by Jessica S. Carey, Michael E. Gertzman, Roberto J. Gonzalez, Loretta E. Lynch, Carl L. Reisner, Jeannie S. Rhee, Richard C. Tarlowe, Jacob A. Braly, and Dana L. Kennedy

On January 12, 2021, the U.S. Attorney’s Office for the Eastern District of California announced the first civil settlement with a borrower for allegedly committing fraud in obtaining a Paycheck Protection Program (PPP) loan, in violation of the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).[1] DOJ alleged that the borrower, SlideBelts Inc., and its president and CEO falsely stated in their PPP applications that the company was not “presently involved in any bankruptcy,” which was a condition of PPP eligibility.[2] The settlement was for $100,000, and the company also previously repaid the $350,000 PPP loan. Continue reading →