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CAN USA Inc., a company providing inspection, repair, and maintenance services with offices in Hackensack, New Jersey, and based in Harvey, Louisiana, scammed the US government by taking a $2 million Paycheck Protection Program (PPP) loan it wasn’t eligible for. In January 2021, the company applied for and received the loan, despite having more than 300 employees, including those working for its foreign affiliates. The company then sought and received forgiveness of the total amount of the loan, plus accrued interest.
The US government alleged that CAN USA Inc. violated the False Claims Act by misrepresenting its employee numbers to get the loan. The company has now settled the allegations, agreeing to pay the US $2,916,900. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act.
The whistleblower, Clearwater Metrics LLC, will receive $291,690 as its share of the recovery. The government was represented by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud and Opioid Enforcement Unit in Newark. The qui tam case is captioned United States ex rel. Clearwater Metrics LLC v. CAN USA Inc.
CAN USA Inc. fully cooperated in the investigation and resolution of the matter. The settlement highlights the importance of ensuring that companies comply with the eligibility rules for government loans and programs.
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: New Jersey
- Location: NJ
- Source: DOJ Press Release
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