Allstar Health Providers Inc., a home health agency, and its owner, Maria Chua, agreed to pay $399,990 to settle allegations that they violated the FCA by knowingly obtaining more than one Paycheck Protection Program (PPP) loan in violation of PPP rules.
The PPP, an emergency loan program administered by the Small Business Administration (SBA) pursuant to the Coronavirus Aid, Relief, and Economic Security (CARES) Act, was intended to ease burdens on small businesses to pay employees and cover other business expenses during the COVID-19 pandemic. PPP loan applicants were required to certify their eligibility and compliance with program rules, including that they would not receive more than one PPP loan before December 31, 2020.
The government alleged that Chua submitted two PPP loan applications for Allstar Health Providers in May 2020. Despite each loan application certifying that the company would not receive more than one loan prior to December 31, 2020, Allstar Health Providers allegedly received and retained two PPP loans in 2020. The government alleged that Chua and Allstar Health Providers violated the FCA by retaining the second duplicate loan, which harmed the SBA when it purchased the loan guaranty on the duplicate loan.
The settlement resolves a lawsuit brought under the whistleblower provisions of the FCA. The qui tam case is captioned US ex rel. Quesenberry v. 2 Evil Geniuses et al., No. 20-cv-8495 (C.D. Cal.). The whistleblower, J. Bryan Quesenberry, will receive approximately $60,000 of the settlement amount.
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