Speed Fab-Crete Corporation, a precast concrete manufacturer in Kennedale, Texas, has agreed to pay $1,817,546.25 to settle allegations that it violated the False Claims Act by obtaining a Paycheck Protection Program (PPP) loan it was not eligible for.
Acting U.S. Attorney for the Northern District of Texas Chad E. Meacham announced the settlement.
The PPP, created under the CARES Act in March 2020, provided emergency loans to small businesses affected by the COVID-19 pandemic. Eligibility was determined by various factors.
Speed Fab-Crete received a $1,170,000 PPP loan in 2020 while certain owners were facing criminal charges. According to the government, this made the company ineligible, as SBA rules disqualified businesses with owners (20% or more equity) facing criminal charges.
"This office is committed to finding and recovering PPP funds that were obtained by ineligible recipients during the pandemic," said Acting U.S. Attorney Meacham.
"This settlement highlights the enhanced efforts of the SBA, working with the Department of Justice, SBA’s Office of Inspector General, and other Federal law enforcement agencies, as well as private individuals who have information about possible fraud in connection with PPP loans, to pursuing those who violated PPP program requirements and holding them accountable," said SBA General Counsel Wendell Davis.
The settlement resolves a qui tam (whistleblower) lawsuit filed under the False Claims Act. The whistleblower, Aidan Forsyth, will receive 15% of the government’s recovery.
Assistant U.S. Attorney Brian Stoltz represented the government, with assistance from Lane Siems of the SBA.
The civil claims settled are allegations only, and there has been no determination of civil liability.
