Durst Image Technology US LLC has agreed to pay $1.8 million to resolve allegations that it improperly obtained Paycheck Protection Program (PPP) loans during the COVID-19 pandemic.
Headquartered in Penfield, Durst was alleged to have violated the False Claims Act because the firm was not eligible for PPP loans from the U.S. Small Business Administration.
The settlement was announced Monday afternoon by the office of U.S. Attorney Michael DiGiacomo.
Under the loan program, eligible small businesses could receive forgivable loans guaranteed by the SBA. Eligibility requirements included limitations on the number of employees, a headcount that included those working for foreign affiliates.
To be eligible for a second-draw loan, firms generally needed to have fewer than 300 employees.
The government contended that Durst, as a wholly owned subsidiary of Italy-based Durst Group AG, had more than 300 employees.
“PPP was designed to support small businesses during the COVID-19 pandemic,” DiGiacomo said in a news release. “When companies fail to comply with the size and eligibility rules, this office is committed to recovering taxpayer dollars that were improperly obtained and spent.”
DiGiacomo’s office said “the claims resolved by the settlement are allegations only; there has been no determination of liability.”
The civil settlement includes the resolution of claims brought under the whistleblower provisions of the False Claims Act. The person filing the claim will receive a...
Durst Image Technology US LLC has agreed to pay $1.8 million to resolve allegations that it improperly obtained Paycheck Protection Program (PPP) loans during the COVID-19 pandemic. Headquartered i...