The U.S. Attorney’s Office for the Northern District of Ohio announced Oct. 21 that Murotech Ohio Corporation, an automotive component parts manufacturer with its principal place of business in St. Marys, Ohio, has agreed to pay $3,039,615, of which $1,085,577 is restitution, to resolve allegations under the False Claims Act (FCA) that it knowingly provided false information to obtain Paycheck Protection Program (PPP) loans and loan forgiveness.
The company is a subsidiary of Muro Corporation, located in Japan.
The PPP program was launched through the Small Business Administration (SBA) to provide eligible companies with financial support during the COVID-19 pandemic. Murotech Ohio’s first application submitted in May 2020 certified that the company had fewer than 500 employees, but in fact, it exceeded that amount when counting affiliates. A second application submitted in January of 2021 certified that it employed fewer than 300 employees, but in truth, the company employed far more when including affiliates. Murotech Ohio then applied to have both federal loans forgiven and certified on its submitted applications that the number of employees was below program limit requirements.
This settlement resolves two lawsuits filed under the whistleblower provisions of the FCA, which allows an individual, known as the “relator,” to file a complaint on behalf of the United States for false claims and share in a portion of the government’s recovery. The whistleblower cases are...
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