A Mobile-based company, Continental Aerospace Technologies Inc., which previously had ties to the Chinese government, has agreed to pay roughly $11.77 million to resolve federal accusations that it violated the False Claims Act, the U.S. Attorney office for the Southern District of Alabama recently announced.
The False Claims Act is an anti-fraud statute that imposes civil liability on people or companies that knowingly submit false or fraudulent claims for payment to the government. In this case, the accusation was related to the federal government's Paycheck Protection Program (PPP) loan program, administered by the Small Business Administration (SBA) and designed to help businesses affected by the COVID-19 pandemic.
"This settlement demonstrates our office's steadfast commitment to relentlessly investigating and resolving fraud against American taxpayers," said U.S. Attorney Sean P. Costello. "It also reflects the effectiveness of our collaborative False Claims Act investigations in holding companies and individuals accountable for fraudulent conduct and returning unlawfully obtained taxpayer funds to the United States, together with significant financial penalties."
According to prosecutors, when Continental Designs applied for its PPP loan, it was part of a large multinational corporation partially owned by Aviation Industry Corporation of China (AVIC). AVIC is wholly owned by the State-Owned Assets Supervision and Administration Commission of the State Council...
A Mobile-based company, Continental Aerospace Technologies Inc., which previously had ties to the Chinese government, has agreed to pay roughly $11.77 million to resolve federal accusations that i...