⏱ 2 min read
A Louisiana-based company, RelyOn Nutec USA LLC, has been caught red-handed in a massive PPP loan scam in Massachusetts. The firm, a subsidiary of a Denmark-based global company, received a second draw PPP loan worth $1.3 million in January 2021, despite having over 300 employees and thus being ineligible for the loan.
The company, which operates in the oil and gas industry, applied for the loan by falsely certifying that it had 99 employees, including affiliates. It later sought and received forgiveness of the full amount of the loan.
The PPP loan was part of the COVID-19 relief package enacted by Congress in 2020. The Small Business Administration administered the loan program, which provided forgivable loans to small businesses for job retention and certain approved expenses.
RelyOn Nutec has agreed to pay $2.3 million to resolve the allegations, admitting that it was not eligible for the loan.
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📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: Massachusetts
- Location: MA
- Source: DOJ Press Release
