⏱ 2 min read
ALBANY, NY – Sark Wire Corporation, a manufacturer based in Albany, is shelling out $1.9 million to settle charges it ripped off the Paycheck Protection Program. Federal prosecutors say the company knowingly lied on its loan application to snag COVID-19 relief funds it wasn’t entitled to.
According to court documents unsealed today, Sark Wire failed to disclose its majority ownership by a Turkish conglomerate. Even more damning, they deliberately left out the employees of their overseas operations when calculating their company size. Including those workers would have pushed Sark Wire over the 300-employee limit, disqualifying them from a second-draw PPP loan.
First Assistant US Attorney John Sarcone confirmed the company “promptly acknowledged its ineligibility” and worked towards a settlement. While Sark Wire admitted to the error, they avoided a full-blown trial and the potential for more serious penalties.
The PPP, launched in early 2020, was intended to keep small businesses afloat during the pandemic. But the program was riddled with fraud, and federal investigators are still chasing down companies that gamed the system. This case is just another example of how the COVID-19 crisis created opportunities for greed and deception.
RELATED: Eau Claire Meth Dealer Gets 10 Years
🔒 Get the grimiest stories delivered weekly. Subscribe free →