Four Michigan companies have agreed to settle a federal complaint over alleged COVID-19 relief loan fraud, officials said Monday.
Your Fantasy Warehouse Inc., Ugly Christmas Sweater Inc., Costume Agent Inc., and Delta Staffing LLC have agreed to collectively pay $1,933,448 to settle allegations that they made false statements to obtain Paycheck Protection Program loans from the U.S. Small Business Administration and violated the False Claims Act, Jerome Gorgon, U.S. Attorney for the Eastern District of Michigan, said in a statement.
"When you steal from the American taxpayer, we are going to make sure that you are the onewho pays the price," he said. "
Attorneys for the four companies were not immediately available for comment on Tuesday.
Gorgon said Your Fantasy Warehouse Inc., Ugly Christmas Sweater Inc., and Costume Agent Inc. obtained four loans and loan forgiveness totaling $504,482.
Authorities alleged that the owner of the companies, Firas “Fred” Hajjar, failed to disclose he had pleaded guilty to felony tax evasion in 2019, which made them ineligible to obtain paycheck protection loans from the federal government. However, the businesses falsely certified to the Small Business Administration that they were eligible.
Delta Staffing LLC obtained two PPP loans and loan forgiveness totaling $462,241.92, according to Gorgon.
He said the company's owner, Bradley McKouen, also failed to disclose he had been convicted of tax evasion in 2014 and placed on supervised release...
violated the False Claims Act, federal prosecutors said Tuesday. . . . Law360 is on it, so you are, too. A Law360 subscription puts you at the center of fast-moving legal issues, trends and develop...