ASHEVILLE, N.C. (WLOS) — A Germany-based company in Asheville has agreed to pay more than $2 million to resolve claims that it misrepresented the number of employees it had in a loan application intended for small businesses during the pandemic.
The U.S. Department of Justice (DOJ) said in a press release Friday, June 13, that d&b audiotechnik Corporation (D&B) agreed to pay $2,130,185 to resolve allegations that it violated the False Claims Act. The DOJ said the business certified that it had fewer than 300 employees in a Paycheck Protection Program (PPP) loan application when it was a U.S. subsidiary of a German corporation with well over 300 employees.
Congress established the PPP in March 2020 to provide forgivable loans to small businesses to help pay employees and cover other expenses during the COVID-19 pandemic. The DOJ said that, when applying for PPP loans, borrowers were required to certify their eligibility and affirm that the information they provided was true and accurate.
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The DOJ's news release noted that the claims resolved in the settlement were allegations only, and there has been no determination of liability.
The case arose from a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which allows private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery.
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