Companies Alex Stewart International and Securiport LLC Settle PPP False Claims Act…
What happened
Alex Stewart International and Securiport LLC reached a civil settlement regarding the administration of the Paycheck Protection Program by the Small Business Administration. The companies agreed to pay a combined US$1,816,943 to resolve False Claims Act allegations. The government alleged that employee count certifications used for the loans were inaccurate under applicable affiliation rules. The settlement resolved allegations only, and there was no determination of civil liability.
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Why it matters
The settlement relates to allegations of fraudulent claims involving public money distributed through the PPP program. The case arose from a whistleblower action, where the relator would receive ten per cent of the recovery. The resolution confirms that the Small Business Administration administers a program subject to False Claims Act enforcement.
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Who's involved
- Small Business AdministrationUnited States government agency that administers the Paycheck Protection Program
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Small Business AdministrationSpeculative
The Small Business Administration might face increased costs related to fraud detection and enforcement within the PPP program it administers.
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The entities involved
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Small Business Administration
United States government agency that supports entrepreneurs and small businesses