September 22 saw the first settlement of its kind: a qui tam False Claims Act case related to a Paycheck Protection Program (PPP) loan in which the U.S. government intervened.
The qui tam provisions of the False Claims Act enable private citizens to file lawsuits on behalf of the government if they know of an individual or company defrauding the government. Qui tam whistleblowers are eligible to receive between 15 and 30% of the government’s recovery, if one occurs.
The U.S. Department of Justice announced that Pan African Interchange LLC and Stanley Damas will pay $21,583.31 to resolve allegations that they violated the False Claims Act in relation to the PPP.
The PPP was established with the passage of the Coronavirus Aid, Relief and Economic Security (CARES) Act to aid small businesses during the COVID-19 pandemic. In 2020, “eligible businesses could obtain one [Small Business Administration] guaranteed PPP loan,” and the loans were to be used in specific ways, like paying employees. Businesses who obtained a PPP loan “could qualify for loan forgiveness up to the full amount of the loan if certain requirements were met,” the DOJ press release explains.
A qualifying business had to submit an online PPP loan application through a third-party lender, and on the application, the business needed “to acknowledge the PPP program rules and make certain affirmative certifications in order to be eligible to obtain the loan.” According to the press release, “[b]orrowers were...
Mumbai: Senior Congress leader Vijay Wadettiwar on Sunday demanded that cases should be registered against former Amravati Lok Sabha member Navneet Rana and BJP Rajya Sabha MP Anil Bonde for alleg...