The D.C. area’s largest radiology practice will pay $2.9 million to settle allegations it violated the False Claims Act by falsifying figures in its Paycheck Protection Program loan documents.
The first Trump administration launched the initiative in April 2020, lending relief to small businesses hobbled by COVID-19 closures. Borrowers were required to provide documents detailing their payroll and income to score PPP funding and possible eventual loan forgiveness, the U.S. Attorney's Office said Wednesday.
Fairfax Radiological Consultants purportedly had employed over 500 individuals as of 2019, but by April 2020, its roster was down to fewer than 100. However, the Virginia-based imaging group allegedly used the out-of-date payroll numbers to procure a $6.8 million PPP loan.
A year later in April 2021, FRC—which also does business as Fairfax Radiology Centers—applied for forgiveness of the loan, authorities noted. But the practice falsely represented its eligible payroll costs for 98 employees on the application, allowing Fairfax Radiology to receive full forgiveness of the loan, authorities charge. In actuality, the practice was only entitled to keep $4,945,860, with it now owing $2,881,260 to the federal government.
“The civil claims settled are allegations only,” the U.S. Attorney’s Office for the Eastern District of Virginia said in an April 2 announcement, emphasizing “there has been no determination of civil liability.”
Fairfax Radiology Consultants did not...
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