On March 20, the U.S. Department of Justice (DOJ) announced that concrete manufacturer Speed Fab-Crete Corporation has agreed to pay $1,817,546.25 to resolve allegations that they violated the False Claims Act (FCA) by applying for and receiving a loan that they were ineligible for through the Small Business Administration (SBA). Whistleblower Aidan Forsyth brought this allegation forward in a qui tam lawsuit.
Speed Fab-Crete Corporations applied for the SBA’s Paycheck Protection Program (PPP) loans. The PPP was a part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act from March 2020 that provides emergency loans to small businesses struggling because of the pandemic. Speed Fab-Crete applied and received this loan in 2020 for the principal amount of $1,170,000.
The DOJ alleges that it was ineligible through SBA rules due to its owners facing criminal charges. According to the government, “SBA rules disqualified a business from PPP eligibility if any owner of 20% or more of the business’s equity was subject to criminal charges.”
“This office is committed to finding and recovering PPP funds that were obtained by ineligible recipients during the pandemic,” said Acting United States Attorney Chad E. Meacham. “We will continue to investigate and take action as necessary to reclaim those funds on behalf of the American taxpayer.”
Aidan Forsyth filed this complaint under the False Claims Act qui tam provisions. This permits private parties to file suit on behalf...
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