Patrick Walsh, False Claims Act Violations, Florida 2023

Florida Businessman Faces $20M Settlement Over False Pandemic Relief Loans

Patrick Walsh, a Florida businessman, and his affiliated companies have agreed to a $20,074,458.70 consent judgment to settle allegations of violating the False Claims Act by providing false information in support of Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loan applications.

The 10 companies for which Walsh obtained fraudulent loans include American Blimp Company LLC; Walsh Family Land Corp.; Airsign Inc.; Airsign Airship Group LLC; Airsign Group LLC; Airsign Airships Latin America LLC; Airsign Airships Asia Pacific LLC; Airsign Airships Repair Station LLC; Aero Capital LLC; and Eagle Ridge Management Group LLC doing business as Shiloh Oil Company.

Congress created the PPP loan program and expanded access to the EIDL program in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic.

Walsh entered into a civil settlement in which he admitted to submitting PPP and EIDL loan applications on behalf of the companies listed above that provided false information about the companies' employee rosters and payrolls. He received approximately $7.8 million in fraudulent loans on behalf of various corporate entities.

Walsh used those loan proceeds for impermissible personal purposes, including the purchase of a private island, investment in Texas oil interests, and paying off personal debts. When Walsh defaulted on the PPP loans, the SBA paid the lenders in full pursuant to its guarantee obligations.

In January 2023, Walsh pleaded guilty to one count of wire fraud and one count of money laundering in connection with the fraudulent loans and was sentenced to 66 months in federal prison, which he is currently serving. The court also ordered him to pay $7.8 million in restitution and entered a forfeiture order in the same amount.

“PPP and EIDL loans were intended to help small businesses during the pandemic,” said Acting Assistant Attorney General Yaakov M. Roth. “The department is committed to holding accountable those who undermined the purpose of these programs by knowingly obtaining and retaining loan proceeds for which they were not eligible.”

The case is a significant reminder of the importance of integrity and accountability in government programs.

Source: https://www.justice.gov/opa/pr/florida-businessman-patrick-walsh-and-affiliated-companies-agree-20m-consent-judgment-settle