South Carolina federal prosecutors have secured more than $7.9 million in settlements tied to alleged Paycheck Protection Program (PPP) fraud – part of a broader national crackdown targeting businesses accused of improperly obtaining pandemic-era relief funds.
On Thursday (May 28, 2026), U.S. attorney Bryan P. Stirling announced that the District of South Carolina reached multiple civil settlements with companies accused of violating the False Claims Act by providing false information to secure PPP loans for which they were allegedly ineligible.
According to a release from Stirling’s office, the settlements resolve allegations involving more than $5 million in PPP loans issued under the Coronavirus Aid, Relief, and Economic Security (CARES) Act – the massive federal relief package enacted during the COVID-19 pandemic.
“These settlements reflect our commitment to protecting taxpayers and holding those accountable who disregard program requirements in order to obtain federal funds they are not entitled to,” Stirling said. “Our team secured these settlements in the first five months of 2026 and we’ll continue to aggressively pursue individuals or businesses who defraud our taxpayers.”
The PPP program, administered through the U.S. Small Business Administration (SBA), offered forgivable loans to qualifying businesses for payroll retention and approved operational expenses. To qualify, companies were required to certify that they met strict employee-count thresholds –...
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