A former medical practice in Depew agrees to pay $500,000 to settle allegations of fraudulently receiving a PPP loan, according to federal prosecutors.
BUFFALO, N.Y. — A former medical practice in Depew has agreed to pay $500,000 to settle allegations that it fraudulently received a Paycheck Protection Program loan it wasn’t eligible for.
Federal prosecutors say the case involves violations of the False Claims Act (FCA) tied to the SBA loan program.
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Lancaster Medical LLC applied for and received a PPP loan for $249,290 in April of 2020, prosecutors said.
According to the federal government, Lancaster Medical LLC violated the FCA by falsifying its eligibility for the loan.
Officials say Lancaster Medical LLC was not eligible for the PPP loan because it has been in an asset sale in 2019, long before it the loan. They also allege the PPP loan money was used for personal expenses by the practice’s former owners. They say the business also failed to repay the loan after learning it would not be forgiven.
The settlement also resolves a pending civil forfeiture case already in federal court, according to US Attorney's office. They say a vehicle titled and registered to Kevin G. Clearly was allegedly purchased using funds from the Lancaster Medical LLC PPP loan.
Just last month, the Department of Justice announced a new National Fraud Enforcement...
A former medical practice in Depew agrees to pay $500,000 to settle allegations of fraudulently receiving a PPP loan, according to federal prosecutors. BUFFALO, N.Y. — A former medical practice in ...