RALEIGH, N.C. – LS Cable & System USA, Inc., agreed to pay $4 million to the United States to resolve allegedly false claims for payments under Paycheck Protection Program (PPP) loans and PPP loan forgiveness.
“This civil fraud settlement demonstrates our commitment to protect taxpayer money and to guard the integrity of our federal programs,” said U.S. Attorney Ellis Boyle. “Our office will zealously pursue those who wrongfully take funds in violation of program requirements.”
The settlement arises from allegations that LS Cable knowingly misrepresented the number of its employees and affiliated personnel and unlawfully sought and obtained Paycheck Protection Program (PPP) loan funds and loan forgiveness totaling
over $2,004,414 for which it was not legally eligible.
The False Claims Act allows the Government to seek recovery of three times the amount of falsely obtained money, plus substantial penalties for each false claim submitted, and attorneys’ fees to the whistleblower who initiated this action. It should be noted that the civil claims resolved by settlement here are allegations only, and that there has been no judicial determination or admission of liability. LS Cable denies the fraud allegations.
This matter was addressed through close partnership and coordinated efforts between the United States Attorney’s Office for the Eastern District of North Carolina and the U.S. Small Business Administration.
A copy of this press release can be located on our website....
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