Two California companies and their owners have agreed to pay more than $153,000 to resolve allegations that they fraudulently obtained Paycheck Protection Program (PPP) loans in violation of the False Claims Act, federal officials announced Friday.
JEV&B Services LLC and D4 Inc., along with owners William Nelson and Vicki Rollins, allegedly submitted false certifications and underreported employee numbers to secure second-draw PPP loans for which they were not eligible, according to the U.S. Department of Justice.
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WATCH HEREThe PPP, created in 2020 under the CARES Act, was designed to help small businesses maintain payroll during the COVID-19 pandemic. Second-draw PPP loans were limited to companies with 300 or fewer employees, including affiliates.
Prosecutors said Nelson and Rollins, who managed multiple affiliated companies, failed to disclose those relationships and misrepresented employee counts in loan applications submitted on behalf of JEV&B Services and D4.
The companies later had their loans forgiven.
As part of the civil settlement, the companies and their owners will repay $153,598.90, including Small Business Administration processing fees, and have agreed to repay the PPP loans in full, removing any liability for the SBA under the loan guarantees, prosecutors said.
The settlement also resolves claims brought by whistleblower Ashwani Chawla under the False Claims Act's qui tam provisions. Chawla will receive $11,519.92 from the settlement.
California
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