WATERBURY, CT — A local company accused of falsely claiming to have fewer employees in order to secure a Paycheck Protection Program loan has paid the government more than $2.2 million.
MacDermid Inc., which provides chemical products and technical services, paid the amount to settle False Claims Act violations, according to the U.S. Attorney’s office.
Marc H. Silverman, acting U.S. Attorney for Connecticut, said Tuesday that PPP loans were intended to help small businesses and their employees who were suffering adverse economic impacts from the COVID-19 pandemic.
“This office is committed to pursuing those who violated the requirements of pandemic assistance programs and holding them accountable,” Silverman said.
Coventya Inc., a chemical company MacDermid acquired in 2021, applied for a PPP loan for $1,075,000 in April 2021 and claimed to have less than 300 employees, according to the government. However, Coventya, along with its foreign affiliate, had more than 300 employees, so it wasn’t eligible for the loan, prosecutors said.
Coventya got the loan, then later sought and received forgiveness so it didn’t have to pay it back, prosecutors said. Coventya was acquired by MacDermid Inc. in September 2021, and is now known as MacDermid Inc.
A whistleblower will receive about $222,662 as its share of the recovery amount, prosecutors said.
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