DETROIT, MI — Garber Management Group, Inc. has agreed to pay over $1.5 million to settle allegations that it violated the False Claims Act by making false statements to obtain a Paycheck Protection Program loan.
Saginaw-based Garber Management is affiliated with a network of auto dealerships and other related entities known as Garber Automotive Group.
U.S. Attorney Jerome F. Gorgon Jr. announced the settlement on Friday, Feb. 20, stating that Garber Management Group had made false statements to the U.S. Small Business Administration to obtain a PPP loan it was not eligible for.
Congress created the PPP in March 2020 to provide emergency financial assistance to American businesses suffering from the economic effects of the COVID-19 pandemic.
Under the PPP, eligible small businesses could receive forgivable loans guaranteed by the Small Business Administration.
Regulations imposed various eligibility requirements for the PPP, including limitations on the number of employees and restrictions for certain types of businesses operating as franchises, such as auto dealerships. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications.
In May 2020, Garber Management obtained a first-draw PPP loan for $864,732.
The U.S. Attorney’s Office alleged that Garber Management falsely certified its eligibility. The PPP program established a 500-employee threshold for most businesses seeking loans....
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