TOLEDO, Ohio — A St. Marys auto parts manufacturer has agreed to pay more than $3 million to settle allegations it made false claims to have federal pandemic loans forgiven.
Murotech Ohio Corp. agreed to the settlement in U.S. District Court for the Northern District of Ohio to resolve allegations brought under the False Claims Act. Just over $1 million of the settlement is restitution to the federal government.
Federal prosecutors said the company received a Paycheck Protection Program loan in 2020 after stating it had fewer than 500 employees, when it employed more than that. Prosecutors said the company received a second PPP loan in 2021 after stating it had fewer than 300 employees, when it again exceeded that number.
Murotech applied to have both loans forgiven based on meeting the program’s employee limits. The federal lawsuits stemmed from a whistleblower complaint.
The St. Marys company is owned by Muro Corp., based in Japan.
MEDIA RELEASE FROM UNITED STATES ATTORNEY FOR THE NORTHERN DISTRICT OF OHIO
Ohio Auto Parts Manufacturer Agrees to Pay $3M+ To Resolve False Claims Act Allegations Relating to Paycheck Protection Program Loans
TOLEDO, Ohio – The U.S. Attorney’s Office for the Northern District of Ohio announced today 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...
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