In January of last year, we posted that the operator of the ex-Cunard Queen Mary filed for bankruptcy. The converted ship is owned by the City of Long Beach and has been managed by Eagle Hospitality, ex-Urban Commons, since 2016. Now, two executives of the bankrupt operator have been accused of stealing $2.4 million from a COVID-19 relief loan meant to pay their employees during the pandemic.

As reported by the LA Times: At the center of the bankruptcy proceedings are Urban Commons executives Howard Wu and Taylor Woods. In court filings, U.S. Bankruptcy Judge Christopher S. Sontchi has labeled the two as “fraudsters.”

Documents filed in the bankruptcy proceedings allege that Woods and Wu applied for two federal loans that were earmarked for the Queen Mary’s employee payroll. Instead, according to the documents, the executives emptied their company bank account as soon as they received the loan and funneled the money into several other accounts.

In December, Sontchi ordered the men to pay $250 a day starting January 1. The fine is meant to force the men to comply with the court’s previous order to properly account for the roughly $2.4 million received from the federal Paycheck Protection Program loan and for not freezing their assets.

Whether the daily fine is sufficient remains to be seen. If Woods and Wu pay the daily fine of $250 per day, the government will be reimbursed for the $2.4 million loan in just over 26 years.