COLD SPRING, Ky. (WKRC) - A Northern Kentucky manufacturer will pay nearly $900,000 to settle allegations it improperly obtained and received forgiveness of a Paycheck Protection Program loan, federal officials said.
Segepo-FSM, Inc., based in Cold Spring, agreed to pay $887,234 to resolve claims it violated the False Claims Act by falsely certifying eligibility for a second-draw PPP loan.
The government alleged the company stated it had fewer than 300 employees when it applied for the $503,900 loan and its forgiveness. Officials contend the company was part of a larger corporate structure that exceeded the employee limit, making it ineligible.
The loan was approved and later forgiven based on those certifications, according to the allegations.
The settlement also resolves a lawsuit filed by a private party under the False Claims Act’s whistleblower provisions. That individual is eligible to receive a share of the settlement.
Federal officials emphasized the case was resolved through settlement, and the claims are allegations only with no determination of liability.
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