⏱ 2 min read
A Fremont company’s scheme to swindle a Paycheck Protection Program loan has landed it a hefty $950,000 fine. Innodisk USA, a subsidiary of Taiwanese multinational Innodisk Corporation, applied for and obtained a second-draw PPP loan in 2021, despite knowing it wasn’t eligible.
The loan was part of the CARES Act’s emergency financial support for businesses hit hard by the COVID-19 pandemic. To qualify, companies had to certify they employed no more than 300 employees and had a significant revenue drop.
But Innodisk USA had both the employees and the revenue to spare, and it still managed to get its hands on the loan. And to make matters worse, it sought and got forgiveness for the loan, despite knowing it was a no-go from the start.
It was a qui tam complaint, filed under the False Claims Act whistleblower provisions, that blew the whistle on Innodisk USA’s shady dealings. Blockquote, Inc. brought the action, and the United States Attorney’s Office for the Northern District of California and the SBA General Counsel’s office got the ball rolling.
United States Attorney Craig H. Missakian and SBA General Counsel Wendell Davis announced the settlement.
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📋 Key Facts
- Crime: White Collar Crime
- Defendant: PPP Scam
- Location: CA
- Source: DOJ Press Release
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