LS Cable & System USA has agreed to pay $4 million to the United States to resolve allegations of false claims for payments under the Paycheck Protection Programme loans and PPP loan forgiveness.
The settlement arises from allegations that LS Cable knowingly misrepresented the number of its employees and affiliated personnel and unlawfully sought and obtained PPP loan funds and loan forgiveness totalling 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, according to the Department of Justice, are allegations only, and that there has been no judicial determination or admission of liability.
LS Cable denied the fraud allegations.
“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.
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