Azumi Limited Restaurants, False Claims Act, Massachusetts 2023
Massachusetts - In a shocking revelation, Azumi Limited Restaurants have agreed to pay $3,602,423 to resolve allegations that they violated the False Claims Act by obtaining Paycheck Protection Program (PPP) loans for which they were not eligible.
According to the agreement, the Azumi Entities - Azumi LLC; Zuma NYC LLC; Zuma Las Vegas LLC; Zuma Japanese Restaurant Miami LLC; Inko Nito Garey St. LLC; and Beach Chu Hallandale LLC - collectively received and were granted loan forgiveness for second-draw loans in a total amount that exceeded the applicable corporate group limit for second-draw loans.
“PPP loans were intended to assist eligible small businesses during the pandemic,” said Assistant Attorney General Brett A. Shumate. “When ineligible businesses improperly obtained loans, they harmed both the taxpayers who funded the program and the eligible businesses who were denied relief.”
The Paycheck Protection Program limits were put in place to prevent large corporate groups from obtaining a disproportionate share of the limited funds that were available to assist small businesses struggling during COVID.
The Azumi Entities are limited liability companies, each of which operates a restaurant in the United States and each of which is either fully or partially owned by Azumi Limited.
As part of the settlement, the Azumi Entities admitted that they collectively received and were granted loan forgiveness for second-draw loans in a total amount that exceeded the applicable corporate group limit for second-draw loans.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts with assistance from the SBA’s Office of General Counsel and Office of the Inspector General.
Defendant: Azumi LLC; Zuma NYC LLC; Zuma Las Vegas LLC; Zuma Japanese Restaurant Miami LLC; Inko Nito Garey St. LLC; and Beach Chu Hallandale LLC
Criminal Charges: Violation of the False Claims Act
City and State: Massachusetts
Exact Date: January 12, 2023
Sentence or Outcome: Agreed to Pay $3,602,423
Dollar Amounts: $3,602,423
Except for the facts admitted by the Azumi Entities, the claims in the complaint are allegations only, and there has been no determination of liability.
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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