⏱ 2 min read
A Lexington, Ky., automotive management company has admitted to scamming the federal government out of a COVID-19 relief loan worth over $2 million. Jeff Wyler Automotive Family, Inc. agreed to pay $2,106,927 to resolve allegations that it submitted false claims for a Paycheck Protection Program loan.
The company, which managed a network of automotive dealerships, applied for the loan by falsely certifying that it was eligible. However, it had more than 500 employees, making it ineligible for the loan under PPP regulations. The company’s employees were counted among its affiliates, which also employed hundreds of people.
The Paycheck Protection Program was created by Congress to provide emergency financial assistance to small businesses struggling to pay employees and other expenses during the pandemic. Under the program, eligible businesses could receive forgivable loans guaranteed by the U.S. Small Business Administration.
The settlement resolves a lawsuit brought by a private citizen under the qui tam provisions of the False Claims Act. The case was investigated by the U.S. Department of Justice’s Civil Division and the U.S. Attorney’s Office for the Eastern District of Kentucky.
Related Federal Cases
- Nicole Pennington, COVID Loan Scam, KY, 2023 · Kentucky
- Nicole Pennington, COVID-19 Relief Program Fraud, Lexington KY, 2023 · Alabama
- Luxury Auto Ring Busted in Charlotte · Ohio
- Mark Schena, COVID-19 Investor Fraud, Silicon Valley CA, 2023 · California
- James Pavlounis, Social Security Administration Scam, New Rochelle … · Ohio
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: Kentucky
- Location: KY
- Source: DOJ Press Release
