John Doe, PPP Loan Fraud, California 2020

⏱ 2 min read

Mutoh America Inc., a Phoenix-based printing manufacturer, got caught red-handed in a brazen PPP loan scam. The company’s greed landed it a $900,000 fine for faking its employee count to secure a second-draw loan.

According to the settlement, Mutoh had over 300 employees at the time of the loan application, far exceeding the limit set by the American Rescue Plan Act. The company’s Japanese parent, Mutoh Holdings Inc., had a whopping 684 employees in March 2019, and around 674 employees in March 2021.

Mutoh applied for and received the loan on March 18, 2021, without disclosing its affiliated entities’ employees. The Coronavirus Aid, Relief and Economic Security Act, enacted in March 2020, provided emergency financial assistance to small businesses affected by the pandemic.

The Paycheck Protection Program (PPP) was a lifeline for millions of Americans struggling to stay afloat during the crisis. But Mutoh exploited this program for its own gain, violating the False Claims Act. The company’s actions are a stark reminder of the risk of PPP loan abuse.

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