Fairfax Radiological Consultants of Fairfax has agreed to pay $2,881,260 to settle federal False Claims Act allegations for falsely reporting its payroll costs to receive full forgiveness of a $6.7 million Paycheck Protection Program loan.
The PPP offered loans to eligible small businesses for economic relief during the COVID-19 pandemic. PPP borrowers were required to provide their income and supporting documents to qualify for the loan amount and for later loan forgiveness.
In 2019, FRC employed over 500 individuals and used its 2019 employee payroll to apply for a $6.8 million PPP loan in April 2020, according to a news release from the U.S. District Attorney's office in Alexandria.
At the time of its April 2020 PPP loan application, FRC employed less than 100 people, the release said.
In April 2021, FRC applied for forgiveness of the loan.
Federal prosecutors alleged FRC falsely represented its eligible payroll costs for 98 employees in its loan forgiveness application, which enabled FRC to receive full forgiveness of the $6.8 million loan, the release said. Given the misreported number of employees, FRC was only entitled to loan forgiveness of $4,945,860, according to court documents.
NEW HAVEN, Conn., June 18, 2025 /PRNewswire/ -- Wiggin and Dana is pleased to announce the launch of its new False Claims Act (FCA) Defense and Compliance Practice Group, created in response to a s...