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DOJ Announces First PPP Fraud Settlement - Should Borrowers Be Worried?

DOJ Announces First PPP Fraud Settlement - Should Borrowers Be Worried?

Author: Robert E. LevyDate: March 15, 2021

The Department of Justice (DOJ) recently announced its first settlement involving fraud allegations related to the Paycheck Protection Program (PPP).  SlideBelts Inc., along with the company’s president and CEO, have agreed to pay a combined $100,000 in damages and penalties to resolve allegations that they committed fraud in connection with a $350,000 PPP loan. SlideBelts also repaid the PPP funds it received.

“The defendants made false statements to multiple banks in order to obtain a Paycheck Protection Program loan that should have been disbursed to an honest small business suffering financially from the economic effects of the COVID-19 pandemic,” U.S. Attorney McGregor W. Scott said in a press statement. “The Department of Justice and our partners at the SBA will use all tools at our disposal, including civil fraud statutes, to aggressively pursue those who exploit federal programs intended to help those in need during this national emergency.”

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