On October 15, the Department of Justice (DOJ) announced that Allstar Health Providers Inc., a California-based home health agency, and its owner, Maria Chua, agreed to pay $399,990 to resolve allegations of improperly receiving and retaining multiple Paycheck Protection Program (PPP) loans in 2020.
The PPP, established by Congress under the CARES Act, was intended to provide financial support to small businesses during the COVID-19 pandemic. Under program rules, businesses were required to certify that they would not receive more than one PPP loan before December 31, 2020. The DOJ alleged that Allstar Health Providers received and retained two PPP loans, despite certifying they would not, which allegedly caused a monetary loss to the Small Business Administration (SBA), the guarantor of the loans.
This settlement also resolves claims brought by J. Bryan Quesenberry under the False Claims Act’s whistleblower provisions. Quesenberry will receive approximately $60,000 from the settlement.
“PPP loans were intended to provide critical relief to small businesses,” said\ Deputy Assistant Attorney General Brian M. Boynton. “The department is committed to pursuing those who knowingly violated the requirements of the PPP or other COVID-19 assistance programs and obtained relief funds to which they were not entitled.”
As the government intensifies its enforcement efforts, businesses that received PPP loans or other relief funds should be aware of the potential for increased scrutiny. Legal issues may arise, even if the business acted in good faith. It is crucial to have experienced legal counsel on hand to navigate any government inquiries and address compliance concerns before they lead to more significant problems.
The attorneys at Chilivis Grubman represent clients of all types and sizes in connection with False Claims Act matters, government investigations, and COVID-19 relief fraud cases. If you need assistance with such a matter, please contact us today.