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ALBANY, NY – Sark Wire Corporation, a manufacturer based in Albany, is on the hook for $1.9 million after admitting it fraudulently obtained a Paycheck Protection Program (PPP) loan. Federal prosecutors say the company deliberately misled the Small Business Administration to qualify for funds it wasn’t entitled to.
The scam centered around how Sark Wire counted its employees. The feds say the company conveniently left out workers at its foreign subsidiaries when applying for the loan and forgiveness. Had those employees been counted, the company would have blown past the 300-employee limit, disqualifying it from the program.
According to court documents, Sark Wire is majority owned by a Turkish conglomerate but failed to disclose that connection – or the foreign headcount – on its applications. It’s a classic playbook: inflate your hardship, hide your assets, and grab the government money.
While Sark Wire admitted to the error and “proactively” initiated settlement talks (read: tried to cut their losses), the $1.9 million payment serves as a warning: the feds are still digging into PPP applications, and those who cheated the system are facing consequences.