RelyOn Nutec Agrees to Pay $2.3 Million to Resolve Allegations of PPP Loan Fraud

BOSTON – RelyOn Nutec USA LLC, a company headquartered in Houma, La., has agreed to pay $2,389,213 to resolve allegations that it fraudulently obtained a Paycheck Protection Program (PPP) loan for which it was ineligible.

As part of the settlement, RelyOn Nutec USA LLC admitted that, in January 2021, it received a $1,279,707 second draw PPP loan. The company certified that it was eligible for the loan under the PPP regulations in effect at the time of the application and represented that it had 99 employees, including affiliates’ employees. RelyOn Nutec USA LLC later sought and received forgiveness of the full amount of that loan.

When it applied for the loan and when it applied for forgiveness, RelyOn Nutec USA LLC did not qualify for the loan because it had more than 300 employees, when considering employees of its affiliates. Prior to 2021 and through 2022, RelyOn Nutec USA LLC was a wholly owned subsidiary of RelyOn Nutec Holding A/S Denmark, a global company based in Denmark. When it applied for the second draw loan and when it applied for forgiveness, RelyOn Nutec USA LLC had more than 300 employees, when considering employees of its foreign affiliates.

United States Attorney Leah B. Foley and the U.S. Small Business Administration made the announcement today. Assistant U.S. Attorney Julien M. Mundele of the Affirmative Civil Enforcement Unit handled the matter.

Defendant: RelyOn Nutec USA LLC

Crime: PPP Loan Fraud

City and State: BOSTON, Massachusetts

Date: January 2021

Sentence: $2,389,213 settlement

Dollar Amounts: $2,389,213, $1,279,707

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