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Florida Duct Cleaning Co. Busted for PPP Loan Scam
Sextant Marine Consulting LLC, a Florida-based duct cleaning company, has agreed to pay $30,000 in damages and civil penalties to settle allegations that it violated the False Claims Act by obtaining more than one Paycheck Protection Program loan in 2020. The company also repaid the duplicative PPP funds in full to its lender, relieving the U.S. Small Business Administration (SBA) of liability to the lender for the federal guaranty of approximately $170,000 on the improper loan.
According to allegations, Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. Throughout 2020, PPP loan applicants were required to certify that they would not receive more than one PPP loan prior to Dec. 31, 2020. This settlement resolves allegations that Sextant applied for and received a second, duplicative PPP loan in 2020.
“PPP loans were intended to provide critical relief to small businesses so that they could retain employees and keep their doors open,” said Acting Assistant Attorney General Brian M. Boynton of the Civil Division. “We will ensure that those who improperly obtain federally guaranteed PPP loans are held accountable.”
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Southern District of Florida, with assistance from the SBA’s Office of General Counsel and Office of the Inspector General. The resolution obtained in this matter was handled by Trial Attorney Jared S. Wiesner of the Civil Division and Assistant U.S. Attorney James A. Weinkle of the Southern District of Florida.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the agency in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts.
J. Bryan Quesenberry, the whistleblower who brought the claim under the qui tam provisions of the False Claims Act, will receive $4,500. The matter remains under seal as to allegations against entities other than Sextant.
Key Facts
- State: Florida
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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