A Peachtree City-based company is being scrutinized by federal prosecutors after becoming the subject of COVID-era fraud allegations.
Universal Environmental Services (UES), subsidiary of the German-based Avista Oil Group, agreed to pay $2.6 million to settle allegations that it improperly obtained COVID-era PPP loans by falsely qualifying as a small business, according to the U.S. Attorney's Office for North Georgia.
Federal investigators allege the company submitted inaccurate information on a 2020 application for a second-draw PPP loan.
According to the government, second-draw PPP loans were only available to businesses with fewer than 300 employees, including workers employed across an entire corporate family. UES reported it had 287 employees, counting only its domestic workforce, though its parent company's global workforce exceeded the program's eligibility threshold.
Based on that information, prosecutors said a bank approved an approximately $2 million loan, which was later forgiven and paid by the U.S. Small Business Administration.
"When people provide false information to obtain government-backed loans, they break the law and misdirect resources away from those who need them," U.S. Attorney Theodore S. Hertzberg said in a statement. "Our office will continue to enforce the False Claims Act to recover such funds, plus penalties."
The investigation began after a whistleblower filed a lawsuit under the False Claims Act, alleging UES falsely certified its...
A Peachtree City-based company is being scrutinized by federal prosecutors after becoming the subject of COVID-era fraud allegations. Universal Environmental Services (UES), subsidiary of the Germa...