DETROIT – The Justice Department’s National Fraud Enforcement Division continues to advance its mission to fight fraud and protect taxpayers. Today, United States Attorney Jerome F. Gorgon Jr. announced that Condat Corporation, a Michigan company that produces a range of industrial lubricants, has agreed to pay $1,811,034.24 to settle allegations that it violated the False Claims Act by making false statements to the U.S. Small Business Administration (SBA) to obtain a Paycheck Protection Program (PPP) loan for which Condat was ineligible.
Congress created the PPP in March 2020 to provide emergency financial assistance to American businesses suffering from the economic effects of the COVID-19 pandemic. Under the PPP, eligible small businesses could receive forgivable loans guaranteed by the SBA. Regulations provided various eligibility requirements for the PPP, including limitations on the number of employees and restrictions for foreign-owned companies. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications.
In January 2021, Condat obtained a second draw PPP loan for $1,000,000. At the time of its loan application, Condat was a subsidiary of Condat SA, a privately held, family-owned French Company, and a member of Condat Groupe, comprised of at least 15 associated business entities worldwide. The United States alleged that Condat falsely certified that it was eligible for the...
DETROIT – The Justice Department’s National Fraud Enforcement Division continues to advance its mission to fight fraud and protect taxpayers. Today, United States Attorney Jerome F. Gorgon Jr. anno...