⏱ 2 min read
VSoft Corporation, a banking and payment solutions provider based in Atlanta, Georgia, has been caught in a Paycheck Protection Program (PPP) loan scam in North Carolina. The company allegedly misrepresented its employee count to obtain a second round PPP loan of $1,259,732.00, claiming to be a small business with less than 300 employees when in fact it was part of an international corporation with multiple locations worldwide. This scam was uncovered in a lawsuit filed under the qui tam provision of the False Claims Act.
The allegations against VSoft arose from a lawsuit filed by a whistleblower, which was then investigated by the US Attorney’s Office, led by Assistant US Attorney Seth Johnson. The investigation found that VSoft had indeed provided false information to obtain the PPP loan, violating the False Claims Act.
As a result of the investigation, VSoft has agreed to pay $2,291,927.07 to resolve the allegations. This settlement sends a strong message to companies that attempt to defraud the government and its programs. The case is a reminder that the DOJ is committed to holding companies accountable for their actions and protecting taxpayer dollars.
The settlement also highlights the importance of the qui tam provision of the False Claims Act, which allows private parties to file suit on behalf of the US government and share in a portion of the recovery. In this case, the whistleblower played a crucial role in bringing the scam to light and ensuring that VSoft was held accountable for its actions.
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📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: North Carolina
- Location: NC
- Source: DOJ Press Release
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