Delaney Hunter William Gonzalez, PPP Loan Forgery, California 2020

California Advisors Settlement Agreement

SACRAMENTO, Calif. — In a shocking turn of events, California Advisors LLC, a lobbying firm, and its executives Delaney Hunter and William Gonzalez have been accused of engaging in fraudulent activities involving a Paycheck Protection Program (PPP) loan. According to the United States Attorney Phillip A. Talbert, the trio has agreed to pay a combined $580,000 in damages and penalties to resolve allegations that they violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act.

The allegations stem from California Advisors’ application for a PPP loan in April 2020, which was valued at $144,340. Although the Small Business Administration forgave the loan in February 2021, investigators claim that the firm knowingly made false statements in certifying its eligibility for the loan. As part of the settlement, California Advisors has agreed to pay approximately $380,000 in damages under the False Claims Act and approximately $150,000 in civil penalties under the Financial Institutions Reform, Recovery and Enforcement Act.

Delaney Hunter and William Gonzalez, the firm’s executives, have also been implicated in the scandal. They have agreed to pay $25,000 each for their involvement in the false certification process. The U.S. Attorney’s Office has praised the efforts of the Small Business Administration, the SBA’s Office of Inspector General, and other federal law enforcement agencies for their role in uncovering the scheme.

The PPP was created in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security Act to provide relief to small businesses affected by the COVID-19 pandemic. However, the program was not without its flaws, and some businesses were found to have exploited the system for personal gain.

The U.S. Attorney’s Office has vowed to continue investigating businesses that took advantage of the PPP funds at the expense of other small businesses. The case serves as a reminder of the importance of transparency and accountability in government programs.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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