreed to a $5.6 million settlement with the U.S. government over allegations of improperly obtaining a pandemic-related Paycheck Protection Program (PPP) loan. The loan, totaling $4.7 million, was secured in May 2020 amidst the COVID-19 crisis. According to the U.S. Department of Justice, the 22nd DAA was ineligible for the PPP loan due to its status as a government-owned entity, which does not qualify for such relief under federal guidelines.
The loan was intended to provide financial relief to small businesses affected by the pandemic, but the government claimed that the 22nd DAA and its CEO, Carlene Moore, improperly obtained these funds. Despite this, no formal determination of liability was made in the settlement, and both parties agreed to resolve the matter without further litigation.
U.S. Attorney Tara McGrath emphasized that the settlement is designed to maintain the integrity of the PPP program and ensure taxpayer funds are used properly. The total settlement amount, which includes the loan and additional fees, totals over $5.6 million.
The 22nd DAA, which manages the Del Mar Fairgrounds and other properties, expressed in a statement that it believed it was eligible for the loan and emphasized the dire financial conditions it faced due to the pandemic. The organization had laid off 85% of its staff during the crisis and viewed the loan as a lifeline. They also highlighted the need for clarity in the law regarding government entities like the DAA and their eligibility for financial relief programs.
Despite the financial challenges brought on by the pandemic, the 22nd DAA reported that it is now in its strongest financial position in years. The organization has agreed to repay the loan and expressed confidence that this settlement will allow it to focus on its primary mission of hosting community events at the Del Mar Fairgrounds.
Originally published on October 23, 2024.
