By: Richard L. Smith
A company with offices in Hackensack has agreed to pay nearly $2.9 million to resolve allegations that it improperly obtained and received forgiveness for a Paycheck Protection Program (PPP) loan, according to information released by U.S. Attorney Robert Frazer.
Federal officials said CAN USA, Inc., an inspection, repair, and maintenance services company headquartered in Harvey, Louisiana, applied for and received a $2 million PPP loan in January 2021.
According to the settlement, businesses with more than 300 employees, including workers employed by affiliated companies, were not eligible for PPP loans under the rules in effect at the time.
Prosecutors alleged CAN USA certified it had no more than 300 employees when applying for the loan, despite having more than 300 employees once workers at its foreign affiliates were included.
Authorities said the company later obtained full forgiveness of the $2 million loan, along with accrued interest.
As part of the settlement, CAN USA agreed to pay the United States $2,916,900. The company cooperated fully with the federal investigation, officials said.
The case originated under the whistleblower provisions of the False Claims Act, which allows private individuals to file lawsuits on behalf of the government.
The whistleblower in the case will receive $291,690 from the settlement.
Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud and Opioid Enforcement Unit in Newark represented the United States in the matter.