Six Michigan Businesses, False Claims Act, Michigan 2023

DETROIT – Six Michigan businesses will pay a total of $534,630 to settle allegations that they made false certifications to the U.S. Small Business Administration (SBA) relating to loan eligibility under the Paycheck Protection Program (PPP).

The six businesses – Burton Hotel, Inc., 8 Mile & Hubble, Inc., Gather of Troy, Inc., Alyass Toledo, Inc., DB Troy Pub, LLC, and Fort Wayne Business Hotel, Inc. – collectively obtained 10 PPP loans in 2020 and 2021.

The government contended that these businesses falsely certified that they were eligible for the PPP loans, when in fact they were categorically ineligible because, in the last seven years, one of their owners had defaulted on a prior SBA loan and caused a loss to the government.

‘PPP loans were intended to provide critical relief to help small businesses here in Michigan and elsewhere,’ said U.S. Attorney Dawn N. Ison. ‘Our office will continue to investigate and hold accountable any individual or business that obtained relief funds under the PPP or other COVID-19 assistance programs that they didn’t deserve.’

The settlement was handled by Assistant U.S. Attorney Anthony Gentner from the United States Attorney’s Office for the Eastern District of Michigan, with assistance from the SBA’s Office of General Counsel and the SBA Office of the Inspector General.

The Paycheck Protection Program was created in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency financial support to small businesses struggling to pay employees and other business expenses.

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